November 7, 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 2911 RI Owner LLC (the “Owner”), and (b) Proposed Local
Rent Supplement Program Contract No. 2024-LRSP-08A with 2911 RI Owner LLC Approval Resolution of 2024. DCHA
proposes to provide a housing subsidy to the Owner in the amount of $760,248.00 annually for a multi-year term of
twenty (20) years, in support of the District’s Local Rent Supplement Program (“LRSP”) to provide twenty-one (21)
affordable housing units at 2911 Rhode Island Avenue Apartments located at 2911 Rhode Island Avenue, 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: November 7, 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-08A
Proposed Contractor: 2911 RI Owner LLC (the “Owner”)
Contract Amount (Base Period): $760,248.00 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 2911 RI Owner LLC (the “Owner”). DCHA proposes
to provide a housing subsidy to the Owner in the initial amount of $760,248.00 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 2911 Rhode Island
Avenue located at 2911 Rhode Island Avenue, 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 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.
(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:
2911 Rhode Island Avenue:
In August 2021 Lincoln Westmoreland Housing Inc. (“LWH”) acquired the 2911 Rhode Island
property from a private, unrelated, seller with the intent to develop ~100 units of permanently
affordable rental housing on the vacant site. The underutilized parcel has been sitting vacant for
6+ years after the Zoning Commission approved a Map Amendment that allows for higher
density development on the site.
KeyUrban and EquityPlus (“KU” and “EP”) will be LWH’s owner’s representatives on the
project. This application proposes developing 100 units in one newly constructed building. The
units will be affordable to households earning between 30% of AMI (the PSH units) and 80% of
AMI with the bulk of the units affordable to households earning 50% of AMI. The project
contains a significant number of family sized units.
The project represents a unique opportunity to provide permanently affordable rental housing
along the Rhode Island Avenue corridor, in a gentrifying neighborhood, that in two to five years
will be unaffordable for large segments of the D.C. population. Before the Rhode Island Avenue
corridor evolves into a pricey enclave like U Street, Columbia Heights, Shaw, or numerous other
D.C. neighborhoods, the District has a chance to stem the tide of housing inequality and
contribute to a more inclusive city.
2
Based on demographic trends and projected changes to the housing stock, ULI estimates that by
2020 there will be between 22,100 and 33,100 more households with extremely low incomes
(30% AMI or less) than units affordable and available to these households, including units made
affordable through federal housing choice vouchers and DC’s Local Rent Supplement Program.
The estimated affordability gap is lower for very low income households (50% AMI or less)
between 4,500 and 11,700 units but still significant. Because of the severe shortage of affordable
housing, the District has dedicated over $100 million of local funds each year for affordable
housing for the last four years and plans to continue for the foreseeable future.
The Project is located in the rapidly developing Rhode Island Avenue corridor. As noted above,
the location provides for a host of neighborhood amenities, including retail, multi-modal
transportation options, and quick access to downtown D.C., Silver Spring, and other popular
areas. The Project will provide much needed affordable housing. This represents a great
opportunity to build affordable housing in an area of high opportunity.
The newly constructed buildings’ design features will include both surface and garage parking,
large courtyards that will include landscaping, benches and pavers, a welcoming canopied
entrance and loading area. The facade will complement the new development that is occurring in
the neighborhood and tenants will be able to enjoy large windows along with offering Juliet
balconies. Once inside the buildings, the tenants will be in the common area lobby, onsite
leasing/management office and amenity space that includes a business center, gathering rooms
and a bike room. The buildings will be serviced by two elevators and includes a trash chute for
tenant convenience. Each unit will have its own washer/dryer, full kitchens including
dishwashers and full bathroom(s).
(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 2911 Rhode Island located at 2911 Rhode Island Avenue, 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.
3
(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.:
2911 RI 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.
4
(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 9/30/2021 and extended through 12/10/2021. 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: November 7, 2024
SUBJECT: Local Rent Supplement Program – Agreement to Enter into a Long Term Subsidy Contract between
the District of Columbia Housing Authority and 2911 RI 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
2911 RI Owner LLC (the “Owner”) for legal sufficiency:
Project:
2911 Rhode Island Avenue - In August 2021 Lincoln Westmoreland Housing Inc. (“LWH”) acquired the 2911
Rhode Island property from a private, unrelated, seller with the intent to develop ~100 units of permanently affordable
rental housing on the vacant site. The underutilized parcel has been sitting vacant for 6+ years after the Zoning
Commission approved a Map Amendment that allows for higher density development on the site.
KeyUrban and EquityPlus (“KU” and “EP”) will be LWH’s owner’s representatives on the project. This application
proposes developing 100 units in one newly constructed building. The units will be affordable to households earning
between 30% of AMI (the PSH units) and 80% of AMI with the bulk of the units affordable to households earning 50%
of AMI. The project contains a significant number of family sized units.
The project represents a unique opportunity to provide permanently affordable rental housing along the Rhode Island
Avenue corridor, in a gentrifying neighborhood, that in two to five years will be unaffordable for large segments of the
D.C. population. Before the Rhode Island Avenue corridor evolves into a pricey enclave like U Street, Columbia Heights,
Shaw, or numerous other D.C. neighborhoods, the District has a chance to stem the tide of housing inequality and
contribute to a more inclusive city.
Based on demographic trends and projected changes to the housing stock, ULI estimates that by 2020 there will be
between 22,100 and 33,100 more households with extremely low incomes (30% AMI or less) than units affordable and
available to these households, including units made affordable through federal housing choice vouchers and DC’s Local
Rent Supplement Program. The estimated affordability gap is lower for very low income households (50% AMI or less)
between 4,500 and 11,700 units but still significant. Because of the severe shortage of affordable housing, the District
has dedicated over $100 million of local funds each year for affordable housing for the last four years and plans to
continue for the foreseeable future.
The Project is located in the rapidly developing Rhode Island Avenue corridor. As noted above, the location provides for
a host of neighborhood amenities, including retail, multi-modal transportation options, and quick access to downtown
D.C., Silver Spring, and other popular areas. The Project will provide much needed affordable housing. This represents
a great opportunity to build affordable housing in an area of high opportunity.
The newly constructed buildings’ design features will include both surface and garage parking, large courtyards that
will include landscaping, benches and pavers, a welcoming canopied entrance and loading area. The facade will
complement the new development that is occurring in the neighborhood and tenants will be able to enjoy large
windows along with offering Juliet balconies. Once inside the buildings, the tenants will be in the common area lobby,
onsite leasing/management office and amenity space that includes a business center, gathering rooms and a bike
room. The buildings will be serviced by two elevators and includes a trash chute for tenant convenience. Each unit
will have its own washer/dryer, full kitchens including dishwashers and full bathroom(s).
DCHA proposes to provide a housing subsidy for twenty-one (21) units in the initial amount of $760,248.00 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 units at 2911 Rhode Island Avenue, NE.
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 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 November 7, 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 owner and contractor are 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