ALBEMARLE COUNTY, Va. (CBS19 NEWS) -- Southwood Redevelopment received a million-dollar community block grant from Gov. Glenn Youngkin.

The governor’s office handed out $18 million in funding for projects throughout the state.

The grant will kickstart the building process for Southwood’s third village.

"Moving dirt around and start filling sewer lines, that kind of thing. That sort of early infrastructure that's going to help us build the neighborhood where the houses go," said Dan Rosensweig, president and CEO of Habitat for Humanity of Greater Charlottesville.

The growing mixed-income community is a half a billion-dollar project. Besides grants, funding comes from the county, market rate sales, mortgages and donations.

“Not only is this incredibly ambitious in scale, but how we're doing it is really important to and that is each neighborhood of residents who now live in the mobile homes, get together and design their own pocket neighborhoods,” Rosensweig said.

He said this grant is just one more step to their final goal: affordable housing.

“There just simply isn't housing for people, the folks here at Southwood, the 1500 people who lived here were in danger of immediate displacement. When Habitat stepped in 15 years ago and promised that they could stay for the rest of their lives affordably,” he said.

Construction for village three will start in the new year.