The Fairfax County Board of Supervisors authorized the Fairfax County Redevelopment and Housing Authority (FCHRA) to issue tax-exempt revenue bonds in an amount not to exceed $3 million to provide supplemental financing for the development of affordable housing at the Ovation at Arrowbrook project in the Dranesville District. This bond issuance provides essential financing to close the financial gap created by ongoing supply chain shortages resulting from the impacts of COVID-19.
The supplemental financing will be specifically directed towards the 148 units of the project being constructed under the 4 percent Low-Income Housing Tax Credit program. In order to qualify for that program, a minimum of 50 percent of the project expenses must be paid with bond proceeds. With the need for additional financing for these units, the bond issuance was essential in order to maintain that threshold and continue to qualify for the 4 percent tax credits. The action taken by the Board of Supervisors and the issuance of the bonds by the FCRHA pose no financial obligation or risk to Fairfax County or the FCRHA.
ABOUT THE OVATION AT ARROWBROOK
The Ovation will include 274 multifamily apartments as committed affordable housing for households earning between 30 and 60 percent of the area median income (AMI). The project will include studio-one-, two-, and 55 three-bedroom apartments (a feature in high demand in the surrounding community). The development is located in the heart of the Herndon/Reston community and will be a short walk from Metro’s Innovation Station along the Silver line.
The Ovation will also deliver exceptional quality and significant community amenities for residents – proving, once again, that affordable housing can fit seamlessly within market-rate communities. Amenities and features include:
- Studio, one-, two-, and three-bedroom apartments
- Granite countertops
- EnergyStar stainless steel appliances
- Durable wood-style flooring
- Complimentary WIFI
- Cable, High-Speed Internet Ready
- Energy and water conservation features
- Fitness Center
ABOUT REVENUE BONDS
The FCRHA is a “conduit” issuer of revenue bonds and sells these promissory notes on the bond market. When purchasers and investors buy the bonds, their money goes to a trustee for the specified project. The developer, with the project financing serving as collateral for the bonds, has the responsibility of repaying the bonds with appropriate interest from the project financing.