MURIEL BOWSER
MAYOR
August 16, 2024
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. 2024-52 with High Street, LLC in the amount of $13,104,459.
Under the proposed contract, the District will loan $13,104,459 from the Housing Production Trust
Fund to High Street, LLC for the purpose of financing certain eligible predevelopment, hard
construction, and soft construction costs for 22 units of affordable housing located at 2352-60 High
Street SE in Ward 8.
My administration is 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 Chris Earley, Deputy Director, Department of Housing and Community Development, at
(202) 442-7158.
I look forward to the Council’s favorable consideration of this contract.
Sincerely,
Muriel Bowser
GOVERNMENT OF THE DISTRICT OF COLUMBIA
Department of Housing and Community Development
COUNCIL CONTRACT SUMMARY
Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, effective April
8, 2011 (D.C. Law 18-371; D.C. Official Code §2-352.02(c)), the following contract
summary is provided:
(A) The proposed contractor, contract amount, unit and method of compensation, contract
term, and type of contract:
Proposed Contractor: High Street LLC
Contract Amount: $13,104,459
Unit and Method of Compensation: Draw Schedule
Term of Contract: 15 yr loan term / 0% Interest
Type of Contract: Loan agreement
(B) The goods or services to be provided, the methods of delivering goods or services, and
any significant program changes reflected in the proposed contract:
The Department of Housing and Community Development (DHCD) proposes to
provide a loan to High Street LLC in the amount of $13,104,459 from the Housing
Production Trust Fund for the purpose of financing certain eligible
predevelopment, hard and soft construction costs associated with 22 affordable
housing units located at 2352-60 High Street, SE in Ward 8.
(C) Results, including the price and technical components:
DHCD received a request for funding from the borrower to be used for the purpose of
financing certain eligible predevelopment costs, soft costs and hard costs associated
with the development of 22 affordable homeownership housing units located at
2352-60 High Street, SE in Ward 8. By the end of the 36-month construction loan
term, as each income-qualified purchaser buys one of the units, a proportional share
of the unpaid HPTF construction loan balance will be assigned to each affordable
homeownership unit via deed of trust, in conjunction with an affordability covenant,
and will remain in place as a 15-year subordinate loan to the buyer.
Page 1 of 3
(D) The background and qualifications of the proposed contractor, including its
organization, financial stability, personnel, and prior performance on contracts with
the District government:
The Owner/Borrowing Entity will be High Street LLC. The manager of the general partner is The
Neighborhood Development Company, LLC. Orion Habitat Inc., an entity owned by MCN Build, is the
general contractor of record. Founded in 2007 and based in Washington DC, MCN is a well‐respected
company and has completed numerous projects in the DC Metro area. MCN uses Orion Habitat, Inc. as
its construction entity of record when completing for-sale homeownership construction projects. In total,
MCN is responsible for 587 multifamily and affordable housing units and completes, on average,
$180MM of work annually. The company’s portfolio includes substantial affordable/workforce housing
projects comparable to the High Street project and they have satisfactory prior performance on contracts
with the District government.
(E) Performance standards and the expected outcome of the proposed contract:
The proposed DHCD loan proceeds will be used to provide a loan to High Street LLC. in
the amount of $13,104,459 from the Housing Production Trust Fund for the purpose of
financing certain eligible predevelopment costs, rehabilitation costs, and soft costs
associated with 22 affordable homeownership housing units to be located at 2352-2360
High Street SE in Ward 8.
The project is consistent with DHCD’s goal of preserving and producing affordable
housing for low-to-moderate income residents. Additionally, the borrower is required to
fulfill all conditions as set forth in the loan agreement within the agreed upon time
frames. Failure to fulfill the terms of the loan agreement will constitute default.
(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 D.C. Official Code §§ 47-392.01 and 47-392.02:
The loan will be funded through the Housing Production Trust Fund. Attached is the
certification that the proposed loan agreement is consistent with the District’s financial
plan and budget.
(G) A certification that the proposed contract is legally sufficient, including whether the
proposed contractor has any currently pending legal claims against the District:
A legal sufficiency memorandum from the Office of the General Counsel is attached.
(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:
District and federal tax law compliance certifications are attached.
Page 2 of 3
(I) 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, effective October 20, 2005 (D.C.
Law 16-32; D.C. Official Code § 2-218.01 et seq.):
High Street LLC is not a certified local, small, or disadvantaged business
enterprise.
(J) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
None
(K) A statement indicating whether the proposed contractor is currently debarred from
providing services or goods to the District or federal government, the dates of the
debarment, and the reasons for debarment:
The proposed contractor is not currently debarred from providing services or goods to
the District or federal government. A debarment affidavit is attached.
(L) Where the contract, if executed, will be made available online:
The contract summary will be available at www.dhcd.dc.gov.
Page 3 of 3
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: June 11, 2024 Notice Number: L0011990225
HIGH STREET FEIN: **-***0922
3232 GEORGIA AVE NW STE 100 Case ID: 8600203
WASHINGTON DC 20010-3254
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 Melinda Jenkins
Branch Chief, Collection and Enforcement Administration
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
Initial File #: L00005935816
Entity Type: LLC
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF LICENSING AND CONSUMER PROTECTION
CORPORATIONS DIVISION
CERTIFICATE
THIS IS TO CERTIFY that all applicable provisions of the District of Columbia Business
Organizations Code (Title 29) have been complied with and accordingly, this CERTIFICATE OF
GOOD STANDING is hereby issued to
High Street LLC
WE FURTHER CERTIFY that the domestic entity is formed under the law of the District on
03/27/2018 ; that all fees, and penalties owed to the District for entity filings collected through the
Mayor have been paid and Payment is reflected in the records of the Mayor; The entity's most
recent biennial report required by § 29-102.11 has been delivered for filing to the Mayor; and the
entity has not been dissolved. This office does not have any information about the entity¶s
business practices and financial standing and this certificate shall not be construed as the entity¶s
endorsement.
IN TESTIMONY WHEREOF I have hereunto set my hand and caused the seal of this office to
be affixed as of 6/11/2024 12:28 PM
Business and Professional Licensing Administration
Tracking #: x56LO8kA
took
=
—
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Ged
February 28, 2024
Bc
VIA ELECTRONIC MAIL
‘ommissioner Jamila W.
Chair ANC 8A
Washington, DC 20020
8A0S@anc.de.gov
Re: High Street Townhomes (2352-60 High Street SE)
Dear Commissioner Jamila White:
Pursuant to D.C. Official Code § 1-309.10 (2001 ed.), you are hereby informed that the
Department of Housing and Community Development (“Department” or “the Department”)
proposes to provide High Street LLC with funding in an approximate amountof $13,104,459 in
Housing Production Trust Funds that will be used to finance acquisition, construction, and
related costs for the affordable housing project to be located at 2352-60 High Street SE.
Please be advised that Advisory Neighborhood Commission 8A has thirty (30) business days
from the date of this notice to submit comments on the above proposed action. District law
requires that the Department give “great weight” to all relevant ANC concerns or
recommendations. We respectfully request that any comment in response waive the remainder of
the statutory 30 day ANC notice comment period.
‘The Department must receive comments by April 12, 2024 (i.e., the thirty-business day comment
period). You must include a reference to the subject matter identified at the topofthis notice in
your response. Comments may be sent by email to robind.henderson@dc.gov or by mail to:The
Department of Housing and Community Development, Officeofthe Director, Attn: Robin
Henderson, 1800 Martin Luther King Avenue, S.E., 3: Floor, Washington, D.C. 20020.
If you have further questions regarding this project, please do not hesitate to contact Bernard
Guzman at 202-442-4482 or Bernard.guzman@de.gov.
‘olleen Green
Director
ce: Robert C. White Jr., At-Large Councilmember
Trayon White, Ward 8 Councilmember
Robin McKinney, ANC 8A06 SMD Member
Ms. Shannette Grant, Office of Advisory Neighborhood Commissions
‘Adrian Washington, Neighborhood Development Company
GOVERNMENT OF THE DISTRICT OF COLUMBIA
PROFILE SUMMARY
(CONTRACTs TO PURCHASE, SELL, ACQUIRE, TRANSFER, LEASE OF REAL
PROPERTY/ EXCLUSIVE RIGHT AGREEMENTs/LOANs & GRANTs OVER $1M/INTRA-
DISTRICTs)
Contracting Agency: Dept. Housing and Community Development Agency Code:
Using Agency: Dept. Housing and Community Development Agency Code:
Loan/Grant/Lease Sub-recipient Name: High Street LLC
Should the D.C. Council have any ques ns regarding this loan/grant/lease, please contact:
Project Managers: Bernard Guzman Telephone Number: (202) 442-4482
YPEOFDOCUMENTSUBMITTED
1.CA oan/GranvLease Modification 4, Written or Informal Contract
2, OF bxercise ofGram Option Year (E. 0.) 5. OF Lease
ofReal Property
3. HH LoanGranvLease Agreement for: 6)others
High Street LLC
LOAN/GRANT TYPE
rant 4. gO Cost Reimbursement
O
2. MM] Loan Price $13,104,459 5.) Time and Material
|3. [[] Task Order 6.[-] Advance Payment
Page 1 of 4
GRANT/LOAN/LE: = INFORMATION
Grant/Loan/Lease No. : DHCD Amount:___ $13,104,459 (HPTF)
Interest Rate: 0%
Does this Grant/Loan Amount exceed $1 million: Yes No []
Ifyes, please attach a copyofthe DC Council approval and provide the following information:
Date received: Date approved:
LEASE INFORMATION
Lease No. na Total Cost
Location Annual Cost
Sq. Ft. Leased Cost Per Sq. Ft.
Total Bldg. Sq. Ft. % Sq. Ft. Leased By D.C.
BRIEF DESCRIPTION OF GRANT/LOAN/LEASE
SOURCE OF FUNDING
a ‘Appropriated 4. gin ise -
2 Capital 5. [5]ImerJurisdictional
3.) Grant) 6. gy Other: Housing Production
oO a ‘Trust Fund
If procurement action is funded by grant or other non-capital or non-appropriated funds, will the
District need to expend some portion of its funds prior to receiving funds from the grantor or
other funding source?
CO ves [No x NIA
If Yes, indicate the amount the District will need to expend and the percentage this amount
represents of the total funds required to support the effort. District Funds $
%,
Page 2 of4
CRITICAL ISSUESASSOCIATED WITH GRANT/LOAN ACTION
1, Is this Grant/Loan one of multiple (more than one) Grants/Loans for similar goods, services, etc.,
awarded by the Agency to this subrecipient, or related entity, within the last twelve (12)months?
HM yes “J No
2, Have reserved funds been obligated for payment?(If Yes, ensure documentation is included in
Grant/Loan File)
yes [] No
3. Is the File complete? (If Yes, please attach pertinent documentation).
yes LJ no
4. Is the subrecipient a successor to or affiliated with another individual or business that has
GranvLoan with the Agency?
HB ives _| no
IfYes, name of Predecessor/Afiiliate: Neighborhood Development Company (NDC) or joint ventures
controlled by NDC, have been involved in the developmentof multiple DHCD-supported projects.
5. Is a former District employee an owner, officer, or affiliateof the subrecipient?
OD yes
If Yes, Name and Affiliation: N/A
Please discuss any other critical issues such as time constraints; health and safety issues; or
financial/revenue production issues that should be known,
FUTURE INFORMATION/DOCUMENTATION TO BE SUBMITTED TO AUTHORITY
IF Grant/Loan IS AWARDED
Q ‘Award Date 4, “Claims By/Against Grant/Loan
2 Ly Eaiistion Dee 5. [J Cetifed Completion
Date
3] Amendments : 6 [Final Payment Date
Page
3 of4
CERTIFICATIONS
| certify that this proposed loan between the Departmentof Housing and Community Development (DHCD)
and High Street LLCin the amountof $13,104,459 from the District ofColumbia Housing Production Trust
Fundwill finance certain eligible predevelopment, hard costs, and soft costs associated with 22 affordable
homeownership housing units located at 2352-2360 High Street SE Ward 8 and is in compliance with the
applicable Federal and District of Columbia Regulations and DHCD’s policies and procedures.
Oo
ColleenGreen
|Date, os
Director, DHCD
dR ly July 10, 2024
Chris Earley Date
Deputy Director, DHCD
T have reviewed this Grant/Loan/Lease action and have determined that it is within the District’s
Financial Plan and Budget for FY_2024 and that funds are available to support the action.
Digitally signed by Bethany Spooner
Bethany Spooner pacitstorirorssis ote
Beth Spooner Date
Agency Fiscal Officer, DHCD
DETERMINATION
Thave reviewed this Grant/Loan/Lease action and have determined that it is within theDistrict’s
Financial Plan and Budget for FY_2024 and that funds are available to support the action.
Joscaira Akhran, CMO 22tebsaredidesora
ran to
For Leroy Clay, III Date
Associate Chief Financial Officer
Economic Development and Regulation Cluster
Page 4 of 4
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Office of the General Counsel
MEMORANDUM
TO: Muriel E. Bowser
Mayor
THRU: Julia Wiley, General Counsel for Julia wiley
Department of Housing and Community Development
FROM: Kathy Charles-Christ