District of Columbia Housing Authority
300 7th Street SW I 10th Floor
Washington, DC 10024
(202) 535-1000 I dchousing.org
Keith L. Pettigrew, Executive Director
May 23, 2024
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, l have enclosed, for consideration by the Council of the District of Columbia,
the {a) Council Contract Summary for the Agreement to Enter into a Long Term Subsidy Contract ("ALTSC") between
the District of Columbia Housing Authority ("DCHA") and MC Rental Preservation 2 LLC (the "Owner"), and (b) Local
Rent Supplement Program Contract No. 2024-LRSP-04A by and between OCHA and the Owner. OCHA proposes to
provide a housing subsidy to the Owner in the original amount of $102,840.00 annually for a multi-year term of
fifteen (15) years, in support of the mstrict's local Rent Supplement Program ("LRSP"} to provide six (6} affordable
housing units at the Small Rental Preservation Apartments Phase II located at 301 Delafield Place, NW and 4040 8th
Street NW.
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 my Chief of Staff, Alethea McNalr at
(202) 993-8190.
I look forward to your favorable consideration of this proposed ALTSC agreement.
Sincerely,
I
/J
/ /'\
1//11
/
' ///
/,
1I //
/
!;
Ke,IJfl Pe ·g w
E,Mcutive Director, District of Columbia Housing Authority
Enclosures
KP/hg
cc; Nyasha Smith, Secretary to the Council
OCHA is committed t;;provi!ling Bquol access to this e�ent for aU participants & residents with :lisabiilties, If you n�ed a reasnmiblcaccommodation. please conttlct our AOA/504
Ospartment at AOA504@dchousing.org wi:h ynur complete request lf you need a sign language or foreign language lntsrpreter, please go to dchousing.org/languaga or call
20'?:5'.15·100!1 Please allow al least 3 business days to mo ke the nece.'lSary a1 1an11ei:1�nls.
 Date: 5/23//2024
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: 2024-LRSP-04A
Proposed Contractor: MC Rental Preservation 2 LLC (the “Owner”)
Contract Amount (Base Period): $102,840 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 MC Rental Preservation 2 LLC (the “Owner”). DCHA
proposes to provide a housing subsidy to the Owner in the initial amount of
$102,840 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 the Small
Rental Preservation Apartments Phase II located at 4040 8th Street and 301 Delafield
Place, NW Washington, DC 20011.
(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 June of 2019, 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, and the Department of Human Services. The Owner
and other developers were chosen to work with DCHA and other DC agencies 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.
(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:
The project requires the substantial renovation of two existing buildings, significantly
improving existing one- and two- bedroom apartments—and reconfiguring some units to
provide new three-bedroom apartments and providing accessible, energy-efficient buildings,
with resident amenities, including usable outdoor green space, patios, and laundry. The
renovations involve the replacement of aging systems such as plumbing, heating, and
electric; the provision of all new interior finishes and fixtures; improving building envelop
and providing new roofs and structural repairs, the installation of new fire alarm and
electronic access systems; and full UFAS building accessibility and accessible units. The
renovations will score high by Green Communities standards to greatly improve energy
efficiency, though providing new energy efficient systems and prepare for renewable
energy, which will decrease resident utility costs.
Mi Casa has entered into development agreements with the Tenant Association in each of the
buildings. Under the terms of these agreements, the Tenant Associations assigned their rights to
purchase their respective buildings to Mi Casa in exchange for commitments to renovate the
properties and keep rents for existing tenants at or near the current rent levels. The rent structure that
is being used for underwriting purposes is as follows:
• 11 units (25%) serving tenants at < 30% of AMI or less with rents set at the HPTF limit for
30% AMI. 6 units will have LRSP rental subsidies;
• 16 units (38%) serving tenants at @ < 50% of AMI;
 • 13 units (36%) serving tenants @ < 60% of AMI; and
• 3 units (7%) serving tenants @ <80% of AMI
Note also that it is assumed for underwriting purposes that 5 current tenants (11%) (included in the
above) will not qualify for LIHTC due to being over income or lacking in documentation for
certification
(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:
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 the Small Rental Preservation Apartments Phase II located at
4040 8th Street and 301 Delafield Place, NW Washington, DC 20011 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
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.:
MC Rental Preservation 2 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:
Not applicable. 3
(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 6/28/19. See link: http://dhcd.dc.gov/service/rfps-rfas-
sfos.
4
MEMORANDUM
TO: Keith Pettigrew
Executive Director
Anton Shaw
Senior Vice President, Housing Choice Voucher Program
FROM: Andrea Powell
Deputy General Counsel - Real Estate and Business
DATE: May 23, 2024
SUBJECT: Local Rent Supplement Program – Agreement to Enter into a Long Term Subsidy Contract
between the District of Columbia Housing Authority and MC Rental Preservation 2 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
MC Rental Preservation 2 LLC (the “Owner”) for legal sufficiency:
I. Project:
Small Rental Preservation Apartments Phase II - The project requires the substantial renovation of two
existing buildings, significantly improving existing one- and two- bedroom apartments—and reconfiguring some units
to provide new three-bedroom apartments and providing accessible, energy-efficient buildings, with resident amenities,
including usable outdoor green space, patios, and laundry. The renovations involve the replacement of aging systems
such as plumbing, heating, and electric; the provision of all new interior finishes and fixtures; improving building
envelop and providing new roofs and structural repairs, the installation of new fire alarm and electronic access systems;
and full UFAS building accessibility and accessible units. The renovations will score high by Green Communities
standards to greatly improve energy efficiency, though providing new energy efficient systems and prepare for
renewable energy, which will decrease resident utility costs.
Mi Casa has entered into development agreements with the Tenant Association in each of the buildings. Under
the terms of these agreements, the Tenant Associations assigned their rights to purchase their respective buildings to Mi
Casa in exchange for commitments to renovate the properties and keep rents for existing tenants at or near the current
rent levels. The rent structure that is being used for underwriting purposes is as follows:
 • 11 units (25%) serving tenants at < 30% of AMI or less with rents set at the HPTF limit for 30% AMI.
6 units will have LRSP rental subsidies;
• 16 units (38%) serving tenants at @ < 50% of AMI;
• 13 units (36%) serving tenants @ < 60% of AMI; and
• 3 units (7%) serving tenants @ <80% of AMI
Note also that it is assumed for underwriting purposes that 5 current tenants (11%) (included in the above) will
not qualify for LIHTC due to being over income or lacking in documentation for certification
DCHA proposes to provide a housing subsidy for six (6) units in the initial amount of $102,840.00 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 301 Delafield Place NW and 4040 8th Street NW.
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 June 2019, 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. From 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 April 16, 2024, 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
 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: April 10, 2024 Notice Number: L0011624985
MC RENTAL PRESERVATION 2 LLC FEIN: **-***2889
6030 3RD ST NW STE 2 Case ID: 3231720
WASHINGTON DC 20011-1302
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, t