The Financial Tools initiative seeks to expand and further leverage County resources for affordable housing. Components of this initiative include identifying resources developers may access directly as well as exploring new tools for the County such as:
- Attracting private capital to County programs and projects
- Using existing County funds in new ways to stretch dollars further
- Identifying additional sources to increase available funding
The County currently provides funding from several different sources for multifamily and single-family loan programs (learn more about these Financial Tools here).
- Local Affordable Housing Investment Fund (AHIF)
- Federal Community Development Block Grant (CDBG) funds
- Federal Home Investment Partnerships Program (HOME) funds
- Transit-Oriented Affordable Housing (TOAH) fund.
Process and Goals
This initiative has two primary strategies to expand and leverage County resources: identifying new resources for affordable housing developers and growing existing County resources.
Financing Strategies for Developers
Status: Research and Implementation phase
These strategies include researching and identifying tools that affordable housing developers can access directly to reduce the need for County funds.
Goals: Identifying funding that affordable housing developers can access directly may bring more non-County funding to their projects, which reduces the request for County funds and increases leveraging of existing County resources. Below is a sampling of financing tools identified through this initiative that are available to affordable housing developers wishing to preserve and/or develop affordable housing in Arlington. Additional information for these sources, including how to apply for funding, is available on the County’s Financial Tools web page:
- PNC Preservation Fund
- Enterprise Local Impact Fund
- Opportunity Zone Investments
- Commercial Property Assessed Clean Energy (C-PACE)
- Virginia Housing Trust Fund
- Washington Housing Initiative’s Impact Pool Fund
- Metro Industrial Areas Foundation Fund
- Kaiser Foundation Housing Impact Fund
- Federal Home Loan Bank Financing
- Capital Magnet Fund Grants
Strategies to Expand and Re-think Existing County Resources
Status: Research and Implementation phase
These strategies include identifying ways to grow current County resources for affordable housing and/or applying new approaches to existing resources.
Goals: The County is exploring ways to attract private capital to County programs/projects, use County funds in different ways to stretch dollars further, and identify additional sources via tax tools or other funding mechanisms to increase available resources for affordable housing in Arlington. Examples of these efforts may include the following:
- Attract community grantors and investors
- Identify new resources available through industry groups
- Leverage existing County resources through industry partners
- Explore a green financing program
- Utilize County loan funds for interest rate write-downs or debt reserves
- Identify pension fund investments
- Consider tax-increment financing (TIF) districts
- Seek dedicated tax revenue
- Consider bond financing
VHDA Affordable Housing Pledge
Status: Planning phase
In addition to County resources, the Virginia Housing Development Authority (VHDA) has pledged $15 million over a 5- year period to support affordable housing development in Arlington, Alexandria and northern Virginia. The details of this pledge, made as part of the State’s financial incentive package to support Amazon’s commitment to create 25,000 jobs in Crystal City and Pentagon City, are to be determined.
Goals: The funds could be used for affordable rental or ownership units for households with low and moderate incomes. While developers would likely apply for these funds directly through VHDA, County funds could be used in conjunction with VHDA’s investment.
Note that while these tools may expand available resources that support housing affordability in Arlington, these areas are for exploration; not all may be feasible for Arlington County.
Timeline and Engagement Opportunities
To make this initiative successful, we need and welcome funding ideas from the community. Please send ideas and/or requests for more information to firstname.lastname@example.org. Visit the Housing Arlington Meetings & Events page to see current engagement opportunities.