WASHINGTON, DC – (RealEstateRama) — Institutions (CDFIs), will manage the District’s newly created $10 million Affordable Housing Preservation Fund. The Mayor’s Housing Preservation Strike Force recommended the creation of this Fund, located within the Department of Housing and Community Development (DHCD), to increase the preservation of affordable housing in the District.
“As we work to create and preserve more affordable housing across all eight wards, the Preservation Fund will allow us to move more quickly and to leverage private investments in order to maximize our investments and reach more Washingtonians,” said Mayor Bowser. “Capital Impact Partners and LISC both have deep, long-standing commitments to affordable housing and my Administration looks forward to working together to get this money out the door and into preservation projects.”
The Mayor’s Housing Preservation Strike Force recommended the creation of a public-private preservation fund as one of six critical strategies to preserve affordable rental housing in the District. Mayor Bowser invested $10 million in local funds for the Housing Preservation Fund in DHCD’s FY18 budget, which was approved by the D.C. Council. The fund managers will each receive $5 million. This announcement follows the appointment of Ana Lopez Van Balen as the District’s First Affordable Housing Preservation Officer.
“As with many metropolitan areas, equitable access to housing in Washington, D.C. is under threat in the face of rapid population and economic growth. Left unchecked, this trend may force the displacement of lower-income individuals and families who help make up the cultural fabric of the city,” said Ellis Carr, president and CEO of Capital Impact Partners. “We applaud Mayor Bowser for her proactive approach to addressing this issue and supporting an inclusive growth strategy that values residents across the socio-economic spectrum.”
Based in the Washington, D.C. region, Capital Impact has disbursed more than $2.5 billion nationally to revitalize low- to moderate-income communities over the last 35 years. In the last 18 months, the organization has invested nearly $50 million in Washington, D.C. to support multiple projects delivering critical social services. This includes working with a variety of partners and organizations including Martha’s Table and Terrace Manor Apartments in Ward 8; Unity Health Care in Ward 5; and the District of Columbia International School and residents of Takoma Place Apartments in Ward 4. Over its 30-year history, LISC has preserved more than 3,700 units of affordable housing in the District.
“The fund managers will allow us to move more nimbly and quickly to acquire properties that we want to preserve as affordable housing,” said DHCD Director Polly Donaldson. “We are glad to take another significant step in implementing another tool in the Mayor’s toolbox, one that—by the end of this year, will preserve more safe and affordable housing for District residents.”
“As Chair of the Committee on Housing and Neighborhood Revitalization, I look forward to this fund becoming a reliable tool for assisting the city in preserving the many affordable units that we have across the city,” said Councilmember Anita Bonds. “This will not only help our working class, but be of great support to our senior population. I applaud DHCD for moving forward with this effort so quickly.”
Along with other private and philanthropic investments, the $10 million will be used to grow the fund to approximately $40 million. These monies will quickly provide short-term bridge acquisition and pre-development financing to eligible borrowers. Properties targeted for fund investments are occupied multi-family housing of more than five units, in which at least 50 percent of units are currently affordable to households earning up to 80 percent of the median family income (MFI).
Capital Impact and LISC were selected from responses to a DHCD solicitation in late 2017 seeking the following qualifications: (1) a substantial record of affordable housing and community development lending nationally and/or in the District during the last five years; (2) a strong record of success in its lending activities; (3) access to its own private funds to invest in the Fund or the solid commitment of monies to create the Fund; (4) the ability to immediately proceed with implementing the Fund; and (5) a substantial record of providing technical assistance and pre-development loans to developers.
Since coming into office, the Bowser administration has sparked the creation or preservation of more than 10,400 affordable units, with another 2,950 in pre-construction. In Fiscal Year 2017, the District made historic investments in affordable housing, getting more than $138 million in Housing Production Trust Fund financing out the door to support 23 projects that will produce or preserve more than 1,900 affordable units.
The District’s multi-pronged approach to housing production and preservation, homeownership, and development of vacant properties is winning national recognition. On September 11, 2017, the District was selected for the Urban Land Institute’s Larson Housing Policy Leadership Award. This annual award, provided by ULI’s Terwilliger Center for Housing, recognizes innovative ways that the public sector is addressing the nation’s affordable housing crisis.
About Capital Impact Partners:
Through capital and commitment, Capital Impact Partners helps people build communities of opportunity that break barriers to success. We deliver strategic financing, incubate new social programs, and provide capacity-building to help ensure that low-to-moderate-income individuals have access to quality health care and education, healthy foods, affordable housing, and the ability to age with dignity. A non-profit community development financial institution, Capital Impact Partners has disbursed more than $2.5 billion to revitalize communities over the past 35 years. Our leadership in delivering financial and social impact has resulted in Capital Impact earning a “AA” rating from S&P Global “AA” and being recognized by Aeris since 2005 for our performance. Headquartered in Arlington, VA, Capital Impact Partners operates nationally, with local offices in Detroit, MI, and Oakland, CA. Learn more at www.capitalimpact.org.