City of Alexandria, Virginia
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MEMORANDUM
DATE: MARCH 19, 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 a Housing Trust Fund Grant of up to $400,000 to Housing Alexandria to Provide Rental Subsidies for Eight Units at the Naja Apartments (Building Two) of the Glebe and Mount Vernon Redevelopment in Arlandria
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ISSUE: Consideration of a Housing Trust Fund Grant of up to $400,000 to Housing Alexandria to Provide Rental Subsidies for Eight Units at the Naja Apartments (Building Two) of the Glebe and Mount Vernon Redevelopment in Arlandria
RECOMMENDATION: That City Council:
(1) Approve a rental subsidy grant in the amount of $400,000; and
(2) Authorize the City Manager to execute any necessary documents related to the rental subsidy grant agreement for Housing Alexandria’s Virginia Housing Opportunity Tax Credit (HOTC) application.
BACKGROUND: Housing Alexandria is implementing the multi-phase redevelopment at Mount Vernon Avenue and Glebe Road in the Arlandria-Chirilagua neighborhood. When complete, the 3.2-acre consolidated site will provide approximately 495 affordable rental units and nearly 20,000 square feet of community-serving commercial space.
The redevelopment began with significant infrastructure replacement and site consolidation to modernize utilities and enable higher-density affordable housing. Council Action #1 in 2022 authorized land acquisition and initial infrastructure work. Council Action #2 in 2023 advanced additional site preparation and financing commitments. Council Action #3 in 2024 provided major Housing Opportunities Fund (HOF) support for construction of Building One (Sansé Apartments), which is currently under construction and will deliver 416 affordable units beginning in 2026.
Building Two (Naja Apartments) is the final phase and will deliver 79 affordable rental units and approximately 15,750 square feet of commercial space along Mount Vernon Avenue. Across the development, all units are affordable at or below 80% of AMI, with more than 75% at or below 60% AMI and approximately 25% at or below 40% AMI. More than half of the units are two- and three-bedroom apartments.
DISCUSSION: The proposed rental subsidy grant, for this phase will support eight units (10% of total units) proposed to be affordable at or below 60% AMI (AMI). The subsidy will supplement rents for an initial five-year term. Since the Virginia Housing Opportunity Tax Credit (HOTC) program is competitive, the rental subsidy will make HALX’s application more competitive.
FISCAL IMPACT: The $400,000 rental subsidy grant for this phase will be funded from Housing Trust Fund (developer contribution) and loan repayment proceeds, consistent with the City’s current practice.
ATTACHMENTS:
None
STAFF:
Emily A. Baker, Deputy City Manager
Christina Zechman Brown, Deputy City Attorney
Aspasia Xypolia, Deputy Director, Office of Housing
Tamara Jovovic, Housing Program Manager, Office of Housing