Last Saturday we celebrated the completion of the renovation at Tysons Towers in Vienna, Virginia, The Owner, Fairfax Education Association Retirement Housing Corporation (“FEARHC”), worked with a team that included The Gates Dunaway Group, Miner Feinstein Architects, Polinger Company, and Hamel Builders to complete a $16MM renovation, bringing new life to the 274 units of affordable senior housing in this booming part of Northern Virginia, just a few blocks from the DC Metro Silver Line. VHDA provided the 30-year construction/permanent financing.
The key to the financial success of this project was the conversion and expansion of the rental subsidy. At the beginning of the transaction, the Property had an expiring HUD RAP contract for 244 units. We were able to convert the RAP subsidy to a long term 20 year Section 8 Project Based Rental Assistance contract through HUD’s Rental Assistance Demonstration (RAD) program. The conversion doubled the income by increasing the old RAP rents to market, and by expanding the subsidy to cover all 274 units. This huge increase in income allowed the non-profit owner to use debt-only to fund the large renovation of the Property.