City of Alexandria, Virginia
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MEMORANDUM
DATE: OCTOBER 21, 2026
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER
FROM: ASPASIA XYPOLIA, DIRECTOR, OFFICE OF HOUSING
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Consideration of a Grant Submission to the Virginia Economic Development Partnership to Support Site Remediation for Potomac Yard Landbay G – Block G.
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ISSUE: Submission of a Grant Application to the Virginia Economic Development Partnership’s Virginia Brownfields Restoration and Economic Redevelopment Assistance Fund for $500,000 to support site remediation of Potomac Yard Landbay G – Block G to facilitate the development of affordable housing.
RECOMMENDATION: That Council approves submission of the grant application. If funds are awarded pursuant to the competitive review by the Virginia Economic Development Partnership (VEDP), request approval to authorize the City Manager to execute any documents necessary to facilitate the project as proposed.
BACKGROUND: Located at 601 E. Glebe Road, the subject site is an approximately half acre vacant parcel owned by Wesley Housing. In December 2025 City Council approved development of 88 units of affordable rental housing on the site as part of DSUP 2025-10024. The proposed units will be affordable between 30% and up to 80% of the area median income for a minimum of 40 years. The majority will be designed as two- and three-bedroom units which will enhance housing options for families and multigenerational households proximate to transit, jobs, and amenities.
In March 2026, Wesley Housing applied for 9% Low Income Housing Tax Credits to secure equity financing for the project. Due to the high degree of interest in that application round, adequate funding was not available to support all applications, and Wesley Housing did not secure tax credits. The organization is strengthening the competit...
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