City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 23, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: HELEN MCILVAINE, DIRECTOR, OFFICE OF HOUSING
DOCKET TITLE:
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Consideration of the City’s Draft FY 2027 to FY 2031 Five-Year Consolidated Plan for Housing and Community Development and Draft One Year Action Plan to Enable HUD FY 2027 Funding.
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ISSUE: City's Draft FY 2027 to FY 2031 Five-Year Consolidated Plan for Housing and Community Development and Draft One Year Action Plan, including an Application for
FY 2027 Federal Funds.
RECOMMENDATION: That City Council:
1. Receive the City's Draft FY 2027 to FY 2031 Five-Year Consolidated Plan for Housing and Community Development (“Draft Consolidated Plan”) and Draft FY 2027 Annual Action Plan for Housing and Community Development (“Draft Action Plan”), which contains the City’s draft application for $1,055,741 in Community Development Block Grant (CDBG) monies and $588,874 in Home Investment Partnership Plan (HOME) monies;
2. Approve the Plans; and
3. Authorize the City Manager to make any necessary adjustments to the Consolidated Plan and FY 2027 Action Plan and grant application to comply with HUD regulations and/or reflect changes to grant figures received from the U.S. Department of Housing and Urban Development (HUD) and execute all necessary documents
BACKGROUND: The Office of Housing has prepared the Draft Consolidated Plan (Attachment 1) in consultation with the Department of Community and Human Services, the City Finance Department, the Planning and Zoning Department, the Alexandria Redevelopment and Housing Authority (ARHA), as well as other agencies and nonprofit organizations that provide a range of services for the benefit of very low, low, and moderate income persons. HUD provided the underlying data from sources such as the American Community Survey, the Comprehensive Housing Affordability Strategy, and Longitudinal Employer-Household Dynamics Data. This data may vary slightly from demographic information the City tracks.
The Consolidated Plan and Action Plan will be posted online as part of HUD’s efforts to better monitor and track local use of federal funds to meet national objectives. A number of City plans such as the Housing 2040 Plan, the ARHA Strategic Plan, the Age Friendly Plan for a Livable Community, the Strategic Plan to Prevent and End Homelessness, and The Children and Youth Master Plan provide an excellent roadmap of the activities, services, and resources the City will dedicate to meet various objectives of interest to HUD.
The One-Year Action Plan contains the City’s applications for $1,055,741 in CDBG funds and $588,874 in HOME Program funds. HOME funds in the amount of $220,828 are proposed for the use of the Housing Opportunities Fund program to support development of affordable sales and rental housing with an equal amount going toward downpayment and closing cost assistance for first-time homebuyers. The majority of CDBG funds ($667,323) are proposed for the Rental Rehabilitation Loan Program which provides non-profit affordable housing providers with funds to rehabilitate buildings without having to increase rents to pay for capital repairs. CDBG funds are also proposed for the use of the Rental Accessibility Modification Program ($49,407) to provide accessibility modifications in privately-owned rental properties to benefit disabled renter households with incomes at or below HUD’s moderate-income limits; for the Transitional Assistance Program ($49,407) to provide security deposits and rental assistance to households experiencing, or at-risk of, homelessness; and for the City’s Winter Shelter program ($19,763) to provide seasonal shelter for persons experiencing homelessness; in addition to other activities described in the Draft Annual Action Plan.
The Draft Consolidated Plan includes an allocation of $5,278,705 in HUD Section 108 loan funding, with repayment structured through future CDBG entitlement funds.
In developing the City’s FY 2027 Proposed Budget for the Office of Housing, emphasis was placed on allocating funds for affordable rental housing preservation. In FY 2027, the Office of Housing is continuing its Rental Rehabilitation program and adding two community service-oriented programs to the CDBG program: a housing crisis outreach worker and funding for youth employment training. For most programs, Office of Housing program activity levels were maintained at levels similar to FY 2026.
A Resident Summary of the Draft Action Plan was distributed to interested parties via email on April 9, 2026 (Attachment 2). This document is a concise summary of the objectives and outcomes in the FY 2027 Draft Action Plan. The City provided a 30-day period to receive public comments on the Draft Consolidated Plan which ended on April 22. The Draft Consolidated Plan (containing the Draft 2027 Annual Action Plan) and the Resident Summary are posted on the City’s website at www.alexandriava.gov/Housing <http://www.alexandriava.gov/Housing>, and hard copies are available at the Office of Housing and City libraries. A public hearing to accept verbal comments was held at the April 9 meeting of the Alexandria Housing Affordability Advisory Committee (Attachment 3). The final FY 2027 Action Plan, including any additional public comments and responses, any revisions made to ensure compliance with HUD requirements, and any technical/budget corrections will be submitted to HUD via its online portal following City Council’s approval. Any substantial changes made after Council approval will be returned to Council for their review.
DISCUSSION: The City of Alexandria’s Draft Consolidated Plan for Housing and Community Development has been prepared in accordance with regulations set forth by HUD. These regulations require that participants in certain HUD programs including, but not limited to, the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) programs, develop and submit a five-year strategic plan for housing and community development.
The Draft Consolidated Plan is a comprehensive five-year planning document that examines the City’s overall needs for affordable housing, shelters/services for the homeless, housing for persons with special needs, and community and economic development. The Plan defines the City’s strategy for addressing these needs for City FY 2027 to FY 2031 and includes a One-Year Action Plan with specific objectives to be undertaken or accomplished during City FY 2027. A draft budget of planned expenditures to meet identified objectives is included. The Draft Action Plan is consistent with ongoing program activities as well as core services included in the City Manager’s Proposed FY 2027 Budget.
FISCAL IMPACT: Upon HUD approval of the Action Plan, HUD will appropriate $1,644,615 in federal funding to the City for FY 2027, including $1,055,741 in CDBG funds and $588,874 in HOME Program funds. In addition, $5,278,705 in Section 108 loan funds are allocated to support the Naja project in Arlandria.
The FY 2027 proposed budget is consistent with the Draft FY 2027 Action Plan.
ATTACHMENTS:
1. Draft FY 2027-2031 Five-Year Consolidated Plan
2. Resident Summary of FY 2027 Draft Action Plan
3. Presentation on the Draft FY 2027-2031 Consolidated Plan and the FY 2027 Draft Action Plan
STAFF:
Emily A. Baker, Deputy City Manager
Christina Zechman Brown, Deputy City Attorney
Aspasia Xypolia, Deputy Director, Office of Housing
Jose Gonzalez, Housing Program Manager, Office of Housing
Kim Cadena, Housing Analyst, Office of Housing