District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill PR25-0885 Compare Versions

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8-A RESOLUTION
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, due to congressional review, regarding the need to 12
16+provide financial relief and other assistance to the current owners of the condominium 13
17+units at the River East at 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 Congressional 17
21+Review Emergency 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
33+2
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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
57+3
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12-IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
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
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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) On April 2, 2024, the Council passed the “Relief for River East at Grandview 94
106+Condominium Owners Emergency Amendment Act of 2024” to immediately ensure that River 95
107+5
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16-
17-To declare the existence of an emergency regarding the need to provide financial relief and
18-other assistance to the current owners of the condominium units at the River East at
19-Grandview Condominiums.
20-
21-RESOLVED, BY THE COUNCIL DISTRICT OF COLUMBIA, That this resolution
22-may be cited as the “Relief for River East at Grandview Condominium Owners Congressional
23-Review Emergency Declaration Resolution of 2024”.
24-
25-Sec. 2. (a) On April 2, 2024, the Council passed the Relief for River East at Grandview
26-Condominium Owners Emergency Amendment Act of 2024 to immediately ensure that River
27-East at Grandview owners could access stable housing before their rental supports expired and
28-to begin to provide an overdue solution to 46 households who have endured ongoing
29-uncertainty and stress since the devastating loss of their River East at Grandview homes almost
30-3 years ago.
31-(b) The Relief for River East at Grandview Condominium Owners Emergency
32-Amendment Act of 2024 legislation also included a provision separate from the River East at
33-Grandview matter, which provides funding authority to complete the Skyland Town Center
34-development.
35-(c) The Relief for River East at Grandview Condominium Owners Emergency
36-Amendment Act of 2024 will expire on July 14, 2024.
37-(d) On May 7, 2024, the Council passed the Relief for River East at Grandview
38-Condominium Owners Temporary Amendment Act of 2024, which is currently undergoing
39-Congressional review and is not projected to become law until August 1, 2024. This
40-emergency legislation is therefore necessary to prevent a gap in the law between the expiration
41-of the emergency act and the effective date of the temporary act.
42-
43-Sec. 3. The Council determines that the circumstances enumerated in section 2
44-constitute emergency circumstances making it necessary that the Relief for River East at
45-Grandview Condominium Owners Congressional Review Emergency Act of 2024 be adopted
46-after a single reading.
47-
48-Sec. 4. This resolution shall take effect immediately.
109+East at Grandview owners could access stable housing before their rental supports expired and 96
110+to begin to provide an overdue solution to 46 households who have endured ongoing 97
111+uncertainty and stress since the devastating loss of their River East at Grandview homes almost 98
112+3 years ago. 99
113+(x) The “Relief for River East at Grandview Condominium Owners Emergency 100
114+Amendment Act of 2024” legislation also included a provision separate from the River East at 101
115+Grandview matter, which provides funding authority to complete the Skyland Town Center 102
116+development. 103
117+(y) The “Relief for River East at Grandview Condominium Owners Emergency 104
118+Amendment Act of 2024” will expire on July 14, 2024. 105
119+(z) On May 7, 2024, the Council passed the “Relief for River East at Grandview 106
120+Condominium Owners Temporary Amendment Act of 2024,” which is currently undergoing 107
121+Congressional review and is not projected to become law until August 1, 2024. This 108
122+emergency legislation is therefore necessary to prevent a gap in the law between the expiration 109
123+of the emergency act and the effective date of the temporary act. 110
124+Sec. 3. The Council of the District of Columbia determines that the circumstances 111
125+enumerated in section 2 constitute emergency circumstances making it necessary that the 112
126+Relief for River East at Grandview Condominium Owners Congressional Review Emergency 113
127+Act of 2024 be adopted after a single reading. 114
128+Sec. 4. This resolution shall take effect immediately. 115