District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill PR25-0707 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	ENROLLED ORIGINAL
2		-
3		-
4	1
5	2		1
6	3
7		-	A RESOLUTION
8		-
9		-	25-480
10		-
11		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
12		-
13		-	April 2, 2024
14		-
15		-
16		-	To declare the existence of an emergency regarding the need to provide financial relief and
17		-	other assistance to the current owners of the condominium units at the River East at
18		-	Grandview Condominiums.
19		-
20		-	RESOLVED, BY THE COUNCIL DISTRICT OF COLUMBIA, That this resolution
21		-	may be cited as the “Relief for River East at Grandview Condominium Owners Emergency
22		-	Declaration Resolution of 2024”.
23		-
24		-	Sec. 2. (a) In 2011, the Department of Housing and Community Development
25		-	(“DHCD”) provided a loan to Stanton View Development LLC (“Stanton View”) to cover
26		-	predevelopment and acquisition costs for a Ward 8 property at 1260 to 1272 Talbert Street, SE,
27		-	Washington, DC 20020, at which Stanton View planned to develop 46 for-sale affordable
28		-	housing units.
29		-	(b) In 2014, Stanton View transferred the property to Rivereast at Anacostia LLC for
30		-	development, who decided instead to develop rental units and who received a Housing
31		-	Production Trust Fund loan from DHCD, with the support of the Council, to do so.
32		-	(c) By the end of 2016, Stanton View and DHCD agreed to convert the property back
33		-	to the originally proposed ownership units, and the project was finished and just about ready
34		-	for move-in.
35		-	(d) From July 2017 to February 2019, 46 households purchased homes at 1262 Talbert
36		-	Street, SE, in a building that has been called several different but similar names: River East at
37		-	Grandview, Grandview Estate, Grandview Estates, Grandview Estates II, Gardenview, River
38		-	East, RiverEast, River East at Anacostia, River East at Anacostia Metro Station, River East at
39		-	Grandview, and, simply, Talbert Street (“River East at Grandview”).
40		-	(e) Many of the 46 households were led by Black women becoming homeowners for
41		-	the first time using the District’s Home Purchase Assistance Program, and the newly formed
42		-	community included retirees, recent graduates, young couples, veterans, parents, and parents-
43		-	to-be.
44		-	(f) By August 2021, the community faced an insurmountable obstacle: An engineering
45		-	firm hired by the Condominium Association gave an emergency recommendation to fully
46		-	evacuate the building within 2 weeks due to serious structural concerns within the brand-new
47		-	building into which many had just poured their savings, hearts, and future plans.
48		-	(g) Since the evacuation almost 3 years ago, River East at Grandview owners have ENROLLED ORIGINAL
49		-
50		-
51		-
	4	+	___________________________ 1
	5	+	Councilmember Robert C. White, Jr. 2
	6	+	3
	7	+	4
	8	+	A PROPOSED RESOLUTION 5
	9	+	________ 6
	10	+	7
	11	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 8
	12	+	______________________ 9
	13	+	10
	14	+	11
	15	+	To declare the existence of an emergency regarding the need to provide financial relief and 12
	16	+	other assistance to the current owners of the condominium units at the River East at 13
	17	+	Grandview Condominiums. 14
	18	+	15
	19	+	RESOLVED, BY THE COUNCIL DISTRICT OF COLUMBIA, That this resolution 16
	20	+	may be cited as the “Relief for River East at Grandview Condominium Owners Emergency 17
	21	+	Declaration Resolution of 2024”. 18
	22	+	Sec. 2. (a) In 2011, the Department of Housing and Community Development 19
	23	+	(“DHCD”) provided a loan to Stanton View Development LLC (“Stanton View”) to cover 20
	24	+	predevelopment and acquisition costs for a Ward 8 property at 1260 to 1272 Talbert Street, 21
	25	+	S.E., Washington, DC 20020, at which Stanton View planned to develop 46 for -sale affordable 22
	26	+	housing units. 23
	27	+	(b) In 2014, Stanton View transferred the property to Rivereast at Anacostia LLC for 24
	28	+	development, who decided instead to develop rental units and who received a Housing 25
	29	+	Production Trust Fund (“HPTF”) loan from DHCD, with the support of the Council, to do so. 26
	30	+	(c) By the end of 2016, Stanton View and DHCD agreed to convert the property back 27
	31	+	to the originally proposed ownership units, and the project was finished and just about ready 28
	32	+	for move-in. 29
52	33		2
53	34
54		-	worked diligently to untangle the tremendous financial, legal, and emotional web into which
55		-	they were thrown.
56		-	(h) Owners have described horrific experiences stemming from this tragic outcome,
57		-	including diminished mental health, persistent frustration, immense stress, distrust and
58		-	disappointment, and fear over their next steps.
59		-	(i) The District has provided some support, including immediate cash assistance and
60		-	case management to find rental units at the time of the evacuation, as well as ongoing rental
61		-	support that the Executive said will end in June 2024.
62		-	(j) However, River East at Grandview owners remain responsible for their first trust
63		-	mortgages, despite being unable to move back into a building that has been deemed unlivable
64		-	and worth $0 in value.
65		-	(k) For years, owners – represented by the River East at Grandview Condominium
66		-	Association – engaged with the Executive to attempt to find common ground on a solution,
67		-	while groups of owners also sought relief and accountability through the courts.
68		-	(l) By the fall of 2023, there was still no resolution, and the owners continued to suffer
69		-	in a state of limbo.
70		-	(m) In November 2023, the Committee of the Whole and the Committee on Housing
71		-	held a joint roundtable to hear from the River East at Grandview owners, the Department of
72		-	Buildings (“DOB”), and DHCD over what went wrong and how to determine and implement
73		-	next steps.
74		-	(n) Later that month, DHCD, DOB, the Department of Insurance, Securities, and
75		-	Banking, representatives from Chairman Mendelson’s and Housing Committee Chairperson
76		-	Councilmember Robert White’s offices, and River East at Grandview Condominium
77		-	Association board members met to discuss a path forward.
78		-	(o) At the November meeting, DOB representatives confirmed the inhabitability of the
79		-	building, indicating it is unlikely that any part is salvageable and the ultimate outcome may be
80		-	complete demolition.
81		-	(p) At the same meeting, DHCD confirmed that owners would not be able to leave with
82		-	equity in their purchase because the building has no value.
83		-	(q) From December 2023 through March 2024, owners continued to engage with
84		-	DHCD, as DHCD sought to produce a relief proposal in time for implementation ahead of the
85		-	rental assistance cut-off in June.
86		-	(r) On March 8, 2024, DHCD held a meeting with River East at Grandview owners to
87		-	introduce them to the Neighborhood Assistance Corporation of America (“NACA”) and
88		-	discuss the potential for partnership with NACA in securing new homeownership opportunities
89		-	for owners.
90		-	(s) Founded in 1988 by Bruce Marks and Reverend Graylan Hagler, who was also co-
91		-	chair of DC’s recent Black Homeownership Strike Force, NACA seeks to provide affordable
92		-	homeownership opportunities to communities who have systematically been kept out of the
93		-	real estate market through reducing barriers to ownership.
94		-	(t) Since the March 8th meeting, NACA counselors have completed individual housing
95		-	counseling sessions with a majority of the River East at Grandview owners. ENROLLED ORIGINAL
96		-
97		-
98		-
	35	+	(d) From July 2017 to February 2019, 46 households purchased homes at 1262 Talbert 30
	36	+	Street, S.E., in a building that has been called several different but similar names: River East at 31
	37	+	Grandview, Grandview Estate, Grandview Estates, Grandview Estates II, Gardenview, River 32
	38	+	East, RiverEast, River East at Anacostia, River East at Anacostia Metro Station, River East at 33
	39	+	Grandview, and, simply, Talbert Street (“River East at Grandview”). 34
	40	+	(e) Many of the 46 households were led by Black women becoming homeowners for 35
	41	+	the first time using the District’s Home Purchase Assistance Program (“HPAP”), and the 36
	42	+	newly formed community included retirees, recent graduates, young couples, veterans, parents, 37
	43	+	and parents-to-be. 38
	44	+	(f) By August 2021, the community faced an insurmountable obstacle: An engineering 39
	45	+	firm hired by the Condominium Association gave an emergency recommendation to fully 40
	46	+	evacuate the building within 2 weeks due to serious structural concerns within the brand- new 41
	47	+	building into which many had just poured their savings, hearts, and future plans. 42
	48	+	(g) Since the evacuation almost 3 years ago, River East at Grandview owners have 43
	49	+	worked diligently to untangle the tremendous financial, legal, and emotional web into which 44
	50	+	they were thrown. 45
	51	+	(h) Owners have described horrific experiences stemming from this tragic outcome, 46
	52	+	including diminished mental health, persistent frustration, immense stress, distrust and 47
	53	+	disappointment, and fear over their next steps. 48
	54	+	(i) The District has provided some support, including immediate cash assistance and 49
	55	+	case management to find rental units at the time of the evacuation, as well as ongoing rental 50
	56	+	support that the Executive said will end in June 2024. 51
99	57		3
100	58
101		-	(u) The counseling sessions, and the feedback from owners, have highlighted the
102		-	critical need for deep financial assistance for many River East at Grandview owners to
103		-	successfully compete in today’s housing market and to finally move on from this dilemma.
104		-	(v) The Mayor and the Council strongly support the provision of new homeownership
105		-	and mortgage opportunities for the River East at Grandview owners, including the elimination
106		-	of their existing River East at Grandview mortgages, any future obligations associated with the
107		-	River East at Grandview mortgages, and any negative impact of the River East at Grandview
108		-	mortgages on obtaining new mortgages.
109		-	(w) These measures are immediately necessary to ensure that River East at Grandview
110		-	owners can access stable housing before their rental supports expire and to begin to provide an
111		-	overdue solution to 46 households who have endured ongoing uncertainty and stress since the
112		-	devastating loss of their River East at Grandview homes almost 3 years ago.
	59	+	(j) However, River East at Grandview owners remain responsible for their first trust 52
	60	+	mortgages, despite being unable to move back into a building that has been deemed unlivable 53
	61	+	and worth $0 in value. 54
	62	+	(k) For years, owners – represented by the River East at Grandview Condominium 55
	63	+	Association – engaged with the Executive to attempt to find common ground on a solution, 56
	64	+	while groups of owners also sought relief and accountability through the courts. 57
	65	+	(l) By the fall of 2023, there was still no resolution, and the owners continued to suffer 58
	66	+	in a state of limbo. 59
	67	+	(m) In November 2023, the Committee of the Whole and the Committee on Housing 60
	68	+	held a joint roundtable to hear from the River East at Grandview owners, the Department of 61
	69	+	Buildings (“DOB”), and DHCD over what went wrong and how to determine and implement 62
	70	+	next steps. 63
	71	+	(n) Later that month, DHCD, DOB, the Department of Insurance, Securities, and 64
	72	+	Banking (“DISB”), representatives from Chairman Mendelson’s and Housing Committee 65
	73	+	Chairperson Councilmember Robert White’s offices, and River East at Grandview 66
	74	+	Condominium Association board members met to discuss a path forward. 67
	75	+	(o) At the November meeting, DOB representatives confirmed the inhabitability of the 68
	76	+	building, indicating it is unlikely that any part is salvageable and the ultimate outcome may be 69
	77	+	complete demolition. 70
	78	+	(p) At the same meeting, DHCD confirmed that owners would not be able to leave with 71
	79	+	equity in their purchase because the building has no value. 72
	80	+	(q) From December 2023 through March 2024, owners continued to engage with 73
	81	+	4
113	82
114		-	Sec. 3. (a) In 2014, Council authorized up to $40 million in Tax Increment Financing
115		-	(“TIF”) for the development of Skyland Town Center in the Skyland Town Center Omnibus
116		-	Act of 2014 (D.C. Law 20-110; D.C. Official Code § 2-1217.35a et seq.).
117		-	(b) The project was divided into 3 phases: Phase 1 was a 263-unit apartment building
118		-	with 84,500 square feet of retail space; Phase 2 was 42,000 square feet of community-serving
119		-	retail space; Phase 3 will be 126 for-sale townhomes, 75 affordable apartments for seniors, and
120		-	approximately 8,000 square feet of retail space. Phase 1 topped-out in July of 2019. Phase 2
121		-	fully leased all retail space in September of 2023. Phase 3 is ready to begin construction.
122		-	(c) Due to market conditions, funding provided by the TIF no longer supports the
123		-	anticipated timeline of the third and final phase which will complete the Skyland Town Center
124		-	project. The Deputy Mayor for Planning and Economic Development proposes a partial
125		-	conversion of $15 million from the original $40 million TIF authorization.
126		-	(d) Phase 3 has received the necessary permits and zoning approvals to begin
127		-	construction. Without the timely receipt of funds, this phase will languish and jeopardize the
128		-	completion of the project. Additionally, the developer will face financial hardship from either
129		-	being forced to take out loans to complete the project in a timely manner or risk failure of the
130		-	project.
131		-	(e) In 2023, the developer completed a refinance of a portion of the project investing
132		-	significant new private capital into Skyland Town Center, demonstrating their continued
133		-	commitment to bringing the District’s original vision to fruition. The developer continues to
134		-	actively support the completion of this project, but a quicker delivery of already planned
135		-	financing for this project is necessary for timely completion.
	83	+	DHCD, as DHCD sought to produce a relief proposal in time for implementation ahead of the 74
	84	+	rental assistance cut-off in June. 75
	85	+	(r) On March 8, 2024, DHCD held a meeting with River East at Grandview owners to 76
	86	+	introduce them to the Neighborhood Assistance Corporation of America (“NACA”) and 77
	87	+	discuss the potential for partnership with NACA in securing new homeownership opportunities 78
	88	+	for owners. 79
	89	+	(s) Founded in 1988 by Bruce Marks and Reverend Graylan Hagler, who was also co -80
	90	+	chair of DC’s recent Black Homeownership Strike Force, NACA seeks to provide affordable 81
	91	+	homeownership opportunities to communities who have systematically been kept out of the 82
	92	+	real estate market through reducing barriers to ownership. 83
	93	+	(t) Since the March 8
	94	+	th
	95	+	meeting, NACA counselors ha ve completed individual housing 84
	96	+	counseling sessions with a majority of the River East at Grandview owners. 85
	97	+	(u) The counseling sessions, and the feedback from owners, have highlighted the 86
	98	+	critical need for deep financial assistance for many River East at Grandview owners to 87
	99	+	successfully compete in today’s housing market and to finally move on from this dilemma. 88
	100	+	(v) The Mayor and the Council strongly support the provision of new homeownership 89
	101	+	and mortgage opportunities for the River East at Grandview owners, including the elimination 90
	102	+	of their existing River East at Grandview mortgages, any future obligations associated with the 91
	103	+	River East at Grandview mortgages, and any negative impact of the River East at Grandview 92
	104	+	mortgages on obtaining new mortgages. 93
	105	+	(w) These measures are immediately necessary to ensure that River East at Grandview 94
	106	+	owners can access stable housing before their rental supports expire and to begin to provide an 95
	107	+	5
136	108
137		-	Sec. 4. The Council determines that the circumstances enumerated in sections 2 and 3
138		-	constitute emergency circumstances making it necessary that the Relief for River East at
139		-	Grandview Condominium Owners Emergency Act of 2024 be adopted after a single reading.
140		-
141		-	Sec. 5. This resolution shall take effect immediately.
	109	+	overdue solution to 46 households who have endured ongoing uncertainty and stress since the 96
	110	+	devastating loss of their River East at Grandview homes almost 3 years ago. 97
	111	+	Sec. 3. The Council of the District of Columbia determines that the circumstances 98
	112	+	enumerated in section 2 constitute emergency circumstances making it necessary that the 99
	113	+	Relief for River East at Grandview Condominium Owners Emergency Act of 2024 be adopted 100
	114	+	after a single reading. 101
	115	+	Sec. 4. This resolution shall take effect immediately. 102