Enterprise Community Development has selected Durrani Development as its inaugural partner under the Let’s Build Accelerator (LBA), a unique program that aims to address the challenges faced by BIPOC, community, and faith-based developers in the Mid-Atlantic.
The organizations will collaborate on the development of a $47 million, 86-unit affordable housing community in Washington, D.C.’s Randle Heights neighborhood and the removal of a vacant former rehab facility. In addition to providing new, energy-efficient housing units affordable to the community, the transformation will include a new playground and community room for residents and their families.
The project will be Durrani Development’s first affordable housing project and, once completed, will be its largest project developed.
“Having lived in low-income, all-affordable apartments when I immigrated to the United States, I know the value and importance of providing clean, safe, and comfortable housing to individuals and families,” said Mustafa Durrani of Durrani Development. “Partnering with a mentor like Enterprise Community Development, that shares the same vision of providing good housing people can afford, will allow me to further develop quality affordable homes throughout the D.C. metro area for many years to come.”
The new project will be Enterprise Community Development’s second investment in the area following its 2022 purchase of Skyland Apartments. A leading affordable housing developer, the nonprofit is an affiliate of Enterprise Community Partners.
Enterprise Community Development collaborated with Durrani Development to close on and begin construction of the project, which responds to a critical gap in the region’s affordable housing landscape.
Funding for the project comes from a $12.9 million Housing Production Trust Fund loan from the D.C. Department of Housing and Community Development (DHCD), $23.1 million in tax-exempt bonds from the District of Columbia Housing Finance Agency (DCHFA), $9.8 million in permanent debt from R4 Capital, and a total of $21.1 million from R4 Capital in federal and District of Columbia low-income housing tax credits and solar credits.
During the LBA’s first year, Enterprise Community Development received more than 40 applications from companies located from North Carolina to New Jersey, who responded to the initial call for partners for projects, totaling more than $750 million and more than 2,000 units.
“This is the most innovative program I have ever been a part of,” said Shelynda Brown, vice president of real estate at Enterprise Community Development, a leading nonprofit developer. “Providing capital is great, but doing so in partnership also enhances and expands the development capacity and knowledge to execute on current and future projects. This expansive commitment to partnering truly makes Let’s Build Accelerator unique.”
A critical component of the LBA is the Let’s Build Accelerator Fund, a unique tool in the marketplace through its focus on ensuring that the economic rewards of these development initiatives are fairly shared with the neighborhood-led and faith-based partners who have helped envision these projects, according to Enterprise.
Through the fund, partners are able to access equity capital, enabling them to co-invest with Enterprise Community Development and directly participate in financial benefits ranging from developer fee income to cash flows with a genuine seat at the table as a co-sponsor. Upon exit, the initial funds extended to the partner to enable their co-investment are returned to the Let’s Build Accelerator Fund, structured as a revolving fund to support future partnerships and projects. Partners retain fees and earnings with an ability to participate in value appreciation at time of exit.
“We set out to leverage our market position to drive a more inclusive industry while co-creating new projects that expand opportunity and services to local communities,” said Enterprise Community Development president Brian McLaughlin. “We’re matching our resources and our deeply talented team of over 100 professionals directly with BIPOC, community-based, and faith-based developer visionaries who bring their unique perspectives to potential projects in the Mid-Atlantic. In this way, we help to greenlight projects with amplified impact and propel the development leaders of the future.”
Enterprise reports that it has two more projects nearing the end of underwriting, including a neighborhood-changing development that will bring more than 400 new housing units to Washington, D.C., and another in Baltimore’s historically Black Upton neighborhood.
The organization continues to seek partners and projects for LBA, including affordable housing, mixed-use developments, and needed community assets such as retail, multifamily communities, senior communities, and naturally occurring affordable housing. More information is available at www.letsbuildaccelerator.org.
