$8.5 Million Loan Approved to Create 80 Affordable Housing Units

The Arlington County Board Tuesday approved an $8.5 million Affordable Housing Investment Fund (AHIF) loan to nonprofit developer AHC Inc. to purchase Spectrum Apartments, according to a news release from the county. Here’s more about the deal, from the release:

The acquisition will convert 80 existing market-rate units into affordable units, including 40 family-sized apartments and 5 new permanent supportive housing units.

“Addressing housing affordability is one of our highest priorities,” said Arlington County Board Chair Jay Fisette. “We’re pleased that this mixed-income development will provide housing that is affordable to a range of incomes.”

Spectrum Apartments

Spectrum Apartments is a multifamily development of 100 units located at 5055 S. Chesterfield Road, near Leesburg Pike in the Claremont neighborhood. The current rental apartments do not have income restrictions and are not guaranteed to be affordable.

As a condition of their $8.5 million AHIF loan to purchase the property, AHC Inc. agreed to transition 80 of the 100 apartments to committed affordable units (CAFs). The remaining 20 units will continue to rent at market rates. CAFs are contractually guaranteed to remain affordable for 60 years at 50-80% of the area median income. Forty of the new CAFs are family-sized (two bedrooms) and five will become permanent supportive housingfor Department of Human Services clients. The transition of the units will occur over time as units turn over; no existing tenants will be displaced.

The Board voted 4-0 to allocate the AHIF funds for this project. Board Member John Vihstadt recused himself, pursuant to Commonwealth of Virginia Code §2.2-3115.F.

To read the staff report, visit the County website. Scroll down to Item #28 on the Nov. 18 County Board Recessed Meeting Agenda.

Affordable Housing Investment Fund

The Affordable Housing Investment Fund (AHIF) 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. This revolving loan fund 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 most projects, every $1 of public funds can leverage $3 in private funds. To learn more about funding affordable housing, visit the County website.

PHOTO of apartment building from Spectrum Apartments Web site