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The Alexandria City Council unanimously approved a $4.4 million financing package Tuesday for the Sansé & Naja development in Arlandria, unlocking construction of the final building in what city officials have called Alexandria's most substantial affordable housing investment to date.
The council approved two related items: a Housing Opportunities Fund loan of up to $4 million to Housing Alexandria to finance construction of the Naja building, and a separate Housing Trust Fund grant of up to $400,000 to provide rental subsidies for eight units at Naja — a move City Council said is designed to strengthen Housing Alexandria's application for a competitive state tax credit program through Virginia Housing.
Vice Mayor Sarah Bagley paused before the vote to mark the moment, saying "It's the final piece of the financing and that project continues to move forward. I wanted to thank you all for the efforts that you've made to make sure this project was successful."
The vote was 6-0.
The Glebe and Mount Vernon Redevelopment, located at the intersection of Mount Vernon Avenue and Glebe Road in the Arlandria-Chirilagua neighborhood, will deliver 495 affordable rental units and nearly 20,000 square feet of community-serving commercial space across two buildings on a 3.2-acre site. The city has approved approximately $79.7 million in funding support for the project to date; Tuesday's $4 million loan brings the total city investment to up to $83.7 million. The project's total cost is projected at $316 million.
The larger building, Sansé, will deliver 416 affordable units with lease-up beginning this spring, along with an ALIVE! food hub, city flex space, and resident amenities including rooftop terraces and a publicly accessible courtyard. Construction on Naja — a seven-story, 79-unit building with ground-floor space for Neighborhood Health to operate a clinic — is expected to begin as early as July, with residential occupancy targeted for January 2028.
All 495 units across both buildings will be affordable at or below 80% of Area Median Income, with more than 75% targeted at or below 60% AMI and roughly 25% at or below 40% AMI. More than half the units are two- and three-bedroom family-sized apartments.
The vote came the same night the council adopted the city's new Age Friendly Plan, and the same day Housing Director Helen McIlvaine announced her retirement. McIlvaine, who leaves April 30 after 20 years with the city, submitted the funding request for the Naja loan and has shepherded the broader Glebe-Mount Vernon project for years.