D.C. Housing Finance Agency Issues $121M Financing for Affordable Housing Project
The funding goes toward the second phase of the Barnaby & 7th project., which includes 229 apartments
By Nick Trombola January 31, 2025 11:04 am
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A housing redevelopment project in Washington, D.C., that could produce up to 470 affordable units has secured financing to fund its second phase of construction.
The DC Housing Finance Agency (DCHFA) issued $120.5 million in funding from multiple sources to build the 229-unit second phase of Barnaby & 7th, in the Washington Highlands neighborhood of Southeast D.C. That includes $63 million in tax-exempt bonds, $47.1 million federal Low-Income Housing Tax Credit equity and $10.4 million in D.C. Low-Income Housing Tax Credit equity. The units will be available to a mix of households earning 30 percent, 50 percent and 80 percent of the area median income.
“This development will not only be transformative for the residents but impactful for the Washington Highlands neighborhood,” Christopher E. Donald, executive director and CEO of DCHFA, said in a statement.
Led by Gilbane Development Company, MED Developers, EquityPlus and Housing Help Plus, Barnaby & 7th is the redevelopment project for Belmont Crossing Apartments, a 275-unit housing community built in 1952 at 4201 Seventh Street SE that had fallen into disrepair. DCHFA in 2022 provided $48.8 million in tax-exempt bonds and $41.5 million in federal Low-Incoming Housing Tax Credit equity to build out the project’s first phase, which included 169 apartment units.
“We are thrilled to reach the financial closing of the next phase of Barnaby & 7th redevelopment, which will significantly expand our capacity to provide much-needed affordable housing options in the D.C. area,” Yarojin Robinson, senior vice president of mixed-income and affordable housing at Gilbane, said in a statement. “This milestone represents a pivotal step toward creating a more inclusive and supportive community to the Washington Highlands.”
The first phase of the project began construction in mid-2023 and is expected to deliver early this year, while the second is expected to begin construction next month.
A third phase of the project, with a to-be-determined financing and development timeline, will include either 72 more Low-Income Housing Tax Credit rental units, in two-over-two townhomes, or 30 to 35 townhomes for purchase.
“Eight years ago, 200 families were living in substandard conditions, and crime was an ever-present reality of daily life,” Avram Fechter, managing director EquityPlus, added in a statement. “Now, over 400 families will live in state-of-the-art new housing in a wonderful safe community. Projects like this are why we do what we do.”
Nick Trombola can be reached at ntrombola@commercialobserver.com.
