Alexandria City Council approved a $4 million loan yesterday (Tuesday) for Naja, the second and final phase of Housing Alexandria’s affordable housing project being built at the intersection of Mount Vernon Avenue and Glebe Road in Arlandria.
The $4 million City Housing Opportunities Fund loan is the final installment of the city funding package for Sansé and Naja, which will have 495 affordable housing units and more than 20,000 square feet of commercial space. City Council also approved $400,000 in rental subsidies for eight units at Naja. Before Tuesday’s approval, the city’s funding support for the project had totaled $79.7 million, according to a city staff memo.
“[Housing Alexandria] will share proceeds from the developer fees it earns to help the City with loan repayment until project cash flow is sufficient to carry the loan in the future,” the city staff memo reads.
City Council approved the funds through a roll-call vote with no discussion, although Vice Mayor Sarah Bagley thanked Housing Alexandria staff for their work on the project.
Housing Alexandria broke ground on the project in October 2023 and started vertical construction the following fall. The bulk of the affordable housing — 416 units — will be at Sansé. According to the city, leasing will begin this spring for the Sansé building, and the first units could be ready in mid-2026.
Naja will have the remaining 79 affordable units as well as first-floor commercial space largely planned for a Neighborhood Health clinic. While Naja was originally planned to be 58 for-sale affordable condominium units with two stories of commercial uses, Housing Alexandria pivoted to affordable rentals due to market conditions.
All 495 units will be affordable to households making 80 percent or less of the area median income. About three-quarters will be accessible to households making 60 percent of the area median income, and a quarter will be for households at 40 percent of the area median income.
City flex space in the Sansé building is expected to be complete later in 2026. The flex space will host multiple city departments active in the neighborhood such as the Office of Housing, Department of Community and Human Services, Health Department and Department of Recreation, Parks and Cultural Activities. The flex space will be available for community meetings and youth recreational activities. A food hub from nonprofit ALIVE! will join the flex space in the Sansé building as well.
Construction of Naja could begin in July 2026, depending on funding availability. According to the city staff memo, the building is dependent upon a 4% low-income housing tax credit, the Virginia Housing Trust Fund and related financing, first trust debt supported by residential and commercial income, a Community Development Block Grant from HUD and the city’s $4 million Housing Opportunities Fund gap loan.
If construction begins later this year, substantial completion is expected in 2027, followed by occupancy in early 2028.
