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File #: 18-7937    Name: City Loan to AHDC (Carpenter's Shelter)
Type: Status: Agenda Ready
File created: 8/8/2018 In control: City Council Legislative Meeting
On agenda: 9/11/2018 Final action:
Title: Consideration of a $1.7 Million Increase in the City Loan to Alexandria Housing Development Corporation for the Bloom Affordable Housing Development (Carpenter's Shelter).
Attachments: 1. 18-7937_Bloom City Loan Request, S&U and Proforma
City of Alexandria, Virginia
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MEMORANDUM



DATE: SEPTEMBER 5, 2018

TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

FROM: MARK B. JINKS, CITY MANAGER /s/

DOCKET TITLE:
TITLE
Consideration of a $1.7 Million Increase in the City Loan to Alexandria Housing Development Corporation for the Bloom Affordable Housing Development (Carpenter's Shelter).
BODY
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ISSUE: Consideration of a $1.7 million increase in the City loan to Alexandria Housing Development Corporation (AHDC) for The Bloom affordable housing development (Carpenter's Shelter), which is AHDC's 97-unit affordable housing development.

RECOMMENDATION: That City Council approve additional loan funds of $1.7 million bringing the total permanent City loan amount for the AHDC Bloom affordable housing development project to $8.9 million.

BACKGROUND: In December 2016, City Council approved a loan to AHDC of "up to $7.1 million" (including a previously authorized predevelopment loan of $500,000) for a 97-unit affordable housing building to be developed in conjunction with, and above, a new Carpenter's Shelter facility on the ground floor level. The residential building will contain a mix of 87 units affordable at 40% to 60% of the area median income (AMI) and 10 deeply affordable units that will serve households transitioning from chronic homelessness, including case management support from Carpenter's Shelter. During the construction period, Carpenter's Shelter has temporarily relocated its administrative, case management and shelter activities to the vacant Macy's store space at Landmark Mall, which is being offered at no cost by the Howard Hughes Corporation.

Due to volatile construction pricing trends in Virginia and the D.C. Metropolitan area, including unprecedented increases in costs, labor shortages, and uncertainty regarding tariff policy which is driving the cost of some building materials sharply upward, t...

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