[Archived] City Council Considers Change in Affordable Housing Contributions Policy

City Press Release


	City of Alexandria, Virginia Office of the City Manager Alexandria City Hall 301 King Street, Suite 3500 Alexandria, Virginia 22314-3211 www.alexandriava.gov Telephone: 703.838.4300 Fax : 703.838.6343

FOR IMMEDIATE RELEASE
June 24, 2004
PIO 160-04

City Council Considers Change in Affordable Housing Contributions Policy

The Alexandria City Council Tuesday night (June 22) received a proposal that would change the policy for affordable housing contributions by developers. City staff will disseminate the proposal for public review and discussion over the summer, and Council will hold a public hearing on the proposal Sept. 21. The contributions, in the form of cash to the Housing Trust Fund or the provision of affordable housing units, would vary depending on the level of economic benefit provided by the City through the development process.

The contribution for by-right projects would increase from $1 per gross square foot to $2 to $5 per square foot of gross floor area or the provision of affordable housing units equal to 3% of the project's gross floor area. For projects receiving benefits from the City, the proposed contribution is from $2.50 to $5 per square foot of gross floor area for commercial projects, and from 5% to 12.5% of gross floor area as affordable units for residential/mixed use projects, depending on the level of benefit. The proposal also sets a cash contribution level for these projects in the event the City elects to waive the provision of affordable units for reasons such as high housing prices, or the level of non-housing community benefits provided by the developer.

Since June 2002, the City’s Affordable Housing Policy has called for voluntary contributions by developers of new residential and commercial projects of $1 per gross square foot to the Housing Trust Fund, or the provision of affordable housing on-site through subsidies of an equivalent monetary amount. Given the sales prices and rents of recent new development in Alexandria, the $1 per gross square foot contribution level does not translate into substantial numbers of affordable housing units.

The proposed affordable housing policy changes establish four categories of development projects that are distinguished by the level of added benefit provided by the City, and, for each category, defines a target affordable housing contribution level.

For more information, call the Office of Housing, 703.838.4990.

###