November 2018 DHCD Connection Newsletter

District of Columbia sent this bulletin at 11/21/2018 02:33 PM EST

Department of Housing and Community Development Connection

Letter from the DHCD Director

Greetings Washingtonians,

No matter where you live in the United States, common issues bind us—one of those is housing. Amenities-rich cities like Washington DC may have different challenges than medium or small cities and rural areas, but the desire is universal that residents have access to safe and affordable housing.

Under Mayor Bowser’s leadership, the District is at the vanguard in developing creative and innovative housing policies and tools to expand affordable housing. And we are working with other city leaders across the country to elevate affordable housing needs and response. Last month during the High Cost Cities Housing Forum in Chicago, I shared how we are addressing homelessness and affordable housing preservation issues: (1) thanks to Homeward DC, in two years the District has reduced overall homelessness by more than 17 percent and family homelessness by 40 percent, in part by producing more permanent supportive housing (PSH); (2) we are preserving more affordable housing by using innovative strategies such as a new $40 million public-private preservation fund, and by activating long-dormant laws like the District Opportunity to Purchase Act (DOPA), which you can read more about below; and (3) we continue to make historic investments through the Housing Production Trust Fund (HPTF).

It’s because of the District’s intentional strategies that this month the National League of Cities (NLC) tapped Mayor Bowser to lead its new Task Force on Housing. This 18-member group will address how communities can better respond to the growing challenge of housing availability, affordability, investment and quality.

The task force will develop local, state and federal best-practices and recommendations.

All of this has built momentum for the Mayor to continue being at the forefront in resolving affordable housing and other critical needs in the District. She is thinking big about second term goals, and wants you to do the same. Join the conversation on social media (#dc2me) or go to https://www.dc2me.com/.

Polly Donaldson, DHCD Director

Follow me on Twitter: @maryrandolph

Father's Love of His Daughter, and HPAP,
Helped Ward 8 Resident Realize
Her Homeownership Dream

Jennifer Grimes Paige, a native Washingtonian, grew up watching her late father, Fred N. Grimes, Jr., help hundreds of families make their dream of homeownership a reality as a real estate agent. She recalls that one of his beloved housing programs was HPAP.

In 2011, Jennifer had her very own dreams of becoming a homeowner. However, she was unsure if she could afford to purchase a home in the District. In sharing her desires and fears with her father, he had the answer. Just as he did for others, he gave her advice and entrusted her dreams of owning a home to the HPAP team. He knew because they were attentive to the needs of their clients and the community, they would look out for his only daughter.

Thanks to this parental/HPAP team, in March 2012, Jennifer purchased a three bedroom, three and a half bath single-family home in Ward 8. It bought her father great joy to witness Jennifer getting the keys to her own home. Today, she resides there with her husband and two children, and as part of her father’s legacy Jennifer is passing onto them the importance of homeownership.

After 10-Year Wait, New Rules Allow DOPA
To Take Full Effect

Mayor Bowser recently announced final regulations now provide the Executive Office with authority under DOPA to preserve more affordable housing for Washingtonians.

“DOPA is a crucial affordable housing preservation tool, but without regulations to make it enforceable, the law had no teeth. When I came into office, I committed to changing that,” said Mayor Bowser. “After a 10-year wait, we will finally be able to use DOPA to preserve more affordable housing units for Washingtonians, and will be aggressively identifying properties beginning in the new year.”

The DOPA law was enacted in 2008 and requires rental property owners to provide the District with the opportunity to purchase housing accommodations consisting of five or more rental units, as long as at least 25 percent are deemed affordable. DOPA allows the District to purchase at-risk or problem affordable housing properties that an owner is offering for sale to other potential buyers, but only after the tenants have been unable or have chosen not to exercise their Tenant Opportunity to Purchase Act (TOPA) rights within the prescribed timelines.

After DOPA was enacted, however, regulations were never issued to allow the law to take full effect. The new regulations were developed at the recommendation of the DC Housing Preservation Strike Force, a committee created by the Mayor in 2015 and charged with developing an action plan to preserve the District’s existing affordable housing.

The final rules, which are the result of a thorough rulemaking process that began in December 2017, provide that the Mayor may assign the District’s purchase right to a developer (see separate article). DHCD will hold an informational meeting on the final rules on November 28.

Housing Preservation Officer Ana Van Balen is leading the DOPA implementation effort. Questions can be directed to her at DOPA.DHCD@dc.gov.

FY 2019 Starts in High Gear with $51 Million Affordable Housing Investment in Ward 8

DHCD recently closed on three loans that will produce 326 affordable units capable of housing 730 District residents in three Ward 8 neighborhoods. The HPTF provided over $39.5 million in financing; the remaining $11.5 million is from 9-percent low income housing tax credits (LIHTC) and a Department of Behavioral Health (DBH) grant. Over 88 percent of units will be affordable for households making no more than $59,000 a year (50 percent of the 2018 MFI for a family of four).

DHCD is providing nearly $28.8 million in HPTF financing to St. Elizabeth’s I LP, for 202 units of affordable housing at The Residence at St. Elizabeths East, 1100 Alabama Avenue SE in Congress Heights. The affordable units will be for households making no more than 50 percent MFI; the property also will have 50 market-rate units. St. Elizabeths I LP is controlled by the Anacostia Economic Development Corporation (AEDC) and Flaherty & Collins (F&C). A groundbreaking will occur on November 27.

Approximately $10.7 million in HPTF financing provided to Ainger Place Associates, LLC will help further a church’s dream of providing affordable housing in the Randle Heights neighborhood. Emmanuel Baptist Church (EBC) formed a nonprofit, Ainger Place Development Corporation (APDC), and entered into a collaboration with the Michaels Development Group in order to demolish an existing property and construct Ainger Place, 72 units of affordable housing. The affordable unit breakdown will be as follows: (1) 18 units at no more than $35,160 (30 percent MFI) that will have Local Rent Supplement Program (LRSP) subsidies administered by the DC Housing Authority (DCHA); and (2) 54 units at no more than 50 percent MFI. There will be 34 one-bedroom apartments—with eight set-aside as PSH, 30 two-bedroom apartments, and eight three-bedroom units. On-site amenities will include a fitness area, a community room, laundry rooms, a tot-lot, a resident courtyard, and parking for 36 vehicles.

Finally, DHCD closed on City View, a 58-unit project in the Barry Farm neighborhood that will receive $11.3 million in equity from 9 percent LIHTC as well as a $252,000 DBH grant. The unit breakdown is as follows: (1) 14 units at no more than $70,320 (60 percent MFI); (2) 32 units at 50 percent MFI—with all but two receiving Annual Contributions Contract (ACC) rent subsidies from DCHA; and (3) six PSH units at 30 percent MFI. The six remaining units will be market-rate. The project will consist of 27 two-bedroom units, 26 one-bedroom units and five efficiencies. The developer is City View Redevelopment LLC, an entity formed by WC Smith.

Visit Our Improved DC Housing Search Website

Check out the enhancements we've made to DHCD’s free affordable housing online tool, DCHousingSearch.org.

This website helps potential tenants find affordable rental housing in the District through detailed listings that include photographs, size and type of bedrooms, rental costs, eligibility requirements, special needs, on-site amenities, and neighborhood services such as hospitals and schools.

Units listed in DCHousingSearch.org come from private-market properties, DHCD-funded projects and DCHA managed sites. New website enhancements allow users to search specifically for Inclusionary Zoning (IZ) units—and by neighborhood, ZIP code or by viewing properties on a map. The website has also been made more mobile-friendly and accessible.

Property owners, managers and landlords can register online or by phone in order to list their properties.

Small Business Booster

Eleven Grantees to Help Small Business Thrive in FY19

Grants have been renewed totaling $3.1 million to 11 nonprofit community-based organizations (CBOs) that offer small business technical assistance (SBTA) for new and growing entrepreneurs.

The 11 SBTA grant awardees are:

Anacostia Economic Development Corporation
ARCH Development Corporation
Congress Heights Training & Development Corporation
Development Corporation of Columbia Heights
Emory Beacon of Light, Inc.
Friends of Rhode Island Avenue
Greater Washington Hispanic Chamber of Commerce
Latino Economic Development Center
Life Asset
SB Works
Washington Area Community Investment Fund

November 2018 Edition

RFQ Seeks Developer-Assignees
as Part of DOPA Implementation

DHCD has issued a Request for Qualifications (RFQ) to identify a pool of pre-qualified developers under the District Opportunity to Purchase Act (DOPA).

As explained in the article below right, DOPA allows the Mayor to purchase buildings under certain conditions in order to keep them affordable. Final rules provide that the Mayor may assign the District’s purchase right to a developer, and the RFQ is the first step in that process.

The RFQ submission deadline is January 11. DHCD is holding a pre-bid meeting for interested developers on December 10.

Over 360 Households Received $22M+ in HPAP/EHAP Help in FY18

We had a lot to celebrate in FY 2018 in helping more District residents become first-time homeowners. We're pleased to announce that $22.1 million was provided to 363 households through our Home Purchase Assistance Program (HPAP) and/or Employer-Assisted Housing Assisted Program (EAHP) for District government workers) in FY18!

Most of the HPAP dollars were used to purchase homes in Wards 5, 7 and 8.

Almost 40 percent of those 363 households represented District government workers: 104 households received both EAHP and HPAP, while 37 received EAHP only. EAHP represented over 14 percent ($3.1 million) of total monies spent for home purchase assistance in FY18.

This good news comes on the heels of HPAP's 40th anniversary in September, when we celebrated providing $214 million to over 7,700 households over the life of the program.

Reminder: Dec. 14 Is Comment Deadline for Fed Spending Report

DHCD is accepting written comments until December 14, 2018 on its Draft FY 2018 Consolidated Annual Performance and Evaluation Report (CAPER). This report is a federal requirement of the U.S. Department of Housing and Urban Development (HUD) to receive five funding resources (see News of Note for more information). Public feedback is important to ensure the agency has captured the right goals, priorities, and focus for affordable housing and community development. Comments should be sent to Polly Donaldson, DHCD Director, DC Department of Housing and Community Development, 1800 Martin Luther King Jr. Avenue SE, Washington DC 20020.

Reminder: Dec. 28 Deadline to Submit Offer for Ward 7 Site

December 28, 2018 is the deadline to submit proposals for a Solicitation for Offers (SFO) to transform a parcel at 58th and Dix Streets NE into a mixed use development with affordable housing in the Northeast Boundary community of Ward 7. This rental housing would target households making no more than $93,760 (80 percent MFI for a family of four). Go here to submit a proposal. For more information, contact padd.sfo@dc.gov.

Quick Links

Here are some links to popular DHCD services:

DHCD Income Limits: Can help determine your eligibility for DHCD programs.
Inclusionary Zoning (IZ): Get an overview of this affordable housing tool.
IZ Dashboard: View a map and/or table of IZ projects.
Community-Based Organizations (CBOs): Provide services such as housing counseling and small business technical assistance.
Home Purchase Assistance: Learn about how we help residents get the keys to their own home.
Rent Control Forms: Access forms for housing providers and tenants.

Video Stories

Five homeowners share how it is possible to purchase affordable housing in DC.

This video shares how we are helping residents by producing and preserving affordable housing, and revitalizing neighborhoods.

We had great memories from the 10th Annual DC Housing Expo and Home Show. See video clips here and here (the second is thanks to WHUR).

Other News of Note

$1.1 Million in Additional Funding Directed to Support Housing Counseling Services

An additional $1.1 million has been provided to CBOs that offer housing counseling services to District residents in the Fiscal Year 2019 Budget.

Federal Community Development Block Grant (CDBG) funds, which come from HUD, provide 100 percent of funding for the housing counseling CBOs—and most of SBTA CBO funding—through DHCD’s Neighborhood Based Activities (NBA) Program.

Unfortunately, CDBG funding has not kept pace with the District’s increasing costs and needs. DHCD testified last spring this funding pressure would impact both housing counseling and SBTA services. In May, the final FY19 budget was approved at: (1) $5 million for the housing counseling CBOs—a 27-percent decrease from FY18 ($6.9 million); and (2) $1.5 million for the SBTA CBOs, a 54.3 percent drop from FY18 (nearly $3.3 million).

In response to public concerns about the decreases, Mayor Bowser authorized DHCD to reprogram the $1.1 million from HPAP in a way that would both enable these partners to provide housing counseling services at existing levels—and not negatively impact HPAP. SBTA grants will be maintained at similar levels from last fiscal year.

In addition, once DHCD receives its specific FY19 funds from HUD in early 2019, we will closely monitor spending levels to make sure we successfully balance the various demands on our limited resources with our needs to maintain a crucial level of housing counseling and SBTA services for homeowners, home buyers, tenants, and small business owners.

Team DHCD: About Town

Following are some highlights of recent DHCD outreach and educational activities.

Reporting Out on Our Use of Federal Funds, and Getting Public Input: Over 50 members of the public attended DHCD’s November 15 hearing on the Draft FY2018 CAPER, which DHCD presents to HUD to explain how we have used five funding resources:

CDBG ($13.7 million)
HOME Investment Partnership ($3.8 million)
Housing Opportunities for Persons with AIDS (HOPWA) ($11.2 million)
Emergency Solutions Grant (nearly $1.2 million)
National Housing Trust Fund ($3 million)

The hearing, which took place in Ward 7, is part of our public outreach process. Director Donaldson, joined by Housing Compliance Officer Lesley Edmond, noted in opening remarks how despite a federal housing and community development budget that has not kept up with demand, the agency has reason to celebrate:

Over 360 households served through HPAP.
CDBG and HOME funds were used for building housing units and community facilities, such as HELP Walter Reed for veterans and The Kennedy-Short Term Family Project in Ward 4 for homeless families.
Successfully passed the CDBG “Spending Test” for two years in a row, which shows the District is efficiently spending federal dollars and will receive CDBG and HOME grants for FY 2019 before the end of 2018.
Successfully provided NBA programs, such as housing counseling services, SBTA and storefront façade improvements.
Conducted several trainings for staff and community organizations.

After Donaldson’s remarks, the public testified, mostly on the importance of sustaining funding for housing counseling.

Stressing the Importance of Partnerships in Providing Affordable Housing. There was a packed house listening to Director Donaldson explain Mayor Bowser’s affordable housing initiatives at the October 24 Future of Affordable Housing Investment Conference, sponsored by City First Bank. The event was held at the Anacostia Arts Center, across from DHCD headquarters.

Donaldson told the crowd that government can and should be intentional in providing more affordable housing, and crucial tools the District uses for that purpose are the HPTF, TOPA and housing preservation initiatives. But she added that partnerships between the public and private sectors are an important part of housing creation. Her full remarks can be seen here.

Taking Ending Homelessness on the Road. The Department of Human Services (DHS) and its partners are hosting “Ending Homelessness Roadshows” to raise awareness about homelessness and to share recent progress in reducing and preventing its occurrence in the District. Gene Bulmash, DHCD’s IZ manager, was the point person for affordable housing during the November 14 roadshow before Advisory Neighborhood Commission 4C. He provided a brief overview of DHCD's role in providing affordable housing, and how it works with DHS and other agencies on homeless prevention efforts.

Our Housing Workshops Help Tenants and Housing Providers Understand District Law. Our November 14 Let's Talk Rent Control session included a lively questions-and-answers dialogue on common rental adjustments, administrative processes, and required disclosures. One of many important tips shared by Tonya Butler-Truesdale of the Rental Accommodations Division (RAD): It is important to that housing providers conduct due diligence before renting a housing unit.

Our Staff Meetings Are Never Boring! While our staff meetings do include regular reports and updates, they also provide an opportunity for staff to celebrate achievements. Here are some highlights from our October 18 meeting.

Recognized new and promoted employees—Jayla Johnson and Wesley Lua (preservation unit), Diane Patterson (IZ) Dion Townley (Property Acquisition and Disposition Division) and Richard Livingstone (Office of the Director). (In photo, Johnson and Patterson flanked by Bulmash, Van Balen, and Donaldson). Also recognized employees taking on new roles/promotions: Tonya Butler-Truesdale (from housing ombudsman to rental property program specialist in RAD) and Sabrina Givens (promoted to program analyst in the Office of Project Monitoring.)
Saluted employees for their exemplary customer service, as evidenced by letters from residents, excerpted below:
- “During the process of applying for and receiving [a roof under the Single Family Repair and Rehabilitation Program], the employees assigned to the task have proved that DHCD cares! They were highly, professional, responsive, informative and sincere in handling their responsibilities within the project. … Especially, I would like to commend [Construction Analyst] Mr. Marquial White for his highly skilled attention and his willingness to make sure that the job was done to the maximum professional level with respect to construction.”
- A resident left a voice mail with Rent Administrator (RA) Lauren Pair complimenting Housing Specialist Woody Nichols “on his knowledge, patience, pleasantness, and expertise” further calling him an “asset to [the RA] office.”
- “I am writing this letter of appreciation for [Loan Specialist] Mr. Calvin Marshall. … Mr. Marshall always took the time to keep me informed. I always ended the phone call happy to have spoken to him and knowing that he had my interest at heart. Such people are rare finds in the world of projects and support for seniors.”
- Sharron Campbell, Monique Trapp, and Annie Carter were also acknowledged for their helpful service to District residents inquiring about DHCD services.
Surprised an employee celebrating a milestone birthday, Community Outreach Specialist Sandy Allen, with cupcakes and flowers.

TeamDHCD Gives from the Heart. Our staff's kindness toward District residents is not just limited to addressing their housing-related issues.

To help families in need this Thanksgiving, we donated $250 in Safeway gift cards to Ketcham Elementary School in Anacostia, and just ended our annual food drive for nonperishable items that will benefit the Capital Area Food Bank. In mid-October we held a Wear Pink and Purple Day in support of the awareness month for both breast cancer and domestic violence.

On October 31, we went "retro" not just for Halloween, but to support the 64th Annual DC One Fund campaign. Every year, this campaign is held to give District government employees a chance to donate to over 500 local charities. Last year, more than $1.1 million in pledges was committed District-government wide.

Agencies like DHCD often take creative approaches in encouraging staff to meet their own targets. Our "Retro for a Cause" Day featured 1980s and 1990s attire, music (including a Soul Train line), posters, snacks--and of course a donation table for staff to contribute on the spot. One Fund Chair Quincy Booth wore present-day attire as he gave warm remarks thanking DHCD for assisting in this fundraising effort. Congrats to #teamDHCD for meeting its target!

Mark Your Calendars for Upcoming Events

Please note these upcoming events. Don't forget to sign up for DHCD event alerts to get regular announcements and updates, as well as registration information through Eventbrite, and check our website for events from CBOs and other partners.

November 27, 2:30 p.m. – 3:00 p.m.: The Residences at St. Elizabeths Groundbreaking. Location: 1201 Oak Drive SE
November 28, 2:00 p.m. – 5:00 p.m.: Let's Talk DOPA: The Rules Are Now Final so What's Next? Location: DHCD Housing Resource Center
December 10, 1:00 p.m. – 3:00 p.m.: Let's Talk DOPA: Pre-Bid Meeting for Potential Developer-Assignees. Location: DHCD Housing Resource Center
December 13, 12:00 p.m. - 2:00 p.m.: Let's Talk Rent Control: Top 4 Paperwork Rules to Understand. Location: DHCD Housing Resource Center

See Latest Affordable Housing Stats

The Bowser Administration is producing and preserving more affordable housing than ever before in the District's history. See the latest statistics from the Deputy Mayor for Planning and Economic Development's dashboard (see graphic), as well as a pipeline report of DHCD-specific projects.