City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 9, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: Emily A. Baker, Deputy City Manager and Interim Director of Transportation and Environmental Services
DOCKET TITLE:
TITLE
Consideration of a Resolution Authorizing the Issuance of Revenue Bonds by the Alexandria Redevelopment Housing Authority (ARHA) for the Next Phase of The Heritage at Old Town Redevelopment Project [ROLL CALL VOTE]
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ISSUE: Consideration of a Resolution authorizing the issuance of revenue bonds by the Alexandria Redevelopment and Housing Authority (ARHA) in an amount not to exceed $20,000,000 to Jair Lynch Real Estate Partners (JLRP) to redevelop rental housing known as the Heritage at Old Town. Block 4. The first phase of the project is underway and these bond funds will advance Block 1, located at 435 S. Alfred Street, which includes 288 units, with 52 affordable.
RECOMMENDATION: That City Council receive and adopt the attached Resolution (Attachment 1) as recommended by ARHA.
BACKGROUND: In December 2021, Jair Lynch acquired an existing 244-unit mixed-income apartment complex known as “Heritage at Old Town.” The complex, which is spread across three blocks (Blocks 1, 2, and 4), was comprised of 12 three-story garden-style buildings and a six-story midrise building (431 S Columbus Street). The Heritage project used the Residential Multifamily Zone (RMF) which exchanges substantial increases in density for the provision and/or preservation of large components of deeply affordable housing (40% AMI). In addition to replacing all the existing HAP-subsidized units, 55 net-new affordable units will be built, with nearly all affordable at 40% AMI. The project will also build 555 market rate units. The project is being financed over several phases to enable use of multiple sources. When completed, the Heritage will offer a mix of units and affordability across all buildings and blocks, with residents sharing all property amenities. It is noted that through use of the RMF the value of the affordable housing being provided by a private developer, at no cost to the City, was estimated at $100+ million in the 2018 South Patrick Street Housing Affordability Strategy. The developer’s presentation to ARHA regarding the Block 1 phase is attached (Attachment 2).
DISCUSSION: ARHA re-established its revenue bond issuance function about eighteen months ago and, in June 2024, issued bonds for the first phase of the Heritage at Old Town.
Construction of the project began in Spring 2025. The bond program expands access to tax exempt and taxable bonds to qualified developers seeking financing to acquire, rehabilitate and/or develop eligible multifamily projects. Projects proposed for this financing must provide either 20% of the units at rents affordable to households with incomes at or below 50% of the area median income (AMI) or 40% of the units at rents affordable to households with incomes at or below 60% of the area median income. The bond program generates fees for ARHA in exchange for the Authority issuing the bonds and monitoring projects financed.
Pursuant to Section 147 (f) of the 1986 Internal Revenue Code, as amended, City Council, as the governmental unit having jurisdiction over ARHA as the issuer of private activity bonds, as well as the area where the project is located, must approve issuance of the bonds through a Resolution. ARHA held a public hearing regarding the bond issuance at its board meeting on November 24, 2025 (Attachment 3) and approved the issuance at its December 8 meeting (Attachment 4).
It is noted that Jair Lynch has accelerated its initial schedule for funding Block 1 because of Virginia’s increasingly competitive application process to secure tax-exempt bonds. With Block 4 under construction, Jair Lynch received 4% low-income tax credits (LIHTC) this Fall and has secured a tax credit investor. The developer believes the best chance for the next phase to complete a financial closing and begin construction in 2026 is to apply for bonds in the January round instead of waiting until March.
FISCAL IMPACT: No impact. ARHA has authority to issue revenue bonds for certain activities and has done so frequently in the past. An administrative fee is charged to applicants for the bond financing. Since the bonds are conduit revenue bonds, neither the City nor ARHA is obligated to repay the bonds or the interest on the bonds. The obligation rests solely with the borrower.
ATTACHMENTS:
1. Resolution for ARHA Revenue Bonds for Heritage at Old Town Block 1
2. Developer’s Presentation for Heritage at Old Town Block 1
3. ARHA 2025 Notice of Public Hearing for 435 S. Alfred Street
4. Resolution for Approval of Issuance of Bond for Heritage at Old Town Block 1
STAFF:
Helen S. McIlvaine, Director, Office of Housing
Kevin Greenlief, Director, Department of Finance
Christina Zechman Brown, Deputy City Attorney