CPHD
Housing Development - Financial Tools
Making a housing acquisition, rehabilitation, or new construction project successful requires a creative application of financing tools. Arlington County works with developers to package available local, state, and federal resources to preserve existing affordable units and construct new ones. Some of the financing tools utilized by the County for affordable housing are described below.
On this page:
- Affordable Housing Investment Fund (AHIF)
- Tax Exemption
- Bond Financing
- Low Income Housing Tax Credits (LIHTC)
- Historic Preservation Tax Credits
Affordable Housing Investment Fund (AHIF)
Established in 1987 as a revolving loan fund, current annual funding is approximately $5 million which includes approximately $4 million in local funds and $1 million in federal HOME investment Partnerships Program funds. The fund also receives Affordable Housing Ordinance contributions from developers and loan repayments and payoffs annually. Eligible activities for funding are acquisition, rehabilitation and new construction. Learn more about AHIF.
Tax Exemption
Arlington has partial tax exemption available for developers who do substantial rehabilitation on multi-family rental projects. Enhanced tax exemption incentives are also available for projects in the Nauck Village Center Plan area.
Bond Financing
Housing Development staff work with developers on various bond financing options, including the following:
- The Industrial Development Authority (IDA) of Arlington can provide below-market rate financing for the acquisition, new construction, and rehabilitation of affordable housing projects.
- The Virginia Housing Development Authority (VHDA) provides tax-exempt and taxable bond financing to developers. VHDA has over $100 million in annual tax-exempt bond authority. Visit the Virginia Housing Development Authority (VHDA) online to learn more about this program.
Low Income Housing Tax Credits (LIHTC)
Housing Development staff work with developers to obtain LIHTC for projects with committed affordable units. For a full description of the program see the VHDA web site.
Historic Preservation Tax Credits
Historic Preservation Tax Credits are often used in conjunction with the LIHTC program to finance preservation projects. To determine if a property might qualify for the Historic Credits, contact Michael Leventhal by email or at 703.228.3813. For more information about the credits, visit the Virginia Department of Historic Resources online.
For more information about these programs, contact David Cristeal by email or at 703.228.3760.
RESOURCES
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CONTACT US
Housing Division
2100 Clarendon Boulevard,
Suite 700
Arlington, VA 22201
(703) 228-3760
E-mail: Housing Division
