| Wesley Housing Development Corporation | ||
33 Units Added to Alexandria's Affordable Housing Stock Wesley Housing to Renovate, Transition Beverly Park Apartments Alexandria, VA—Wesley Housing Development Corporation (Wesley Housing) announced construction financing and the start of construction at Beverly Park Apartments. Located in the Arlandria section of Alexandria, Beverly Park Apartments has long been one of the most reasonably priced, market-rate communities in the surrounding area, but in recent years the property had fallen into disrepair, due to deferred maintenance. Wesley Housing will be redeveloping the property with much-needed renovations and transitioning it to housing affordable to residents making 50% and less and 60% and less of Area Mean Income (AMI). “We are pleased by the cooperation we have received from all of our investors to enable this project to move forward and provide critical affordable housing in the City of Alexandria,” stated Shelley S. Murphy, Wesley Housing’s President and CEO. With so much uncertainty brought about by the current housing crisis and economic downturn, many financiers are more cautious about investing in tax-credit deals such as Beverly Park Apartments. Those nonprofit developers and tenant associations who are working to preserve affordability across the nation would find it challenging to raise the necessary equity per project to continue their work without ready buyers for tax credits. In this case, the City of Alexandria committed to increase and extend its initial acquisition investment dollars to the long-term and RBC Apollo stepped forward to provide the tax credit funding that preserved this deal. In total, the City of Alexandria invested $2,000,000 in the redevelopment of Beverly Park. The City’s loan will have an interest rate of 2% and a term of around 40 years. Payments will come out of the property’s cash flow, once established. In return for the City’s investment, Wesley Housing has committed to maintaining the development as affordable rental housing for at least 40 years. According to Mildrilyn Davis, Director of the City’s Office of Housing, “We are pleased that our additional loan commitment will allow Wesley Housing’s rehabilitation of Beverly Park to go forward and to leverage significant tax credit equity and new VHDA [The Virginia Housing Development Authority] financing to fund much of the cost of the work. The property and its residents will certainly benefit from the extensive renovation planned by Wesley Housing, including the conversion of many existing efficiencies and one bedroom units, into affordable, family-sized apartments. The community is pleased that the exterior appearance of the buildings will be improved as well, with new windows and roofs.” VHDA is investing $3,505,000 in SPARC/REACH funds, providing both construction and permanent financing for the project. VHDA’s investment is at 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%, creative financing that helped preserve the long-term affordability of the project. The loan will have a term of 35 years. “VHDA is pleased to help finance Beverly Park Apartments,” said VHDA Executive Director Susan F. Dewey. “We’re helping preserve the affordability of these units through our SPARC program, which provides fixed, low-rate, long-term financing for developments supporting housing for low-income persons. We’re pleased to allocate $3.5 million dollars of these funds to Wesley Housing at the low rate of 3.17%. This special financing allows these units to remain affordable and serve tenants at both 50% and 60% of the area median income.” The remainder of the project financing was provided by Apollo Housing Capital in the form of Low-Income Housing Tax Credits, totaling $2,733,951. In October 2005, Wesley Housing purchased the property with financial assistance from the City of Alexandria, Housing Partnership Network, and United Bank, planning to turn Beverly Park into an affordable housing community. Originally built in the 1940s, this multi-family property includes 3 garden-style buildings with 41 units. The renovation will change the current mix from all one-bedroom units to 7 studios, 18 one-bedrooms, 6 two-bedrooms, and 2 three-bedrooms, reducing the overall number of units from 41 to 33, while increasing the number of “family-sized” units. Mission First, of Washington, DC, has served as a development consultant on this project. Planned renovations will improve the physical condition of the building as well as improve the quality of life for residents. The rehabilitation will include new windows, entrances, and full interior renovations. Wesley Housing will be meeting Earthcraft requirements as the green building standard for this renovation project. “The financing package that Wesley Housing has put together will ensure long-term affordability and stable rents at this property, helping to meet the demand for low- to moderate-income housing in Alexandria,” stated Kamilah Parker MacAfee, Wesley Housing’s Director of Real Estate Development. ### 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. Our vision is to sustain quality communities and provide service-enriched housing that supports the needs and stability of individuals and families. 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.
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