Bill Summary – FastDemocracy

October 18, 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 Benning Road Metro Apartments LLC, and (b) proposed Local

Rent Supplement Program Contract No. 2024-LRSP-07A with Benning Road Metro Apartments LLC Approval

Resolution of 2024. DCHA proposes to provide a housing subsidy to the Owner in the amount of $491,604.00

annually for a multi-year term of twenty (20) years, in support of the District’s Local Rent Supplement Program

(“LRSP”) to provide twenty-two (22) aﬀordable housing units at Benning Road Metro Aﬀordable Apartments located at

4435 Benning Road, 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 my Chief of Staﬀ Alethea McNair at

(202) 993-8190.

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: October 18, 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-ALRSP-07A

       Proposed Contractor: Benning Road Metro Apartments LLC (the “Owner”)

       Contract Amount (Base Period): $491,604 Annually

       Unit and Method of Compensation: Housing Assistance Payments, paid monthly

       Term of Contract: 20 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 Benning Road Metro Apartments LLC (the “Owner”).

       DCHA proposes to provide a housing subsidy to the Owner in the initial amount of

       $491,604.00 annually for a multi-year term of twenty (20) years, in support of the

       District’s Local Rent Supplement Program (“LRSP”) to provide affordable housing at

       Benning Road Metro Apartments located at 4435 Benning Road 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 twenty-one (21) total proposals received,

       eleven (11) developers were chosen to work with DCHA and other District 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. Upon

      approval of the contract by the Council, DCHA will enter an ALTSC with the selected

      housing providers under the LRSP for housing services.

      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:

      Benning Road Metro Affordable Apartments:

      The Benning Road Metro Affordable project will be a newly constructed high-rise

      building with 9 stories and a habitable penthouse. The building will be constructed with

      Type I-B concrete construction over a partially auger cast and partially spread footing

      foundation. The project will consist of 109 residential units comprised of 8 studio units,

      52 one-bedroom units, 27 two-bedroom units, and 22 three-bedroom units. Twenty-two

      of the units will be Permanent Supportive Housing Units.

      The project was designed to comply with all applicable accessibility standards including

      ICC/ANSI A117.1-2009 per DCMR 12A & IBC 2012, Fair Housing Act, 2010 ADA

      Standards, and Uniform Federal Accessibility Standards (UFAS). Accordingly, the

      project will include 17 Type A units, 12 of which will be UFAS units, and 2 units will

      have a roll-in shower. All other units will be Type B. The In-unit amenities will include:

         •    Balconies (for 82 units)

         •    Luxury vinyl plank flooring

         •    Quartz countertops and 4 inch backsplashes

         •    Individually controlled HVAC in each unit

         •    Coat closets (in select units) and walk-in closets (in select units)

         •    Refrigerator, range/oven, dishwasher, garbage disposal, microwave, and in-unit

              washer/dryers

              • Ceiling fans in living rooms

                                                                      2

      The community amenities will include a fitness center, a mail room, a multi-purpose

      learning and gathering space to host educational and community events for residents, and

      a community room for recreational use. Additionally, the project will provide a “front

      lawn” for residents that will include an outdoor playground, multiple seating areas,

      bicycle parking, a dog relief area and plenty of green space. There will be 13 vehicular

      parking spaces (11 interior and 2 exterior) and an interior bicycle room with capacity for

      45 bicycles. The project will include offices for management and leasing as well as a

      dedicated office for the on-site Permanent Supportive Services staff member.

      The project site is a 0.6-acre, trapezoidal shaped area comprised of two adjacent lots on

      Benning Road NE. The size of the site notwithstanding, there are significant constraints

      on the buildable area due to a utility easement and building restriction line running across

      the front half of the site. Additionally, the WMATA Metro tunnel for the Silver and Blue

      lines runs underneath the street just in front of the site. In light of these constraints, the

      project has been designed to make optimal use of all buildable area, resulting in a

      building that abuts the lot lines on three sides in the rear of the site.

      Today, the site is occupied by a single-story, vacant medical office building, asphalt

      parking lot, and undeveloped grass covered land. According to historical research

      completed during the Phase I Environmental Site Assessment (ESA), the site was

      historically occupied by a gas station, dry cleaner, and other commercial retail occupants.

      Subsequent Phase II ESAs identified only minor residual soil impacts from the former

      gas station. No soil or groundwater remediation is required, only proper soil management

      during future construction activities. Additionally, a geophysical investigation concluded

      no anomalies indicative of orphan Underground Storage Tanks (USTs) are present at the

      site. The vacant building on site was constructed in 1983. A Pre-Demolition Asbestos

      Survey confirmed only a minor amount of asbestos abatement is required, prior to

      building demolition. The environmental scope of work for the project includes:

         •   Asbestos abatement for the existing structure prior to demolition.

         •   Off-site disposal of up to 7,500 tons of excess soil generated during construction

             activities (i.e. spoils from grading, foundation, utility installations, etc.).

         •   Installation of a passive radon/vapor mitigation system that will consist of sub-

             slab piping, a sub-slab vapor barrier, and vertical vent stacks.

      The project will be designed and built to the 2020 Enterprise Green Communities Plus

      standard. The major green/energy efficient aspects of the building include: a Variable

      Refrigerant Flow (VRF) HVAC system, an extensive green roof with an 8” media,

      rooftop photovoltaic solar panels, all native plant species throughout the site, Energy Star

      certified appliances, and continuous exterior insulation.

(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:

                                                                        3

      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 Benning Road Metro Affordable Apartments located at 4435

      Benning Road, 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.

                                                                     4

(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.:

      Benning Road Metro Apartments 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.

                                                                    5

MEMORANDUM

TO:              Keith Pettigrew

                 Executive Director

                 Anton Shaw

                 Sr. Vice President, Housing Choice Voucher Program

FROM:            Andrea Powell

                 Deputy General Counsel - Real Estate and Business

DATE:            October 18, 2024

SUBJECT:         Local Rent Supplement Program – Agreement to Enter into a Long Term Subsidy Contract between

                 the District of Columbia Housing Authority and Benning Road Metro Apartments 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

Benning Road Metro Apartments,

LLC (the “Owner”) for legal suﬃciency:

Project:

Benning Road Metro Aﬀordable Apartments – The Benning Road Metro Aﬀordable project will be a newly

constructed high-rise building with 9 stories and a habitable penthouse. The building will be constructed with Type I-B

concrete construction over a partially auger cast and partially spread footing foundation. The project will consist of 109

residential units comprised of 8 studio units, 52 one-bedroom units, 27 two-bedroom units, and 22 three-bedroom

units. 22 of the units will be Permanent Supportive Housing Units.

The project was designed to comply with all applicable accessibility standards including ICC/ANSI A117.1-2009 per

DCMR 12A & IBC 2012, Fair Housing Act, 2010 ADA Standards, and Uniform Federal Accessibility Standards (UFAS).

Accordingly, the project will include 17 Type A units, 12 of which will be UFAS units, and 2 units will have a roll-in shower.

All other units will be Type B. The In-unit amenities will include:

      •   Balconies (for 82 units)

      •   Luxury vinyl plank ﬂooring

      •   Quartz countertops and 4 inch backsplashes

      •   Individually controlled HVAC in each unit

      •   Coat closets (in select units) and walk-in closets (in select units)

   •   Refrigerator, range/oven, dishwasher, garbage disposal, microwave, and in-unit

       washer/dryers

   •   Ceiling fans in living rooms

The community amenities will include a ﬁtness center, a mail room, a multi-purpose learning and gathering space to

host educational and community events for residents, and a community room for recreational use. Additionally, the

project will provide a “front lawn” for residents that will include an outdoor playground, multiple seating areas, bicycle

parking, a dog relief area and plenty of green space. There will be 13 vehicular parking spaces (11 interior and 2 exterior)

and an interior bicycle room with capacity for 45 bicycles. The project will include oﬃces for management and leasing

as well as a dedicated oﬃce for the on-site Permanent Supportive Services staﬀ member.

The project site is a 0.6-acre, trapezoidal shaped area comprised of two adjacent lots on Benning Road NE. The size of

the site notwithstanding, there are signiﬁcant constraints on the buildable area due to a utility easement and building

restriction line running across the front half of the site. Additionally, the WMATA Metro tunnel for the Silver and Blue

lines runs underneath the street just in front of the site. In light of these constraints, the project has been designed to

make optimal use of all buildable area, resulting in a building that abuts the lot lines on three sides in the rear of the

site.

Today, the site is occupied by a single-story, vacant medical oﬃce building, asphalt parking lot, and undeveloped grass

covered land. According to historical research completed during the Phase I Environmental Site Assessment (ESA), the

site was historically occupied by a gas station, dry cleaner, and other commercial retail occupants. Subsequent Phase II

ESAs identiﬁed only minor residual soil impacts from the former gas station. No soil or groundwater remediation is

required, only proper soil management during future construction activities. Additionally, a geophysical investigation

concluded no anomalies indicative of orphan Underground Storage Tanks (USTs) are present at the site. The vacant

building on site was constructed in 1983. A Pre-Demolition Asbestos Survey conﬁrmed only a minor amount of asbestos

abatement is required, prior to building demolition. The environmental scope of work for the project includes:

   •   Asbestos abatement for the existing structure prior to demolition.

   •   Oﬀ-site disposal of up to 7,500 tons of excess soil generated during construction activities (i.e. spoils from

       grading, foundation, utility installations, etc.).

   •   Installation of a passive radon/vapor mitigation system that will consist of sub-slab piping, a sub-slab vapor

       barrier, and vertical vent stacks.

The project will be desig