December 2018 DHCD Connection Newsletter

District of Columbia sent this bulletin at 12/21/2018 11:43 AM EST

Department of Housing and Community Development Connection

Letter from the DHCD Director

Greetings Washingtonians,

Our city is now over 700,000 strong, and that includes long-term residents who have seen the city grow and thrive. Mayor Bowser wants to ensure they benefit from the city’s prosperity, which is why we’ve developed intentional and innovative tools to preserve existing affordable housing, such as our new public-private Housing Preservation Fund. The District provided $10 million in seed money that along with other private and philanthropic investments has grown the fund to $40 million.

This preservation fund is already having a significant impact. On December 20 Mayor Bowser announced its first major investments: almost $11 million will assist in providing financing that will preserve over 80 units of affordable housing.

Thanks to this fund, tenants who invoked their rights under the Tenant Opportunity to Purchase Act (TOPA) can acquire three poorly maintained properties with the goal of renovating them into safe and affordable housing. Twenty-five households at 1460 Euclid Street NW in Columbia Heights (Ward 1) will have more stability. Residents of 410 Cedar Street NW in Takoma (Ward 4) will be able to bring back home neighbors displaced due to storm water damage from a wind storm. The residents at 5912 14th Street NW in Brightwood Park (Ward 4) will conduct critical repairs in the home most have lived in for over 15 years, as described so vividly in this WUSA 9 story.

This is just the tip of the iceberg; by the Spring of 2019, the total number of deals from fund managers LISC-DC and Capital Impact Partners will represent almost $31 million in financing that will provide more housing security for just under 1,000 units housing over 2,000 District residents.

There’s already a lot to look forward to with affordable housing solutions in 2019! Happy Holidays!

Polly Donaldson, DHCD Director

Follow me on Twitter: @maryrandolph

Homeownership Dream of Early Youth
Became Reality at Age 21

Delan Johnson, a “proud third generation Washingtonian,” recalls as a young child her father telling her he bought his first home at age 21. At that point she aspired to match his accomplishment. Her first step was saving money from jobs through the Mayor Marion Barry’s Summer Youth Program and a federal government internship (the latter while pursing her undergraduate degree full time).

During her junior year in college, she talked to her mother about what she needed to do next to purchase a home and was directed to HPAP. Delan worked with the Marshall Heights Community Development Organization (MHCDO), where Mrs. Delta Payne educated her on how to purchase a home and the benefits of HPAP, and continued to provide encouragement throughout the process.

Once Delan’s HPAP application was approved, she immediately started looking for a home and after several months, placed an offer on a rowhome in the Kingsman Park area of Ward 6.

Delan went to settlement, with funding assistance from HPAP, shortly after her 21st birthday!

“It’s been 17 years since I purchased that home in Kingsman Park and I remain truly grateful for the assistance of HPAP and MHCDO for stability and kick starting my current path to success,” she said. “The overall experience inspired me to start my career in housing development. I was inspired to help others the same way Mrs. Payne helped me.”

Mayor Bowser Celebrates Affordable Housing for Seniors and Other Amenities in Ward 6 Project

On December 17, Mayor Bowser kicked off the second phase of construction at 555 E Street SW, which will provide new affordable housing for seniors near the Southwest Waterfront neighborhood of Ward 6. The new mixed-use development by City Partners, which will consist of two towers atop 10,000 square feet of ground floor retail space and underground parking, is considered the District’s first mixed-age and mixed-income building. The first tower will have a hotel and 194 residential apartments, including 136 market rate units and 58 units of affordable housing for seniors ages 62 and older.

DHCD provided $10.9 million in Housing Production Trust Fund (HPTF) financing for the project. The 58 units include five studios, 12 junior one-bedrooms, and 41 one-bedrooms. The affordable mix is as follows: 43 will be available for seniors making up to $58,600 (50 percent of the 2018 Median Family Income [MFI]), seven will be permanent supportive housing (PSH) units at up to 30 percent MFI, and the remaining eight units will be non-PSH voucher units at up to 30 percent MFI. The PSH units will be served by local nonprofit Community Connections of DC.

Director Donaldson and Deputy Director Allison Ladd, as well as #teamDHCD members who worked on the deal—Dionne Joemah, Erin Wilson and Laverne Scott— attended. Other public sector partners included Deputy Mayor of Planning and Economic Development (DMPED) Brian Kenner and Todd Lee, the executive director/CEO of the DC Housing Finance Agency (DCHFA). In saluting the public and private sector partners, the Mayor noted how despite the city’s success in producing and preserving affordable housing, it is time to think even bolder!

Formerly Homeless Families Have a Stable Place to Live, Thanks to Partner Arms 2 in Ward 4

Thanks to affordable housing preservation efforts, the ribbon was cut December 13 on Partner Arms II, which will provide 12 PSH units to formerly homeless families.

Director Donaldson joined Ward 4 Councilmember Brandon Todd and Brandi Gladden, director of the Housing Services Division at the Department of Behavioral Health (DBH), to celebrate the Housing Up project, located at 4506 Georgia Avenue NW, in the Petworth neighborhood of Ward 4. The 10 two-bedroom and two three-bedroom units will be dedicated to households earning no more than $35,160 (30 percent MFI).

DHCD provided over $1.2 million in HPTF financing, and the PSH units are supported through $504,000 in DBH financing. In her remarks, Donaldson noted the project is a prime example of Mayor Bowser’s commitment to affordable housing preservation as well as how partnerships between the government and nonprofit sectors can allow us to serve the most vulnerable District residents.

Moving Quickly to Begin Using DOPA to
Preserve Affordable Housing in the New Year

DHCD has gotten off to a quick start implementing the District Opportunity to Purchase Act (DOPA). After final regulations were released November 16, the agency hosted nearly 200 stakeholders and developers at two workshops to learn next steps.

Implementing DOPA was one of six recommendations proposed by the Mayor’s Affordable Housing Preservation Strike Force, a group tasked with creating innovative affordable housing preservation solutions in the District. DOPA is just one of the many tools that the Mayor and the District. Through DOPA, DHCD hopes to promote affordable housing by maintaining existing affordable rental units and increasing the total number of affordable units within the District.

At a November 28 workshop designed for stakeholders, DHCD’s Housing Preservation Officer Ana Van Balen walked attendees through the fundamental components of DOPA, critical timelines to execute DOPA, and the seven step process for a DOPA assignment of rights.

The final rules provide that the Mayor may assign the District’s purchase right to a developer, and a Request for Qualifications (RFQ) is the first step in that process. On December 10, DHCD hosted developers at a Pre-Bid DOPA Meeting for Potential Developer Assignees. DHCD Capital City Fellow Jayla Johnson described the essential components of the RFQ that will identify selectees for a pool of pre-qualified developers. Van Balen presented the selection criteria, as well as the threshold requirements for a Request for Proposals (RFP) that will only be sent to pre-qualified developers to bid on DOPA eligible properties.

DHCD expects to begin selecting DOPA-eligible properties in early 2019. We look forward to sharing more about the impact of DOPA in preserving affordable housing in the District.

Questions can be directed to Van Balen at DOPA.DHCD@dc.gov.

Repair Program Allows Resident to Age in Place

In addition to creating affordable housing, DHCD helps ensure that housing for low- to moderate-income homeowners is safe and healthy. Our Single Family Residential Rehabilitation Program (SFRRP) administers loans and/or grants for home repairs to alleviate building code violations and resolve physical threats to health and safety. The program also modifies and/or eliminates barriers to accessibility for persons with mobility or other physical impairments.

Here’s a great example of how SFRRP helps residents. This home on 50th Place in Ward 7 had been fined by the DC Department of Consumer and Regulatory Affairs to address issues with its exterior. The Board of Condemnation of Insanitary Buildings reviewed the case and postponed its decision pending completion of the SFRRP project.

With SFRRP assistance, the homeowner to keep his home and age in place. Check out that new curb appeal!

Small Business Booster

Successful Pitches Net Three Small Businesses Big Cash Prizes

Supporting small businesses is one of DHCD’s important missions, so Director Donaldson was pleased to give welcoming remarks and help announce the winners of the Life Asset Business Pitch Competition in Anacostia on December 5.

Seven finalists were selected to pitch their ideas and receive constructive feedback from a panel of knowledgeable professionals for a chance to win professional services to enhance their business. Donaldson and Kristi Whitfield, Director of the Department of Small and Local Business Development (DSLBD), presented the $15,000 first place prize to Harrison Accountable Solutions, LLC (featured in photo). Congratulations also go to second and third place prize winners the 3D House Tour Company and Artere Zone, who each won $10,000 and $5,000 respectively.

Life Asset is a Small Business Technical Assistance (SBTA) grantee based in Ward 8. It provides microloans (under $5,000) to those who otherwise would be unbankable or excluded from lending. Life Asset's clients are 80 percent women and 85 percent of the microbusinesses supported are still in business after one year.

DHCD Economic Development Program Specialist Tamika Newkirk also attended the event and was instrumental in arranging Donaldson's participation.

December 2018 Edition

Late Breaking Holiday News!

We are sending this edition two days later than usual in order to share some great holiday news! See Director Donaldson's message.

Reminder: Jan. 11 Is Deadline for

DOPA Developer-Assignee RFQ

DHCD recently issued a Request for Qualifications (RFQ) to identify a pool of pre-qualified developers under the District Opportunity to Purchase Act (DOPA). The RFQ submission deadline is January 11.

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.

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.

Over $1.35M in HPAP/ EAHP Goes to 30 Households in November

In November, 30 households in the District received more than $1.35 million in down payment and closing cost assistance to become first-time homeowners. Congratulations to our newest Home Purchase Assistance Program (HPAP) and Employer Assisted Housing Program (EAHP) recipients!

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

Lynn French appointed to the Housing Production Trust Fund Board

On December 5, Mayor Bowser swore in 187 new and reappointed members to 73 different boards and commissions for the last time in her first term. Among them was Lynn French, who was appointed to the HPTF Advisory Board. Director Donaldson joined French and the Mayor for the swearing in.

French brings with her over 25 years of experience in affordable housing. She previously served as Senior Policy Advisor for Homeless and Special Needs Housing in the Executive Office of the Mayor and in many ways is returning to DHCD, as she previously served as Homestead Program Administrator.

In addition, Rupa Ranga Puttagunta was appointed as a member of the Rental Housing Commission. Ranga Puttagunta has lived in the District for more than 10 years following law school. She currently practices appellate litigation for her firm, Ranga Law, and previously served as a law clerk at the D.C. Court of Appeals. She has extensive experience in researching, analyzing, and resolving administrative, civil, and criminal legal issues on appeal.

Team DHCD: About Town

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

Explaining to Market Rate/Luxury Developers the Pros of Affordable Housing. Director Donaldson recently took a trip outside the Beltway to share with over 600 real estate developers why affordable housing is an attractive investment. She was one of four panelists in the November 28 Affordable Housing Investment Panel at Bisnow’s Multifamily Annual Conference East in Tyson’s Corner. The others panelists were Tony Washington (EagleBank) Former DC Mayor Tony Williams (Federal City Council) and Bob Iber (Housing and Urban Development), with Dara Newman Histed (Nixon Peabody) as the moderator. Donaldson told attendees that the District is tackling affordable housing challenges head-on in intentional and innovative ways, thanks to Mayor Bowser’s leadership. However, as a gap financier of affordable housing, we cannot do it alone. While the city is seeing increased interest by lenders and private-sector organizations, and possibilities on the federal level with Opportunity Zones, more regional and national strategies and partnerships are needed. The District is working toward that end through its work with Council of Governments and Mayor Bowser’s new role as chair of the National League of Cities Housing task force, she noted.

Making Access to IZ Orientation Classes Easier for our Residents. To make it easier for residents with busy weekday schedules to attend an inclusionary zoning (IZ) orientation class, the DHCD IZ team held its first orientation on Saturday, December 1.

Over 70 persons attended the class (over 130 registered on Eventbrite), which included District residents, leasing agents, and housing advocates. Each attendee of the two-hour class received a Certificate of Completion. Here are some (self-reported) statistics from those who registered:

Average household size = 2.36
Average income = $39,913

The feedback from participants was positive, as one noted, “The orientation was very informative and the presenter, Ms. Sandra Cooke, was knowledgeable and patient.”

IZ orientation class attendance as well as the completion certificate are required for all individuals before registering for the IZ program. More information about this affordable housing program, including registration and income requirements and maximum rents and purchase prices, is available here. The IZ team is scheduling the next session and aims to host one class per month, alternating Saturdays and evenings during the week.

Celebrating with Seniors at Holiday Event. DHCD participated in this year’s Mayor’s 20th Annual Senior Holiday Celebration, held December 12 at the DC Armory. Hosted by the DC Office of Aging (DCOA), the event included dancing, singing, and vendors that explained the resources they provide. As a vendor, DHCD shared with attendees our services that most benefit seniors, their families, and neighbors—over 1,000 handouts were distributed!

Our SFRRP was the biggest hit. HPAP was the runner-up, as some seniors are downsizing their homes by purchasing smaller properties through HPAP and even purchasing homes for the first time. DHCD funds community-based non-profit organizations (CBOs) to provide one-on-one assistance regarding SFRRP and HPAP, and seniors were encouraged to contact or visit CBOs within their ward for convenience.

Sharing our Resources at "For Sisters Only." DHCD exposed its housing programs to thousands of attendees at WPGC 95.5 FM’s “For Sisters Only” (FSO) event December 1 at the Renaissance Hotel.

Marking its 19th year, FSO’s theme was “The Year of the Woman.” The event featured a full day of panels, exhibits and performers promoting female empowerment. DHCD was an exhibitor, which allowed us to expose our services to a large audience, touch a key demographic that typically makes most of the housing decisions, and have short discussions about our programs with potential homeowners. Director Donaldson was interviewed by the radio station, whose audience is over 200,000 for women between the ages of 25-49.

Thanks to the following #teamDHCD staffers who represented the agency at this outstanding event: Sandy Allen, Gwen Cofield, Pam Hillsman, Terrance Laney, Andrea Lee, and Robyn Wilkes.

TeamDHCD Gives from the Heart. In last month's newsletter, we noted that DHCD just ended its first annual Thanksgiving Food Drive, and we wanted to share how well it turned out. Our Portfolio and Asset Management Division (PAMD) sponsored the drive to support the Capitol Area Food Bank in a desire “to make Thanksgiving special for those in need.”

The Capital Area Food Bank is the largest organization in the Washington metropolitan area working to solve hunger and its companion problems of chronic undernutrition, heart disease, and obesity. Donations were accepted from DHCD staff from November 12 – November 20 and netted an assortment of canned vegetables, canned fruit, stuffing mix, macaroni and cheese, cereal, tuna, and additional non-perishables. DHCD staffers and managers generously donated nearly 200 pounds of food, which is equivalent to three third-graders, 200 footballs, 250 cans of soup, half a reindeer, 13 bowling balls, 20 cats, or 40 Chihuahuas!

DHCD's generous spirit continues: We are currently in the midst of our annual toy drive benefiting the Ketcham Elementary School in Ward 8.

DHCD Hosts Student in Job Shadow Program. DHCD recently participated in the University of Chicago’s 2018 Job Shadow Program, which gives undergraduate students real-time experiences in public policy, public service, and governance under the leadership of Chicago alum over winter break. For one week, Luke Pluta-Ehler, a Global Studies major focusing on Governance (in center of photo), shadowed PAMD Deputy Manager Ashley Johnson-Hare. He learned about the District’s affordable housing mission and its application through programs such as preservation, rental accommodations, IZ, Development Finance, legislative affairs, and constituent services programming. He also got out in the field, attending the 555 E Street SW groundbreaking and touring DHCD projects such as Amber Overlook. Toward the end of his time at DHCD, he enjoyed lunch and conversation with Director Donaldson.

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.

January 17, 12:30 p.m. – 1:30 p.m.: The Groundbreaking of Ainger Place. Location: 2409 Ainger Place SE.

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.