City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 21, 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:
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Consideration of an Amendment to the City Grant and Loan Agreement to Provide Up to $550,000 in Additional City Funding for the Renovation and Preservation of 1022 Pendleton Street as a Rooming House.
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ISSUE: Approval of an amendment to the City funding agreement with Corrine J. Dixon, LLC to provide up to an additional $550,000 in City funding for the renovation and preservation of the rooming house located at 1022 Pendleton Street to address unforeseen construction conditions, code-required fire protection improvements, and related project costs.
RECOMMENDATION: That City Council:
1. Approve an amendment to the existing City grant and loan agreement with Corrine J. Dixon, LLC to provide up to an additional $550,000 in City funding for the renovation and preservation of the rooming house located at 1022 Pendleton Street; and
2. Authorize the City Manager to execute such agreements and documents as may be necessary to implement the amendment.
BACKGROUND: On June 6, 2023, City Council approved up to $1.95 million in federal HOME-ARP and congressional appropriation funding, including a loan of $750,000 and a grant of $1.2 million, for the renovation and preservation of the rooming house property located at 1022 Pendleton Street. The project preserves an important historic property in the Parker-Gray neighborhood while maintaining deeply affordable housing for residents with low and very low incomes. Additional project soft costs, including resident relocation expenses, engineering and architectural services, and construction administration, are predominantly funded through HOME ARP, CDBG, Congressional earmark funding, and the City Housing Trust Fund (HTF).
The property is owned and operated by Corrine J. Dixon, LLC, represented by Ms. Janice Howard, daughter of the late Corrine J. Dixon, a well-known Black businesswoman and philanthropist in Alexandria. Following renovation, the property will continue to operate as a rooming house providing affordable housing opportunities for vulnerable residents, including individuals at risk of homelessness.
The project was competitively bid in early 2025. Corrine J. Dixon, LLC accepted the low bid submitted by Harry Braswell, Inc. in the amount of $1,875,119.43, and construction began on April 21, 2025.
As demolition and rehabilitation work progressed, significant unforeseen structural problems were discovered throughout the building. These included failing foundations and footings, deteriorated framing, unstable masonry, drainage deficiencies, and other conditions that required immediate repair before construction could continue safely.
To date, four change orders totaling approximately $363,000 have been approved to address these issues. The work has included foundation stabilization, replacement of structural framing, drainage improvements, sewer replacement, masonry repairs, roof modifications, and historically appropriate exterior restoration work.
Additional project costs have also resulted from extended relocation expenses for current residents, added engineering and construction administration services, and the longer construction schedule. Construction completion is currently anticipated in September 2026.
DISCUSSION: Staff recommend approval of an amendment to the existing funding agreement to provide up to an additional $550,000 in City funding to address the project’s unforeseen conditions and required safety improvements.
The additional funding will support approved and anticipated construction change orders, engineering and construction administration costs, and extended resident relocation expenses. The additional $550,000 request represents the final portion of City funding needed to address unforeseen construction costs and complete the project. The total construction budget will increase from $1.95 million to approximately $2.39 million. The total project budget is approximately $3.48 million, including applicable soft costs and resident relocation expenses funded through previously committed City and federal resources, including HOME-ARP, CDBG, Housing Trust Fund, and Congressional earmark funding.
The rehabilitation of 1022 Pendleton Street remains an important preservation and housing project for the City. The project preserves one of the City’s few remaining rooming houses, maintains deeply affordable housing opportunities for vulnerable residents, and preserves a property with significant historical and cultural importance to Alexandria’s Black community and the Parker-Gray neighborhood.
Staff believe the additional investment is warranted given the project’s affordability goals, historic significance, and the substantial rehabilitation work already completed.
FISCAL IMPACT: Approval of this action would authorize up to an additional $550,000 in previously uncommitted City Housing Opportunity Fund (HOF) funding for the preservation and renovation of the 1022 Pendleton Street rooming house project. With this action, the total project budget would be approximately $3.48 million, supported through a combination of federal HOME-ARP and CDBG funding, Housing Trust Fund resources, Congressional earmark funding, and City HOF funding.
STAFF:
Emily A. Baker, Deputy City Manager
Gypsy Roberts, Division Chief, Office of Housing
Tamara Jovovic, Housing Program Manager, Affordable Housing Division, Office of Housing
Arthur Thomas, Home Rehabilitation Loan Specialist, Office of Housing (Project Manager)