City of Alexandria, Virginia
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MEMORANDUM
DATE: FEBRUARY 8, 2017
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of the Alexandria Housing Development Corporation's Plan to Refinance and Renovate Lacy Court Apartments and to Support its Application for Competitive Tax Credits and Approval of a Resolution Designating Lacy Court Apartments sites a Revitalization Area. [ROLL-CALL VOTE]
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ISSUE: Proposed plans from the Alexandria Housing Development Corporation (AHDC) to refinance and renovate Lacy Court Apartments.
RECOMMENDATION: That City Council:
(a) Approve AHDC's plan to refinance and renovate Lacy Court Apartments utilizing competitive tax credits;
(b) Approve a partial release of $4.9 million in debt and accrued interest secured by an existing City loan in exchange for the City receiving an equity position through a future right of first option;
(c) Approve repayment of $500,000 by AHDC when the renovation is complete;
(d) Approve provision of a grant of $150,000 from the City to AHDC to fund a pilot rental subsidy program to create deep affordability for five units;
(e) Approve a resolution designating the Lacy Court Apartments sites a Revitalization Area pursuant to Section 36-55.30:2A of the Virginia Code; and
(f) Authorize the City Manager to execute documents related to the tax credit application and the refinancing plan.
BACKGROUND: In 2006, at the height of the real estate market boom, nonprofit developer, RPJ Housing, Inc. (RPJ) acquired Lacy Court Apartments for $10.1 million to preserve it as affordable housing. The purchase included a first trust loan from a private lender of $3.5 million, and the City provided a subordinate long term loan of $6.6 million, including nearly $1.8 of federal HOME funds. Federal stimulus grant funds received by the City in 2008-09, to...
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