Housing Authority of Winston-Salem to receive $2.5 million in federal funding

The Housing Authority of Winston-Salem is being awarded $2.5 million in federal funding but, for now, the money can't be used toward a transformational housing project that is facing a deficit.

The funds from the Department of Housing and Urban Development (HUD) come as the next phase in the city's Choice Neighborhood Initiative faces a $2 million gap. The project aims to bring more than 400 mixed-income units to the Cleveland Avenue neighborhood.

At a recent Housing Authority of Winston-Salem meeting, Executive Director Kevin Cheshire said the amount of money from HUD that can be used in a project is limited.

"So right now, we're still looking for local dollars or philanthropic dollars to close that approximately $2 million gap," he says. "We cannot use the federal dollars, right now, to close that."

Cheshire says discussions will be held with HUD officials about ways to possibly fast-track track use of the money. He says ongoing demolition at the project's site will continue through December, at which point if the deficit remains there could be cause for concern.

A brief ceremony for the awarding of the funds will take place Wednesday at 2 p.m. on New Hope Lane.

In other business, Cheshire says repairs for the second and final elevator at Crystal Towers are on schedule to be finished by the end of August.

Residents of the 201-unit affordable housing complex have long pushed the city to address the building's deficiencies. A full assessment of Crystal Towers is planned once both elevators are operational.