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County Board Approves $7.9 Million Loan for Queens Court Redevelopment in Rosslyn

The Arlington County Board on Tuesday unanimously approved a $7.9 million loan to redevelop Queens Court, an affordable housing building in North Rosslyn.

The Affordable Housing Investment Fund loan would help build 249 affordable units at what will be called Queens Court South, yielding “a net gain of 388 bedrooms over the existing 39-unit building,” according to a county press release.

The existing Queens Court structure, built in 1940, has studio and one bedroom apartments. Queens Court South will have those configurations as well as two and three bedroom units, with more room for families.

The project also dedicates 9,000 square feet for a northern leg of Rosslyn Highlands Park, with a planned playground and tot lot.

The redevelopment is part of a Western Rosslyn Area Plan adopted in 2015 that will add a new fire station and public secondary school. Current Queens Court households will be relocated, and the new building will be required to remain affordable for 75 years.

County Board Chair Katie Cristol said the Board was “delighted to help” the Arlington Partnership for Affordable Housing, which is redeveloping the property.

Here’s more from the press release regarding the project’s financing:

APAH will apply to the Virginia Housing and Development Authority for competitive 9 percent low income housing tax credits for Queen’s Court South, which will contain 90 affordable units. If APAH is awarded the 9 percent low income housing tax credits by VHDA, the Board is expected to consider a second AHIF request of up to $11.8 million for the remaining 159 units this fall. Although Queen’s Court North and South will be separated into two land condominiums for financing purposes, the development will be built in one phase, with all 249 units in one building.

After the Board approved its Site Plan in February 2017, APAH submitted an AHIF application for $24 million as part of the County’s Fiscal Year 2018 Notice of Funding Availability (NOFA) process for affordable housing funding, to redevelop the property. Staff selected the Queen’s Court project to move forward with AHIF negotiations and the public process.

During the negotiation process, APAH reduced the AHIF request for the entire development by $4.3 million. The AHIF reduction was a result of APAH working with VHDA to increase the amount of certain VHDA low interest loans that are being layered with the VHDA senior loan. APAH also agreed to contribute another $2 million in equity to the development resulting from the transfer of the property into the tax credit partnership.

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