City of Alexandria, Virginia
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MEMORANDUM
DATE: JANUARY 16, 2024
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: HELEN S. MCILVAINE, DIRECTOR, OFFICE OF HOUSING
DOCKET TITLE:
TITLE
Consideration of a Resolution Designating the Sites of the Ladrey Senior High Rise and 600 N. Fairfax Street (the former Alexandria Redevelopment Housing Authority Headquarters) a Revitalization Area. [ROLL-CALL VOTE]
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ISSUE: Consideration of a resolution designating the sites of the Ladrey Senior High Rise at 300 Wythe Street and the former Alexandria Redevelopment Housing Authority Headquarters (ARHA HQ) building at 600 N. Fairfax Street which are proposed to comprise the Ladrey Redevelopment Project Site (Ladrey Redevelopment Project Site) a “Revitalization Area” pursuant to Virginia Code Section 36-55.30:2.A.
RECOMMENDATION: That City Council:
(1) Approve the Resolution (Attachment) designating the Ladrey Redevelopment Project Site a Revitalization Area pursuant to Section 36-55.30:2A of the Virginia Code following approval, if granted, of the related land use matters at the January 20, 2024, public hearing; and
(2) Authorize the City Manager to execute such documents as may be necessary to support ARHA’s application for Low Income Housing Tax Credits related to the Ladrey Redevelopment Project and Resolution.
BACKGROUND: Built in 1978, ARHA’s Ladrey Senior High Rise is an 11-story, 170-unit public housing residence that serves seniors and persons with disabilities. Adjacent to Ladrey, ARHA’s former headquarters building, built in 1956, is vacant after ARHA acquired a larger replacement building located at 401 Wythe Street, to centralize agency operations several years ago. ARHA and its third-party development partners, Winn Development and IBF, propose demolishing the existing high rise and headquarters buildings to construct a new five-to-seven story multifamily residential project on both parcels. The redevelopment proposal (DSUP #2023-10011) is scheduled to be considered by the Planning Commission and City Council at their January public hearings.
ARHA’s redevelopment concept includes 270 rental units, with 63% of the units proposed to be deeply affordable at 30% of the Area Median Income (AMI), 7% at 60% AMI, and the balance at 80% AMI. The 170 units affordable at 30% AMI will be Resolution 2876 replacement units and will have Project-Based Vouchers. These vouchers are funded by the U.S. Department of Housing and Urban Development (HUD) and replace public housing subsidy with subsidy that will supplement rent paid by the household to approximate fair market rent, generating greater cash flow to support future operations and maintenance. The project is expected to be funded using Low-Income Housing Tax Credits (LIHTC), both competitive (9%) and non-competitive (4%) and tax-exempt bonds, as well as other sources. ARHA is not requesting City funding. The new HUD subsidy source allows ARHA and its developer partners to borrow money - something much more difficult to obtain in prior public housing redevelopment. All units will be committed affordable for a minimum of 40 years. During construction, existing residents will be relocated with tenant protection vouchers, and all will have a right to return to the new building when it is completed.
The new development will expand housing opportunities for senior and disabled families in Alexandria. ARHA will operate the new community as “housing for persons 55 years of age and above.” As defined in federal and state law, 80% of the units in the community will be restricted to households that have at least one member who is 55 or older. The remaining 20% of the units can be occupied by households of any age. This mix of ages allows existing Ladrey residents with disabilities who are under 55 to return to the community while reserving most of the units for senior housing.
ARHA will submit its application to Virginia Housing (VH) for competitive tax credits in mid-March 2024. A City Council resolution designating the project site a Revitalization Area will allow ARHA to take advantage of priority point criteria. In Ladrey’s case, ARHA’s consultants have assessed that it would not be economically feasible to undertake a renovation of the existing building to meet current living standards for senior and disabled residents.
DISCUSSION: The Resolution designating the ARHA Ladrey site a revitalization area helps make ARHA’s application for low-income housing tax credit equity more competitive in terms of aligning the project with funding priorities established by Virginia Housing. Consistent with the City Attorney’s past interpretation of the relevant Virginia Code Section, staff believe that the proposed development of affordable housing at this site provides an economic benefit to the City that would not occur without government assistance, including federal tax credits, as well as other planned public and private resources, which criteria comply with requirements of the designation.
FISCAL IMPACT: None related to the Resolution.
ATTACHMENT: Resolution Designating the ARHA Ladrey Project Site a Revitalization Area
STAFF:
Emily A. Baker, Deputy City Manager
Christina Zechman Brown, Deputy City Attorney
Eric Keeler, Deputy Director, Office of Housing
Tamara Jovovic, Housing Program Manager, Office of Housing
Kim Cadena, Housing Analyst, Office of Housing
Kenneth Turscak, Housing Analyst, Office of Housing