The District of Columbia Housing Authority (DCHA) is striving to provide decent, safe and affordable housing in a healthy sustainable living environment for all its residents. DCHA has embarked upon a program of bringing as many of its properties as possible to a twenty-year sustainability level. Current governmental funding sources are insufficient to meet all the modernization, rehabilitation and redevelopment needs of DCHA's entire real estate portfolio. Opportunities to partner with private developers seeking residential and commercial development opportunities in the District are anticipated.
The Board of Commissioners desires to preserve and enhance whenever possible quality housing for low and very low income families and to make redevelopment planning decisions in an open, fair and rational manner. Therefore the DCHA Board of Commissioners has adopted officially by resolution the principles set forth below to govern the discussions and negotiations with private sector parties and when seeking other governmental or private funding sources in connection with the redevelopment and rehabilitation of DCHA properties.
A. REQUIRED PARAMETERS for all redevelopment or rehabilitation deals involving conventional public housing sites and properties of the District of Columbia Housing Authority.
1. A minimum of one-for-one replacement of deep subsidy units, preferably on the DCHA property or in the same neighborhood, and ACC (Section 8 Annual Contributions Contract) replacement units are the preferred means of achieving one-for-one replacement of deep subsidy units.
2. DCHA will provide the private developer with the proposed unit sizes after performing an analysis of its waiting list and assessing other market considerations.
3. Because DCHA is a public entity, it will only consider seeking special zoning concessions when it determines that it can enhance the provision of affordable housing without doing damage to the existing zoning of other properties in the surrounding area.
4. Senior replacement housing must be in place in the same general area prior to demolition of existing senior units so that current residents do not have to move more than once.
5. Replacement housing shall be built out simultaneously with market rate units and in place prior to or no later than the market rate housing.
6. Six percent (6%) of the replacement units shall be Uniform Federal Accessibility Standard Units.
7. Private Developers must be willing to share risk in the entire deal, including funding a portion if not all of the predevelopment costs, guaranteeing Low Income Housing Tax Credits, and guaranteeing construction performance and completion. As such, a private developer is entitled to a reasonable developer fee and overhead as established by DCHA.
8. Private Developers must be willing to include DCHA or one of its subsidiaries in a profit sharing arrangement in proportion to the relative equity investment and risk considerations. DCHA equity shall include land contributed to the redevelopment/development project as well as other public funds.
9. Developers should not have vacated an affordable housing property in anticipation of redevelopment of a mixed-income or other market rate redevelopment project. DCHA discourages displacement of current residents except where necessary for the improvement of the housing and with the full benefits as required by federal relocation regulations. .
10. Site design should employ principles of defensible space including clear delineation of public and private spaces, eyes on the street, and connectivity with the surrounding community.
11. New replacement family units shall be in a mixed-income setting and generally comprise no more than 1/3 of the new development.
12. Future redevelopment activities will be timed in such a manner as to minimize the loss of future capital funding due to units being off-line for redevelopment purposes unless DCHA is made whole for the lost net income (both operating and capital) on such units.
13. DCHA's investment in each development project shall be leveraged in a variety of ways with private funds such as Low Income Housing Tax Credits (usually 4% in conjunction with tax exempt financing) and other public resources.
14. DCHA's limited future Capital Grant funds received annually from the Federal government will be needed for modernization of its remaining stock and will not be programmed for use in these types of redevelopment projects.
15. Except for fee simple for-sale housing, existing DCHA land shall be ground-leased rather than sold.
16. DCHA carries out its redevelopment activities in a highly participatory manner with stakeholders, which includes but is not limited to input from residents and the surrounding neighborhood as well as its development partner.
17. The use of sustainable "green" materials using the LEEDs Standards is strongly encouraged.
B. DESIRED PARAMETERS, if the redevelopment proposal offers, or could with creative refinement, the potential for:
1. Greater than one-for-one replacement
2. DCHA participation in future revenue stream from
non-residential uses on existing DCHA land.
3. For family developments-
• Phasing to minimize multiple relocation moves
• Parking at minimum required by zoning ordinance
4. For Senior developments-
• Close to grocery shopping and other neighborhood service
THE PREFERRED PROCESS for engaging private sector partners is by responding to Open Requests for Proposals issued by DCHA. However, Unsolicited Proposals may be entertained if there is a demonstration of “Overwhelming Public Good” and other DCHA and Federal Procurement Requirements as determined by DCHA can be met. Prior to engaging in discussions that might lead to an unsolicited proposal; private parties should seek clear direction from DCHA counsel.
Adopted: October 2004