Affordable housing projects planned for Alexandria locations at Glebe Park, Arbelo Apartments and Potomac Yard suffered setbacks upon learning they likely won’t receive state funding.
Developers had sought funding from the low income housing tax credit program, administered by a Richmond office.
The program provides tax credits that developers or communities can sell to fund their public housing projects. The projects’ scores are preliminary, and could change in the next two weeks. But it does not seem likely that they will receive funding this year.
The Glebe Park and Potomac Yard projects scored the lowest of applications from Northern Virginia. The Arbelo Apartments were disqualified.
Alexandria Redevelopment and Housing Authority submitted a $3.7 million application to renovate 12 units and build 28 new ones on Old Dominion Boulevard.
The apartments were built in 1945, and more than half are uninhabitable because of mold.
Glebe Park’s application had complications with its zoning, said Jim Chandler, director of the tax credit program at Virginia Housing Development Authority. The VHDA awards the tax credits.
ARHA had hoped to begin construction by the end of 2007. Now, its staff is trying to figure out what to do, chairman Melvin Miller said.
Developers working on the two other projects are doing the same. RPJ Housing, a nonprofit developer, bought the Arbelo Apartments, at 831 and 833 Bashford Lane last June. RPJ’s plan was to renovate its 34 apartments for affordable housing, using $3.5 million from the state program.
The project was disqualified because the loan RPJ proposed to match the state funding was “not financially viable,” Chandler said.
RPJ Executive Director Herb Cooper-Levy said he is continuing to talk with state officials.
Otherwise, he’ll have to scale back on renovations — a cheaper roof or less extensive electrical upgrades — and reapply next year.
Potomac Yard developers applied for $10.3 million from the program. The project, 64 apartments built atop a new fire station, was deemed too expensive, Chandler said.
That project cannot wait until next year because of deadlines with the rest of Potomac Yard construction, said Alexandria Housing Division Chief Mildrilyn Davis.
“We all need to regroup,” she said.
