City of Alexandria, Virginia
________________
MEMORANDUM
DATE: JUNE 25, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: ASPASIA XYPOLIA, ACTING DIRECTOR, OFFICE OF HOUSING
DOCKET TITLE:
TITLE
Consideration of a Resolution Authorizing the Issuance of Revenue Bonds by the Alexandria Redevelopment and Housing Authority (ARHA) for the CLI New Elbert LLC Elbert Avenue Project. (Not a Public Hearing Item)
BODY
_________________________________________________________________
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 $16,000,000 to CLI New Elbert LLC to finance and refinance certain costs of the acquisition, redevelopment, construction, and equipping of a 91-unit affordable apartment community located at 3908 Elbert Avenue in the City of Alexandria, Virginia.
RECOMMENDATION: That City Council receive and adopt the attached Resolution (Attachment 1), as recommended by ARHA.
BACKGROUND: Community Lodgings, Inc. (CLI) is a nonprofit affordable housing developer and operator with a long track record in Alexandria. The Elbert Avenue Project will redevelop 3908-3916 Elbert Avenue in the Arlandria neighborhood, replacing an existing 28-unit committed affordable property with a new 6-story building containing approximately 91 affordable apartments and a total floor area of approximately 127,000 square feet. The project will serve households with incomes ranging from at or below 30% to 60% of the Area Median Income (AMI), consistent with the affordability requirements of the Residential Multifamily (RMF) Zone under which it received land use approval.
The project advances the recommendations of the 2020 Arlandria Chirilagua Plan Update to preserve, improve, and expand housing affordability in partnership with community-based organizations. In addition to the deeply affordable rents, the building will include structured parking, interior and exterior recreational spaces, visitability features, fully accessible units, and energy efficiency upgrades to reduce resident utility costs. Most units will be family-sized. CLI’s resident relocation plan was reviewed and approved by the Landlord Tenant Relations Board pursuant to the DSUP, and all income-eligible residents will have a right to return.
City Council has previously taken several actions in support of this project:
• On July 2, 2024, City Council approved (File #24-2217) a Housing Opportunities Fund (HOF) loan of $3,475,000 - including $3,000,000 in new FY 2025 CIP funds and the consolidation of a predevelopment loan and prior rehabilitation loan balance - as well as a pilot rental subsidy grant of $350,000 from the Housing Trust Fund, to support CLI’s application for Virginia Housing Opportunity Tax Credits.
• Also on July 2, 2024, City Council approved (File #24-2258) a Resolution designating the Elbert Avenue Project site a “Revitalization Area” pursuant to Virginia Code Section 36-55.30:2.A, in support of CLI’s application for state Housing Opportunity Tax Credits.
DISCUSSION: CLI is now proceeding with bond financing as a component of the project’s overall capital structure, which includes competitive state housing opportunity tax credits and multiple rounds of 4% federal low-income housing tax credits (LIHTC). The project’s location in Arlandria, a federally designated Qualified Census Tract (QCT), provides a basis boost that enhances the tax credit equity available to the project and supports the use of tax-exempt bond financing.
ARHA’s bond program expands access to tax-exempt and taxable bonds for qualified developers seeking financing to acquire, rehabilitate, and/or develop eligible multifamily projects. Projects proposed for this financing must provide either 20% of units at rents affordable to households with incomes at or below 50% of AMI, or 40% of units at rents affordable to households with incomes at or below 60% of AMI. The Elbert Avenue Project exceeds these thresholds. The bond program generates fees for ARHA in exchange for issuing the bonds and monitoring financed projects.
Pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended, and Section 15.2-4906 of the Code of Virginia, City Council - as the governmental unit with jurisdiction over ARHA as an issuer of private activity bonds and over the area where the project is located - must approve the issuance of the bonds through a Resolution. ARHA held a public hearing regarding the bond issuance on June 22, 2026 (Attachment 3) and thereafter adopted an inducement resolution approving the issuance (Attachment 4).
FISCAL IMPACT: No impact to the City. ARHA has the authority to issue revenue bonds for certain activities and has done so frequently in the past. An administrative fee is charged to applicants for bond financing. Because the bonds are conduit revenue bonds, neither the City nor ARHA is obligated to repay the bonds or the interest on them. The obligation rests solely with the borrower, CLI New Elbert LLC.
ATTACHMENTS:
1. Resolution for ARHA Revenue Bonds for CLI New Elbert LLC - Elbert Avenue
2. Developer’s Presentation regarding the Elbert Avenue Project
3. ARHA 2026 Notice of Public Hearing for 3908 Elbert Avenue
4. ARHA Resolution for Approval of Issuance of Bonds - Elbert Avenue
STAFF:
Emily A. Baker, Deputy City Manager
Kevin C. Greenlief, Director of Finance
Christina Zechman Brown, Deputy City Attorney
Tamara Jovovic, Housing Program Manager, Office of Housing