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Alexandria approves loan for public housing agency
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Two-thirds of the 152 Glebe Park apartments are contaminated with mold and can’t be rented, leading to a threat of technical default of the mortgage. – Brig Cabe/Examiner
Alexandria (Map, News) - The Alexandria City Council approved a $5.6 million loan to its public housing agency Tuesday with an agreement giving the city closer oversight of the agency.
The loan, the city’s second to the Alexandria Redevelopment and Housing Agency (ARHA) in a year, will allow the agency to pay off the mortgage on its Glebe Park housing complex. Two-thirds of the 152 apartments are contaminated with mold and can’t be rented, leading to a threat of technical default of the mortgage.
The agency has requested $17.9 million in loans from the city as federal funding has been reduced. The city has loaned $10.3 million total.
“We realize as we continue to move forward in the near future that federal funding has become unrealistic. Yet ARHA has responsibility for 1,000-plus units citywide,” Alexandria Mayor Bill Euille said. “Council realizes that from time to time, we may be asked to help.”
The city said it won’t loan the agency the remaining $7.6 million it requested to redevelop Glebe Park, although the council approved developer EYA’s plans to build 78 new units on the property and renovate 24 of the existing garden apartments.
EYA’s plans provide 84 public housing rental units and 18 units for sale, according to designs submitted to the city's planning commission. They hinge on profit from redevelopment of another ARHA property, competitive federal grants and the $7.6 million loan.
Agency staff are negotiating with EYA for a loan of the remaining $7.6 million, said Roy Priest, interim ARHA director.
The agreement between the council and ARHA requires the two to review each others’ annual operating budgets. Additionally, ARHA must include city staff in its meetings with lenders and redevelopers and share its performance evaluations and audits with the city.
The $5.6 million loan will be added to the city's debt. Alexandria's total debt peaked just below $300 million in fiscal year 2006, according to documents provided at a city budget meeting. It is expected to grow to more than $350 million if voters approve additional debt in 2008.
mhegstad@dcexaminer.com
