Board Approves $5.792 Million Loan to Preserve and Renovate 103 Affordable Housing Units

• Affordable Housing Investment Fund loan will preserve, renovate Clarendon Court Apartments on Wilson Boulevard
• Owner to renovate all units, deepen affordability of some
• Adding permanent supportive housing, accessible units

Arlington, VA – April 18, 2015 – (RealEstateRama) — The Arlington County Board today approved a $5.792 million Affordable Housing Investment Fund(AHIF) loan to developer McCormack Baron Salazar (MBS) to assist with the purchase and renovation of 103 affordable units at Clarendon Court Apartments. MBS plans to preserve all of the existing affordable units, deepen the affordability of some units and fully renovate the property by leveraging additional resources with the loan.

“Ensuring that every transit corridor has a range of housing affordability is a key to Arlington’s long-term sustainability. A first step in achieving this goal is preserving our existing stock of affordable homes,” said Arlington County Board Chair Mary Hynes. “The investment in Clarendon Court Apartments, located in the busy R-B corridor, will not only secure the affordability of these homes for 60 years, but make them better places for our neighbors to live.”

Located in the Ashton Heights neighborhood, Clarendon Court currently is 100% affordable, with rents ranging from 50% to 70% of the area median income (AMI). The new loan agreement will extend the affordability of all units until 2075 (60 years). Without this agreement, the County would have lost the ability to ensure the affordability of these units longer than 2018 when the current agreements expire. In addition, MBS plans to deepen affordability by making 26 of the units affordable at 50% AMI (an increase of 16 units affordable at this rate). The remaining 77 units will be affordable at 60% AMI. To avoid displacing current residents, the units will become income-restricted as residents turn over.

Upgrading every unit

Preliminary plans for renovations include new kitchens and bathrooms in all units, replacement of HVAC and other major systems, electrical upgrades and exterior improvements. Up to 10 new permanent supportive housing units and six accessible units are planned for the renovation.

The County Board voted unanimously (5 to 0) as part of the consent agenda to allocate the AHIF loan funds for this project. For more information, visit the County website and view item #31 on the April 18 County Board Meeting Agenda.

Affordable Housing Investment Fund

The Affordable Housing Investment Fund (AHIF), a revolving loan fund, is the County’s main financing program for affordable housing development. Since its creation in 1988, AHIF has helped to create the majority of Arlington’s affordable rental units that benefit low-income households. It provides incentives for developers through low-interest loans for new construction, acquisition and rehabilitation of affordable housing.

The fund is comprised of local and federal dollars and is also supported by loan repayments and developer contributions. For many projects, $1 of public funds can leverage $3 in private funds invested in the community. To learn more about funding affordable housing, visit the County website.

Preserving affordable housing in Arlington

Arlington is planning for the next generation of housing affordability, a vital component to the community’s social and economic sustainability.

The County Board initiated an Affordable Housing Study in 2012 to evaluate existing policies; assess current programs and resources; and identify needs and gaps in providing affordable housing. The result will be a set of goals and policies that will shape the community’s vision for affordability. In July 2015, the County Board will consider adopting a new Affordable Housing Master Plan as an element of the County’s Comprehensive Plan.

To learn more about the County’s affordable housing goals or to participate in the community review of the proposed Affordable Housing Study goals, policies and tools, visit the County website.