For Immediate Release                                                     CONTACT: Patricia M. Dashiell
September 24th, 2009                                                                       703.642-3830, ext. 237
Helen McIlvaine (City of Alexandria)
(703) 746-4990
Brian Matt (VHDA)
(804) 343-5520

New Affordable Housing Community in the City of Alexandria

Wesley Housing Celebrates 35 Years of Success

Alexandria, VA—Residents, partners, and the staff of Wesley Housing Development Corporation of Northern Virginia gathered at Beverly Park Apartments to celebrate the addition of 33 units of affordable housing in the City of Alexandria. Mayor William D. Euille led the ribbon-cutting ceremony, as he and other partners shared their support for and commitment to making homes available and affordable for lower-income residents across Northern Virginia, including families, seniors, and individuals with disabilities. The neighborhood celebration, which also marked Wesley Housing’s 35th anniversary, included music, a clown, face painting, birthday cake, and an ice cream sundae bar.
The Beverly Park project is part of a larger ongoing renewal of the City’s Arlandria neighborhood. With the assistance of acquisition finance partners, the City of Alexandria, the Housing Partnership Network, and United Bank, Wesley Housing purchased Beverly Park a few years ago and began the transition of this market rate development into affordable rental housing, adding long-term committed units to the City’s stock.

This addition is important because between 2000 and 2007, the City lost nearly 10,000 units of affordable rental housing even though 41% of the jobs in Alexandria are in industries whose average salaries are below the earning threshold necessary to meet HUD's 30% standard for housing expense to afford to live within the City.

“At Beverly Park, and at its two other Alexandria developments, ParcView Apartments and Lynhaven Apartments, Wesley Housing is providing very important affordable rental housing resources for low- and moderate-income households, including families, who might not otherwise be able to make Alexandria their home,” stated Mayor Euille. “We are proud of our partnership with Wesley Housing and are very pleased to see the City’s investment at Beverly Park help transform this property with energy efficiency enhancements and interior and exterior improvements that not only benefit residents of Beverly Park, but the entire community.”

As part of the redevelopment plan for this 1940s garden-style apartment community, Wesley Housing focused on improving quality of life and creating a more energy-efficient community. Renovations included new windows, entrances, and full interior renovations, with Earthcraft as the green building standard for this project. Wesley Housing also converted several efficiency and one bedroom units into expanded apartments to accommodate larger families.

“Arlandria is a family-oriented community. By having the option of two- and three-bedrooms at Beverly Park, parents are able to provide the space their growing children need,” stated Shelley S. Murphy, Wesley Housing’s President and CEO.
 
Key to this project were the partners who joined together in the complex work of financing affordable housing development in today’s market. In this case, the City increased and extended its loan dollars for a longer term and RBC Capital Markets Tax Equity Group (RBC) stepped forward to provide the tax credit funding that preserved this deal. In total, the City invested $2,000,000 in the redevelopment of Beverly Park.  In return, Wesley Housing committed to maintaining it as affordable rental housing for at least 40 years.
 
The Virginia Housing Development Authority (VHDA) invested $3,505,000 in SPARC/REACH funds, providing both construction and permanent financing for the project. VHDA’s creative financing helped preserve long-term affordability, with an overall blended rate of 3.17%, allocating $1.5 million at an interest rate of 5.05% and the other $2 million at 2.55%.
 
"VHDA was pleased to help our partners preserve the affordability of Beverly Park Apartments through our SPARC program, which provides fixed, low-rate, long-term financing for affordable housing developments," said VHDA Executive Director Susan F. Dewey. "We’re proud that this special financing allows these units to remain affordable and serve tenants at both 50% and 60% of the Area Median Income. I look forward to this development providing much-needed affordable housing opportunities here in Alexandria for many years to come."

The remainder of the project financing was provided by RBC in the form of Low-Income Housing Tax Credits, totaling $2,733,951.   
 
“RBC Capital Markets is pleased to be part of such a great project. The Development and Construction teams have shown a great deal of dedication in making this project one that the tenants will surely be proud to call home,” stated Jerry Stone of RBC.

Mission First Development, LLC; Virginia Capital Advisors, Inc.; and JDC Construction, LLC served as development consultants on this project.

The grand opening of Beverly Park marks 35 years of success in the affordable housing industry for Wesley Housing. On hand to celebrate this anniversary were representatives of the sponsors of this event—Citi, Klein Hornig LLP, Reznick Group, P.C., Hamel Builders, Inc., and United Bank—as well as those from the many businesses, corporations, civic groups, and faith communities who have supported Wesley Housing for over three and a half decades.

“The wide range of community members here underscores the critical need for affordable housing in Northern Virginia,” stated Murphy. “We are grateful for their staunch commitment and unflagging support.”

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Wesley Housing Development Corporation’s mission is to develop, own, operate, preserve, and maintain affordable housing and sustain quality communities for low- and moderate-income persons in Northern Virginia.

Established in 2002, the City of Alexandria’s Housing Opportunities Fund (HOF) has provided critical financing for the development and preservation of long term, below-market rate housing, particularly for low and moderate income households with few affordable housing options. Using monies from the Federal Home Investment Partnership (HOME) Program Funds, the City Housing Trust Fund, City General Funds, the Alexandria Affordable Housing Initiative Account (one penny from real estate tax), General Obligation Bonds and loan repayments, in the past few years the City has committed around $33 million to secure more than 600 units as long term affordable rental housing.

The Virginia Housing Development Authority (VHDA) is the state’s mortgage finance agency. Created in 1972 by the Virginia General Assembly, its mission is to help low- and moderate-income Virginians attain quality, affordable housing.