City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 15, 2022
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: JAMES F. PARAJON, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Request for City Support for Phase 1 - Building 1 of the Alexandria Housing Development Corporation Mount Vernon - Glebe Affordable Housing Project, including a Loan of $10.5 Million from the Housing Opportunities Fund and a Rental Subsidy Grant of $240,000.
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ISSUE: Consideration of a City Affordable Housing Loan of $10.5 Million and a Rental Assistance Grant of $240,000 to the Alexandria Housing Development Corporation (AHDC) to build 76 rental units in Phase 1 - Building 1 of a multi-phase, mixed-use, affordable housing project in Arlandria.
RECOMMENDATION: That City Council approve a $10.5 million loan for development and construction of Phase 1 of AHDC's Arlandria project (Attachment 1), along with a rental assistance grant of $240,000 pursuant to the rental assistance pilot program. These commitments will facilitate AHDC's March 2022 application for competitive (9%) low-income housing tax credits (LIHTC), which is estimated to yield more than $22 million in private investment equity, if successful.
BACKGROUND: Since Summer 2020, AHDC has been developing the concept for a multi-phase, mixed use project, including approximately 475 units of affordable housing. Approximately twenty-five percent (25%) or 100+ of all rental units are proposed to be "deeply affordable", meaning the rents will be set at levels affordable to households with incomes at or below 40% AMI (Attachment 2). City Council publicly reviewed the project twice during the development phase, providing feedback to AHDC, including encouragement to maximize the housing and services resources to be incorporated into the project, and approved predevelopment loans totaling $1,000,000 in September 2020 and May 2021. The dev...
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