Affordable Tenant-Owned Housing in DC Gets $30 Million in Funding – Business Observer
A new affordable housing development in the Shepherd Park neighborhood of Washington, DC is ready to start, after funding for various government programs closed.
The inhabitants of the 7428-7434 Georgia Avenue Tenants Association exercised their rights under the Tenant Purchase Opportunity Act to obtain the existing three-building complex last year.
Lock 7 Development is leading the $33.7 million redevelopment, which will include demolishing the two-story apartment buildings currently on the site and constructing a new building. All current tenants have been relocated as part of the agreement with the developer.
When finished, Shepherds Park Apartments will include 66 apartments, all affordable.
Additional financing of the property, to 7428 Georgia Avenue NWwill be granted in the form of an $11.7 million loan from the DC Department of Housing and Community Development Housing Production Trust Fund.
“The attraction of the development will be the ability to live in modern, newly built, tenant-owned apartments in a complex, at rental rates based on residents’ incomes, located in an amenity-rich neighborhood,” Christopher E. DonaldExecutive Director and CEO of DCHFAtold Commercial Observer.
The new Shepherd Park apartments will consist of 10 efficiencies, 34 one-bedroom, two two-bedroom and 20 three-bedroom apartments reserved for residents earning 30-60% of the area’s median income. Thirteen of the units will be designated as “permanent supportive housing,” designed to help the chronically homeless.
“This investment in Shepherd Park Apartments is next to [the Walter Reed redevelopment] with a new grocery store, hospital/innovation center,” Donald said. “Real estate risk is de minimis in light of this, and greatly reduces the risk of failure.”
Building facilities will include a green roof, bike storage and fitness rooms. The development will also include offices for the permanent on-site supportive housing service provider, Community Connections.
The Shepherd Park area of Ward 4 is mostly made up of single-family homes and is a hot neighborhood for homebuyers, which has led to an increase in housing prices in the area, according to DCHFA.
“Its neighbor is the redevelopment Walter Roseau campus, which brings a lot of market-priced housing to the area,” Donald said. “Shepherd Park Apartments will ensure that current residents can afford to stay in this neighborhood and that future moderate and low income residents will also have the opportunity to live in Shepherd Park.”
Keith Loria can be reached at [email protected].