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For Immediate Release
June 28, 2005 |
Contact: Patricia Dashiell
(202) 895-8900 |
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Residents Celebrate Successfully Exercising Their Right to Purchase
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Developer CPDC completes project in Shaw neighborhood
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Washington, DC - Residents, local elected officials, financial partners, and the nonprofit developer of a Northwest housing development-formerly known as Immaculate Conception-marked the completion of the revitalized and renovated building, renamed 1330. Attending the grand opening celebration were dozens of individuals impacted by and involved in this collaborative effort to preserve affordable housing in the Shaw neighborhood.
"Today, we're coming together to celebrate the empowerment of the residents of 1330 7th Street who took the initiative and worked creatively with city, federal, developers, and private financers to preserve affordable housing in one of the most desirable neighborhoods in the city," said Mayor Anthony A. Williams. "Preserving and enhancing affordable housing is critical as our city continues to grow and change."
"When almost everyone is priced out downtown, CPDC has used its deep and remarkable expertise on behalf of people of very modest means to harness the federal roadmap that runs through the financing of 1330," stated Congresswoman Eleanor Holmes-Norton.
For over three decades, 1330, located at 1330 7th Street, NW, has provided affordable rental housing to 136 very low-, low- and moderate-income households in northwest Washington, DC. When residents learned that their homes, located just one block from the new DC Convention center, were being sold they feared displacement due to gentrification and banded together to exercise their right to purchase via the Tenant Association.
The Association selected Community Preservation and Development Corporation (CPDC) as its development partner and assigned their right to a new ownership entity in which the Association and CPDC are members. When the tax credit compliance period has been satisfied, the Assocation will have the right to purchase the property, returning ownership to the residents.
"CPDC welcomed the opportunity to work with residents who were determined to direct their own fate where their homes were concerned," stated J. Michael Pitchford, CPDC's president and CEO. "In a region, like ours, facing an affordable housing crisis, all parties must come together with a commitment to preserve existing housing developments in order to save communities such as 1330."
CPDC's creative, multi-layered financing on this project leveraged both public and private financing sources for the approximately $21 million in total development cost. This included approximately $13 million in first mortgage financing via tax-exempt bonds issued by the DC Housing Finance Agency (DCHFA), $6 million in private tax credit investor equity from MMA Financial, secured via the LIHTC allocation awarded to the project in conjunction with the bonds, and $2 million in subordinate mortgage financing via local funds available through DC's Housing
Production Trust Fund managed by the DC Department of Housing and Community Development (DHCD).
"The HFA is committed to ensuring all residents have safe and affordable places to call home, and we are proud to have participated in such a successful partnership that not only helped maintain affordability in one of the city's most sought after neighborhoods but did so with the participation and ownership by the tenants," stated Milton Bailey, Executive Director of DCHFA. "Redevelopment of this apartment complex was truly a win-win situation for the tenants, developers and the city's champions of affordable housing."
The property also participates in two federal housing programs via the US Department of Housing and Urban Development (HUD). Originally financed under the Federal Housing Authority (FHA) Section 236 mortgage program, the property received Interest Reduction Payments (IRP) to support the original first mortgage. HUD approved a 236 Decoupling which preserved the IRP to support a portion of the new debt from DCHFA. In conjunction with the Decoupling, HUD also approved a 20-year renewal of the Section 8 contracts which were set to expire in late 2004, further ensuring affordablity for the residents.
The substantial renovation included replacing and/or upgrading major building systems including HVAC systems, plumbing, electrical wiring and elevators; new kitchens and bathrooms including new carpeting, flooring, appliances, etc.; a tenant association office and furnished computer lab was added, and the property was wired for broad band access to Internet and intranet services. Additionally, CPDC has partnered with the residents to bring on-site community life programs beginning with youth development.
CPDC works with residents, governments, and financiers to turn around troubled communities and preserving those subjected to market pressures and rising rents. Wardman Court (formerly Clifton Terrace), Edgewood Terrace, and Southern Ridge in Washington, DC represent model successes where crime and mismanagement once ruled. Island Walk in Reston, VA and 1330 in the District are examples of where complex financing allowed for sustainability and the opportunity for residents to eventually own their homes. The Wiley H. Bates Memorial Complex in Annapolis, Maryland is CPDC's most recent historical preservation. When finished, it will provide 71 units of affordable housing for seniors.
CPDC is a non-profit developer and owner of more than 3,500 apartments in vibrant communities where residents are developing academic, career, and leadership skills. To date, 1,000 students have graduated from its career and skill training program with another 95 current students. Additionally a daily average of over 400 children and youth pass through programs geared toward building leadership, civic responsibility, life skills, and improving academic performance utilizing state-of-the-art technology and interactive projects. |
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| CPDC's mission is to develop vibrant communities through innovation and partnerships. To accomplish this, CPDC creates and preserves financially sound, socially responsible affordable housing for low- and moderate-income individuals and families and, in cooperation with community residents, develops community programs that strengthen communities and increase opportunities for growth. |
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