DCHFA Finances Affordable Housing Development in Ward 8 With $45M
The District of Columbia Housing Finance Agency (DCHFA) issued $23.1 million in tax-exempt bonds for the construction of Alabama Avenue Apartments, an affordable community in Washington, D.C.’s Garfield Heights neighborhood.
DCHFA also underwrote $22 million in federal and local low-income housing tax credit equity for the Ward 8 development.
Enterprise Community Development and Durrani Development Corporation are the developers of the project. Additional funding came in the form of a $12.9 million housing production trust fund loan from the D.C. Department of Housing and Community Development.
“There is a great need for affordable housing in this submarket,” Scott Hutter, DCHFA’s director of multifamily lending and neighborhood investments, told Commercial Observer. “Ward 8 is a very active area for development. DCHFA wants to ensure that, as many new commercial and residential developments emerge, affordable housing remains available for residents.”
The property will consist of 32 one-bedroom, 28 two-bedroom and 26 three-bedroom units to address the significant need in the market to house larger families. Nine units will be reserved for residents earning up to 60 percent of the area median income (AMI) and 59 units will be reserved for those earning up to 50 percent of AMI, which is currently $142,300 for a household of four.
The remaining 18 units are designated permanent supportive housing, reserved for residents earning 30 percent or less of AMI. Those residents will receive a local rent supplement program operating subsidy.
“This will ultimately get us closer to Mayor Muriel Bowser’s goal of 12,000 new affordable homes by 2025,” Hutter said.
Alabama Avenue Apartments is adjacent to the Alabama Avenue and Ainger Place bus stop, which is serviced by the 32 line and seven other bus lines. Alabama Avenue Apartments also is within walking distance of the newly constructed Skyland Town Center, a shopping center featuring a grocery store, pharmacy and many other retailers.
“This property is in an area with excellent access to neighborhood amenities,” Hutter said. “DCHFA is proud to facilitate the production of high-quality affordable housing in this appealing Ward 8 neighborhood. People at all income levels should have access to transportation and amenities within their neighborhood.”
Keith Loria can be reached at Kloria@commercialobserver.com.