A development that will bring 72 affordable homes to the Randle Heights neighborhood of Washington, D.C., moved a step closer to reality.
Riverside Capital announced that it is investing $10.1 million in low-income housing tax credit (LIHTC) equity in Ainger Place Apartments, which will replace a vacant lot and an existing building that will be demolished to make room for the new three-story community.
The development will feature 34 one-, 30 two-, and eight three-bedroom apartments. All the units will be affordable to households earning between 30% and 50% of the area median income. All of the 30% units (18) will have a 15-year Local Rent Supplement Program subsidy administered through the D.C. Housing Authority. In addition, eight of the one-bedroom units are reserved for women in need of permanent supportive housing (PSH), say officials.
The property will be developed and managed by The Michaels Organization in conjunction with Ainger Place Development Corp., a nonprofit founded by Emmanuel Baptist Church.
All residents will have access to supportive services from Better Tomorrows, a nonprofit strategic partner of The Michaels Organization. The PSH tenants will receive social services from Open Arms, a nonprofit founded in 1997 and dedicated to providing housing for homeless women.
"Ainger Place Apartments will be an example of how Michaels creates communities that lift lives through partnering with community pillars such as Emmanuel Baptist Church and Ainger Place Development Corp.,” said Chris Earley, vice president of development at Michaels. “Upon its completion, Ainger Place Apartments will provide 72 affordable, newly built residences in an underserved neighborhood with housing costs that continue to climb. Emmanuel Baptist Church had the vision for what will be the new Ainger Place Apartments, and in working with the church and the full development team, [we] are looking forward to bringing these 72 units of affordable housing to the neighborhood."
The development is being financed with 4% federal LIHTCs, tax-exempt bonds, a Department of Housing and Urban Development and Federal Housing Administration Sec. 221(d)(4) permanent loan, a Housing Production Trust Fund Program loan, seller financing, and deferred developer fees.
Riverside Capital, a joint venture of Berkadia and Michaels, is a full-service tax credit investment company. It has guided the financing and syndication for more than 7,500 affordable apartment homes across the country, representing $1 billion of equity capital.