September 16, 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, I 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 Congress LIHTC Owner, LLC (the “Owner”), and (b) Proposed
Local Rent Supplement Program Contract No. 2024-LRSP-05A with Congress LIHTC Owner, LLC Emergency Declaration
Resolution of 2024. DCHA proposes to provide a housing subsidy to the Owner in the amount of $2,087,724 annually
for a multi-year term of fifteen (15) years, in support of the District’s Local Rent Supplement Program (“LRSP”) to
provide sixty-nine (69) affordable housing units at 1109 Congress Street Apartments located at 1109 Congress 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,
Keith Pettigrew
Executive Director, District of Columbia Housing Authority
Enclosures
KP/hg
cc: Nyasha Smith, Secretary to the Council
Date: September 16, 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-05A
Proposed Contractor: Congress LIHTC Owner, LLC (the “Owner”)
Contract Amount (Base Period): $2,087,724 Initial Annual Amount
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 Congress LIHTC Owner, LLC (the “Owner”). DCHA proposes to provide a
housing subsidy to the Owner in the initial annual amount of $2,087,724 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 1109 Congress Street Apartments located 1109 Congress 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 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, (25) 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:
1109 Congress Street Apartments – The Development Team is proposing to build and
operate what it believes will be the city’s first 100% Permanent Supportive Housing (“PSH”)
property in a Priority Area. Located in the Union Market subdivision of Ward Six, the sixty-nine
(69) unit project will bring sorely needed deeply affordable residential units with strong support
systems to an area with a scarcity of such housing. The enhanced services plan will also reflect
an innovative approach to serving populations in need of more support. This Project is the result
of years of planning and structuring how to best serve some of the city’s most vulnerable
populations. The Team’s two principal organizations, MED Developers LLC (“MED”) and
Community Connections of DC (“CC”), have collectively and separately served thousands of
these individuals and families through various programs. This expertise has made them uniquely
qualified to develop and maintain such a facility. For the purposes of this application, the
developer/sponsor entity has been identified as MacArthur Development Partners LLC, a sister
company of MED with the same ownership and management structure.
MED has established its capabilities by delivering the city’s first Short Term Family Housing
project; first Youth Transition Housing (“YTH”) facilities, and recently the first Bridge Housing
property. All of these properties involved creating new development, financing and management
models, and all continue to operate successfully. It’s owned and operated facility in Logan
Circle, “Erna’s House”, exclusively catering to women exiting homelessness and abusive
environments, reflects MED’s ability to operate high impact facilities in upscale neighborhoods.
Since it’s delivery over ten years ago, the property has been embraced by the community and has
served to stabilize the lives of hundreds of its residents.
PSH is an intervention that combines affordable housing assistance with voluntary support
services to address the needs of chronically homeless people. The services are designed to build
independent living and tenancy skills and connect people with community-based health care,
treatment and employment services. Investments in permanent supportive housing have helped
decrease the number of chronically homeless individuals by eight percent (8%) since 2007. In
addition to ending homelessness for people who are chronically homeless, research has
demonstrated that PSH can also increase housing stability and improve health.
As a one hundred percent (100%) PSH building in an upscale, rapidly changing neighborhood,
the Project, otherwise known as Congress Street Development (“CSD”), affords the Development
Team with a unique opportunity to operate such a facility long term, both for its residents and the
surrounding neighborhood. As noted above, MED has successfully operated the Erna’s House
facility in Logan Circle for over a decade, having been embraced by the community while
providing a safe and nurturing environment for its clients. Perhaps the most relevant difference
2
between Erna’s House and CSD is its financing. Erna’s House was developed using MED’s
private funds exclusively; Congress Street Development will be publicly funded
The project site has a land area of approximately 10,040 square feet, which contains a vacant two-
story warehouse, historically used for industrial purposes, and a smaller three-story office
building constructed in 2011. The two non-historic buildings will be demolished in order to
construct a mixed-use building composed of supportive housing and production, distribution and
repair (“PDR”) related uses. The proposed building will be a slab-on-grade concrete and light
gauge steel structure with eight (8) stories for a total building height of approximately ninety (90)
feet, a total building area of approximately 60,309 square feet, and will include surface parking in
the rear. The first floor will contain the PDR use and back of house spaces, and floors two
through eight will include supportive housing staff areas, resident fitness and community rooms,
as well as sixty-nine (69) PSH dwelling units with varying bedroom counts. The building has
been designed for compliance with Enterprise Green Communities Plus, and will be all-electric
(excluding natural gas generator). The building design will meet all current code standards
according to the District of Columbia Municipal Regulations (DCMR) and is subject to an
approved Consolidated Planned Unit Development (“PUD”, Z.C. Case No. 16-13).
(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 1109 Congress Street Apartments located at 1109 Congress 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.
3
(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 (2) 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.:
Congress LIHTC Owner, 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.
(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 9/30/21 and extended through 12/10/21. See link:
http://dhcd.dc.gov/service/rfps-rfas-sfos.
4
MEMORANDUM
TO: Keith Pettigrew
Executive Director
Hammere Gebreyes
Director, External Affairs & Senior Advisor
FROM: Andrea Powell
Deputy General Counsel - Real Estate and Business
DATE: September 16, 2024
SUBJECT: Local Rent Supplement Program – Agreement to Enter into a Long Term Subsidy Contract between
the District of Columbia Housing Authority and Congress LIHTC Owner, 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
Congress LIHTC Owner, LLC (the “Owner”) for legal sufficiency:
Project:
1109 Congress Street Apartments – The Development Team is proposing to build and operate what it believes will
be the city’s first one hundred percent (100%) Permanent Supportive Housing (PSH) property in a Priority Area.
Located in the Union Market subdivision of Ward Six, the sixty-nine (69) unit project will bring sorely needed deeply
affordable residential units with strong support systems to an area with a scarcity of such housing. The enhanced
services plan will also reflect an innovative approach to serving populations in need of more support. This Project is
the result of years of planning and structuring how to best serve some of the city’s most vulnerable populations. The
Team’s two principal organizations, MED Developers LLC (“MED”) and Community Connections of DC (“CC”), have
collectively and separately served thousands of these individuals and families through various programs. This
expertise has made them uniquely qualified to develop and maintain such a facility. For the purposes of this
application, the developer/sponsor entity has been identified as MacArthur Development Partners LLC, a sister
company of MED with the same ownership and management structure.
MED has established its capabilities by delivering the city’s first Short Term Family Housing project; first Youth
Transition Housing (“YTH”) facilities, and recently the first Bridge Housing property. All of these properties involved
creating new development, financing and management models, and all continue to operate successfully. It’s owned
and operated facility in Logan Circle, “Erna’s House”, exclusively catering to women exiting homelessness and abusive
environments, reflects MED’s ability to operate high impact facilities in upscale neighborhoods. Since it’s delivery over
ten years ago, the property has been embraced by the community and has served to stabilize the lives of hundreds of
its residents.
Permanent supportive housing is an intervention that combines affordable housing assistance with voluntary support
services to address the needs of chronically homeless people. The services are designed to build independent living
and tenancy skills and connect people with community-based health care, treatment and employment services.
Investments in permanent supportive housing have helped decrease the number of chronically homeless individuals
by eight percent (8%) since 2007. In addition to ending homelessness for people who are chronically homeless,
research has demonstrated that permanent supportive housing can also increase housing stability and improve
health.
As a one hundred percent (100%) PSH building in an upscale, rapidly changing neighborhood, the Project, otherwise
known as Congress Street Development (“CSD”), affords the Development Team with a unique opportunity to operate
such a facility long term, both for its residents and the surrounding neighborhood. As noted above, MED has
successfully operated the Erna’s House facility in Logan Circle for over a decade, having been embraced by the
community while providing a safe and nurturing environment for its clients. Perhaps the most relevant difference
between Erna’s House and CSD is its financing. Erna’s House was developed using MED’s private funds exclusively;
Congress Street Development will be publicly funded
The project site has a land area of approximately 10,040 square feet, which contains a vacant two-story warehouse,
historically used for industrial purposes, and a smaller three-story office building constructed in 2011. The two non-
historic buildings will be demolished in order to construct a mixed-use building composed of supportive housing and
production, distribution and repair (“PDR”) related uses. The proposed building will be a slab-on-grade concrete and
light gauge steel structure with eight (8) stories for a total building height of approximately ninety (90) feet, a total
building area of approximately 60,309 square feet, and will include surface parking in the rear. The first floor will
contain the PDR use and back of house spaces, and floors two through eight will include supportive housing staff
areas, resident fitness and community rooms, as well as sixty-nine (69) PSH dwelling units with varying bedr