June 21, 2023
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
1350 Pennsylvania Avenue NW, Suite 504
Washington, DC 20004-3003
Dear Chairman Mendelson:
Pursuant to D.C. Official Code § 2-352.02, I have enclosed, for consideration by the Council of
the District of Columbia, the Council Contract Summary for the Agreement to Enter into a Long
Term Subsidy Contract (“ALTSC”) between the District of Columbia Housing Authority
(“DCHA”) and Dix Street Residences, LLC (the “Owner”) and the proposed "Local Rent
Supplement Program Contract No. 2022-ALRSP-02A with Dix Street Residences Approval
Resolution of 2023. " DCHA proposes to provide a housing subsidy to the Owner in the amount
of $461,808 annually for a multi-year term of fifteen (15) years, in support of the District’s
Local Rent Supplement Program (“LRSP”) to provide affordable housing units at Dix Street
Apartments located at 5717 Dix Street, NE.
As always, I am available to discuss any questions you may have regarding the proposed LTSC.
In order to facilitate a response to any questions concerning this ALTSC, please have your staff
contact me at (202) 535-1513.
I look forward to your favorable consideration of this proposed ALTSC agreement.
Sincerely,
Brenda Donald
Executive Director, District of Columbia Housing Authority
Enclosures
BD/hg
cc: Nyasha Smith, Secretary to the Council
Date: June 20, 2023
Pursuant to section 202(c) of the Procurement Practice Reform Act of 2010, as amended, D.C. Official
Code § 2-532.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(A) Contract Number: 2022-ALRSP-02A
Proposed Contractor: Dix Street Residences, LLC (the “Owner”)
Contract Amount (Base Period): $461,808 Annually
Unit and Method of Compensation: Housing Assistance Payments, paid monthly
Term of Contract: 15 Years
Type of Contract: Agreement to Enter into a Long-Term Subsidy
Source Selection Method: See “D” below
(B) For a contract containing option periods, the contract amount for the base period and for
each option period. If the contract amount for one or more of the option periods differs
from the amount for the base period, provide an explanation of the reason for the
difference:
This is a multi-year contract.
(C) The goods or services to be provided, the methods of delivering goods or services, and any
significant program changes reflected in the proposed contract:
Pursuant to D.C. Official Code § 2-352.02, I have enclosed, for consideration by the Council of
the District of Columbia, the Council Contract Summary for the Agreement to Enter into a Long
Term Subsidy Contract (“ALTSC”) between the District of Columbia Housing Authority
(“DCHA”) and Dix Street Residences, LLC (the “Owner”). DCHA proposes to provide a housing
subsidy to the Owner in the initial amount of $461,808 annually for a multi-year term of fifteen
(15) years, in support of the District’s Local Rent Supplement Program (“LRSP”) to provide
affordable housing at Dix Street Apartments located at 5717 Dix Street, NE.
(D) The selection process, including the number of offerors, the evaluation criteria, and the
evaluation results, including price, technical or quality, and past performance components:
In September 2021 the District of Columbia’s Department of Housing and Community
Development (“DHCD”) issued a Request for Proposals (“RFP”) regarding the availability of
funds from multiple district agencies, including DCHA, DHCD, the Department of Behavioral
Health, the Department of Human Services, and the District of Columbia Housing Finance
Agency. Of the total proposals received, eleven (11) developers were chosen to work with DCHA
and others to develop affordable housing and permanent supportive housing units for extremely
low income families making zero to thirty percent of the area’s median income, as well as the
chronically homeless and individuals with mental or physical disabilities throughout Washington,
DC.
After meeting the requirements for DHCD review and LRSP subsidy eligibility, proposals were
evaluated on various underwriting and prioritization criteria including financial feasibility, project
sustainability, development team capacity, amount of capital requested, nonprofit participation,
and furtherance of the development of affordable housing. Additionally, DCHA has determined
that the proposed project meets the District of Columbia’s Consolidated Plan and the Mayor’s
goal for providing affordable housing opportunities in neighborhoods.
(E) A description of any bid protest related to the award of the contract, including whether the
protest was resolved through litigation, withdrawal of the protest by the protestor, or
voluntary corrective action by the District. Include the identity of the protestor, the grounds
alleged in the protest, and any deficiencies identified by the District as a result of the
protest:
None.
(F) The background and qualifications of the proposed contractor, including its organization,
financial stability, personnel, and performance on past or current government or private
sector contracts with requirements similar to those of the proposed contract:
Dix Street Apts – The site consists of 2 parcels which are currently under site control by the Dix
Street Residences, LLC. Currently, there are 2 existing structures on site - a vacant retail building
and vacant trailer behind the retail building, however neither of which have any current uses or
tenants.
However, this project will consists of 47 new rental apartments units for independent seniors,
ages 55 and older, within a four-story, 47,009 square foot building. The dwelling units to be
provided are as follows:
• 27 one-bedroom/one-bathroom units – 650 SF
• 16 two-bedroom/two-bathroom units – 976 SF
• 4 three-bedroom/two-bathroom units – 1,110 SF
Also, 10 one-bedroom units will be reserved for Permanent Supportive Housing (PSH) clients
and the following units listed below are set aside for LRSP clients at 30% AMI to support DHS
approved PSH households/families with securing affordable housing:
• 12 one-bedroom units
• 8 two-bedroom units
• 4 three-bedroom units
The building will be of wood-framed slab on grade construction served by a single elevator.
Exterior and common area interior finishes will be of commercial grade with apartment interiors
to be residential grade finishes. Dix Street Apartment amenities will consist of Energy Star
qualified appliances, fixtures, equipment, individual laundry and closet spaces. Additionally the
common area amenities will include an on-side management office and on-site computer lab,
resident lounge and coffee/tea station. The project will achieve the Energy Star Multi-Family
New Construction Certification which encompasses a multitude of green design features to assist
with the developer and its residents.
(G) A summary of the subcontracting plan required under section 2346 of the Small, Local, and
Disadvantaged Business Enterprise Development and Assistance Act of 2005, as amended,
D.C. Official Code § 2-218.01 et seq. (“Act”), including a certification that the
subcontracting plan meets the minimum requirements of the Act and the dollar volume of
the portion of the contract to be subcontracted, expressed both in total dollars and as a
percentage of the total contract amount:
2
Not applicable.
(H) Performance standards and the expected outcome of the proposed amount:
The housing subsidy shall be used solely to support housing costs associated with the affordable
housing units at Dix Street Residences located at 5717 Dix Street, NE in support of the District’s
Local Rent Supplement Program (LRSP). The project is consistent with the District’s goal of
increasing affordable housing, especially among low-to-moderate income residents and
preserving existing affordable housing opportunities in the District. Additionally, the Owner is
required to fulfill all conditions as set forth in the ALTSC Agreement within the agreed upon time
frames. Failure to fulfill the terms of the ALTSC Agreement will constitute default.
(I) The amount and date of any expenditure of fund by the District pursuant to the contract
prior to its submission to the Council for approval:
None.
(J) 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 D.C. Official Code §§ 47-392.01 and 47-392.02:
CFO Certifications are attached.
(K) A certification that the contract is legally sufficient, including whether the proposed
contractor has any pending legal claims against the District:
Pending Litigation Certification and Legal Sufficiency Memo are attached.
(L) A certification that Citywide Clean Hands database indicates that the proposed contractor
is current with its District taxes. If the citywide clean hands Database indicates that the
proposed contractor is not current with District taxes, either: (1) a certification that the
contractor has worked out and is current with a payment schedule approved by the
District; or 92) a certification that the contractor will be current with its District taxes after
the District recovers any outstanding debt as provided under D.C. Official Code § 2-
353.01(b):
Clean Hands certification is attached
(M) A certification from the proposed contractor that it is current with its federal taxes, or has
worked out and is current with a payment schedule approved by the federal government:
Federal Tax Certification is attached.
(N) The status of the proposed contractor as a certified local, small, or disadvantaged business
enterprise as defined in the Small, Local, and Disadvantaged Business Enterprise
Development and Assistance Act of 2005, as amended; D.C. Official Code 2-218.01 et seq.:
Dix Street Residences, LLC is not certified as a local, small or disadvantaged business enterprise.
(O) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
3
Not applicable.
(P) A statement indicating whether the proposed contractor is currently debarred from
providing services or goods to the District or federal government:
Included in the legal sufficiency memo, attached.
(Q) Any determination and findings issue relating to the contract’s formation, including any
determination and findings under D.C. Official Code § 2-352.05 (privatization contracts):
None.
(R) Where the contract, any amendments or modifications, if executed, will be made available
online:
The contract will be made available on the DCHA website.
(S) Where the original solicitation, and any amendment or modifications, will be made
available online:
Original solicitation was published 9/30/2021 and extended through 12/10/2021 See link:
http://dhcd.dc.gov/service/rfps-rfas-sfos.
4
12
13
MEMORANDUM
TO: Brenda Donald
Executive Director
Hammere Gebreyes
Interim Sr. Vice President, Housing Choice Voucher Program
FROM: Andrea Powell
Deputy General Counsel - Real Estate and Business
DATE: June 20, 2023
SUBJECT: Local Rent Supplement Program – Agreement to Enter into a Long Term
Subsidy Contract between the District of Columbia Housing Authority and
Dix Street Residences, LLC
This memorandum responds to a request that the Office of the General Counsel review the
proposed Agreement to Enter into a Long Term Subsidy Contract (“ALTSC”) between the
District of Columbia Housing Authority (“DCHA”) and Dix Street Residences, LLC (the
“Owner”) for legal sufficiency:
Project:
Dix Street Apts – The site consists of two (2) parcels which are currently under site control by
the Dix Street Residences, LLC. Currently, there are two (2) existing structures on site - a vacant
retail building and vacant trailer behind the retail building, however neither of which have any
current uses or tenants.
However, this project will consists of 47 new rental apartments units for independent seniors,
ages 55 and older, within a four-story, 47,009 square foot building. The dwelling units to be
provided are as follows:
• 27 one-bedroom/one-bathroom units – 650 SF
• 16 two-bedroom/two-bathroom units – 976 SF
• 4 three-bedroom/two-bathroom units – 1,110 SF
Also, 10 (ten) one-bedroom units will be reserved for Permanent Supportive Housing (PSH)
clients and the following units listed below are set aside for LRSP clients at thirty percent (30%)
AMI to support DHS approved PSH households/families with securing affordable housing:
• 12 one-bedroom units
• 8 two-bedroom units
• 4 three-bedroom units
The building will be of wood-framed slab on grade construction served by a single elevator.
Exterior and common area interior finishes will be of commercial grade with apartment interiors
to be residential grade finishes. Dix Street Apartment amenities will consist of Energy Star
qualified appliances, fixtures, equipment, individual laundry and closet spaces. Additionally the
common area amenities will include an on-side management office and on-site computer lab,
resident lounge and coffee/tea station. The project will achieve the Energy Star Multi-Family
New Construction Certification which encompasses a multitude of green design features to assist
with the developer and its residents.
DCHA proposes to provide a housing subsidy for twenty-four (24) units in the initial amount of
$461,808.00 annually for a multi-year term of fifteen (15) years in support of the District’s Local
Rent Supplement Program (“LRSP”) to provide affordable housing units at 5717 Dix Street, NE.
1) Description of the Contract
The Contract is an ALTSC to provide operating subsidy for rental assistance to be provided by
DCHA on affordable housing units owned and operated by the Owner pursuant to the Local Rent
Supplement Program established under Title II of the Fiscal Year 2007 Budget Support Act of
2006.
2) Procurement Process
In September of 2021, the District of Columbia’s Department of Housing and Community
Development (“DHCD”) issued a Request for Proposals (“RFP”) regarding the availability of
funds from multiple district agencies, including DCHA, DHCD, the Department of Behavioral
Health, the Department of Human Services, and the District of Columbia Housing Finance
Agency. Of the total proposals received, eleven (11) developers were chosen to work with
DCHA and others to develop affordable housing and permanent supportive housing units for
extremely low income families making zero to thirty percent (30%) of the area’s median income,
as well as the chronically homeless and individuals with mental or physical disabilities
throughout Washington, DC.
After meeting the requirements for DHCD review and LRSP subsidy eligibility, proposals were
evaluated on various underwriting and prioritization criteria including financial feasibility,
project sustainability, development team capacity, amount of capital requested, nonprofit
participation, and furtherance of the development of affordable housing. Additionally, DCHA
has determined that the proposed project meets the District of Columbia’s Consolidated Plan and
the Mayor’s goal for providing affordable housing opportunities in neighborhoods.
3) Legal Review
Prior to June 16, 2023 the Office of the General Counsel reviewed the Contract for legal
sufficiency. The review indicates a competitive process was followed in making the award to the
Owner. Additionally, it was determined that the proposed contractor is not currently debarred
from providing services or goods to the District or federal government. The review of the
Contract indicates that it is legally sufficient.
As the Contract is for a term of fifteen (15) years and the Contract will be funded with District of
Columbia funds, the Contract must be submitted to the District of Columbia Council for review
and approval in accordance with D.C. Code Section 2-352.02.
APPROVED AS TO LEGAL SUFFICIENCY:
Andrea Powell
Deputy General Counsel - Real Estate and Business
CERTIFICATIONS
In reliance upon the attached November 8, 2022 Funding Certification from the Office of Chief
Finance Officer of the District of Columbia and the November 8, 2022 Letter of Commitment
from the District of Columbia Housing and Community Development (“DHCD”) that DHCD has
sufficient appropriated funds in the financial plan for the District of Columbia’s Fiscal Year 2023
to fund, among other matters, the Local Rent Supplement payments in relation to the project
known as Dix Street Residences located at 5717 Dix Street, NE, I hereby certify that the
proposed Agreement to Enter into a Long Term Subsidy Contract (“ALTSC”) between the
District of Columbia Housing Authority (“DCHA”) and Dix Street Residences, LLC to provide
an annual subsidy for twenty-four (24) affordable housing units, for a term of fifteen (15) years,
is in compliance with the applicable Federal and District of Columbia (the “District”)
Regulations and the DCHA’s policies and procedures.
__________________________________ _____________________________
Brenda Donald Date: June 16, 2023
Executive Director, DCHA
I have reviewed this proposed ALTSC action. I have determined, based upon the November 8,
2022 Funding Certification from the Office of Chief Financial Officer of the District and the
November 8, 2022 Letter of Commitment from DHCD, that upon the District’s release of the
Local Rent Subsidy funds and the satisfaction of all requirements of the Long Term Subsidy
Contract, DCHA will make available an initial annual subsidy amount of Four Hundred Sixty-
One Thousand Eight Hundred Eight Dollars and Zero Cents ($461,808.00). This action is within
DCHA’s apportionment and budget authority, and is within the District’s Financial Plan and
Budget for FY2023, and such funds are available for administration by DCHA to support the
action.
____________________________________ ______________________________
John Sarah Date: June 16, 2023
VP and Chief Financial Officer, DCHA
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GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
ated
Officeof the Director
To: John Sarah
‘Vice Presidentof Finance
Districtof Columbia Housing Authority
Beth Spooner Bethany Spooner usrthrs™
Agency Fiscal Officer
‘Department ofHousing and Community Development
DATE: ‘November 8, 2022
SUBJECT: CertificationofFunding Availability for Local Rent Supplement - Dix Street Residences
This memorandum certifies thatthe Depar