City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 19, 2012
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
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Consideration of a Request from AHC, Inc., for a Predevelopment Loan to facilitate a Proposed Affordable Housing Development on East Reed Avenue.
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ISSUE: Provision of $250,000 in predevelopment funding as a loan to AHC to help facilitate its proposed 77-unit affordable housing development on East Reed Avenue.
RECOMMENDATION: That City Council authorize a $250,000 loan to AHC, Inc. from the City’s Housing Trust Fund for predevelopment costs for the proposed East Reed affordable housing development, with these funds to be repaid if the project receives future City land use approvals and is successful in its application for 2013 low income housing tax credits (LIHTC) from the Virginia Housing Development Authority (VHDA).
BACKGROUND: AHC, Inc. (AHC) is a 501(c)(3) nonprofit housing development entity. Since its establishment in 1975, AHC has developed or preserved more than 5,000 units of affordable and workforce rental housing among the 39 apartment communities it owns in Arlington County, Fairfax County, the City of Richmond, the Virginia Tidewater region, the City of Baltimore and other Maryland jurisdictions. AHC has been designated an “experienced affordable housing developer” by the Virginia Housing Development Authority (VHDA) for its proven success in developing, financing, and operating sustainable tax credit funded properties, including both new construction and preservation/rehabilitation of existing complexes. In addition to managing its own rental portfolio, AHC also operates a robust resident services program and provides third party property and asset management services.
The East Reed development proposed by AHC, and depicted in Attachment 1, would b...
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