City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 5, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: HELEN S. MCILVAINE, DIRECTOR, OFFICE OF HOUSING
DOCKET TITLE:
TITLE
Consideration of a Housing Trust Fund Grant of $450,000 to Wesley Housing to Provide Rental Subsidies for Nine Units at the Landbay G-G Project.
BODY
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ISSUE: Consideration of a Housing Trust Fund Grant of $450,000 to Wesley Housing to Provide Rental Subsidies for Nine Units at the Landbay G-G Project.
RECOMMENDATION: That City Council:
1) Approve a rental subsidy grant in the amount of $450,000; and
2) Authorize the City Manager to execute any necessary documents related to the rental subsidy grant agreement for Wesley Housing’s Low-Income Housing Tax Credit (LIHTC) application
BACKGROUND: Wesley Housing received development approvals in December 2025 for Landbay G-G, an 89-unit affordable housing project located at 601 East Glebe Road. The proposed six-story building will include predominantly family-sized two- and three-bedroom units serving households earning between 30 percent and 80 percent of the Area Median Income (AMI). On average, rents will be affordable to households earning up to 60 percent of AMI. Planned amenities include a multipurpose community room, a leasing office, bicycle storage, and other resident-focused spaces.
The proposal to incorporate an affordable rental building into JBG Smith’s revised development concept for Potomac Yard was critical to its approval. To accomplish this, JBG Smith entered into a partnership with Wesley Housing to donate the Landbay G-G site-valued at approximately $2.5 million by the Office of Real Estate Assessments in 2025. The value of the land donation will help support the project’s tax credit application. JBG Smith has also committed to addressing the affordable housing project’s financing gap, if that is necessary, and has identified approximately $2.3 million to be contributed at a later phase.
Wesley Housing is preparing a March 2026 application for competitive (9%) low-income housing tax credits. The proposed rental subsidy meets critical scoring criteria that strengthen the competitiveness of Wesley’s G-G application and support Alexandria’s most vulnerable residents.
DISCUSSION: The rental subsidy grant will be used to supplement rent in the 9 units (10% of the total number of units for an initial five-year term) proposed to be affordable at 60% AMI and below.
FISCAL IMPACT: The $450,000 rental subsidy grant will be funded from Housing Trust Fund (developer contribution) monies and loan repayment proceeds consistent with the City’s current practice.
ATTACHMENTS:
1. Wesley Housing’s project Presentation
STAFF:
Emily A. Baker, Deputy City Manager
Aspasia Xypolia, Deputy Director, Office of Housing
Tamara Jovovic, Housing Program Manager, Office of Housing
Christina Zechman Brown, Deputy City Attorney