February 25, 2025
The Honorable Phil Mendelson
Chairman
Council of the District o f Columbia
1350 Pennsylvania Avenue NW, Su ite 504
Washington, DC 20004-3003
Dear Chairman M endelson:
Pursuant to D.C. Official Code § 2-352.02, I have enclosed, for consideration by the Council of the District of Columbia,
t
he (a) Council Contract Summary for the Ag reement to Enter into a Long-T erm Subsidy Contract ( “ALTSC”) between
the District of Columbia Housing Authority (“DCHA” ) and Flats at South Capitol LLC, and (b) proposed Local Rent
Supplement Program Contract No. 2025-LR SP-02A with Flats at South Ca
pitol LLC Approval Resolution of 2025. DC H A
proposes to provide a housing subsidy
to the Owner in the initial amount of $486,960.00 annua lly for a multi-y ear
t
erm of fifteen ( 15) years, in support of t he District’ s Local Rent Supplement Program (“LRSP”) to provide twenty-two
(22)
affordable housing units at Flats at South Capitol Apartments lo ca ted at 3838 South Capitol Street, SE.
As always, I am available t
o discuss any questions you may have regarding the proposed LTSC. In order to facilitate a
response t
o any questions concerning this ALTSC, please have your staff conta ct Hammere Gebreyes, Director of
External Affairs a
nd Senior Advisor, at (202) 207-4694.
I look forward t o your favor able consideration of this proposed A LTSC agreement.
Sincerely,
Keith Pettigrew
Ex
ecutive Director, District of Columbia Housing Authority 1
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A PROPOSED RESOLUTION
~
at the request of District of
Columbia Housing Authority
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To approve an agreement to enter into a long-term subsidy contract for 20 years in support of the
District's Local Rent Supplement Program to fund housing costs associated with
affordable housing units for Contract No. 2025-LRSP-02A with Flats at South Capitol
LLC for program units at the Flats at South Capitol Apartments located
at 3838 South
Capitol Street SE.
RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
resolution may be cited
as the "Local Rent Supplement Program Contract No. 2025-LRSP-02A
with Flats at South Capitol LLC Approval Resolution
of 2025".
Sec. 2. (a) In 2007, the District passed Title II
of the Fiscal Year 2007 Budget Support
Act
of 2006 ("BSA") to provide funding for affordable housing for extremely low-income
households in the District. The passage
of the BSA created the Local Rent Supplement Program
("LRSP"), a program designed to provide affordable housing and supportive services to
extremely low-income District residents, including those who are homeless or in need
of
supportive services, such as elderly individuals or those with disabilities, through project-based,
tenant-based, and sponsored-based LRSP affordable housing units. The BSA provided for the
District
of Columbia Housing Authority ("DCHA") to administer the LRSP on behalf of the
District.
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(b) In June 2019, the District of Columbia’s Department of Housing and Community 1
Development (“DHCD”) issued a Request for Proposals (“RFP”) regarding the availability of 2
funds from multiple district agencies, including DCHA, DHCD, the Department of Behavioral 3
Health, the Department of Human Services, and the District of Columbia Housing Finance 4
Agency. Of the total proposals received, (25) developers were ch osen to work wit h DCHA and 5
others to develop affordable housing and permanent supportive housing units for extremely low 6
income families making zero to thirty percent (30%) of the area’s median income, as well as the 7
chronically homeless and individuals with mental or physical disabilities throughout 8
Washington, DC. 9
After meeting the requirements for DHCD review and LRSP subsidy eligibility, 10
proposals were evaluated on various underwriting and prioritization criteria including financial 11
feasibility, project sustainability, deve lopment team capacity, amount of capital requested, 12
nonprofit participation, and furtherance of the development of affordable housing. Additionally, 13
DCHA has determined that the proposed project meets the District of Columbia’s Consolidated 14
Plan and the Ma yor’s goal for providing affordable housing opportunities in neighborhoods. 15
Upon approval of the contract by the Council, DCHA will enter into an agreement to enter into a 16
long-term subsidy c ontract (“ALTSC”) with the selected housing providers under the LRSP for 17
housing services. 18
(c) There exists an immediate need to approve the l ong-term subsidy contract with Flats 19
at South Capitol LLC under the LRSP in order to provide long- term affordable housing units for 20
extremely low-income households for u nits located at 3838 South Capitol Street SE. 21
(d) The legislation to approve the contract will authorize an A LTSC between the District 22
of Columbia Housing Authority and Flats at South Capitol LLC with respect to the payment of a 23
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rental subsidy and allows the owner to lease the rehabilitated units at Flats at South Capitol 1
Apartments and house extremely low-income households with incomes at 30% or less of the area 2
median income. 3
Sec. 3. Pursuant to section 451 of the District of Columbia Ho me Rule Act, approved 4
December 24, 1973 (87 Stat. 803; D.C. Official Code § 1- 204.51), and section 202 of the 5
Procurement Practices Reform Act of 2010, effective April 8, 2011 (D.C. Law 18- 371; D.C. 6
Official Code § 2- 352.02), the Council approves the ALTSC with Flats at South Capitol LLC 7
to provide an operating subsidy in support twenty-two (22) affordable housing units in an 8
initial amount not to exceed $ 486,960 annually. 9
Sec. 4. Transmittal. 10
The Council shall transmit a copy of this resolution, upon its adoption, to the District of 11
Columbia Housing Authority and the Mayor. 12
Sec. 5. Fiscal impact statement. 13
The Council adopts the fiscal impact statement of the Chief Financial Officer as the fiscal 14
impact statement required by section 4a of the General Legislative Procedures Act of 1975, 15
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a). 16
Sec. 6. Effective date. 17
This resolution shall take effect immediately. 18