Somos at McLean Metro, supported by investments from Virginia Housing, Amazon, and Fairfax County, will create housing for low-to-moderate income residents in the DMV region
MCLEAN, VA (October 31, 2024) –– Today, SCG Development announced the closing of the second phase of a two-phase new affordable housing development in Northern Virginia. Somos at McLean Metro will be a new construction mid-rise multi-family rental housing community for lower income households. Phase B will add 225 new homes to the previously announced homes currently under construction in Phase A, which will result in 456 new affordable homes in total when Phase A and Phase B are completed.
“Somos at McLean Metro Phase B will bring high quality affordable housing options to families and individuals in a very high barrier to entry market that is walkable to the McLean Metro and all the surrounding amenities that Tysons has to offer,” said Steve Wilson, President, SCG Development. “We are thrilled to move this project to the construction phase after many years of effort. I am very thankful that our team and partners who have shared this vision for our community and worked hard to make it happen.”
Virginia Housing, Virginia’s state housing finance agency, has committed over $38 million in financing, as well as 4% Low Income Housing Tax Credits (LIHTC), adding to the 28.3 million previously committed to support the first phase of development. These tax credits make it possible for the units to be affordable to residents earning an average of 60% of the area median income (AMI).
“We are excited to be a part of bringing this much needed affordable housing to McLean,”
said Tammy Neale, CEO, Virginia Housing. “Innovative partnerships like this will be a driving force to continue to address the affordable housing crisis.”
“It is our mission to create a community everyone can afford to call home. Closing on Phase B of Somos at McLean is another step in bringing affordable homes to all corners of Fairfax County, enabling those who work here to live here as well,” said Lenore Stanton, Chair, Fairfax County Redevelopment and Housing Authority.
Amazon is also supporting this new affordable housing community with a $18.2 million low-rate loan for Phase B through the Amazon Housing Equity Fund, the company’s more than $3.6 billion commitment to create or preserve more than 35,000 affordable homes for low- to moderate-income families in the Arlington, Virginia-Washington D.C. region, Washington state’s Puget Sound region, and the Nashville, Tennessee region. For both Phase A and B, Amazon has committed over $47 million to the homes at Somos at McLean Metro.
SCG Development is also receiving over $15.8 million in financing from Fairfax County, in addition to the over $11.4 million that was previously awarded to Phase A, and over $19 million in County funds used to acquire the property. Fairfax County is providing Project Based Vouchers as well. A contribution of $32 million of tax credit equity from Freddie Mac syndicated through Hudson Housing Capital reflects the significance of this large-scale, transit-oriented development opportunity.
“In addition to creating much-needed affordable housing, Somos at Mclean will connect individuals and families to transit, employment, and other critical resources across the DMV. We’re grateful to be a part of the unique public/private partnership – including Fairfax County, SCG, Virginia Housing, and Amazon – that is bringing this project to life,” said Senthil Sankaran, Managing Principal, Amazon Housing Equity Fund.
“Freddie Mac is proud to be part of projects that deliver on our mission and help create new affordable housing right in our backyard,” said Peter Lillestolen, Vice President, Targeted Affordable Housing at Freddie Mac Multifamily. “This new housing is the result of creativity and commitment from both the public and private sector, and a great example of how Freddie Mac can inject the equity needed to get complex deals over the finish line.”
“Hudson Housing Capital is proud to partner with SCG to finance high-quality, affordable housing for families in McLean. We thank and commend all those involved in making this day possible, including our investor Freddie Mac, and look forward to seeing this impactful housing development thrive for many years to come,” said Sam Ganeshan, Managing Director, Hudson Housing Capital.
Construction of Phase B will begin immediately and will create 225 homes for households earning between 50-70% AMI. Affiliates of SCG Development are leasing the sites from the Fairfax County Redevelopment and Housing Authority (FCRHA), and Fairfax’s ground lease will ensure long-term affordability for 99 years. Construction of Phase A began earlier this year.
“We are dedicated to developing innovative, sustainable solutions to address affordable housing needs in Fairfax County,” said Dalia Palchik, Supervisor, Providence District, Fairfax County Board of Supervisors. “Through creative public-private partnerships, we’ve transformed an unused office site into a model for affordable housing. This project is more than just housing; it’s a major step toward ensuring that more of our residents have access to quality, affordable homes. We look forward to welcoming future residents to the Providence District.”
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About SCG Development
SCG Development is a privately held real estate development firm focused on creating quality affordable and workforce rental communities that are affordable to the workforce. Our portfolio consists of over 60 properties across the country, including high-rise new construction, adaptive reuse of historic buildings, and the acquisition and rehabilitation of existing apartment communities.
About the Fairfax County Redevelopment and Housing Authority (FCRHA)
The mission of the FCRHA is to initiate and provide opportunities for Fairfax County residents to live in safe, affordable housing and to help develop, preserve, and revitalize communities through fiscally responsible and open processes. Information related to the FCRHA is available on their website at www.FCRHA.org.
About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.
About Hudson Housing Capital
Hudson Housing Capital was founded in 1998 as a low-income housing tax credit syndicator. With private, independent ownership, client-driven methodology and commitment to service, Hudson’s equity volumes increased steadily over the years. Since inception, Hudson has syndicated more than $8 billion in tax credit equity and continues to manage a portfolio with superior performance measures.