November 2, 2007
Fairfax County Redevelopment and Housing Authority Approves Interim Financing for Wedgewood Apartments

The Fairfax County Redevelopment and Housing Authority (FCRHA) has authorized the issuance and competitive sale of Bond Anticipation Notes (BANS) in an amount not to exceed $106,100,000 to provide interim financing for the acquisition of Wedgewood Apartments (Braddock District).  In addition, the FCRHA authorized reallocation and disbursement of $5,000,000 from the Penny for Affordable Housing Fund for costs associated with the acquisition of Wedgewood and the issuance of bonds in an amount not to exceed $110,000,000 to provide permanent financing for Wedgewood Apartments.

The BANS and allocation from the Penny for Affordable Housing Fund will be used to purchase the property, pay costs of issuance, fund operating and capital reserves and relocation costs.  The property will be purchased by Fairfax County and the FCRHA will enter into a ground lease with the county to operate Wedgewood.
Wedgewood Apartments with a  total of 672 units  was built in phases between 1963 and 1967, and is located on 34.8 acres off of Heritage Drive in Annandale. Currently, rents are affordable to households with incomes at an average of approximately 65 percent of the Washington Metropolitan Area Median Income. The property will continue to be operated as affordable housing for low and moderate income households.
The Wedgewood property will be purchased for a total of $107,500,000, or approximately $159,970 per unit.  Fairfax County completed the due diligence phase on October 31, 2007.  Under the contract terms, the county has until November 30 to close on the purchase of the property.