91-Unit Housing Project in Alexandria Faces December Deadline for Final Approvals

Alexandria City Council members reviewed a proposal on Tuesday to replace three aging apartment buildings with a new six-story structure containing 91 affordable units.

The developer, Community Lodgings, Inc., previously received a special use permit in 2023 to demolish the 1940s-era buildings at 3908, 3912, and 3916 Elbert Avenue. That permit expired earlier this year, prompting the company to request an extension in February. The plan calls for the demolition of the existing structures, which currently hold 28 apartments, and their replacement with a new building featuring 182 total bedrooms.

Under the proposed plan, all 91 units would remain affordable to renters earning between 30% and 60% of the area median income. City Councilman Canek Aguirre told the council that the project had been in the works for a long time. "This project is a long time coming, so we're almost there, almost across the line," Aguirre said. "Really excited about it."

Aspasia Xypolia, the city's housing director, stated that construction is scheduled to begin in April 2027. She noted that the project costs $58.8 million and that tax credit equity has been identified. The financing includes a first mortgage lender and approximately $16 million in tax-exempt bonds issued by the Alexandria Redevelopment and Housing Authority. CLI intends to close on these bonds before the end of 2026. This financing structure requires a zoning text amendment, which is currently pending.

Xypolia informed the council that a funding gap remains despite the secured sources. To close this gap, CLI has requested a tax abatement from the city. The development partner for the project is Wesley Housing. Residents of the 28 existing apartments were moved out during the summer and are permitted to return to the property once construction is complete.

The Planning Commission will hold a public hearing on the zoning text amendment on Nov. 5. City Council will consider the zoning amendment and the tax abatement at a public hearing on Nov. 14. A final implementation hearing is scheduled for Dec. 12.

The three buildings slated for demolition are located in the Arlandria neighborhood. The new six-story building will replace the current stock of 28 apartments with 91 units. The project timeline depends on the approval of the new zoning text amendment and the tax abatement requested by CLI.