(William Waters Apartments from Wesley Housing Development Corporation)
On July 24, the county board approved a nearly $1 million loan to Wesley Housing Development Corporation to renovate 21 already subsidized apartments at the William Waters Apartments located on Adams Street off Lee Highway. These units were substantially renovated about 9 years ago, but Wesley Corporation will spend another $400,000 per unit to upgrade them. It will then raise the rents on the units, and then the county government will have to pay for the higher rent levels because the tenants cannot afford them! The new rents charged will not cheap–$1,130 for a one-bedroom and $1,330 for a two bedroom, but the tenants today cannot afford these new higher rents, so the county has to provide over $100,000 to pay part of the higher rents that go up because of the lavish renovation.
The county board’s decision to finance renovation of the William Waters Apartments, a garden apartment building off Lee Highway with 21 CAF units, and to finance tenant displacement costs is an example of Arlington’s wasteful approach to spend $400,000 per unit to renovate perfectly good apartments at William Waters.
There was no proven need to renovate the building; according to Wesley Housing Corporation’s webpage, these apartments were substantially renovated in 2005 with new kitchens, wall repairs, windows, smoke detection system, roof, rehabilitated electrical system, wall plaster and convectors.
And even if there is a need to renovate, a NEW apartment can be built for about $130,000 in the Washington DC region according RS Means, a construction expert firm. So how can $400,000 be spent in just renovation? Better to tear it down and build new apartments at one-quarter of this renovation cost of 50 year old modest units.
Today 9 years after the 2005 renovation, Wesley proposes to spend $8.2 million to again renovate 21 apartments at a unit cost of about $400,000 per unit. The hard construction cost is $100,000 per unit—about what a totally new unit would cost; the remaining $300,000 are soft costs, the developer’s fee, and repayment of past loans and financial costs. Spending $400,000 per unit to renovate apartments that are otherwise okay is wasteful.
Crony capitalism is the game being played with Arlington County housing program dollars. Tenants are made worse off and scarce taxpayer dollars given to insiders and their corporate friends.
There was $151,000 given to Wesley for a tenants assistance fund that would pay for their moving expenses and to pay the higher rents after they move back into the renovated units. Wesley bears responsibility for assisting and relocating their tenants, and not the county. Wesley in 1990 entered a contract with the county to supply 21 CAF apartments for 30 years, and has a contractual obligation to these tenants as well. Moreover, why does Wesley have to charge higher rents that its current tenants cannot afford to pay? This is not affordable housing but UNAFFORDABLE housing!