1. Citizen Academy Spring 2017
11/10/2018
Housing Tools Used to Preserve and Create Affordable Housing in the City of Alexandria, VA
NCDA
NATIONAL COMMUNITY DEVELOPMENT ASSOCIATION
JANUARY 23, 2017
Office of Housing

2. Citizen Academy Spring 2017
11/10/2018
Affordable housing in Thornbury South Gloucestershire England “a joke”
Posted by Glyn Ley | Updated
San Fran “Affordable Housing” is a JOKE–$600,000!!!! And UP!
By Stephen Frank
The term “affordable housing” is a joke in London.
Affordable housing mandates a bad joke
By Gilroy Dispatch Staff May 21, 2009
Affordable housing a joke in Wanaka, NY
By Marjorie Cook
Affordable Housing in Thornbury, a joke Posted by Glyn Ley | Updated , Houston
Chicago Plans for Affordable Housing Near
The 606 is a Joke, Experts Say
by Margaret Paulson in News on Aug 12, :20 pm
Affordable housing plan for 10 units in Mullum, Australia a joke April 19, 2016 | by Christine McNeil, Echonetdaily, Australia
Queens Crap: Affordable housing: more of a joke than ever Albany, New York From NY Post
Office of Housing

3. Objective: Preserve and Develop Affordable Housing
Citizen Academy Spring 2017
11/10/2018
Objective: Preserve and Develop Affordable Housing
Discuss three tools used in the City to develop and preserve affordable rental housing units
Share success stories
Office of Housing

4. Citizen Academy Spring 2017
11/10/2018
Size: 15.5 square miles
Population: approx. 155,000
Located 7 miles south Washington D.C.
Offers array of historic and cultural attractions
Historic center: Old Town
Well served by public transportation (AMTRAK, DASH, Metro, VRE, Airport)
One of the highest-income jurisdictions in Virginia
…ABOUT THE CITY
Office of Housing

5. Citizen Academy Spring 2017
11/10/2018
% of homes in which a language other than English is spoken: 32%
Median household income: $89,134
Average assessed home value: $532,492
Renter-occupied homes: 57.5%
Average rent: $1,760
Housing cost-burdened renters: 44%
…OUR HOUSING REALITY
Office of Housing

6. THE CITY’S AFFORDABLE HOUSING CHALLENGE—THE REAL ESTATE MARKET
Citizen Academy Spring 2017
11/10/2018
THE CITY’S AFFORDABLE HOUSING CHALLENGE—THE REAL ESTATE MARKET
Increase in average assessed value of residential property in the city
166%
Increase in average rent for 2-bedroom in the city
Increase in average household income in DC metro area
73%
32% .
Source: HUD Income Limits, ; City of Alexandria, Office of Housing 2017 Apartment Survey and Office of Real Estate Assessments,
Office of Housing

7. THE CITY’S AFFORDABLE HOUSING CHALLENGE—OTHER
Citizen Academy Spring 2017
11/10/2018
THE CITY’S AFFORDABLE HOUSING CHALLENGE—OTHER
Cost of achieving deeper levels of affordability (30-40% AMI)
Preservation of assisted properties
Potential decline in federal funding (CDBG and HOME)
Changing regional demographics
Long-term employment trends
Since 2000, the City lost nearly 16,000 market affordable rental housing units
Office of Housing

8. Citizen Academy Spring 2017
2013
Housing Master Plan
11/10/2018
Result of multiyear community engagement process
Road map to guide City investment in affordable housing preservation and production
Established a Housing for All policy: housing options for all abilities, life stages and incomes
Emphasis the need for citywide distribution of affordable units to help foster social and cultural diversity within mixed-income communities
Emphasis on housing opportunities in higher-density areas with access to transit, jobs, and amenities
Focus on the length of housing affordability
GOAL
2,000 units with new affordability by 2025
Office of Housing

9. Housing Master Plan Tools
Citizen Academy Spring 2017 AH
Housing Master Plan Tools
11/10/2018
Bonus density and/or bonus height in exchange for affordable housing units
Housing Trust Fund (developer-funded through voluntary contributions using established formula)
Optional parking reductions for affordable housing ( spaces/unit)
+ much more!
Office of Housing

10. SECTION 7-700: BONUS DENSITY AND HEIGHT
AFFORDABLE UNITS
Provides developers up to 30% of additional bonus density and/or height (up to 25’ in areas where the height limit is more than 50’) in exchange for affordable housing units
1/3 of bonus units (or equivalent) must be committed affordable units
Bonus units may be located offsite if they are of equivalent value
Permits more than 30% bonus density if authorized by small area plan
Allows developers to make a cash contribution in lieu of units to the Housing Trust Fund (equivalent to value of units)
BONUS UNITS
BY-RIGHT

11. Citizen Academy Spring 2017
Bonus Density
11/10/2018
Bonus Height
Bonus Density
Bonus Density
Bonus Height
Bonus Density
The Bradley
Bonus Density
Bonus Density
Bonus Height
Office of Housing

12. HOUSING TRUST FUND
Dedicated funding source created in 1980s to support the expansion and preservation of affordable housing options in the City
HTF has been used for the following:
Development and rehabilitation projects
Match for federal HOME funds
Homebuyers education, counseling, and foreclosure prevention services
Downpayment and closing cost assistance to first-time homebuyers
Rental assistance grants
Transitional housing, shelter rehabilitation, case management, and supportive services for the homeless

13. HOUSING TRUST FUND IMPACT
Leveraged over $150 million dollars in private and public financing to construct and preserve more than 1,100 affordable housing units
Over $20 million pledged
On average, $1 of developer contribution leverages up to $6 in other funding
Units produced or preserved with HTF assistance are secured with restrictive covenants of 40 years or more

14. HOUSING TRUST FUND IMPACT
Citizen Academy Spring 2017
11/10/2018
Jackson Crossing
$400,000 HTF investment leveraged:
$16 million in LIHTCs
City land note
+ commercial financing
78-unit apartment complex, affordable for households at 60% AMI for 60 years
Offers one, two, and three- bedroom apartments and accessible units
Office of Housing

15. HOUSING TRUST FUND IMPACT
Citizen Academy Spring 2017
11/10/2018
St. James Plaza
$3.1 million HTF investment leveraged:
$20 million in LIHTCs
$285k from CDBG
$880k from HOME
+ commercial financing
93-unit apartment complex, affordable for households at 40%-60% AMI for 60 years
Offers efficiencies, one, two, and three-bedroom apartments
Office of Housing

16. HOUSING TRUST FUND IMPACT
Citizen Academy Spring 2017
11/10/2018
Gateway at King and Beauregard
$3.5 million HTF investment leveraged:
$16 million in LIHTCs
$350,000 from HOME
+ commercial financing
74 rental units affordable for households at 40%-60% AMI for 40 years
Part of larger mixed-use redevelopment with market-rate apartments, retail, a grocery store
Office of Housing

17. HOUSING TRUST FUND IMPACT
Citizen Academy Spring 2017
11/10/2018
The Station at Potomac Yard
$7.3 million HTF investment leveraged:
$8.6 million in LIHTCs
$8.3 million in VHDA loan;
City grants and loans
64 rental units affordable for households at 60-80% AMI co-located with fire station (also includes ground floor retail)
Public, private and nonprofit partnership
Developer provided land and money for fire station
Office of Housing

18. SECTION 8-200: OPTIONAL PARKING REDUCTIONS FOR AFFORDABLE HOUSING
Optional reduced parking ratios:
0.75 spaces per unit (units up to 60% AMI)
0.65 spaces per unit (units up to 50% AMI)
0.5 spaces per unit (units up to 30% AMI)
Additional reductions granted based on:
10% parking reduction if property is within a specified metro or bus-rapid transit walkshed
5% parking reduction if property is within one-quarter of a mile of four or more active bus routes
10% or 5% parking reduction if property has specified walkability index score
5% percent if property includes 20 percent or more studios

19. SECTION 8-200: OPTIONAL PARKING REDUCTIONS FOR AFFORDABLE HOUSING
Carpenter’s Shelter

20. HOUSING MASTER PLAN GOAL
Citizen Academy Spring 2017
11/10/2018
HOUSING MASTER PLAN GOAL
2,000 units with new affordability by 2025
Source: City of Alexandria, Office of Housing, January 2018
Office of Housing

21. WHY WE HAVE BEEN SUCCESSFUL IN AFFORDABLE HOUSING PROJECTS
Citizen Academy Spring 2017
11/10/2018
WHY WE HAVE BEEN SUCCESSFUL IN AFFORDABLE HOUSING PROJECTS
Widespread awareness of the need for affordable housing
Community outreach and education (publications, website, Citizen Academy, Housing Committees, interdepartmental collaboration)
Support for the importance of affordable housing and the requirement for city investment to make it happen
Open approach to innovative projects (i.e., “how can we do this?”)
Capable nonprofit development partners
Strong relationships with the state housing finance agency that administers LIHTCs, as well as with lenders & investors
5+ year pipeline created through predevelopment loans
Approach advances opportunities for “deep affordability”
Office of Housing

22. Lucinda Metcalf, Compliance Manager
Office of Housing
421 King Street, Suite 215, Alexandria, VA 22314