Tenants Used TOPA to Buy and Rehabilitate Buildings
(WASHINGTON, DC) – (RealEstateRama) — The DC Department of Housing and Community Development (DHCD) closed two loan agreements totaling more than $4.2 million that will help preserve 33 affordable housing units in Ward 4 for tenant organizations that invoked their purchase rights through the Tenant Opportunity to Purchase Act (TOPA). The funding was made available through the Housing Production Trust Fund (HPTF).
The Bowser Administration is ensuring that our long-time District residents are not displaced in this hot housing market,” said DHCD Director Polly Donaldson. “We are using tools like the Housing Production Trust Fund to preserve housing for dozens of residents making no more than $90,000.”
DHCD provided Mi Casa Inc., a local nonprofit housing developer, with $1.3 million in HPTF financing for the acquisition and preservation of 10 affordable housing units at 53 Missouri Avenue NW. Four affordable units will be available for households at or below $33,090 (30 percent of the Area Median Income (AMI), which is $110,300 in 2017) and remain affordable for no less than 40 years; four units will be available for households at or below $55,150 (50 percent AMI); and two units will be available for households at or below $88,240 (80 percent AMI).
DHCD also provided $2.9 million in HPTF financing to Hampstead Kingston Partners L.P., a partnership between Hampstead Companies and Urban Matters Development Partners LLC, for the acquisition and preservation of the Kingston Apartments, a 23-unit apartment building at 614 Longfellow Street NW. Fifteen units will be available for households at or below $55,150 (50 percent AMI); and remain affordable for no less than 40 years; eight units will be available for household at or below $88,240 (80 percent AMI).
In both cases, tenant organizations used TOPA to exercise their rights to purchase their buildings, and subsequently assigned their rights to the developers to help acquire the properties and perform critical repairs.
Mayor Bowser Delivers on Commitment to Affordable Housing
Since taking office, Mayor Muriel Bowser has made affordable housing a major focus of her administration. In October 2016, the mayor celebrated a record HPTF investment for FY 2016: $106.3 million supporting 19 projects that will produce or preserve more than 1,200 affordable housing units across the city.
Since October 1, 2016, DHCD has closed 21 affordable housing production and preservation projects, yielding almost 850 units for District families. In addition, the 21 projects have used over $81 million in DHCD funds—including $74 million in HPTF and $12.4 million in 4% and 9% Low Income Housing Tax Credit LIHTC allocations.
DC’s annual $100 million HPTF is more than any city per capita in the country. Additionally, as part of her inclusive prosperity platform, the mayor has launched a new initiative of $10 million dedicated solely to a new public-private housing preservation fund. A search is now on for a preservation officer to spearhead this fund.
Since January 2015, the Bowser Administration has produced and preserved over 3,900 units of affordable housing units in the District with more to come. More than 5,263 affordable housing units—capable of housing more than 13,150 District residents—are in the development pipeline.
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