Officials have broken ground on a development that will be the first in the nation to co-locate affordable housing with a Goodwill store and donation center.
Located in Arlington, Virginia, the 128-unit development includes 94 two- and three-bedroom apartments for families plus seven permanent supportive units.
The unique project is being built on the site of Goodwill of Greater Washington’s flagship store, which closed last fall to prepare the property for redevelopment. In addition to the housing and modernized store, there will be an on-site childcare center that will give priority to residents and employees.
“This transformative partnership with Goodwill of Greater Washington shows how bold collaboration can reimagine what affordable housing can be,” says Paul Bernard, president and CEO of Affordable Homes & Communities (AHC), the nonprofit developing the project. “It’s a powerful example of the partnerships and sustained commitment needed to meet today’s housing challenges and build pathways for families to thrive.”
AHC and Goodwill plan to open the renovated retail store and welcome new residents to the community in early 2028. The homes will be affordable to families earning 30% to 60% of the area median income.
AHC financed the $81 million housing development with a variety of competitive local, state, and federal funds, including $30 million in federal low-income housing tax credits syndicated by Hudson Housing Capital and purchased by Capital One and $6 million in a complementary state credit allocation through the Virginia Housing Opportunity Tax Credit program, financed by Advantage Capital.
Financing also includes construction and Freddie Mac-securitized permanent loans from Capital One; a combined $13.6 million from Arlington County’s federal HOME Investment Partnerships Program, local Affordable Housing Investment Fund, and a $1.05 million grant for the childcare center; $12.8 million from Amazon’s Housing Equity Fund; $4 million from Virginia Department of Housing and Community Development’s Housing Trust Fund; and $800,000 from the Federal Home Loan Bank of Atlanta.
Goodwill financed its $16.5 million retail redevelopment through AHC’s ground lease, a construction loan from Capital One, and a $1 million private donation. Eagle Bank has committed to providing a permanent loan following construction.
“This new multipurpose facility reflects our commitment to meeting people where they are—bringing together affordable family housing and quality childcare services with a state-of-the-art retail store and donation center,” says Catherine Meloy, president and CEO of Goodwill of Greater Washington. “While we are proud of what this represents today, we are even more inspired by the possibilities it creates for the individuals and families we walk alongside. This new space will not just be a destination, but a foundation for opportunity, stability, and growth.”
The design and development team includes general contractor Harkins Builders, MTFA Architecture, and VIKA for civil engineering and land planning services. The broader development team also includes Walsh, Colucci, Lubeley & Walsh as zoning counsel and Klein Hornig as borrower and tax credit counsel.