CPDC Completes $26 Million Redevelopment of Affordable Housing Community in a High-Cost Area of North Arlington
WASHINGTON, D.C., October 30, 2013 – Today, Community Preservation and Development Corporation (CPDC) announced the completion of a $26 million investment in the redevelopment of The Larkspur, a 76-unit affordable housing community in a high-demand and increasingly unaffordable area of Arlington County.
According to 2012 U.S. Census Bureau data, Arlington County is the nation’s most affluent county with a median family income of $137,216. With such high income levels, housing affordability presents a real challenge to low wage earners that struggle to live where they work.
“The need for housing affordability in counties like Arlington is great – and growing,” said CPDC President and CEO, Michael Pitchford. “The redevelopment of The Larkspur allowed CPDC to maintain critically-needed affordable rents for residents who could otherwise not afford to live in the area.”
Arlington County officials continue to explore ways to respond to the region-wide affordable housing crisis. By incentivizing developers through the use of low-interest loans and other tools, they are increasing the affordable housing stock.
“Affordable housing makes up more than 14% of the County’s rental stock,” said Arlington County Board Chairman J. Walter Tejada. “We are pleased that The Larkspur helps increase our supply and supports ongoing community revitalization efforts underway in the County.”
To preserve affordability at The Larkspur, CPDC carefully structured its rental mix to accommodate 46 units at or below 60% Area Median Income (AMI), 15 units at or below 50% AMI, eight units at or below 40% AMI, along with seven market rates units. The market rate units were intentionally maintained to avoid displacing families that currently live on the property whose income exceed affordable housing criteria. As the market rate units turn over, they will be rented to residents with incomes at 60% AMI or below, allowing the project to convert to 100% affordable over time.
In addition to preserving affordability, The Larkspur redevelopment created a shift in the neighborhood’s resident base, providing opportunities for those with special needs to live in this apartment community. CPDC constructed eight handicap-accessible units designed to meet universal design standards for persons living with disabilities as well as eight units of Permanent Supportive Housing which serve chronically homeless individuals and families. These changes complemented overall improvements to the physical condition of the property (e.g., increased energy efficiency, expansion of unit sizes to serve more families, and the addition of a newly constructed community room for meetings and resident activities).
“CPDC understands that creating affordable housing strengthens neighborhoods and helps build great communities,” said Barbara Favola, Virginia State Senator (31st District). “I am proud to be associated with an organization that embodies Arlington’s vision of an inclusive and welcoming county.”
CPDC employed a two-pronged financing approach which first involved obtaining interim bridge financing from the Low Income Investment Fund and permanent subordinate financing from Arlington County Affordable Housing Initiative Funds (AHIF). After the initial acquisition, CPDC then obtained a new first mortgage and 9% Low Income Housing Tax Credits (LIHTC) from the Virginia Housing Development Authority, $15.5 million in specialized financing from Capital One Bank through a construction loan and the purchase of LIHTCs syndicated by Hudson Housing, and subordinate debt from AHIF.
“Fostering the economic well-being of our communities and their residents is a vital part of our work at Capital One Bank, and we are proud to help preserve and expand affordable housing options in Arlington for individuals and families at The Larkspur,” said Tony Pica, Northern Virginia Market President for Capital One Bank. “As the Greater Washington region’s hometown bank, Capital One recognizes the need for quality, sustainable affordable housing in our local communities. We are proud to work with local organizations, like CPDC, to invest in opportunities that will not only provide quality affordable housing for those in need, but also stimulate the creation of local jobs.”
The Larkspur is located in a residential neighborhood west of Rosslyn and North of Lee Highway with access to several area schools, commercial and community amenities, and other assets such as the Mount Vernon Trail. The Larkspur is close to several major thoroughfares and has various public transportation options (including Metro rail) allowing for ease of access to Washington, D.C. and other areas of Northern Virginia.
A premier developer of affordable housing in Washington, D.C., Maryland and Virginia, Community Preservation and Development Corporation (CPDC) works to develop vibrant communities through innovation and partnership. The organization currently owns over 4,500 dedicated affordable apartments within more than 25 communities, with resident engagement programs at many of its properties serving more than 9,000 residents. More about the company is available at www.cpdc.org.