CVS Health is investing $9.2 million in a 41-unit affordable housing development in Washington, D.C.
The investment with WNC, a longtime low-income housing tax credit syndicator and investment firm, is part of CVS Health’s nearly $600 million commitment over five years to address racial inequity and social determinant of health in underserved communities, said the company.
"When people have access to high-quality, affordable housing, it puts them in a better position to take care of their health and manage chronic disease," said David Casey, senior vice president and chief diversity officer, CVS Health. "As part of our commitment to address social justice and racial inequity, we're addressing social determinants of health at the community level, which is where we can make a meaningful and lasting impact."
According to the DC Fiscal Policy Institute, Washington, D.C., has one of the highest poverty rates in the country, behind only Mississippi, Louisiana, and New Mexico. At 18.6%, it is significantly higher than the national average of 12.7%.
CVS Health (NYSE: CVS) is working with The NHP Foundation (NHPF) and Legacy Real Estate Development to build the development at 17 Mississippi Ave. in the Congress Heights area in DC's Ward 8. Other funding partners include District of Columbia Housing Finance Agency, Citi Community Capital, and the District of Columbia’s Department of Housing and Community Development's Housing Production Trust Fund.
"The resources brought together by this partnership ensure that residents at 17 Mississippi will enjoy new rental housing and amenities in a transforming affordable neighborhood," said Tim Pryor, vice president, acquisitions, NHPF. "We are grateful to the funders for enabling this important construction."
The $22.9 million development will offer a mix of studios, one-, and three-bedroom apartments to families and individuals with demonstrated need. Nine units will provide permanent supportive housing for people who are experiencing homelessness or are in need of mental health support. Another nine units will have preference for income-qualified artists. Planned amenities include on site management, a community room, an artist studio, and bicycle storage. All units are reserved for residents who earn at or below 50% of the area median income.
Community Connections, an experienced nonprofit mental health agency, will provide residents with case management support, including life skills, counseling and homeless services, recovery and treatment programs, family and youth services, and employment resources. The community is under construction with expected completion in mid-2023.