An affordable housing development in Washington, D.C., took a big step forward after more than a decade of effort.
Officials announced the closing of $38 million in financing to develop the Strand Residences, which will bring 86 affordable apartments to the Deanwood neighborhood.
"Through thoughtful investment and sheer can-do attitude, our partnership is pleased to deliver on its promise to the community to provide new high-quality, affordable housing,” said Richard Burns, president and CEO of The NHP Foundation (NHPF). “This dynamic new development will bring permanently affordable rental units as well as community and retail space to the emerging Deanwood neighborhood. I congratulate our partners on this milestone and look forward to seeing the new building being constructed.”
NHPF is collaborating on the project with The Warrenton Group and the Washington Metropolitan Community Development Corp (WMCDC).
“We started dreaming and planning for this project more than 12 years ago, and we’re pleased to hit this milestone,” said pastor Stephen Young of WMCDC. “I look forward to more great things to come in Deanwood.”
The project and neighborhood went through a lengthy planning process for several years, with the District signing a land disposition agreement with WMCDC in 2010, according to officials. NHPF joined the team around 2016.
Multiple funding sources are contributing to the project. The District of Columbia Office of the Deputy Mayor for Planning and Economic Development is investing $15.6 million from the District’s New Communities Initiative. The D.C. Housing Finance Agency is allocating $19.5 million of tax-exempt bonds to support the project, and the D.C. Housing Authority is contributing operating subsidies for 28 units through its Local Rent Supplement Program (LRSP). The tax-exempt bond allocation provided an allocation of 4% low-income housing tax credits that helped raise $12.3 million in equity from Enterprise Housing Credit Investments. Other financing partners include Citibank and Jones Lang LaSalle.
In addition to the apartments, the Residences will feature a large multipurpose room, an exercise room, and on-site resident services provided by NHPF affiliate Operation Pathways. The first floor includes retail space for a neighborhood nonprofit and a community-based retailer.
The development is next to the Strand Theater, a storied local landmark that the development team plans to convert into a new restaurant in 2020.
The Residences will be constructed on an assemblage of underutilized land. No residences were displaced for this project, and a local restaurant will be relocated into a new facility to ensure it can continue to operate in the neighborhood. The land assemblage was accepted into D.C.’s Voluntary Clean-Up program to ensure proper remediation of the brownfield that prevented its redevelopment for decades.
Once complete, the Residences will include 71 one-bedroom and 15 two-bedroom units. The 28 LRSP units will be rented to residents who earn less than 30% of the area median income and will be reserved for residents relocating from the nearby Lincoln Heights and Richardson Dwellings properties.
PGN Architects is the architect of record, WCS Construction is the general contractor, and WCS Property Management will be the property manager.
