MURIEL BOWSER
MAYOR
October 26, 2022
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson,
Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code 1-
204.51), enclosed for consideration and approval by the Council of the District of Columbia is
proposed Contract No. DCEB-2022-R-5001 with Park Morton 1 Community Partners, LLC in the
amount of $23,000,000.
Under the proposed contract, the District will loan $23,000,000 to Park Morton 1 Community
Partners, LLC, which will use the proceeds of the loan finance a portion of the development costs
related to the new construction of approximately 142 affordable rental housing apartments located
at 610 Park Road, NW, Washington, DC 20010 in Ward 1. The development is part of the New
Communities Initiative, which aims to revitalize severely distressed subsidized housing and
redevelop communities with concentrated poverty, high crime rates, and economic segregation.
I am available to discuss any questions you may have regarding the proposed contract. In order to
facilitate a response to any questions you may have, please have your staff contact Erika Satterlee,
Legislative Director for the Deputy Mayor of Planning and Economic Development, at 202-727-
1983.
I look forward to the Councils favorable consideration of this contract.
Sincerely,
Muriel Bowser
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Deputy Mayor for Planning and Economic Development
COUNCIL CONTRACT SUMMARY
Pursuant to D.C. Official Code 2-352.02 the following contract summary is provided:
A. The contract number, proposed contractor, contract amount, unit and method
of compensation, contract term, and type of contract
Proposed Contractor: Park Morton 1 Community Partners LLC (the
Borrower)
Contract No.: DCEB-2022-R-5001
Contract Amount: $23,000,000
Unit and Method of Compensation: Fixed Cost Contract
Contract Caption: Financing for construction of the Park
Morton Redevelopment
Term of Contract: 40 Years from the date of stabilization
Type of Contract: Development Loan Agreement
B. The goods or services to be provided, including a description of the economic
impact of the proposed contract, the social impact of the proposed contract,
the methods of delivering goods or services, and any significant program
changes reflected in the proposed contract:
The Development Loan Agreement (the Agreement) will be used to finance a
portion of the development costs related to the new construction of affordable
housing located at 610 Park Road, NW, Washington DC 20010 in Ward 1 (the
Development).
The Development will contain approximately one hundred and forty-two (142)
affordable rental housing apartments that will all be leased to households earning
80% or below of Median Family Income (MFI). The Development is part of the
Districts New Communities Initiative (NCI), an initiative aimed at revitalizing
severely distressed subsidized housing and redeveloping neighborhoods into vibrant
mixed-income communities. NCI includes four neighborhoods in the District of
Columbia: Barry Farm in Ward 8, Lincoln Heights - Richardson Dwelling in Ward
7, Northwest One in Ward 6, and Park Morton in Ward 1. As such, forty-three (43)
of the affordable units shall be reserved as replacement units for initial rent and
occupancy by DC Housing Authority (DCHA) returning residents with
preference being given to Park Morton residents in accordance with DCHA
Resolution 16-06 adopted by the DCHA Board of Commissioners on March 9,
2016. A portion of the replacement units will be rented to households with incomes
at or below 30% MFI. The Borrower, an affiliate of Park View Community Partners
LLC (PVCP), was created solely to develop, own, and operate the Development.
The Development will include a community room, fitness room, computer room,
and parking. It will also be designed to satisfy Passive House energy efficiency
standards. This Development will attract private investment dollars to the
neighborhood, engage local, small, and disadvantaged business participation, and
incorporate First Source hiring requirements.
C. The selection process, including the number of offerors, the evaluation criteria,
and the evaluation results including price and technical components:
In 2014, DCHA in partnership with the Deputy Mayor for Planning and Economic
Development (DMPED) issued an open solicitation to select a development team.
PVCP, comprised of The Community Builders, Inc. (TCB) and Dantes Partners,
LLC (Dantes) was the winner of this competitive solicitation process. The
evaluation panel included staff from the DCHA, DMPED, and community
representatives from the Park Morton residences. PVCP was selected based on their
qualifications as well as their overall development vision. Because public housing is
part of our citys housing and human services safety net, redevelopments require
teams that are not only experienced housing developers but also articulate a vision
for preserving the safety net that is public housing. TCB is a leading national
nonprofit that has developed over 25 affordable and mixed-income communities
around the country, while Dantes is a locally based firm with 10 years of affordable
housing development experience. The Borrower will complete the 142 units of
affordable housing.
DMPED subsequently conducted its own analysis, met with members of the
relevant Area Neighborhood Commissions (ANC) including ANC 1A and ANC
1B, community and civic groups, private property owners, and developers with
active residential developments in predevelopment along the Georgia Avenue
corridor. In 2015, DMPED and DCHA participated in the following forums to
engage the larger community on the development:
Presentation/Update to Park Morton Resident Council (October 15th and
November 19th)
Convening of Park Morton Steering Committee (October 22nd, October 29th,
and December 10th)
Update to Bruce Monroe Task Force a subset of ANC 1A (October 27th)
Page 2 of 5
Update to Georgia Task Force (October 28th)
Mayor Bowser and DMPED attended the Park View UNC Meeting
(November 4th)
Update to ANC 1A (November 12th)
NCI meeting (November 16th)
Update to Luray Warder Block Association (November 21st)
Update to ANC 1B subcommittee (December 7th)
NCI planning/design workshops (December 1st and December 12th)
DMPED closely analyzed the underwriting assumptions and market conditions to
arrive at the recommendation for a total loan amount of $23,000,000. The loan will
be used to finance a portion of the project costs. The Development will be funded
through multiple funding sources, including DMPEDs loan, 4% Low Income
Housing Tax Credits, project-based vouchers, developer equity, and private debt.
D. The background and qualifications of the proposed contractor including its
organization, financial stability, personnel, and prior performance on
contracts with the District of Columbia government:
The Borrower is a limited liability company formed in the District of Columbia and
is an affiliate of the TCB. As one of the nations leading nonprofit developers of
mixed-income, mixed-finance housing, TCB is uniquely well suited to serve as
master developer and team leader for the revitalization of Park Morton
Redevelopment. TCBs skill set has been enhanced by joining forces with Dantes, a
District of Columbia and Ward 1 CBE/LSDBE Section 3 certified business. The
unique combination of a high-capacity nonprofit urban place-maker like TCB with
a successful local firm like Dantes brings a singular combination of talent, energy,
resources and goodwill to a development as challenging and urgent as Park Morton.
Operating as PVCP, the two firms complement each other significantly.
About TCB
TCB is a recognized leader in the public/private transformation of public
housing and distressed properties in vibrant mixed income communities with
five decades of experience planning and implementing comprehensive
neighborhood revitalization projects in fifteen states and the District of
Columbia.
Particularly noteworthy is TCBs accomplishment of 19 HOPE VI
revitalization projects. TCB was among the pioneers in nonprofit use of the
tax code to raise equity for affordable housing and is at the forefront in
crafting citywide partnerships supporting large-scale redevelopment and
comprehensive neighborhood revitalization efforts through new uses of public
housing funds and of project-based assistance.
TCB has assembled more than $2.5 billion in project financing to construct
and preserve 320 residential developments resulting in over 25,000 affordable
and mixed income housing units.
Page 3 of 5
TCBs full service multi-disciplinary team of 500 staff members is skilled and
experienced in development, finance/syndication, law, construction
management, property management and resident services/community
initiatives. Staff members are located throughout Mid-Atlantic, Northeast, and
Midwest states.
TCBs team approach to engagements includes representation from each
discipline, and across regions, to assure that development project managers
have access to highly specialized and trained internal consultants with deep
experience within their own discipline.
About Dantes
Dantes has experience acquiring, financing, developing and operating real
estate in the District of Columbia since 2006.
Dantes has been instrumental in closing 18 transactionsincluding 9 tax
credit developmentsrepresenting nearly $250M in total financing secured.
Combined, these funding sources have helped to create and preserve nearly
1,000 units.
Dantes experience includes working with the D.C.s Office of Planning and
the Zoning Commission to secure various zoning entitlements including a
planned unit development (PUD). Dantes also has experience working with
a number of ANCs to garner community support and has worked with
District agencies to financially support a number of their transactions.
Dantes notable District projects include The Phyllis Wheatley Young
Womens Christian Association, the Hodge on 7th as part of the City Market at
O, Justice Park Apartments and West End Parcels.
E. Performance standards and the expected outcomes of the proposed contract:
The Borrower must adhere to the milestones reflected in the Construction and Use
Covenant. The Developer will close on the remaining financing contemporaneously
with the DMPED loan. The Developer is expected to complete construction
approximately 18 months following construction commencement.
F. A certification that the proposed contract is within the appropriated budget
authority for the agency for the fiscal year and is consistent with the financial
plan and budget adopted in accordance with 47-392.01 and 47-392.02:
The Agency Fiscal Officer provided a certification of funding, dated September 6,
2022.
G. A certification that the proposed contract is legally sufficient and has been
reviewed by the Office of the Attorney General, including whether the
proposed contractor has any currently pending claims against the District:
The proposed contract has been reviewed by the Office of the Attorney General and
found to be legally sufficient.
Page 4 of 5
H. A certification that the proposed contractor is current with its District and
federal taxes or has worked out and is current with a payment schedule
approved by the District or federal government:
A tax verification letter is attached.
I. The status of the proposed contractor as a certified local, small, or
disadvantaged business enterprise:
PVCP is a joint venture of TCB, a 501(c)3, and Dantes, a certified local, small, or
disadvantaged business enterprise.
J. Other aspects of the proposed contract that the Chief Procurement Officer
deems significant:
None.
K. A statement indicating whether the proposed contractor is currently debarred
from providing services to any governmental entity (federal, state, or
municipal) the dates of the debarment, and the reasons for the debarment:
The Borrower is not debarred from providing government services.
L. Where the contract, if executed, will be made available online:
The contract will be available from DMPED upon prior request.
Page 5 of 5
Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: September 13, 2022 Notice Number: L0008157642
PARK MORTON 1 COMMUNITY PARTNERS LLC FEIN: **-***8894
185 DARTMOUTH ST STE 900 Case ID: 1286549
BOSTON MA 02116-5883
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
CO
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE 47-2862 (2006)
PY
47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Marc Aronin
Chief, Collection Division
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
Validate a Certificate of Clean Hands hyperlink under the Clean Hands section.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE DEPUTY MAYOR FOR PLANNING AND ECONOMIC DEVELOPMENT
FUNDING CERTIFICATION
The Office of the Deputy Mayor for Planning and Economic Development (DMPED) hereby
certifies that the sum of $23M is available in the Districts FY 2023 capital budget to fund the
development loan agreement for Park Morton I. The funds will be used to finance a portion of the
construction and development costs related to the new construction of an 100% affordable housing
apartment building located at 610 Park Rd. NW Washington D.C. in Ward 1. The FY23 funding in
the amount of $3M is contingent upon the approval of the Mayors Proposed Capital Budget by
Congress.
The location of the above referenced funds are listed in highlight below.
If you have further questions, please contact Curtis Lewis, Agency Fiscal Officer at 202.724.7206
or Curtis.lewis3@dc.gov.
__________________________________________
Curtis J. Lewis
Agency Fiscal Officer
_________________
Date: September 6, 2022
1015 Half Street, SE, Washington, DC 20012, Suite 675
Phone: (202) 724-7206
GOVERNMENT OF THE DISTRICT OF COLUMBIA
OFFICE OF THE ATTORNEY GENERAL
ATTORNEY GENERAL
KARL A. RACINE
Commercial Division
MEMORANDUM
TO: Megan Browder, Deputy Attorney General
Legal Counsel Division
THROUGH: David Fisher, Deputy Attorney General
FROM: Lawrence Wolk, Assistant Attorney General (for Lawrence Wolk)
DATE: October 17, 2022
Property Located at 610 Park Road, NW (Lot 0143 in Square 3039) (Park Morton Phase I);
Development Loan Agreement by and between the District of Columbia (District) and Park 1
Community Partners LLC (Borrower) providing for a Loan by the District to the Borrower in
the Amount of up to $23,000,000 (DLA)
_____________________________________________________________________________________
This is to Certify that the Commercial Division of the Office of the
Attorney General has examined the following documents provided by the Office of the Deputy
Mayor for Planning and Economic Development (DMPED) (Transaction Documents):
1. Draft undated and unsigned DLA;
2. Exhibits B, C, and K-1 to the DLA, undated and unsigned;
3. Draft undated and unsigned Completion and Repayment Guaranty;
4. Draft undated and unsigned Leasehold Deed of Trust; and
5. Draft undated and unsigned Secured Deed of Trust Note
After a detailed examination of the Transaction Documents, we conclude that they do not
contravene or violate any known legal requirements, obligations or commitments of the District
government. Accordingly, in their present form as provided to us, we discern no reason to
determine that the Transaction Documents are not legally sufficient, and the Transaction
Documents are therefore approved for legal sufficiency. This Office has not reviewed any
transactional documentation other than the above Transaction Documents, and provides no legal
opinion about any transactional documentation other than the above Transaction Documents.
If you have any questions, please do not hesitate to contact me.
400 Sixth Street, NW, Suite 9100, Washington, DC 20001 Tel. (202) 724-5094
DEVELOPMENT LOAN AGREEMENT
THIS DEVELOPMENT LOAN AGREEMENT (the Agreement) is made as of this
_____ day of _____________ 2022 (the Effective Date) by and between Park Morton 1
Community Partners LLC, a District of Columbia limited liability company, and its successors
and assigns (Borrower), and the District of Columbia, a municipal corporation acting by and
through the Office of the Deputy Mayor for Planning and Economic Development (Lender or
District).
RECITALS
WHEREAS, in November 2014, District of Columbia Housing Authority (DCHA), in
partnership with Lender, selected an Affiliate of Borrower, Park View Community Partners LLC,
a District of Columbia limited liability company (Master Developer), to be the master planner
and development team for the redevelopment of the Park Morton Public Housing located in the
Park Morton neighborhood and bounded by Georgia Avenue to the west, Park Road to the north,