Question # 15: How has affordable housing CIP funds been spent to date? Please provide details of what projects are in the pipeline to be financed each year in the CIP?

Page updated on Apr 5, 2021 at 4:59 PM

Question:

How have affordable housing CIP funds been spent to date? Please provide details of what projects are in the pipeline to be financed in each year of the Affordable Housing CIP Project? (Mayor Wilson)


Response:

Affordable Housing Project Spending: FY 2019 through FY 2021

Affordable housing CIP funds have been used for gap financing for development/new construction, preservation, rehabilitation, planning, predevelopment, and employee homeownership assistance, which includes the following work:

• Development/new construction 
• Preservation: existing building acquisition and/or extension of affordability  
• Rehabilitation: improvements to existing buildings, potentially pursuant to an acquisition, and with the goal of extending useful life and affordability 
• Planning efforts: city-initiated studies and plans 
• Predevelopment: concept development-related work and studies, usually undertaken by nonprofit development partners as part of the City review/approval process
• Employee homeownership assistance: reinstatement of the Employee Homeownership Incentive Program through the approved FY 2021 budget

Exclusive of funds expended for planning and study purposes, the monies deployed to date will help produce or preserve over 1,500 committed affordable and workforce units to meet the City’s Housing Master Plan goal and Alexandria’s allocation of the Regional Housing Initiative target.  

The Affordable Housing project was added to the CIP in FY 2019. Through the FY 2021 Approved CIP budget, a total of $19.19 million has been budgeted to the project. Of that, $3.5 million is intended to repay the CY 2019 bridge loan for the acquisition of the Avana Apartment Complex. This leaves a remaining project balance of $15.69 million. The below chart details how $14.44 million of this funding has been allocated for spending, as of March 2021. The remaining balance of FY 2021 CIP funding of $1.25 million will be used for additional predevelopment work to existing projects, and/or as carryover funding to be used for future projects listed on subsequent pages.

Approved CIP Funding as of March 2021

Project Name Year Amount Allocated to Project Use Units Small Area Status
The Nexus (AHDC)  2019 $700,000 new construction 78 Alexandria West complete
The Bloom (AHDC) 2019 $1,700,000 new construction 97 Braddock complete
The Waypoint (Wesley Housing) 2019 $2,350,000 new construction 81 Seminary Hill in progress
Ellsworth (AHDC) 2020 $1,800,000 preservation 20 Taylor Run/Duke Street complete
Affordable Housing Analysis – ADU, IZ, etc. 2020 $100,000 planning tbd Citywide in progress
Housing Master Plan Implementation – Tools review 2020 $50,000 planning tbd Citywide in progress
Parkstone (Avana) (AHDC) 2020 $3,896,200 preservation 326 Alexandria West complete
Landmark Towers 2021 $2,500,000 rehabilitation 157 Landmark/ Van dorn in progress
Parcview II Predevelopment (Wesley Housing) 2021 $400,000 predevelopment tbd Landmark/ Van dorn in progress
Arlandria Predevelopment (AHDC) 2021 $500,000 predevelopment tbd Arlandria in progress
Seminary Road Predevelopment (AHDC) 2021 $250,000 predevelopment tbd Seminary Hill in progress
Employee Homeownership Program (EHIP) 2021 $200,000 homeownership 14-20 Citywide in progress


Planned Future Affordable Housing Project Spending

City funding for affordable housing uses gap financing. Projects are contingent on a mix of funding sources beyond city funding that may include private, state, and federal funds among other sources with the City funding the difference. 

FY 2022 

Seminary Road Project – AHDC

Affordable homeownership development of 40 townhouse and flats-style condos for households with incomes up to 80% AMI through the assembly of parcels which includes an existing Sheltered Homes of Alexandria group home property, a single family home property on which AHDC holds a purchase option and an adjacent City parcel.

Arlandria Project – AHDC – Phase One

Redevelopment of the old Safeway site on the corner of Glebe Road and Mount Vernon Avenue, as well as a City parking lot parcel into over 450 units of affordable and workforce housing. A substantial component of the project is planned to provide deep affordability. Phase I includes construction of underground parking to serve all building phases.

FY 2023

Arlandria Project - TBD - 60-100 unit

An affordable housing project within the Arlandria plan area. Project will be brought to Council for consideration at a later date.

FY 2024

Arlandria Project – AHDC – Phase Two

Continued redevelopment of the Safeway site along with the City parking lot on Mt Vernon Ave.

FY 2025

Arlandria Project – AHDC – Phase Three

Final phase includes multifamily units (TBD rental or condo/coop) above community- serving commercial space (health – medical and dental - services, daycare/pre-K, nonprofit and/or City swing space to bring services to Arlandria neighborhood).  

Parcview II

Expansion of the existing Wesley Parcview project with new development to occur on the property’s existing surface parking lot and pool area.

Additional Projects:

It is noted that, in addition to the above projects, there are three other proposed affordable housing projects that could advance when/if additional resources are identified/available. These include a Low-Income Housing Tax Credit (LIHTC) project (approximately 120 plus units); a senior housing LIHTC project (approximately120 units); and, a smaller mixed-use project has also been identified as an opportunity for affordable housing (approximately 50 units).

A second homeownership project (80-100 units) could proceed in the short to mid-term if funding were available as the site is under control of a nonprofit developer. 

The list also does not include potential preservation projects: of highest priority, are future opportunities to acquire and preserve multifamily properties in the Arlandria neighborhood to protect existing tenants, avoid displacement, and enhance affordability, including through redevelopment, over time.

Also not included are potential ARHA redevelopment projects that might require City financial support for predevelopment or development in the short and mid-term (Samuel Madden, Andrew Adkins, Ladrey, Cameron Valley, Hopkins Tancil), as well as Year 15 transactions when ARHA has the opportunity to exercise its right to purchase tax credit properties from its investment partners (e.g., Chatham Square, Old Dominion, West Glebe, Quaker Hill).

Projects that could occur in the next 5-7 years are potentially eligible for additional leverage through the Virginia Housing Amazon Impact Grant Funds. The City is also pursuing leverage opportunities through Amazon’s new Housing Equity Fund (application process is in development) as well as potential CDFI funding which is currently being studied by City staff.

Besides these opportunities, a number of potential mid to long term options to expand housing rental and ownership affordability are anticipated to be added to the 2026-2035 year pipeline, including North Potomac Yard Block 23 (approximately150 units); redevelopment of a multifamily property in Arlandria ( Approximately 400 plus units); South Patrick Street (approximately 200 plus units); mixed-income affordable assisted living (Eisenhower West; approximately 140 units); redevelopment of land-banking opportunities at Parkstone (approximately 200 plus units), and Longview Terrace/Ellsworth (approximately 120 plus units), along with potential unit buy-downs in the Beauregard Corridor pursuant to the Beauregard Small Area Plan.  

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