City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 5, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
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Consideration of the Alexandria Housing Development Corporation's (AHDC) Proposed Plan for the Renovation and Permanent Financing of the Arbelo, Lacy Court and Longview Terrace ("Trilogy") Apartments and Proposed Restructuring of Existing City Loans.
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ISSUE: Plan for the renovation and permanent financing of the Arbelo, Lacy Court and Longview Terrace ("Trilogy") Apartments and proposed restructuring of City loans to substantially renovate 119 units of affordable housing and to establish an earlier loan repayment to the City.
RECOMMENDATION: That City Council:
(1) Endorse AHDC's plan to renovate and refinance the Arbelo, Lacy and Longview portfolio, including the proposed earlier repayment restructuring of the City's loans;
(2) Approve modifications to the City's $14.1 million in loans in order to:
a. Preserve affordability of 101 units at 60% Area Median Income (AMI), with the18 HOME-funded units at Lacy Court remaining designated to be affordable at 50% AMI;
b. Secure $7.7 million as a subordinate loan on the Trilogy properties when they are conveyed to AHDC's tax credit entity for renovation and refinancing;
c. Convert $6.4 million into a "Right of First Option" that provides the City an equity position in Year 15 through which it can be fully repaid on the $7.7 million loan as well as place new debt on the properties to facilitate repayment of the $6.4 million balance by Year 40; and
d. Conform the terms of the new City loan agreement to address requirements of the proposed FHA/HUD financing and a tax credit partnership agreement, subject to the City Attorney's approval.
(3) Authorize the City Manager to provide an updated comfort letter to the BB&T Ba...
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