News Release
FOR IMMEDIATE RELEASE

Date:	Thursday, February 19, 1998
Contact:	Tom Brannan, Assistant City Manager, (703) 838-4300

Redevelopment of Alexandria's Samuel Madden Homes Public Housing Awaits Award of Federal Funding and Designation of Group to Represents Residents

The proposed redevelopment of 100 public housing units at Samuel Madden Homes (downtown) in Alexandria is currently on hold, pending an award of federal grant funds and the designation of an organization to represent the interests of the residents.

"Although the City of Alexandria is not a party to the redevelopment of the Samuel Madden Homes, the City has a major stake in the success of this project," said Alexandria Mayor Kerry Donley (703/ 739-3199-W).

"This project depends on ARHA securing federal funding from HUD for a major share of the redevelopment," added Vice Mayor William D. Euille (703/ 751-7970-W). "ARHA is committed to securing these competitively awarded federal funds, and City staff is assisting ARHA in the preparation of an application that HUD will find compelling," he said.

The Alexandria Redevelopment and Housing Authority (ARHA) intends to re-apply to the U.S. Department of Housing and Urban Development (HUD) for a multi-million grant for the redevelopment project when the HUD notice of funds availability is issued in late February. ARHA's 1997 funding application, which was not funded, requested $6.7 million as part of a $33 million total development budget, which included revenue of $5.3 million from the disposition of the site.



The City and ARHA are committed under City Council Resolution 830 to replace all 100 units of public housing slated for redevelopment, although HUD regulations no longer require the one-for-one replacement of demolished public housing. In June 1997, the ARHA Board of Commissioners selected North Village, L.L.C., (a joint venture of local real estate developers SFRE and Madison Homes, and the real estate marketing consulting firm Mayhood Company) as the "preferred developer" for the project. The North Village concept plan calls for construction of 198 units (145 townhouses and 53 manor house units), including 146 for-sale units and 52 public housing units on the 4.15-acre site bordered by N. Royal and N. Pitt Streets on the east and west, and by Pendelton and Princess Streets on the north and south. The remaining 48 public housing units, which cannot be accommodated on that site, will be developed or acquired at scattered sites throughout the City.

Progress towards redevelopment of the Samuel Madden Homes (downtown) will also depend on resolving a dispute between two organizations, each claiming to be the rightful representative of the Samuel Madden (downtown) residents. Under HUD regulations, the organization representing the Samuel Madden (downtown) residents has the right to exercise a right of first purchase. In April 1997, ARHA recognized the Samuel Madden Homes (downtown) Tenant Council as the organization representing the residents, but in September 1997, the United States District Court for the Eastern District of Virginia agreed that a competing group, the Alexandria Resident Council (ARC), had the exclusive right to exercise the right of first purchase. ARHA has appealed that ruling to the Fourth Circuit Court of Appeals, and a ruling on the appeal is not expected until later this year or early in 1999.

In an effort to resolve the issue of resident representation, Mayor Donley and Vice Mayor William Euille have held discussions with representatives of both the Samuel Madden Homes Tenant Council and ARC about the possibility of a settlement agreement. Those discussions are continuing.

"The City is actively involved with ARHA in seeking solutions to the issues of funding and resident representation," said Mayor Donley, who chairs an 11-member work group that has



been meeting since April 1996. Besides Mayor Donley and Vice Mayor Euille, the Work Group includes the City Manager and Deputy City Manager, a Samuel Madden resident, a developer, a City resident, the ARHA Chairperson and one Commissioner, and the ARHA Executive Director and the ARHA Program Administrator.