DANVILLE — Danville Housing Authority officials have at least two new developments in early visions for the future of affordable housing in the city.

One, replacing Fair Oaks housing with less density housing; and two, a new downtown, mixed-income site.

Mayor Scott Eisenhauer’s vision doesn’t replace the housing where Fair Oaks now sits. He said all additional Section 8 vouchers for displaced residents wouldn’t have to stay in the community.

“We’d open up the current Fair Oaks for commercial and/or industrial development,” Eisenhauer said.

He does see the housing complex being replaced with another site, but not in the immediate downtown area, however.

The city has several potential west downtown Renaissance sites, but Eisenhauer said the infrastructure, sewer and water mains, are old and likely couldn’t accommodate a larger complex.

Eisenhauer, however, commends the DHA for working with the city to look to the future.

At least they’re taking “a more holistic approach” in looking at the issue, he said.

“On paper what they say is very similar to what we have recommended in the (Community Development Block Grant funding consolidated) plan,” Eisenhauer said.

He’s waiting to see a more detailed outline of the DHA’s housing-plans vision.

In a press release DHA executive director Greg Hilleary released Monday, the day before the city council today votes on the city’s consolidated plan that includes public housing reduction recommendations, he said one new development would be a 70-to-90-unit, mixed-income development somewhere in the downtown area.

The location could utilize vacant properties or other areas suitable for development in an area about a square block near bus transportation and retail.

“We are going to have to have a place for people to go to,” he said about when Fair Oaks is razed. The DHA’s vision also includes the redevelopment of Fair Oaks.

The complex, located on the city’s northeast side, was built during the 1940s and 1950s. The site has 326 townhouse-style apartments ranging from two to five bedrooms.

“This site could be changed to accommodate single-family homes and or duplexes or triplexes. Reducing the density would be a key factor. The site could end up partially public housing or project-based Section 8, while a part could be fair market rental units,” the press release states.

DHA staff and board members on Friday met with a Chicago developer, The Habitat Co., and members of the Champaign County Housing Authority staff to discuss future changes to affordable housing in Danville.

As part of the meeting, DHA officials toured the two newest mixed-income developments in the Champaign County Housing Authority’s inventory that were previously public housing sites.

Hilleary estimated that one 90-unit complex was rebuilt with about 70 units. The other complex also is about the size of DHA’s Beeler Terrace, which has 51 units at Seminary and Washington streets. Neither is the size of Fair Oaks.

Hilleary said financing will be the key in shaping the developments. There could be U.S. Department of Housing and Urban Development financing along with tax credits, which are soft right now, or bond issues and other local debt financing.

The city could utilize its HUD-issued Community Development Block Grants or other funding sources to assist in making these developments come to fruition, or the city could also provide land and infrastructure for the initial development to facilitate financing, he added.

“As we move forward, additional meetings and site visits to other mixed-income properties will be planned. We will be working closely with the city and the HUD regional office in Chicago as we continue this multi-year process to develop new affordable housing for our community,” Hilleary said in the press release.

As the DHA develops its vision of affordable housing for the future of Danville its next steps include putting together a written vision and plans; having HUD approve the demolition of Fair Oaks; visiting the HUD regional office and discussing options and funding; and recreating the DHA’s 501(c) tax-exempt designation for the developments.

“There are tons of questions. It’s really complicated,” Hilleary said. “I think this is a community effort.”

“I think this is the new look for public housing as we move into the future,” Hilleary added of the mixed-income sites.