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June 4, 2020
Alexandria, VA – June 4, 2020: This week, leading nonprofit affordable housing developer Wesley Housing closed on The Arden, a 126-unit multifamily development to be located a block from the Huntington Metro station. The $59M project will provide quality homes for working families in Fairfax County. The project is being financed by a capital stack of 12 different sources including loan and equity proceeds from Truist ($47.5M), loans from Fairfax County Redevelopment and Housing Authority ($8.4M), and National and State Housing Trust Fund loans from the Virginia Department of Housing and Community Development ($2.3M). The lynchpin to leveraging these various sources of financing is the allocation of 9% and 4% low income housing tax credits (LIHTCs) by the Virginia Housing Development Authority (VHDA). In addition, the project is one of the first year recipients of VHDA’s Amazon-related REACH Virginia funds for the production and preservation of affordable housing to support the economic development opportunity Amazon HQ2 brings to Northern Virginia. Construction will begin this month and complete by June 2022.
“We are thrilled to enter the next phase of The Arden project,” Wesley Housing President/CEO Shelley Murphy said. “The Arden provides critical affordable housing within walking distance of the metro, and I’m looking forward to the positive changes it will bring to our community.”
Located at 2317 Huntington Avenue, The Arden will be a seven-story building at the intersection of Huntington Avenue and Biscayne Drive. The building is designed to ensure the long-term sustainability of the property at standards comparable to other properties in the market area and will remain committed to affordability for 30 years for families. Once near completion, Wesley Housing will begin to accept rental applications from the public and referrals from individuals coming from the Fairfax County Redevelopment and Housing Authority (FCRHA) waiting list to more effectively meet the needs of Fairfax County’s most vulnerable populations. In addition, the ground floor will host 7,500 sq. ft. of office space, which will allow Wesley Housing to relocate its main office to the property.
The twin 9% and 4% LIHTC transaction has separate owner entities, financing structures, and affordability requirements. The Arden Building A will consist of 79 units financed as the 9% transaction. Five percent of units (4) will be for earners at 80% of the Area Median Income (AMI); 85% of units (67) will be at 50-60% AMI; and 10% of units (8) will be deeply affordable at 40% AMI. The project has been awarded an allocation of (8) Project Based Housing Choice Vouchers and will therefore most likely serve residents with incomes below 30% AMI.
The Arden Building B will consist of 47 units financed as the 4% transaction. It will receive four project-based State Rental Assistance Program (SRAP) vouchers at 50% AMI intended to serve families who meet the income standards for non-elderly disability. Building B will also provide two units at 40% AMI (without vouchers). The remaining 87% of units will be at 60% AMI.
About Wesley Housing: Wesley Housing, a leading nonprofit developer in Northern Virginia and the District of Columbia, has been working to provide affordable rental housing for families for more than 45 years. Since its founding, Wesley Housing has emerged as a premier developer of affordable housing. Wesley Housing has acquired or developed 2,300 rental units, providing quality housing for thousands of at-risk individuals and families each year. Wesley Housing supplements housing with supportive services to build up the lives of its residents, including low- and moderate-income families, older adults, and individuals with disabilities and/or chronic disease. For more information, please visit www.wesleyhousing.org and follow @WesleyHousing on social media.
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