Alexandria, VA —The Alexandria Redevelopment and Housing Authority (ARHA) has won approval from the Department of Housing and Urban Development (HUD) to convert three sites from public housing funding to Housing Choice Voucher funding, kicking off plans to redevelop all of the agency’s public housing properties.
Funding for vouchers is significantly higher than public housing subsidies, and the approvals represent a major step in accomplishing ARHA’s ambitious redevelopment activity.
By using changes in HUD funding, ARHA is laying the foundation for the agency to ultimately upgrade and sustain its entire 754 units of public housing, plus build new workforce and market rate housing.
The first three properties approved for conversion are Ladrey High-Rise, Park Place, and Saxony Square, a total of 213 units. The rents at other public housing sites will be converted through the Rental Assistance Demonstration (RAD) program, again changing the funding source from public housing to an increased funding stream.
“These tools will increase the cash flow at each site,” said ARHA CEO Keith Pettigrew. “There is a tremendous backlog of maintenance at public housing communities across the nation, including Alexandria, and these conversions will allow us to catch up, stay ahead and ensure that our residents live in high-quality, well-maintained buildings.”
These subsidy changes result from a 2018 HUD policy allowing housing authorities to change the funding stream and work under less restrictive regulations for a portion of their public housing units.
Through two programs called Section 18 and RAD, ARHA expects to convert 504 current public housing units to higher funding rates. When that milestone is reached, the remaining 250 units will automatically be approved for Housing Choice vouchers, clearing the way for the entire public housing portfolio in Alexandria to be funded under this higher formula. Importantly, ARHA will retain ownership of these properties through its own nonprofit subsidiary.
“The outstanding facet of this subsidy conversion is that tenant protections will remain in place,” Pettigrew said. “Tenant share of rent will not change, and our mission of serving poor and extremely poor households will be strengthened. Our goal is to preserve housing for vulnerable populations and improve the quality of life for our current residents.”