The Triangle @ Courthouse Virginia Housing Coalition Annual Conference Richmond, Virginia September 3, 2014

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The Triangle @ Courthouse Agenda AHC Experience Location Project Overview Financing—S&U Project Benefits Project Challenges Sponsor Requirements Next Steps

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§  501(C)(3) Non-Profit Organization, since 1975

§  Arlington’s Oldest, Largest Affordable Housing Group

§  Developed 42 properties in the Mid-Atlantic region, totaling 6,000 apartments in projects ranging from 9 to 768 units.

§  Self-manage our properties, and have in-house construction management, and asset management.

§  Named 2013 Nonprofit Developer of the Year by the Housing

Association of Nonprofit Developers (HAND).

§  Winner 2013 Nonprofit Business of the Year—Arlington Chamber of Commerce

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History of AHC

Unique Resident Services Programs §  Rationale: Promotes learning &

connects families to services

§  Invest $1.2 million annually

§  Serve 2,000 children and seniors

§  Partner with 30+ community organizations

§  Support from 150 volunteers

§  Results: §  100% of high school participants

graduate, 80% attend college §  75% of all participants have GPA

of 3.0 or higher

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�  Low-Income Housing Tax Credits (4% & 9%, VHDA/MCDA) �  Conventional debt w/9% tax credit (local bank, FHA/GSE) �  Tax-exempt bonds w/4% tax credit (private-placement & public

issue) �  Local government support (Arlington, Alexandria, Montgomery,

Fairfax, Baltimore, Baltimore County) �  Conventional debt + equity for buy-&-hold properties �  Historic Tax Credits—federal and state

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AHC Financing Experience

Recent New Construction Project: The Jordan

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§  90 apartments, 4.1 Site Plan

§  Walking distance to Ballston Metro, Ballston Common Mall, shops and employment centers

§  Outdoor courtyard, water- play feature, BBQ area, library, community room

§  Partners: JBG & Arlington Co. §  Award winner:

DESIGNArlington Award from Arlington County, and Affordable Housing Council

§  TDC--$27 million

Site Orientation

� Location maps

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Aerial View

� map

County land

AHC land

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Triangle @ Courthouse— Building Section (looking south)

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Triangle @ Courthouse Plan View—Typical Floor

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Triangle @ Courthouse— Overview �  68 apartments �  30 parking spaces �  Rents—60% AMI

�  8 Eff. $1,123/month ($110 utility allowance) �  14 1-br $1,203/month ($150 utility allowance) �  46 2-br $1,444/month ($200 utility allowance)

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Triangle @ Courthouse— Financials

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Triangle @ Courthouse— Project Benefits

� 7-minute walk to Metro � 2-minute walk to public bus stop � 5-10 minute walk to shopping, market,

restaurants, & elementary school � Pre-K & after-school programs next door � Newly renovated public park next door � 5-minute car ride to D.C. � 8 supportive housing units (persons with

mental health challenges)

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Triangle @ Courthouse Project Challenges �  AHC must undertake a major site plan

amendment—lengthy and expensive Arlington County approval process

�  Land is currently an unbuildable site (but fortunately on the County’s priority list of “Public Land for Public Land”), requiring re-subdivision to create buildable lot

�  Parking is less than typically required by Arlington

�  Utilities must be re-routed �  Adjacent to Route 50—auto traffic

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Triangle @ Courthouse— Sponsor Requirements �  Using 4% credits to avoid delay or uncertainty,

resulting in $1.15 tax credit price �  Material financial investment needed from

Arlington County (requires multiple community approvals)

�  Fix AHC guarantees to no more than the total paid developer fee

�  8 program units may be underwritten at 50% AMI �  Reserves: Sponsor wants control of all reserves at

the end of the tax credit compliance period �  Reserves: during operations, they can be used for

any issue without invoking guarantee claims

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Triangle @ Courthouse— What’s Next �  Meet with County staff to review design, program,

and zoning matters �  Architect to prepare design-development scheme �  Apply for major site plan amendment, including

obtaining waivers from Arlington County on parking requirements and other zoning matters

�  Finalize residential program, including supportive housing or “high barrier” apartments

�  Update construction budget & financial projections

�  Apply for tax-exempt bonds in 2015

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Q & A

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John Welsh welsh@ahcinc.org 703-486-0626 x113