City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 4, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Wesley Housing Development Corporation Funding Request for Lynhaven Apartments.
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ISSUE: Funding request from Wesley Housing Development Corporation (WHDC) for the renovation of Lynhaven Apartments.
RECOMMENDATION: That City Council:
1) Approve a new loan of $1.078 million to WHDC for the substantial renovation of the 28-unit Lynhaven Apartment complex, comprised of $862,400 in federal HOME and $215,600 in local matching funds from the Housing Opportunities Fund, to be added to the outstanding principal and interest balance of approximately $422,000 from the existing City loan on the property for a total loan amount of $1.5 million; and
2) Authorize the City Manager to execute all necessary documents in connection with this project and its funding, including a support letter for WHDC's 4% (non-competitive) Low Income Housing Tax Credit (LIHTC) application to VHDA and for tax exempt bond financing.
DISCUSSION: WHDC, which has an existing $422,000 City loan balance on the Lynhaven Apartments, is requesting an additional City loan of $1.078 million in order to undertake a substantial $3.2 million rehabilitation of that property. The City's 2002 loan of $325,000 assisted WHDC only to purchase the 28-unit garden style complex located at 3521 Commonwealth Avenue. The Lynhaven property consists of 23 two-bedroom and five one-bedroom apartments in four buildings.
The planned substantial rehabilitation of the building is designed to reduce operating costs and increase the useful life of the property. The proposed renovation will make significant upgrades to the exterior of the property, completely renovate all interior units and common areas...
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