City of Alexandria, Virginia
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MEMORANDUM
DATE: APRIL 16, 2014
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
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Consideration of the Release of Contingent Reserve Funds and the Transfer of Community Development Block Grant (CDBG) Funds to Provide a Predevelopment Loan to AHC For a Proposed Affordable Housing Development Near Beauregard.
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ISSUE: Release of funds from Contingent Reserves and transfer of Community Development Block Grant (CDBG) funds to be used as partial funding for an affordable housing predevelopment loan.
RECOMMENDATION: That City Council:
(1) Approve a $460,000 predevelopment loan to AHC, Inc. for its proposed development of a 92-unit affordable housing property on Echols Avenue currently in the development review process,
(2) Approve the release of $174,235 in FY 2014 contingent reserves as one part of the source of these loan funds, and
(3) Approve the transfer of $285,765 in CDBG monies from the Home Rehabilitation Loan Program as the second part of these loan funds.
BACKGROUND: AHC, Inc. ("AHC") is a 501(c)(3) nonprofit housing development entity that works regionally to develop and preserve affordable housing. It currently owns and operates approximately 5,000 affordable and workforce apartments in the Washington - Baltimore region and has also sponsored some affordable homeownership projects. AHC is currently constructing Jackson Crossing, a 78-unit multifamily building on East Reed Avenue that will be affordable to households with incomes at or below 60% of the area median income (AMI). This equates to about $65,000 for a four person household. Jackson Crossing is scheduled to be completed in late summer 2015.
DISCUSSION: AHC now has an option to purchase the St. James United Methodist Church and the Methodist District Building parcels ...
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