City of Alexandria, Virginia
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MEMORANDUM
DATE: JANUARY 8, 2020
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
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Resolution to Facilitate Virginia Housing Development Authority (VHDA) Financing for the Alexandria Housing Development Corporation's (AHDC) Acquisition of The Avana Apartments for Preservation as a Mixed-Income Rental Property (ROLL CALL VOTE)
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ISSUE: City Council resolution to support VHDA financing of the Avana Apartments.
RECOMMENDATION: That City Council adopt the attached Resolution to induce Virginia Housing to finance AHDC's proposed acquisition of The Avana Apartments.
BACKGROUND: AHDC proposes to acquire The Avana Alexandria Apartments in early 2020 for long-term preservation as affordable, workforce and market rate rental housing. The complex has 326 units, and within a year following AHDC's acquisition, the nonprofit will implement a mixed-income operating structure, including 40% of the units (130) affordable to households at 60% AMI, 35% of the units (115) affordable to households at 80% AMI, with the balance to be rented at "market-rate." No displacement of current residents will occur; rather the transition to lower rents will be accomplished taking advantage of normal attrition/turnover, as well as determining which current residents are income-eligible for the affordable and workforce level rents.
The mixed income model will not only mitigate the risk of displacement, but the market rate rents will provide revenue critical to ensure the long-term financial sustainability of the affordable and workforce level rents being introduced.
On December 10, 2019, City Council approved an $8 million gap loan to AHDC as part of the overall financing package for the acquisition. The loan will follow the City's practice of being residual receipts in nature, however, annual i...
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