Friday, September 18, 2009

Guest Bloggers Louise Milder and Paula Sampson: Alternatives to HOPE VI Funding for Mixed-Income Redevelopment

HOPE VI is a wonderful resource for Public Housing Authorities, but not all of us qualify for the funding. We are the first to admit that the Fairfax County, VA, model would never substitute for precious HOPE VI funds, but the model could be useful for those authorities who don’t have access to HOPE VI funds. Read on for more information on each of these two projects.

Tavenner Lane is a mixed-finance, mixed-income new construction project consisting of 12 public housing units and 12 rental units with project-based Section 8 assistance. The Fairfax County Housing and Redevelopment Authority (FCRHA) syndicated the public housing units along with the affordable rental units with Federal Low-Income Housing Tax Credits under regulations developed by HUD for mixed finance developments. This was one of the first projects in the country developed under the new HUD regulations. Twelve of the units were developed under the HUD Public Housing program and the remaining twelve units were developed for occupancy by eligible applicants under the Fairfax County Rental Program (FCRP).

West Glade is a scattered-site, mixed-income, mixed-financing project. The West Glade Apartments were formerly The Green Apartments, which consisted of 50 public housing (PH) units in Reston. As part of the redevelopment of the property, 24 existing three-bedroom units were rehabilitated into two-bedroom units and leased under the FCRP. The conversion of 24 three-bedroom PH units to 24 two-bedroom FCRP units required the acquisition of 24 three-bedroom replacement PH units. West Glade is a 74-unit development comprised of 26 public housing units and 24 FCRP units on-site and 24 off-site public housing replacement units.

Financing for both projects included HUD Public Housing funds, federal Low Income Housing Tax Credits, and local funds. In addition, Tavenner Lane was financed with CDBG Section 108 funds, state funds, and HOME funds. West Glade additional financing included a conventional loan from a bank.

Louise Milder and Paula Sampson are both from the Fairfax County Department of Housing and Community Development. Milder serves as the Assistant Director of Real Estate Finance and Sampson is the Director of Community Development.

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