The city’s housing authority is launching a new phase of its plan to turn over all of its public housing to private ownership.

On Thursday, Sept. 30, the Richmond Redevelopment and Housing Authority is to symbolically turn over 204 apartments in five smaller properties that primarily serve families, the elderly and disabled to New Jersey-based The Michaels Organization.

According to RRHA, TMO is investing about $69 million to purchase, revitalize and restore the units, using low-interest tax credits and other subsidized financing to make the initiative work.

The property transfer, with approval from the U.S. Department of Housing and Urban Development, was completed in June. Some renovation work already is underway.

TMO initially has gained the Fulton Apartments, 1221 Denny St. in the East End, with 64 units; the Randolph Apartments, 1901 Idlewood Ave. in the West End, with 52 units; and the Afton Avenue Apartments, 2201 Afton Ave. in South Side, with 40 units.

TMO also has gained Oscar E. Stovall Place, 100 W. 24th St. in South Side, with 30 units; and the Bainbridge Apartments, 28th and Bainbridge streets, with 18 units.

The units were developed between 1971 and 1984, with only Stovall and Randolph having received facelifts since then.

Based on the figures supplied by RRHA, TMO paid about $100,000 per unit and is planning to invest about $226,000 per unit to modernize the five complexes.

The renovation will bring central air conditioning, washer-dryers and dishwashers to each unit, RRHA stated.

RRHA has not announced any minority business participation with this initiative. RRHA stated that Richmond-based Moseley Architects has been hired to handle the design work, while Henrico County-based The Breeden Company, a major apartment developer, has been tapped as general contractor.

TMO will operate the units under the umbrella name of Rich- mond Family Housing, RRHA said. In addition, RRHA noted that a nonprofit called Better Tomorrows has been hired to provide social services to residents of the complexes after the renovations are completed.

“The residents of these communities deserve an exceptional living environment to call home and raise their families. With this public-private partnership, we will achieve that goal,” said Stacey Daniels-Fayson, RRHA’s interim chief executive officer.

RRHA has gone this route because it, like other local authorities, has seen the federal funding for maintenance shrink. HUD has been pushing for privatizing public housing for more than a decade because of funding shortfalls from Congress.

“Michaels [Organization] is grateful for the trust RRHA has placed in us to revitalize these communities and lift the lives of the residents who live there,” said Curtis Adams, the TMO vice president who is leading the renovation and redevelopment of the Richmond units.

According to RRHA, TMO paid $22.8 million for the five properties, with RRHA retaining the land and providing a 99-year lease to the company. RRHA also is financing the property purchase, Ms. Daniels-Fayson said.

TMO also raised $46 million for redevelopment work through the sale of tax credits and through securing tax-exempt bond finding, RRHA said.

TMO was chosen in 2018 to take on this initiative, Ms. Daniels- Fayson said, noting it took time to put all the financing pieces in place.

TMO is in line to gain six other properties with a total of 349 units. That changeover is expected to be completed in 2022 after the financing is assembled. Virginia Housing, the state’s home financing operation, has received applications from TMO to take on much of the financing.