City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 16, 2018
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
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Consideration of a Modification of the Alexandria Housing Development Corporation's 2017 Plan to Refinance and Renovate Lacy Court Apartments.
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ISSUE: Increased constructions cost at Lacy Court Apartments and the plan to close the resultant budget gap.
RECOMMENDATION: That City Council approve (1) AHDC's request to be released from the requirement to repay immediately a $500,000 portion of the City's loan when the renovation of Lacy Court is completed; and (2) Provide a City grant of $150,000 to AHDC to fund a pilot rental subsidy program
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BACKGROUND: Lacy Court is one of three RPJ properties that the City transferred to AHDC from RPJ Housing, subject to existing City debt, in 2011. AHDC has successfully maintained and operated the property since then. In February 2017, City Council approved AHDC's plan to refinance and renovate Lacy Court. Actions taken by City Council at that time specifically included: "(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...
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