CHARLOTTESVILLE, VA (CVILLE RIGHT NOW) – City Council Monday night had to move $1 million around, but there’s no budgetary impact over the next two years according to Councilor Natalie Oschrin Tuesday on WINA Morning News.

“Anyone who’s worried about this, take a deep breath,” Oschrin said. “Because nothing is getting lost, Kindlewood is not losing any funding, projects are not going to get stalled because of this.”

Council approved moving $1 million from the Kindlewood Phase Three project, that has not yet been started, to the Carlton Mobile Home Park to meet terms of a loan payment borrowed for the land acquisition.

“When we were gearing up for the ’27 budget we asked for a revised amortization schedule from PHA (Piedmont Housing Alliance) at that time and we received one that was adjusted for the interest, but it did not include the principal, and so there was a miscommunication between us and them,” explained City Budget Director Krissy Hammill to Council. “So we adjusted the numbers in the CIP (Capital Improvement Program) at the time to include only annual interest payments with a balloon at the end.”

“Turns out the principal payments are a required part of their loan term,” Hammill said.

Oschrin said Council was briefed about the item and it wasn’t PHA’s fault.

“It was really how the bank communicated to us, included kind of a different style of accounting than I think anyone had ever seen before,” said Oschrin. “So we thought it was one thing, they were communicating something else and we’ve got it cleared up for now and got it fixed moving into the future.”

Hammill said this action will be addressed going into the 2028 CIP where adjustments will be made for with the updated allocations.

“Since it the middle of the year and we’re no in the middle of a budgeting process right now, we’re just moving the money from one to the other to close that gap for the year,” said Oschrin.

It’s a case that the money not being used yet for Kindlewood is available to move to Carlton which needs it now, and they’ll adjust the budget items reflecting that next year.

The Carlton Mobile Home Park rebuild is a joint project between Habitat for Humanity of Greater Charlottesville and PHA in which Habitat bought the 6-acre property at the request of residents who feared being priced out if a developer purchased it.

The city is backing more than $8.5 million in loan agreements for the project run by the joint venture Habitat Carlton Alliance for the property purchase, and Habitat is currently working with the residents preparing for the rebuild for a community they’re helping design.

There is no construction date yet, but will be done in phases so residents will be living on other parts of the park during construction of one phase.