TYSONS, VIRGINIA, March 25, 2025 – Ten years ago on this date, SCG Development (along with a small army of other amazing participants) closed the Residences at Government Center (RGC), the first 9/4 twinning transaction in the Commonwealth of Virginia.
The 270-unit property was financed with two HUD-insured first mortgage loans originated by Wells Fargo Multifamily Capital coupled with LIHTC equity (both 9% and 4%) provided by Stratford Capital Group. The development was catalyzed by two nominal cost ground leases provided by Fairfax County. The key innovation of the structure was to monetize the unused (and excess) tax credit basis of a 9% allocation with a 4% tax exempt bond allocation resulting in additional tax credit equity, thereby enabling the development of additional apartment units. The RGC development and its 9% allocation for 150 units left enough unused tax-credit basis to finance the remaining 120 units of the development utilizing tax-exempt bond financing. In recognition of this innovative approach to developing affordable housing, RGC received the National Council of Public-Private Partnerships 2017 Outstanding Project Innovation Award.
“Innovation is a core value we share with SCG Development. Residences at Government Center is an affordable housing solution using publicly owned land through a creative public-private partnership. In the ten years since its financial closing and subsequent years of use, it has provided affordable homes to hundreds of people,” said Tom Fleetwood, Director, Fairfax County Department of Housing and Community Development.
With the mainstreaming of this structure, several thousand additional affordable units were created in Virginia and other jurisdictions across the nation.
We want to especially thank Fairfax County and its senior Housing Authority staff for their vision and tenacity as well as our partners at Klein Hornig for their outstanding contributions to this effort.
About SCG Development
SCG Development is a privately held real estate development firm focused on creating quality affordable and workforce rental communities. Our portfolio consists of over 60 affordable properties across the country, including high-rise new construction, adaptive reuse of historic buildings, and the acquisition and rehabilitation of existing apartment communities. For more information, visit please www.scgdevelopment.com.