Barcroft Frequently Asked Questions

• Barcroft Apartments are now owned by Jair Lynch Real Estate Partners, a Mid-Atlantic real estate investment and development firm that specializes in the thoughtful transformation of walkable urban places.
• Founded in 1998, Jair Lynch has acquired, developed, and operated a portfolio of residential, commercial, and neighborhood assets that contribute to the company’s mission of creating extraordinary places. Visit www.jairlynch.com to learn more.

• Jair Lynch has selected Gates Hudson as the property management company for Barcroft Apartments.
• Founded in 1980, Gates Hudson is a leading property management firm, specializing in managing the needs of Arlington County residents for more than 40 years.  
• Gates Hudson is an accredited, and experienced property management firm.
• For more information about the company, visit www.gateshudson.com.

No. Current Barcroft residents whose leases are valid and in good standing will not be asked to vacate the property. Residents with specific concerns or questions regarding their lease, should contact the management office at 703-521-3000 or stop by on-site during normal business hours. The new office hours will be Monday through Saturday from 8:30AM to 5:30PM and closed on Sunday.

• Current residents will not experience rent increases in 2022 as long as their leases remain in good standing. Beginning no sooner than 2023, rents will increase by no more than 3 percent per year up to a cap of 60% AMI rent levels. Rent increases will be rolled out in phases, so not all residents will be impacted at the same time. Gates Hudson will send 80 renewal letters per month on average.
• The average rent for “legacy” households is $1,395/month. Based on that average, a 3-percent increase would be $42. A legacy household is one that was living at Barcroft Apartments before the December 29, 2021, acquisition by Jair Lynch
• As part of the commitment to no displacement, the Jair Lynch and Gates Hudson team will work with residents who cannot afford a rent increase on a case-by-case basis, help connect them to financial resources, and may further reduce or eliminate rent increases to ensure affordability.
• Residents will receive a renewal packet that includes instructions for households who cannot afford the proposed new rent amount, including who to contact and how to proceed. There also are forms for people with no income or who are unemployed. Residents can schedule in-person, virtual, and email consultations to discuss options.
• Please contact Patricia Galindo at resources@barcroftapartments.com for more information on this process 

• The property manager may be contacted on-site at the management office during business hours or at the corporate office at 703-876-9590. The new office hours will be Monday through Saturday from 8:30AM to 5:30PM and closed on Sunday. In addition, management staff can be contacted directly at 703-521-3000 for all maintenance concerns and after-hours maintenance emergencies.

• Gates Hudson offers several methods of rent payment at Barcroft Apartments, including personal check, money order, cashier’s check, resident online portal payment, and WIPS. The office does not accept cash; WIPS is an alternative method used to pay rent with cash. Stop by the leasing office for further details on how to get set up with WIPS. 
• An online portal is available and residents can register to pay via Rent Café. Residents can also stop by the leasing office and hand deliver rent payment or drop in the rent box located outside the leasing office entrance door. Checks should be made payable to “Barcroft Apartments”.
• As a reminder, rent is due on the first of the month. Both the address and apartment number must be listed on the check.

• The new owner has committed to no displacement of current residents. Current Barcroft residents whose leases are valid and in good standing will not be asked to vacate the property.
• Residents with specific concerns or questions regarding their lease, should contact the management office at 703-521-3000 or stop by on-site during normal business hours. The new office hours will be Monday through Saturday from 8:30AM to 5:30PM and closed on Sunday.

• The new owners have established a resident resources coordinator and should be contacted at 703-368-8888 or stop by on-site leasing office during normal business hours. The resource coordinator will connect you with Arlington county area nonprofits, donations, and other community resources to assist during your time of need. 

• As part of the rent renewal process, which will begin no sooner than 2023, residents will be able to sign longer-term leases in an effort to provide additional housing stability.
• Please contact Patricia Galindo at resources@barcroftapartments.com for more information on this process.

The Arlington Department of Human Services team is available to help Arlington County residents identify resources for assistance with food, financial assistance, and other services. Call 703-228-1300.

This approach gives Jair Lynch the time to fully understand the needs of the community and the challenges and opportunities of the site, gather more information, and to work with the residents, community, and County staff to thoughtfully and intentionally develop a long-term plan that is right for Barcroft and the larger community.

The County’s review of the Jair Lynch plan includes many different components, including financing, land use, sustainability, and others that need careful analysis by County staff. Moving ahead with a renovation project now will help inform the overall analysis. It will not preclude future decisions related to the entirety of the site. In addition, plans for the renovation section are consistent with what’s anticipated in the broader plan for the site.

In addition, this renovation project will allow the County to continue its detailed review of all aspects of the long-term plan for the larger site, while fulfilling the commitment to residents and the community to make improvements to Barcroft and its residents in the near term.

Jair Lynch is holding meetings with the residents this spring to provide information on the renovation project, how to stay informed on future engagement related to the overall plan and answer any questions. In addition, the County will engage residents and the broader community on the overall plans for the site after County staff has completed its analysis of the proposal.

Per the County’s relocation guidelines, the Jair Lynch team will be required to complete a Tenant Relocation Plan before any planned renovation work.  

• Residents may need to be temporarily accommodated on the property while the work to renovate and upgrade their home is completed. 
• Residents living in buildings slated for the renovation will be offered comparable homes on the property with relocation services provided by Jair Lynch at no cost to the residents. 

In all cases, the Gates Hudson property management team and the Jair Lynch team will ensure information is shared with residents to give them time to fully prepare for any disruption, including a 120-day notice. They will also provide one-on-one attention to address specific resident requests and concerns.

Jair Lynch has expanded the initial commitment to legacy residents to extend the up to 3% annual rent increase caps for as long as the legacy resident is in good standing and chooses to continue to live at the property, even when they move into a renovated or new home.

Furthermore, County staff and Jair Lynch will be exploring ways to provide deeper affordability at Barcroft, including units restricted at various income levels below 60% AMI, continuing to encourage Housing Grant and Housing Choice Voucher referrals for eligible residents, and other subsidy options. Options and recommendations for deepening affordability in the first renovation project will be discussed as part of the use permit community engagement process.

• Ensuring stable, safe, and affordable housing for Arlington’s residents is of utmost importance to County leadership and staff.
• Since 2000, Arlington County has lost over 13,092 privately owned, affordably priced housing units
• Prior to the December acquisition, Barcroft was the largest naturally occurring affordable housing community in Arlington, representing 23% of the County’s current market rate affordable units. This affordability is now committed for 99 years.
• Barcroft Apartments is home to more than 1,100 families, including approximately 30 families who receive housing support through the County’s Housing Grants program.
• This acquisition represented a once-in-a-generation opportunity for our community to preserve the largest neighborhood of naturally occurring affordable housing in the County for 99 years.

• Given the high priority the County places on affordable housing and the unprecedented size of this project, the County is providing significant support for the acquisition financing by securing a $150 million line of credit with PNC Bank, which is a short-term debt instrument that will appear on the County’s balance sheet.   The proceeds were loaned to the purchaser to complete the acquisition (along with other funding sources).

Short-Term Financial Impact

• Over the next few years, debt service on the line of credit will be interest only (with no principal repayment) and variable rate until the long-term financing strategy is finalized.
• Specifically, in FY 2022, debt service associated with the line of credit is projected at $850,000. 
• In FY 2023, debt service on the line of credit is projected to range from $1.6 million to $2 million, depending on interest rates. 
• Interest-only payments on the County’s line of credit debt will be partially offset by the $1.5M annual interest due on the County loan from the new owner. Any difference will be funded from the County’s Affordable Housing Investment Fund (AHIF).

Long-Term Financial Impact

• Over the next year, the County will be working with the new owner to develop a long-term development plan and financing strategy. 
• Until this plan is developed and implemented, the County will not know the long-term financial and budget impact, although the County loan amount is not anticipated to exceed the $150 million requested.

• Staff believe that through the Master Finance and Development Plan (MFDP) process, viable options can be developed to mitigate the debt service impact.
• Given the amount of debt the County is incurring to fund this loan, paying for this annual debt service will require trade-offs for other budget, capital, and affordable housing priorities during and beyond the acquisition financing stage.

• To support purchase of the property, the buyer requested a $150M subordinate acquisition loan from the County. The loan term is for 35 years and carries a 1.0% interest rate the first five years ($1.5M). This will increase to 2.5% for years 6-35 ($3.75M).
• To enable a loan of this size within the acquisition timeframe, the County is using a line of credit with PNC Bank. In effect, the County is drawing funds from its PNC line of credit and then loaning these funds to the buyer.
• The County’s PNC line of credit is available for up to five years. Since the loan is for 35 years, the County will need to refinance the line of credit into permanent debt at or before the 5-year expiration.
• Through a Master Financing and Development Plan process in 2022, the County and the new owner will see if the project can secure other resources (such as tax credits) before that 5-year date so that the size of the County loan (and by extension, the long-term debt financed by the County) is minimized.
• In the interim, the County’s PNC line of credit will have a variable interest rate. Interest-only payments on the County’s line of credit debt will be partially offset by the $1.5M annual interest due on the County loan from the new owner. Any difference will be funded from the County’s Affordable Housing Investment Fund.

• Area Median Income or AMI is the income level in the middle of a list of ranked incomes. For an area that has five households with incomes of $10,000, $35,000, $40,000, $47,000, and $250,000, the median income is $40,000. In calculating median income, the Census Bureau looks at the incomes of only those people who are 15 or older.

• The income levels for 60% AMI, by household size, can be found here.

• Income and rent limits are set annually by the US Department of Housing and Urban Development (HUD). Rent limits are based on median income statistics for the Washington-Arlington-Alexandria Metro Area. The rent levels for 60% AMI, by household size, can be found here.

• Regardless of income, current residents will be able to continue to live at the Barcroft including residents making less than 60% of AMI.

• For households earning less than 60% of AMI who are cost-burdened (i.e., paying more than 30% of their income towards rent), they may qualify for additional housing subsidies and we encourage them to call 703-228-1300 for additional information and assistance.

• The County’s housing and human service teams are available to help residents, including those who might be undocumented. We encourage them to call 703-228-1300 for assistance.

Preserving the affordability of Barcroft Apartments meets multiple Goals, Objectives and Policies of the adopted Affordable Housing Master Plan (AHMP). 

1. Policy 1.1.1 – Project will add 1,334 committed affordable units (CAFs). 

1. Policy 1.1.3 –Project prevents the loss of 1,334 MARKs. 

1. Policy 1.1.5 – Project will commit all the units to 99-years of affordability.  

1. Policy 1.1.8 – Project will add 659 family-sized units to the CAF inventory, including 612 two-bedroom units and 47 three-bedroom units. 

1. Policy 1.1.9 – Project will produce committed affordable rental units within transit corridors consistent with the County’s adopted land use plans and policies. 

• We recognize that the need for affordable rental housing continues to outpace the supply throughout the region.
• Preserving Barcroft Apartments meets many of the goals, objectives and policies of the County’s adopted Affordable Housing Master Plan.
• The County is actively working toward its own goal of ensuring 17.7% of Arlington’s rental housing stock is affordable by the year 2040.
  • As of December 2021, 11.7% of Arlington’s rental housing stock is affordable to households earning less than 60% of the Area Median Income (AMI).
  • Arlington has two types of affordable housing units: committed affordable units (CAFS), which are required by agreement with the federal, state, or County government, or through mechanisms such as tax-exempt financing, to remain affordable to low- and moderate-income households for a specified period of time; and market-rate affordable units (MARKs), which are owned by the private market. (prior to the December acquisition, Barcroft Apartments was a market-rate affordable apartment complex; now, under the new owner, all 1,334 units at Barcroft are CAFs.)