Arlington County Board Approves Funding to Help AHC Buy, Renovate Affordable Apartments on Columbia Pike
- Move preserves key multi-family rental property on Pike’s west end
- County to provide $13.26 million loan to AHC to buy 198 apartments
- Tenants to be temporarily relocated during renovation
On October 18th, the Arlington County Board approved up to $13.266 million in loans from the Affordable Housing Investment Fund (AHIF) to help AHC. Inc., a non-profit affordable housing developer, buy and renovate Columbia Pike’s Magnolia Commons apartment complex.
“The Board’s decision today underscores Arlington’s commitment to ensuring that Columbia Pike continues to be a diverse community with a wide range of housing available for people at all income levels.” said County Board Chairman Christopher Zimmerman. “This important investment ensures that market affordable housing that was at risk of being sold and priced beyond the reach of low- and moderate-income families will remain affordable for decades to come.”
The Board voted unanimously to approve and authorize funding for the project.
Affordable units to include family-sized and accessible apartments
After renovations, 158 of the units will be affordable to households earning up to 60 percent of the Area Median Income ($63,660 for a family of four) for 60 years. Forty units will be affordable to households earning up to 50 percent of the Area Median Income ($53,050 for a family of four) for 60 years. The project will create four fully accessible units, and will add 133 two-bedroom family-sized units, in addition to 64 one-bedroom units, to the County’s stock of Committed Affordable housing – housing contractually obligated to stay affordable for decades.
Magnolia Commons is listed as “important” in Arlington’s Historic Resources Inventory. The property consists of eight colonial style, three-and-four-story walk-up garden apartment buildings, located on the north side of Columbia Pike at Frederick Street and extending across 8th Street South. Currently, the property includes 65 one-bedroom units and 133 two-bedroom family-sized units. One-bedroom apartments now rent for $890 to $1,025 and two-bedroom apartments rent for $1,100 to $1,250. After renovations, rents will be $893-$1092 for one-bedroom apartments and $1,047-$1,286 for two-bedroom apartments.
AHC to upgrade, modernize complex
AHC . Inc., a frequent partner with the County in the creation, renovation and preservation of affordable housing, plans to repair, upgrade and modernize the 1947 complex. Electrical, plumbing and HVAC systems will be replaced or upgraded. Each unit will receive a new kitchen, fixtures, finishes and upgraded baths. The upgrades will increase energy efficiency and reduce energy consumption. AHC plans to spend about $53,000 a unit for the renovations. Construction is expected to last two years.
Tenants to be temporarily relocated
AHC surveyed the current tenants and found that nearly one-third live in overcrowded conditions. Nearly half the families are paying more than 40 percent of their income toward rent. AHC expects most of the households will be eligible to live at the property after it is renovated.
AHC plans to phase the renovation, so that as many residents as possible can stay on-site. If some must be temporarily relocated off-site, AHC plans to house them in neighboring properties. The project’s financing plan includes $594,000 for relocation expenses for qualified tenants. Any funds left over will be used to subsidize rents for households whose incomes are too low to cover the entire rent payment for the newly-renovated, income-restricted apartments. Income restrictions will be phased in to minimize dislocation of over-income residents.
Background
The Board’s action comes as County staff, and the community, continue to develop the Columbia Pike Land Use and Housing Study, meant to complete the Columbia Pike Revitalization Plan. The Plan guides public and private investment in the Pike to match community goals that call for enhancing the quality of life, creating a walk and bicycle-friendly community, supporting the planned streetcar and other transit investments, and sustaining a supply of housing that serves a population with a broad mix of incomes.
The County is committed to working to preserve affordable housing on the Pike and across Arlington. Since 2000, more than half of Arlington’s apartments have become unaffordable to low- and moderate-income households, as land values and rents have risen. To date, the County has created a stock of more than 6,000 Committed Affordable Units (CAFs).
Specifically along Columbia Pike, several complexes have gone through renovations and rents were raised which resulted in some residents having to move away. A handful of large complexes contain a significant majority of the affordable apartments existing today in Arlington, but without community intervention, there is no assurance that rents will remain affordable in the future.
For more information on the project, see the Agenda for the October 15, 2011 County Board Regular Meeting. Scroll down to Item #38 to read the staff report.
Category: Affordable Housing, Construction, Economic Development, Historic Buildings, Historic Preservation
