City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 2, 2021
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK B. JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of Additional City Loan Funds to the Alexandria Housing Development Corporation (AHDC) for Costs Related to Renovation of Lacy Court and Development of The Bloom.
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ISSUE: AHDC request for additional loan proceeds from the Housing Opportunity Fund (HOF) to cover cost overruns incurred to complete the Lacy Court and Bloom projects.
RECOMMENDATION: That City Council approve $1,910,000 in additional HOF loans to fund project overruns for the renovation of Lacy Court ($810,000) and development of The Bloom at Braddock ($1.1 M) and authorize the City Manager to execute amendments to existing loan agreements accordingly.
BACKGROUND: Since late 2019, AHDC has completed the renovation of Lacy Court, the development of The Bloom at Braddock (Carpenter's Shelter), The Nexus at West Alex, and the acquisition of Parkstone Alexandria, adding new committed affordability in nearly 500 affordable and workforce units. During their construction, Lacy Court and The Bloom experienced significant unforeseen cost overruns which AHDC covered from its organizational financial resources to be able to bring the projects to a successful conclusion. AHDC now seeks additional City loan funding to reimburse some of these outlays and put AHDC back in a solid financial position.
AHDC's request for additional loan funds (Attachments 1 and 2) summarize and document the costs and their sources. It is noted that AHDC's request assumes deferral of its earned developer fees, to the greatest extent feasible, to mitigate the amount requested from the City. While some excess costs resulted from impacts of the pandemic, others were incurred to address site conditions not anticipated by prior third-party due diligen...
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