For Immediate Release                                                     CONTACT: Patricia M. Dashiell
October 23, 2008                                                                   (703) 642-3830, ext. 237
Helen S. Mcllvaine (City of Alexandria)
(703) 838-4990, ext. 312
Brian Matt (VHDA)
(804) 343-5520

Collaboration Key to Making Preservation Work

City of Alexandria, VHDA, and Enterprise Community Investment, Inc.
Partner with Wesley Housing to keep ParcView Apartments Affordable

Alexandria, VA—Residents, partners, and the staff of Wesley Housing Development Corporation of Northern Virginia gathered today at ParcView Apartments to celebrate the preservation of the 14-story mid-rise community.  Congressman Jim Moran, 8th District of Virginia, and Mayor William D. Euille, among other speakers, were on hand today to share their support for and commitment to making homes available and affordable for low- and moderate-income residents across Northern Virginia, including families, seniors, and individuals with disabilities.

“Wesley Housing is grateful for the support for affordable housing shown by the partners in this project,” stated Shelley S. Murphy, Wesley Housing’s President and CEO.  “It is harder than ever to develop housing that is within the reach of today’s workforce and those who are economically challenged, and we are thankful to the expertise, financial support, and advocacy on our behalf so generously offered by those involved with this project.”

ParcView Apartments, located in the Landmark area of the City of Alexandria, is a prime example of the need for collaboration when it comes to the preservation of affordable rental housing.  In 1998, the then-owner prepaid its federally-assisted Section 236 mortgage.  By 2006, while some residents remained on Housing Choice Voucher/Section 8 assistance, the property was no longer accepting new vouchers, a first step in the transition from reasonably-priced “market affordable” rental housing to market-rate housing.  The existing low-income residents, many of whom were seniors, were in danger of being priced out of their homes.

When the property came up for sale that year, Wesley Housing stepped in with a proposal that would increase the number of family-sized units, add accessible units, and preserve the property as affordable to residents earning 60% or less of the Area Median Income (AMI) for the next 40 years.  The organization was able to make its winning $31.5 Million offer because of key investment partners who joined the project.
Alexandria Mayor William D. Euille believes the City’s $9 Million loan to Wesley for the ParcView project was a good investment in order to preserve so many units of affordable rental housing over the long term.  

“We are happy to work with mission-driven, nonprofit partners, like Wesley Housing.  Through their commitment to affordable housing, they support the City’s strategic goal ‘to remain a caring community that is diverse and affordable,’” stated Euille.  “At ParcView, our funds helped many long-term residents remain in Alexandria, and will enable newcomers to also make their home here.”

The City of Alexandria, in working to expand affordable housing opportunities, has adopted the practice of choosing to finance projects which best leverage its investment by maximizing all outside funding sources to the greatest degree possible.  The financing package for ParcView included tax-exempt mortgage revenue bonds, Low-Income Housing Tax Credits, and a SPARC loan from the Virginia Housing Development Authority (VHDA).

“VHDA is pleased to help finance ParcView Apartments,” said VHDA Executive Director Susan F. Dewey. “We’re preserving 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 and promotes revitalization, preservation, and mixed-use initiatives.”

VHDA allocated a total loan amount of $15.25 Million to Wesley Housing, of which $11.75 Million is tax-exempt financing at a rate of 6.10%. The remaining funds include $1.5 Million with an interest rate of 4.75% and $2 Million with an interest rate of 2.25%, thereby providing an overall blended rate of 5.51%.

“This special financing allows the majority of these units to remain affordable for tenants earning 60% of the Area Median Income,” added Dewey.

Additional financing for acquisition and construction came in the form of equity proceeds from the sale of Low-Income Housing Tax Credits totaling $7,249,138, which were provided by Enterprise Community Investment, Inc.

Congressman Jim Moran, a long-time advocate of affordable housing, joined the partners at the podium.

“Wesley Housing should be commended for their dedication to preserving affordable housing at ParcView Apartments. Ensuring lower-income residents are able to stay in their homes during these turbulent economic times is a top priority,” stated Moran.  “By closely coordinating with the City, VHDA, and supporters in the business community, the good people at Wesley Housing are providing a laser-like focus on the most important quality of life issue affecting so many people struggling to make ends meet—affordable housing.”

ParcView had been well-maintained, so Wesley Housing was able to utilize renovation funds to convert some of the disproportionate number of one-bedroom units into two-bedroom units to accommodate low- and moderate-income families.  With more than 20% of residents being seniors—and many of them long-time residents—Wesley Housing also employed universal design principles on ten of the new units to provide accessible housing for those seniors wishing to age-in-place and for individuals with physical disabilities in need of an affordable home.

Other renovations included common area improvements and measures necessary to transition ParcView into a more sustainable community, with a focus on the conservation of energy, reduction of waste, and resident education.  Sustainability measures included replacing all the windows and exterior doors, plumbing fixtures, and all HVAC units that had not been recently updated.  Wesley Housing also added water-saving devices to existing plumbing and replaced all internal lights with florescent bulbs and transitioned all exterior lighting fixtures to high-pressure sodium fixtures controlled by light sensors. 

Zemaitis & Associates Architects provided design services on the project, while Hamel Builders, Inc. completed the renovations.  Edgewood Management Corporation is the property manager.

The collaboration that took place on this project was done keeping in mind Northern Virginians like Edith Kishbaugh (86) who has lived at ParcView for nearly 30 years. 

“This is just like a home,” declared Kishbaugh.  “Some folks come and go, but a lot of us stick around.  They’re such good neighbors, the kind always concerned about you and asking how you are.”

Scraping by on a fixed-income and a Section 8 voucher, Kishbaugh would not have been able to remain in her long-time home without the good work of Wesley Housing, the City of Alexandria, VHDA, and Enterprise Community Investment, Inc.

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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.