[Archived] Alexandria City Council Dedicates One Cent of Real Property Tax Towards Affordable Housing

City Press Release


	For Immediate Release	For More Information, Contact
	May 19, 2005 PIO# 158-05/rdo	Barbara J. Gordon, Public Information Officer, or Raynard Owens, Communications Officer, at 703.838.4300 Raynard Owens, Communications Officer, at 703.838.4300

Alexandria City Council Dedicates
One Cent of Real Property Tax Towards Affordable Housing

In response to the growing need for affordable housing in Alexandria, the City Council voted to dedicate 1 cent of the real property tax rate towards affordable housing programs. The need for dedicated funding is due to the rising of home values and apartment rents, and condominium conversions in the City, the decline of federal financial assistance for affordable housing, and limited resources available from the Commonwealth of Virginia.

“This decision helps to sustain affordable housing in Alexandria,” said Mayor William D. Euille. “By dedicating 1 cent of the real property tax rate, an immediate solution is provided to the rising of home values and apartment rents, and condominium conversions in the City.”

Council’s action, taken as part of the fiscal year 2006 budget adoption, also creates an Affordable Housing Initiatives Account within the to-be-created Affordable Housing Fund.

The 1-cent dedication of the real property tax is expected to generate an estimated $2.8 million in FY 2006. The dedicated property tax revenue will augment the $11 million in funds previously allocated towards affordable housing programs in the FY 2006 City budget. Any funds that are not expended in FY 2006 would be carried over to FY 2007 and beyond. The creation of a new Affordable Housing Fund will allow the City to begin to consolidate its various housing programs into a single accounting entity while keeping each of the programs separately administered and accounted for.

For more information about the 1-cent dedication, call Mark Jinks, Assistant City Manager, at 703.838.4300. For details about affordable housing programs, call the City’s Office of Housing at 703.838.4990.

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