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 BCP II LLC, and (b) proposed Local Rent Supplement Program

Contract No. 2024-LRSP-06A with BCP II LLC Approval Resolution of 2024. DCHA proposes to provide a housing subsidy

to the Owner in the amount of $1,200,684.00 annually for a multi-year term of twenty (20) years, in support of the

District’s Local Rent Supplement Program (“LRSP”) to provide seventy (70) aﬀordable housing units at Belmont

Crossing II Apartments located at 4225-4233 7th Street, SE and 4283-4373 Barnaby Road, SE.

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-06A

       Proposed Contractor: BCP II LLC (the “Owner”)

       Contract Amount (Base Period): $1,200,684.00 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 BCP II LLC (the “Owner”). DCHA proposes to

       provide a housing subsidy to the Owner in the initial amount of $1,200,684.00 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 Belmont Crossing II

       Apartments located at 4233-4225 7th Street, SE and 4283-4373 Barnaby Road, SE.

(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, (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:

      Belmont Crossing II Apartments:

      Gilbane Development Company, MED Developers, Equity Plus Managers LLC and

      Housing Help Development LLC (the “Development Team”) have formed a joint venture

      to construct a three (3) phase redevelopment of Belmont Crossing Apartments - a

      residential property made of 23 garden-style buildings and located at 4201 7th Street SE,

      Washington DC. This project will be for Phase 1 of the multi-phase redevelopment

      project. Phase 2 of the Project will consist of 229-units across four (4) different buildings

      with a pedestrian walkway that will separate two (2) of the four buildings. The unit mix is

      as follows: (39) studios, (70) one-bedrooms, (88) two-bedrooms and (33) three-bedrooms

      The PSH units will leverage DC’s Local Rent Supplement Program (LRSP) project-based

      rental assistance, which will generate additional rental income to the project. Through

      DC’s Tenant Opportunity to Purchase Act, Belmont Crossing Partners LLC and GDC

      have proposed to the Tenant Association to put in place a set-aside for 50 original tenants

      that average rents less than 50% AMI

      Traditional construction measures will be used for the development of Phase II of the

      Project, and the residential building will not exceed 4-stories above the podium. The

      Project plans to utilize solar and green roof designs to meet the District’s Green Building

      initiatives. The residential building and the private road were programmed and designed

      to maximize resident circulation and walkability. The Development Team designed the

      building to incorporate resident spaces on the ground floor, such as a tenant lounge, lobby

                                                                       2

      seating area, mail room, and management office, along with additional staff offices. At

      the lower level of the building, the Project will have amenity spaces that will be

      programmed to provide community rooms, laundry, and an arts and crafts room,

      encircled by plentiful green space.

(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 Belmont Crossing II Apartments located at 4225-4233 7th

      Street, SE and 4283-4373 Barnaby Road, SE 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 (2) a certification that the contractor will be

                                                                     3

      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.:

      BCP II 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 12/10/2021. See link:

      http://dhcd.dc.gov/service/rfps-rfas-sfos. Please update this info with current dates

                                                                      4

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 BCP II, 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

BCP II LLC (the “Owner”) for legal suﬃciency:

Project:

Belmont Crossing Apartments:

Gilbane Development Company, MED Developers, Equity Plus Managers LLC and Housing Help Development LLC (the

“Development Team”) have formed a joint venture to construct a three (3) phase redevelopment of Belmont Crossing

Apartments - a residential property made of 23 garden-style buildings and located at 4201 7th Street SE, Washington

DC. This project will be for Phase 1 of the multi-phase redevelopment project. Phase 2 of the Project will consist of

229-units across four (4) diﬀerent buildings with a pedestrian walkway that will separate two (2) of the four buildings.

The unit mix is as follows: (39) studios, (70) one-bedrooms, (88) two-bedrooms and (33) three-bedrooms

The PSH units will leverage DC’s Local Rent Supplement Program (LRSP) project-based rental assistance, which will

generate additional rental income to the project. Through DC’s Tenant Opportunity to Purchase Act, Belmont Crossing

Partners LLC and GDC have proposed to the Tenant Association to put in place a set-aside for 50 original tenants that

average rents less than 50% AMI

Traditional construction measures will be used for the development of Phase II of the Project, and the residential

building will not exceed 4-stories above the podium. The Project plans to utilize solar and green roof designs to meet

the District’s Green Building initiatives. The residential building and the private road were programmed and designed

to maximize resident circulation and walkability. The Development Team designed the building to incorporate resident

spaces on the ground ﬂoor, such as a tenant lounge, lobby seating area, mail room, and management oﬃce, along

with additional staﬀ oﬃces. At the lower level of the building, the Project will have amenity spaces that will be

programmed to provide community rooms, laundry, and an arts and crafts room, encircled by plentiful green space.

DCHA proposes to provide a housing subsidy for seventy (70) units in the initial amount of $1,200,684.00 annually for a

multi-year term of twenty (20) y ears i n s upport of the District’s Local Rent Supplement Program (“LRSP”) to provide

aﬀordable housing units at 4225-4233 7th Street, SE and 4283-4373 Barnaby Road, SE.

   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 twenty-one (21) 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 h as d etermined 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 October 18, 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 twenty (20) 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:   September 26, 2024                                           Notice Number: L0012660710

BCP II LLC                                                                     FEIN: **-***6761

7 JACKSON WALKWAY                                                              Case ID: 17891904

PROVIDENCE RI 02903-3638

                                           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

                            Certificate Regarding No Pending Litigation

‘The undersigned hereby certifies that the contractor has no pending claims against the District.

BCP ITLL.

4 District of Columbia limited liability company

By:      BC Parmers ILLC,

         a District of Columbis limited liability company,

         its managing member

         By:     Housing Help Development LLC,

                 a District ofColumbia limited Liability company

                 its Manager