City of Alexandria, Virginia
________________
MEMORANDUM
DATE: OCTOBER 16, 2019
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of an Increase of $1.4 Million in the City Loan to ARHA for Redevelopment of Ramsey Homes.
BODY
_________________________________________________________________
ISSUE: Consideration of an increase in the approved City loan amount to be provided to the Alexandria Redevelopment and Housing Authority (ARHA) for the Ramsey Homes redevelopment from "up to $3.6 million" to "up to $5 million".
RECOMMENDATION: That City Council approve an additional allocation of $1.4 million for a total loan to ARHA of up to $5,000,000 for redevelopment of Ramsey Homes to be funded from proceeds of ARHA's repayment of the City's 2008 Glebe Park loan ($5 million).
BACKGROUND: ARHA has requested an increase in the City loan for the Ramsey project related to an increase in construction costs and soft costs, mostly attributable to weather-related delays (Attachment 1). ARHA has made two previous requests: in November 2016 City Council approved a DSUP and City loan package of $1.1 million for the redevelopment of Ramsey Homes. The project will replace 15 existing public housing units, as well as add 37 net new units, affordable to households with incomes ranging up to 60% AMI. The building mix will include one, two- and three-bedroom units.
In May 2017, Ramsey Homes was awarded Low Income Housing Tax Credits by VHDA. A year later, with support from the Alexandria Housing Affordability Advisory Committee (AHAAC), along with its recommendation that ARHA prioritize repayment of the new City loan amount ahead of repayment of ARHA's note, City Council approved additional funds for a total loan to ARHA of up to $3.6 million to pay for increased construction costs. In November 2013, the City, along with Capital One (Ramsey construction lender) and Enterprise (Rams...
Click here for full text