City of Alexandria, Virginia
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MEMORANDUM
DATE: MARCH 17, 2021
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Authorization to Temporarily Waive City Loan Residual Receipt Payments to Mitigate COVID-19 Operating Deficits.
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ISSUE: Authorization to Temporarily Waive the City Loan Residual Receipt Payments to Mitigate COVID-19 Related Operating Deficits.
RECOMMENDATION: That City Council:
1) Allow residual receipt payments, otherwise due based on property revenues, to be waived on City affordable housing loans, if requested by nonprofit borrowers, to help mitigate operating deficits related to COVID-19; and
2) Authorize the City Manager to execute waiver agreements with borrowers, as appropriate, based on staff's review and recommendation of requests.
BACKGROUND: Many of the City's low- and moderate-income households have been disproportionately impacted by the COVID-19 pandemic. These households have faced job losses and struggle to make monthly rent payments. Based on discussions with the City's nonprofit borrowers pursuant to the Asset Manager's annual audit process, some nonprofit borrowers are experiencing an increase in rent losses, partially offset with the City's Emergency Rent Relief Assistance funds and the State Rental Relief Program. Further losses in rent payments could contribute to operational stress on the City's affordable multifamily housing properties, risking borrowers' ability to maintain properties and pay operational expenses. Some borrowers have asked the City to waive loan payments otherwise due, based on property performance in 2019 and early 2020, to provide a cushion to mitigate anticipated deficits through the pandemic response and recovery periods.
DISCUSSION: Staff believe that providing loan payment relief for the City's multifamily residual receipt loans during t...
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