ARLINGTON COUNTY, VIRGINIA. County Board Agenda Item Meeting of September 24, 2016

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1 ARLINGTON COUNTY, VIRGINIA County Board Agenda Item Meeting of September 24, 2016 DATE: September 20, 2016 SUBJECT: Allocation of Fiscal Year 2017 Affordable Housing Investment Fund (AHIF) loan funds for use by Arlington Partnership for Affordable Housing (APAH) for the acquisition of eight apartment buildings in the Westover neighborhood. C. M. RECOMMENDATIONS: 1. Appropriate $3,648,681 in loan repayments and developer contributions received in FY 2017 ( ) to the FY 2017 unallocated funds account ( ). 2. Allocate up to $10,998,494 of Affordable Housing Investment Fund (AHIF) funds ( ) to Arlington Partnership for Affordable Housing (APAH) ( ), or its designated County-approved ownership affiliate, to assist with financing the acquisition of 68 market affordable units in the Westover neighborhood. The financing assistance would be in the form of a subordinated residual receipts loan generally in accordance with the loan terms and conditions outlined in this report and subject to the approval of final loan terms and conditions, and loan documents, by the County Board at a future time. 3. Approve the subordination of the lien of the County's Deed of Trust, Assignment of Rents and Leases and Security Agreement to the lien of the deed of trust related to the acquisition loan of up to $4,720,625 (plus 5%) from Access National Bank (the "Access Bank Deed of Trust"), subject to the subordination of the Access Bank Deed of Trust to the County's Deed of Declaration of Restrictive Covenants pursuant to the terms of a Subordination Agreement, both substantially in accordance with the attached documents and subject to final approval by the County Board as part of the final approved loan documents." ISSUES: This is a request by APAH for AHIF funds to assist with the acquisition of 68 units within eight apartment buildings in the Westover neighborhood to become long-term committed affordable housing. There are no known issues at this time. County Manager: ##### County Attorney: ***** 57. Staff: Sarah Pizzo, Maureen Markham, Yoomie Ahn, CPHD Housing Division

2 SUMMARY: APAH is requesting AHIF financing to assist with the acquisition of 68 units within eight apartment buildings in the Westover neighborhood. The acquisitions will preserve the affordability of the units and add them to the long-term committed affordable unit inventory. APAH would acquire the eight buildings between late September 2016 and January 2017 and would income-restrict the units upon turnover. APAH would utilize non-competitive Low Income Housing Tax Credits (LIHTC) and Historic Tax Credits to rehabilitate the buildings, beginning no earlier than fall By the time rehabilitation is completed, it is anticipated that all 68 units will be income-restricted to households earning 60% of the area median income (AMI) and below. The County Manager recommends allocating up to $10,998,494 in AHIF financing. BACKGROUND: The Westover neighborhood has nearly 700 units of garden apartments built in the 1940 s and listed as contributing resources to the Westover National Register District. Of the 700 total units, 223 are currently committed affordable units (CAFs). The remaining units are predominately market affordable unit ( MARKs ), meaning they are affordable to low-income households as a result of current market pricing rather than local, state, or federal affordability or income requirements. In the past few years, private developers have begun purchasing and assembling buildings for redevelopment. During this time, 62 units have been demolished for the development of by-right, luxury townhomes. In recent months, a number of community members have vocalized their desire to preserve both the affordability and the form of these historic buildings. In spring 2016, APAH responded to the need for affordable housing preservation in Westover and developed a proactive acquisition strategy. APAH targeted approximately 400 units across scattered ownership. Between June and July 2016, APAH signed purchase contracts with three different owners for the acquisition of these eight buildings. DISCUSSION: The Westover neighborhood currently has approximately 470 MARKs affordable to households earning up to 60% of AMI. This is the largest number of MARKs in an area not covered by a land use plan in the County. The Affordable Housing Master Plan (AHMP), adopted by the County Board in September 2015, has a policy to make every effort to prevent the loss of market-rate affordable rental housing. MARKs constitute an important part of Arlington s affordable housing stock, currently making up approximately 30% of all affordable units. Since 2000, however, the County has lost 13,500 MARKs. This significant decrease in MARKs countywide is attributable to rent increases, condo conversions and redevelopment. APAH s proposed acquisitions are an opportunity to preserve 68 market affordable, historic units in the Westover community as long-term committed affordable units. The Westover neighborhood has recently experienced a loss of MARKs as the neighborhood is undergoing significant development activity. Developers have recently assembled, sold, and demolished multifamily buildings containing MARKs to create high-end, by-right townhomes. This recent redevelopment has eliminated 62 one-bedroom apartments with rents under $1,200 from the County housing stock

3 The current dynamics in Westover are very similar to the redevelopment that took place in both the Fort Myer Heights North and Buckingham neighborhoods. In 2004, estimates indicated that Fort Myer Heights North had over 600 affordable rental units and by 2008, approximately 200 had been demolished in order to develop luxury, by-right townhomes and condominiums. In Buckingham, 323 garden units were demolished since 2006 and replaced with about 137 townhouses and 559 luxury apartments. As the townhouse market continues to remain strong in Westover, the number of MARKs is likely to continue to decrease. APAH plans to acquire eight buildings between late September 2016 and January APAH proposes three phases to its financing, as outlined in the Development Budget and Financing Package section. Post acquisition, APAH proposes surveying the incomes of tenants and then phasing in the income certification process over a period of time, as described in the Affordable Housing Program section below. Affordable Housing Program: Following acquisition, APAH will survey the existing tenants to determine the income profile. It is anticipated that at least a portion of the tenants will have incomes in excess of 60% of the area median income (AMI). APAH proposes phasing in the income certification process over a period of time. To avoid displacement, APAH will incomerestrict the units at turnover for households that currently do not income qualify. By the time rehabilitation is completed in Phase 3, it is anticipated that all 68 units will be income-restricted to households earning 60% of AMI and below. However, APAH and the County will re-evaluate the unit mix in advance of the Low Income Housing Tax Credit deal. In the event that less than 100% of the units are proposed to be income-restricted at 60% AMI, then staff will seek support of the County Board of any changes. The table below shows the bedroom mix of the 68 existing units that APAH will acquire. Unit Type Total Current Average Rent 1BR 64 $1,150 2BR 1 $1,350 3BR 3 $1,773 Total 68 Supportive Housing Units APAH will partner with Arlington Street People s Assistance Network (A-SPAN) and dedicate one eight-unit building for ASPAN clients transitioning from homelessness to homes. Those eight households would receive supportive housing, including case management and other wraparound services. Rehabilitation Plan: APAH plans to do a substantial rehabilitation of all units, beginning no earlier than fall After acquiring the buildings this fall, APAH will work with its design team and County staff to explore the possibility of enlarging some units and/or adding a small number of additional units. If feasible, bump-out additions would increase the number of familysized units. Additional units could serve more low-income households, as well as lower the - 3 -

4 AHIF investment per unit. The rehabilitation plans will conform to the Secretary of the Interior s Standards for Rehabilitation and qualify for both federal and state historic tax credits. These historic credits, along with the LIHTC, will finance the cost of rehabilitation. Affordable Housing Master Plan ( AHMP ): This proposal to preserve MARKs meets multiple Goals, Objectives and Policies of the adopted Affordable Housing Master Plan. The acquisition of these properties provides an opportunity to add committed affordable units in Westover, an area that has seen a recent loss of MARKs through demolition and redevelopment and an area that furthers the County s geographic distribution policies. The project meets the following AHMP Policies. The Goals, Objectives and Policies of the AHMP are listed in full in Exhibit 3 of this report. 1. Policy Project will add 68 CAFs through AHIF financial assistance. 2. Policy Project prevents the loss of 68 MARKs. 3. Policy Project promotes geographic distribution of affordable housing. 4. Policy The CAFs will be committed affordable for 60 years. 5. Policy Project will add 3 family-sized units to the CAF inventory, including 1 two-bedroom units and 2 three-bedroom units. 6. Policy 2.3.1, and Project will provide 8 permanent supportive housing units to the formerly homeless. Development Budget and Financing Package: APAH s proposed financing for the Westover acquisitions will have three phases with a total development cost including acquisition and rehabilitation of $27,153,153 as outlined below. Phase 1 The Phase 1 financing will begin with the first acquisitions in late September and will include all non-county sources: a $9,441,250 interest-only acquisition loan from Access National Bank; a $5,000,000 APAH line of credit loan; and $1,295,379 in APAH cash. During this initial phase, APAH will make only immediate capital repairs and will operate the properties with very low expenses in order to pay the debt service for the loans. Access National Bank is willing to provide the acquisition loan and line of credit to APAH if the County commits to providing the needed AHIF for the Phase 2 financing. The County s commitment will be made at the time the final loan terms are approved. The allocation requested to be made by the County Board now provides APAH and Access Bank an indication of the Board s support for the loan. APAH negotiated a total acquisition price of $14,525,000 for the eight buildings. This translates to an average acquisition cost of $213,603 a unit, which is lower than recent market sales in Westover that have ranged from $230,000 to $250,000 a unit. Complexes in Westover have been trading at values reflective of the highest and best use of the land and the current townhouse market in Westover. In 2014, the County provided AHIF loans for the acquisition of two market apartment complexes for the purpose of adding to the committed affordable housing inventory

5 Those two complexes were acquired by a non-profit developer for $206,000 and $209,286 a unit, where the land was not at risk of townhouse development. In 2009, the County acquired Buckingham Villages 3, which would have otherwise been demolished for luxury townhouse development. The acquisition cost was $246,429 per unit, based on the appraised value and due to the cost of townhouse land

6 The following table shows the proposed sources and uses for Phase 1. SOURCES OF FUNDS: USES OF FUNDS: Access National Bank $ 9,441,250 Acquisition Cost $ 14,525,000 Acquisition Loan Access National Bank $ 5,000,000 Acquisition Closing Costs $ 193,000 Line of Credit APAH Cash $ 1,295,379 Soft Costs $ 331,364 Financing Costs $ 637,265 Reserves $ 50,000 Total Sources $ 15,736,629 Total Uses $ 15,736,629 Phase 2 This phase, which will begin by January 2017, will include closing on the approximately $11 million in AHIF loan funds. The AHIF funds will pay off 50% of the Access National Bank acquisition loan, all of APAH s line of credit, and all but $97,510 of the APAH cash. The proposed sources and uses for Phase 2 are shown in the table below. SOURCES OF FUNDS: USES OF FUNDS: Access National Bank $ 4,720,625 Loan Repayment (Access Bank) $ 9,441,250 AHIF Loan $ 10,998,494 Loan Repayment (Line of $ 5,000,000 Credit) APAH Cash $ 97,510 APAH Equity Repayment $ 1,295,379 Additional Closing Costs 1 $ 80,000 Total Sources $ 15,816,629 Total Uses $ 15,816,629 1 Phase 2 includes additional closing costs. Phase 3 Phase 3 will include a rehabilitation of all units using non-competitive 4% Low Income Housing Tax Credits (LIHTC) and federal and state Historic Tax Credits. APAH anticipates closing on the tax credit deal no earlier than fall The Access National Bank acquisition loan would be taken out by VHDA financing, including tax-exempt bonds, REACH, and REACH Plus funds. The total development cost, including the acquisition and the rehabilitation project is estimated to be $27,153,153 ($399,311/unit), of which 59% are acquisition and closing costs, 20% are construction hard costs, 5% are soft costs, 3% are financing costs, 12% for developer fee and 1% is for reserves. A comparable project, Buckingham Villages 3 ( Parcel B ), which included a high land cost and a substantial rehabilitation, had a total development cost of $424,972 per unit in

7 The table below shows the sources and uses for Phase 3: SOURCES OF FUNDS: USES OF FUNDS: AHIF Loan 1 $ 10,998,494 Acquisition Cost 3 $ 15,816,629 VHDA Funds 2 $ 5,381,863 Acquisition Closing Costs $ 266,986 LIHTC Equity $ 5,374,229 Construction Costs $ 5,355,000 Historic Tax $ 3,798,567 Soft Costs $ 1,368,513 Deferred Developer Fee $ 600,000 Financing Costs $ 743,426 APAH Equity $ 1,000,000 Developer Fee $ 3,200,000 Reserves $402,599 Total Sources $ 27,153,153 Total Uses $ 27,153,153 1 Sources of funds include AHIF Loan from Phase 2. 2 It is anticipated that the Access National Bank acquisition loan will be taken out by VHDA which will loan APAH (or its ownership affiliate) the following funds: $933,863 in funds from a tax-exempt bond issuance, $2,448,000 from VHDA s REACH funds, and $2,000,000 from VHDA s REACH Plus funds. 3 Acquisition Cost in Phase 3 includes closing costs, soft costs and financing costs from Phases 1 and 2. AHIF Funds Requested: APAH s AHIF request of $10,998,494 equals $161,743 per unit. AHIF loans for the most recent market acquisition projects in 2014 ranged from approximately $84,000 to $106,000 per unit. The reason for the higher AHIF amount per unit for these Westover acquisitions is in part due to the market-driven cost of the land in this area of the County, and in part due to the size and unit mix of the project. Market developers are willing to pay a premium for the land to be developed as luxury townhomes and thus the price point at which owners are willing to sell has increased. In addition, the financial inefficiencies of acquiring and operating 100% affordable, small, eight- to ten-unit buildings within a scattered-site project contribute to higher AHIF per unit costs. If APAH is able to add 5-8 additional units in Phase 3, then the AHIF amount could decrease to $144,717-$150,664 per unit. The following table compares the Westover financial data to that of the other projects mentioned in this report. Project County Investment per Committed Affordable Unit Acquisition cost per Unit Total Development Cost per Unit Buckingham Village 3 $ 212,064 $ 246,429 $ 418, /140 Serrano $ 84,184 $ 209,289 $ 222,395* 196/280 Spectrum $ 106,250 $ 206,000 $ 225,500* 80/100 Westover (proposed) $ 161,743 $ 213,603 $ 399,311 68/68 *Note: The Serrano and The Spectrum were acquisitions only and did not include a full rehabilitation. Committed Affordable Units/Total Units - 7 -

8 APAH s AHIF request meets a number of the County s underwriting guidelines, two of which are highlighted below: Deferred Developer Fee One of the County s standard underwriting guidelines is for the developer to defer 50% of its developer fee. For this project, APAH proposes $1.6 million of the $3.2 million total developer fee essentially be deferred as follows: $1,000,000 would stay in the project as equity and $600,000 would be paid out over time out of APAH s share of the cash flow. APAH Resources One of the County s underwriting guidelines is that the developer contribute its own financial resources to the project. APAH will utilize nearly $1.3 million of cash plus $5 million from a line of credit on two of its other properties to acquire the buildings in Phase 1. While all but approximately $100,000 of the funds will be repaid in Phase 2, APAH will contribute $1,000,000 in Phase 3 as long-term financing. AHIF Terms: The proposed $10,998,494 AHIF loan is anticipated to have a loan term of up to 18 months in Phase 2 and accrue 1% interest per annum. The loan is also anticipated to be secured by a subordinated deed of trust and be payable from 50% of the residual cash flow of the scattered-site project. The anticipated initial loan terms and conditions for the AHIF loan are in Exhibit 1 of this report. At the time of the tax credit closing and rehabilitation in Phase 3, the AHIF loan is anticipated to be bifurcated into two loans equaling $10,998,494. The loans would be amended and restated for a new up to 32-year term. It is anticipated that the blended interest rate would be approximately 0.25%, but the interest rates of the two loans may vary. The reason for the bifurcation is that there will be a ground lease structure in Phase 3, where an APAH affiliate will own and lease the land to the tax credit partnership. As a result, the AHIF loan is expected to be bifurcated with one loan to the ground lessor and one loan to the tax credit partnership. Anticipated Timeline and Future County Board Requests APAH will acquire the eight buildings via three settlements between late September and early January. If the County Board approves the allocation of AHIF funds requested by this report, then the County staff will bring forward a request during the December 2016 County Board meeting for approval and authorization of the final loan terms and loan documents for the $10,998,494 AHIF loan. Under the structure proposed by this board report, the County would close on its AHIF loan by January In advance of APAH closing on the LIHTC and Historic Tax Credit deal, likely in late 2017, County staff would bring forward a request for: bifurcation of the AHIF loan into two loans; subordination of the AHIF loans to the permanent lender; amendments to the existing AHIF loan agreement; and approval of the second AHIF loan agreement. Civic Association/Community Process: APAH will meet with the Westover Civic Association on September 7, 2016 to share its acquisition plans

9 Tenant-Landlord: APAH will meet with the tenants once they have acquired the properties. There will be no tenant relocation at this time. In advance of the rehabilitation in Phase 3, APAH will develop a Relocation Plan, which will be presented to the tenants and to the Tenant-Landlord Commission. Housing Commission: The Housing Commission will consider APAH s AHIF request at its meeting on September 15, 2016 and will send a letter to the County Board. Estimated Number of Students Generated by the Development: According to Arlington Public Schools (APS), there are currently 11 students in these eight buildings, as shown below. APS projects this number to stay the same post acquisition. Number of Elementary School Students (K-5): 3 Number of Middle School Students (6-8) generated: 4 Number of High School Students (9-12) generated: 4 The buildings are zoned for the following school districts: McKinley Elementary School, Swanson Middle School and Yorktown High School. APS provides no guarantee that any residential proposed development will continually be served by the same elementary, middle and/or high school(s). FISCAL IMPACT: The current unallocated AHIF balance for FY 2017 is $11,708,795. Approval of the staff recommendation to appropriate $3,648,681 in loan repayments and developer contributions would result in a revised AHIF balance of $15,357,476. Approval of the staff recommendation to allocate $10,998,494 in FY 2017 AHIF funds to support APAH s acquisition and renovation of 68 units in the Westover neighborhood would result in a remaining AHIF balance of $4,358,982. In addition, there are a number of County board actions on the October 2016 agenda which, if approved, would increase the total unallocated AHIF balance to over $21 million (summarized below). Available AHIF Funding (unallocated balances, $ in millions) Current FY 2017 Unallocated Balance: $11.7 FY 2016 Carryover of Unallocated Balances $17.2 Additional AHIF Loan Repayments & Developer Contributions (this board report) $3.6 Allocation of AHIF Funds for Westover Buildings (this board report) ($11.0) Available AHIF Funding $21.5 Additionally, APAH is expected to pay $88,860 in Certificate of Occupancy and building permit fees to the County. The revenue will be credited to the Development Fund

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11 EXHIBIT 1: Anticipated Initial AHIF Loan Terms and Condition AHIF LOAN Up to $10,998, The Applicant for the AHIF Loan ( Applicant ) shall execute an Arlington County, Virginia Affordable Housing Investment Fund Loan Agreement ( AHIF Loan Agreement ) and other related loan instruments, as drafted and finalized by the County Attorney, in a form acceptable to the County Manager and the County Attorney and subject to County Board approval. 2. The AHIF Loan shall be secured by a second lien position in the property, subordinate to the remaining balance up to $4,720,625 of the Access National Bank acquisition loan, and loan proceeds shall solely be used for the repayment of the following interim acquisition financing: an amount equal to 50% of the Access National Bank acquisition loan (up to $4,720,625); the Access National Bank line of credit ($5,000,000) and $1,197,869 of APAH funds. No AHIF loan proceeds shall be used for payment of a developer fee. The Applicant shall record a Deed of Declaration of Restrictive Covenants at the time of the AHIF Loan closing that will outline the affordability requirements for the property. The Access National Bank acquisition loan will be subordinated to the Deed of Declaration of Restrictive Covenants. 3. As set forth in the related promissory note, and subject to an Event of Default (as defined in the AHIF Loan Agreement), the unpaid principal balance of this AHIF Loan shall accrue at 1% per annum, compounded annually as called for in the related promissory note for the up to 18-month term for Phase The AHIF loan shall be bifurcated in Phase 3, subject to the approval of the County Board, and shall have a term of up to 32 years and a blended interest rate of less than 0.5%. 5. Beginning in the first operating year of the 68-unit scattered-site project, the County shall receive 50% of the Project s Residual Receipts, as an annual payment towards the AHIF Loan. Residual Receipts as defined in the County Loan Agreements, shall specifically include, but not be limited to, the amount by which gross revenues exceed annual debt service payments, approved operating expenses, payments to replacement reserve and a priority payment fee for APAH management fees, both of which can be escalated annually at 2%. Any other fees or payments in excess of what is stated here must be paid from the applicant s portion of residual cash flow. The APAH management fee shall be up to $13,600 a year, which can be escalated annually at 2%. 6. APAH or its affiliate shall provide an equity contribution or sponsor loan of $97,510 during Phase 2 financing as described on page 5 of the board report. In Phase 3, APAH or its affiliate shall provide an equity contribution or sponsor loan of $1,000, The Borrower shall diligently use its best efforts to facilitate the rehabilitation of the eight apartment buildings, which shall include (a) engaging an architect and working with County staff to explore the possibility of enlarging some units and/or adding a small

12 number of additional units; (b) applying to VHDA for 4% LIHTC; (c) applying for federal and state historic tax credits; and (d) closing on the rehabilitation financing within 18 months of the Phase 2 AHIF loan closing. 8. The Applicant shall include these AHIF Loan Terms and Conditions when requesting proposals from senior lenders and investors for Phase 3. If any terms are negotiated between the Applicant and other parties that are in violation of these Loan Terms and Conditions, the Applicant must submit a request to the County Board to consider revision of these Loan Terms and Conditions as necessary to conform to the negotiated terms between the Applicant and such other parties

13 EXHIBIT 2: 2016 Rent and Income Limits for Arlington County Affordable Housing Programs Effective March 28, 2016 Monthly Rent Limits Max Affordable Unit Size 60% of AMI Efficiency $956 1 Bedroom $1,024 2 Bedroom $1,228 3 Bedroom $1,420 Annual Income Limits Family Size 60% of AMI 1 $45,900 2 $52,440 3 $58,980 4 $65,520 5 $70,800 6 $76,

14 EXHIBIT 3: Affordable Housing Goals, Objectives and Policies of the Affordable Housing Master Plan GOAL 1: Arlington County shall have an adequate supply of housing available to meet community needs. Objective 1.1: Produce and preserve a sufficient supply of affordable rental housing to meet current and future needs. By 2040, 17.7% of the County s housing stock should be affordable rentals to meet the needs of renter households with incomes at or below 60% AMI Encourage the construction and preservation of affordable rental housing through land use/zoning policy, financial and technical assistance Prevent the loss of committed affordable housing Make every reasonable effort to prevent the loss of market-rate affordable rental housing Encourage and incentivize the distribution of affordable housing throughout the County Encourage affordability periods of 60 years or more for committed affordable rental projects where the County provides financial assistance Incentivize affordability below 60% AMI in committed affordable rental projects Remove barriers to the production of moderately-priced rental housing, including non-subsidized housing Encourage production and preservation of family-sized (e.g. 3+ bedroom) market-rate and committed affordable rental units Produce committed affordable rental units within transit corridors consistent with the County s adopted land use plans and policies Explore flexibility in housing types and residential uses in single-family neighborhoods. Objective 1.2: Produce and preserve a sufficient supply of affordable ownership housing to meet future needs. 2,700 ownership units affordable to households between 80% and 120% AMI will need to be created by 2040 to fulfill the forecasted need Incentivize the production of moderately-priced ownership housing through land use and zoning policy Encourage production and preservation of family-sized (e.g. 3+bedroom) moderately-priced ownership units Explore flexibility in housing types and residential uses in single-family neighborhoods

15 GOAL 2: Arlington County shall ensure that all segments of the community have access to housing. Objective 2.1: Affirmatively further fair housing Eliminate housing discrimination Allow for flexibility in the definitions of family and household for occupancy purposes. Objective 2.2: Ensure low- and moderate-income individuals and families can access housing Enable access to housing through direct rental assistance for households with incomes below 40 percent of the area median income Avoid displacement of low-income residents out of the community during construction and redevelopment of CAF projects For private projects, encourage owners/developers to provide assistance to displaced tenants and provide County assistance to affected tenants Incentivize landlords to provide housing to individuals and families with leasing barriers Provide assistance to create access to ownership housing for moderate-income first-time homebuyers Provide preference to Arlington residents and workers in leasing committed affordable housing units and home-buyer assistance resources. Objective 2.3: Prevent and end homelessness Use the best practice approach of housing first, which places people experiencing homelessness into housing as rapidly as possible and provides wrap around services to help them maintain their housing Provide permanent supportive housing (PSH) for persons with disabilities who are homeless or at-risk of homelessness Prevent homelessness through safety net supports and social services to enable residents to maintain their housing. Objective 2.4: Enable Arlington residents to age in the community Provide support so that older adults can age in place or age in community through a combination of affordable and accessible housing with linkages to services Incorporate universal design principles in new and rehabilitated housing to facilitate access for aging adults. Objective 2.5: Enable persons with disabilities to live as independently as possible in the community. By % of all CAFs will be accessible to and occupied by person with disabilities Provide support so that individuals with disabilities can live in community through a combination of affordable and accessible housing with linkages to services Use Committed Affordable (CAF) units to provide permanent supportive housing (PSH) for persons with disabilities Maintain a sufficient supply of committed affordable housing that are accessible for persons with physical and sensory disabilities

16 GOAL 3: Arlington County shall ensure that its housing efforts contribute to a sustainable community. Objective 3.1: Ensure that all housing is safe and code compliant Fully enforce all codes related to building structure, occupancy and maintenance Ensure that all committed affordable housing is code compliant Foster greater awareness and understanding of tenant and landlord rights and responsibilities, and housing safety Provide education and financial assistance to landlords and homeowners for the maintenance of low- and moderate-income housing. Objective 3.2: Promote affordable housing close to transit Coordinate transportation, land use and Affordable Housing Master Planning efforts Ensure that committed affordable rental units have high levels of access to transportation options consistent with the Master Transportation Plan and transit-oriented development. Objective 3.3: Ensure environmental sustainability practices are incorporated into affordable housing developments Encourage energy efficiency in new and renovated affordable housing to advance the goals of the Community Energy Plan (CEP) Encourage water conservation in affordable housing Encourage the conservation of natural resources by reducing or eliminating waste throughout the building s entire life cycle, including the development phase, the usage phase and the building s end-of-life stage Provide education to landlords, tenants and homeowners on energy efficiency, water conservation, recycling, and waste reduction activities. Objective 3.4: Promote long term affordability and financial feasibility of Committed Affordable Units Implement affordability restrictions for the maximum length of time that is feasible on a projectby-project basis Ensure financial feasibility in the underwriting of County loans for affordable housing. Objective 3.5: Ensure that the County s affordable housing goals are integrated into other County plans and policies where appropriate Integrate affordable housing goals and policies into County sector plans, economic development strategies, the Master Transportation Plan and other County planning efforts Consider affordable housing needs and goals when planning for major capital investment in new or redeveloping existing major community facilities, taking into account the neighborhood context. The County Board does not support the placement of stand-alone affordable housing in officially designated parks or existing natural areas Develop work plans and metrics to ensure implementation of affordable housing goals and to evaluate the success of implementation effort

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