November 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 2401 25th Street LLC, and (b) proposed Local Rent
Supplement Program Contract No. 2024-LRSP-09A with 2401 25th Street LLC Approval Resolution of 2024. DCHA
proposes to provide a housing subsidy to the Owner in the amount of $403,360.27 annually for a multi-year term of
twenty (20) years, in support of the District’s Local Rent Supplement Program (“LRSP”) to provide twenty-four (24)
affordable housing units at Wagner Senior located at 2401 25th Street, 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: November 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-09A
Proposed Contractor: 2401 25th Street LLC (the “Owner”)
Contract Amount (Base Period): $403,360.27 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 2401 25th Street LLC (the “Owner”). DCHA proposes
to provide a housing subsidy to the Owner in the initial amount of $403,360.27 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 Wagner Senior located at
2401 25th Street, 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,
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.
(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:
Wagner Senior:
2401 25th Street SE DC is a vacant parcel of land comprised of 19,601 SF. The
development joint venture (described below) obtained control of the vacant lot
via a purchase and sale agreement and, with plans to deliver 67 units of
permanently affordable senior rental housing on the site. In order to achieve the
proposed density on this lot, a consolidated planned unit development and related
map amendment was required. The JV is between Justice Housing Inc. (“JHI”), a
501c3 nonprofit, and Miller Housing (“MILLER”).
Starting in 2020, MILLER began engagement with members of the community
and the Advisory Neighborhood Commission and ultimately garnered unanimous
support from the Advisory Neighborhood Commission and subsequently from
the Zoning Commission for the District of Columbia. MILLER received the
requisite Zoning Commission Order allowing for the proposed development on
the site.
This application proposes developing 67 senior rental housing 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.
As demonstrated in our market study, there is significant demand for additional
senior rental affordable housing in the District of Columbia.
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Justice Housing Inc, will control the project at the end of the LIHTC Compliance
Period through a “Right of First Refusal". JHI anticipates re-syndicating at the
time of purchase. Applicant will waive its right to seek a qualified contract for
the project purchase at the end of the LIHTC Compliance Period.
The project is near the Skyland redevelopment project in a neighborhood that is
expected to see significant increases in property values and rents over the next 5-
10 years. This project represents an opportunity to ensure that high quality
affordable housing remains in the neighborhood even as the Skyland
redevelopment increases housing costs in the surrounding neighborhood.
The JV plans to develop the vacant 19,601 SF site with a five-story multi-family
apartment building having a maximum building height of 55 feet and a total
density of 2.59 FAR. The Project will include 67 residential units. The Project
includes five surface parking spaces consisting of four standard spaces and one
car-share space, and one service/delivery loading space located at the rear of the
Site and accessed from Wagner Street. As shown on the Plans, the Project has
been designed to fit within the surrounding mixed-use context and be a positive
addition to the neighborhood.
The design of the Project emphasizes the residential character of the
surrounding neighborhood while creating a more defined street edge to both 25th
and Wagner Streets, SE that helps to complete the urban fabric. The massing of
the building is well articulated and responds to its context by a series of step
downs that relate to the scale of adjacent buildings. The building is five stories
tall at the corner of 25th and Wagner Streets, and then steps to four stories plus
an exposed basement as it moves westward into the residential neighborhood.
The final section of massing to the west steps down again to four stories to
respond to the significant grade change across the Site and to provide appropriate
scale and height along Wagner Street. The architectural style is a traditional
design that emphasizes the strong reading of a base, middle, and top and relates
to the existing mix of both residential and institutional context. At the main
corner, the building consists of four stories of brick masonry with a top floor in
fiber cement panel. Bay windows, corner articulation, a recessed entrance, and a
projecting canopy create an inviting and rich entrance. As the building steps
down, the façade articulation also steps and includes a mix of fiber cement panel
and siding. The design includes several detail elements that add appeal and a
sense of scale, such brick banding at the base, an overhanging cornice, and Juliet
balconies.
The primary pedestrian access to the Project is located on 25th Street, with
direct access to the building lobby. Secondary entrances are located on the north
and west facades for pedestrians and bicycles. One curb cut is proposed on
Wagner Street, which will provide access to the five surface parking spaces,
including the car-share space, and the service/delivery loading space. Long-term
interior bicycle parking is located at the cellar level with additional short-term
bicycle parking located adjacent to the building’s main entrance. Convenient
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access to the exterior at grade is provided from the interior bicycle room through
the entrance on Wagner Street.
The public space streetscape and landscape design for the Project fosters an
active and pedestrian-friendly environment along the Site’s two street frontages.
A new sidewalk along Wagner Street will be constructed to connect to the
existing sidewalk on 25th Street and provide a walkable environment
surrounding the Site. Appropriately sized street trees and ornamental plantings,
including shrubs, perennials, and lawn areas, will be planted along the street
frontages to enhance views of the building, soften and frame the building
facades, and improve the pedestrian experience. A welcoming entry area to the
Project will be provided at the northeast corner of the Site, and three shade trees
will be located toward the northwest corner of the Site to screen views of the
building from Wagner Street and adjacent properties. Additional screening of the
parking lot will be provided by a mixture of tall, dense evergreen species.
Plantings around the shade trees and evergreens will include perennials and
groundcovers that further enhance the Site’s aesthetics.
Interior common amenities include a welcoming front lobby and an adjacent
resident lounge that can be used for private gatherings. An outdoor residential
lounge area is accessed directly off the lobby and will be furnished with a variety
of seating types for resident use and enjoyment. The ground level includes a
resident athletic center which will be furnished with a variety of fixed fitness
equipment, free weights, and shall include a space for stretching and yoga. The
top floor features a roof terrace that provides expansive views of downtown
Washington D.C. to the west and includes specialty lighting, planters, and seating
areas for resident relaxation and enjoyment.
Two elevator cabs provide access to all residential floor levels. All apartment
homes feature fully appointed kitchens with full size appliances, solid surface
countertops, specialty lighting, dishwashers, and garbage disposals. Apartment
homes include clothes washers and dryers and include full bathrooms. Finishes
throughout the apartment homes will rival and match those of market rate
apartments currently delivered throughout the District.
Starting in early 2020, the development team began engagement with members
of the community and the Advisory Neighborhood Commission (“ANC”) in
order to introduce the proposed development and gain input from community
members and neighborhood stakeholders. The development team provided notice
of the proposed development to the owners of all property located within 200 feet
of the perimeter of the Site. The development team has met with the Office of
Planning and DDOT in order to review the proposed development and discuss
the public benefits and amenities. The ANC ultimately voted unanimously to
support the proposed development.
(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
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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 Wagner Senior located at 2401 25th Street, 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 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:
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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.:
2401 25th Street 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.
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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 18, 2024
SUBJECT: Local Rent Supplement Program – Agreement to Enter into a Long-Term Subsidy Contract
between the District of Columbia Housing Authority and 2401 25th Street 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
2401 25th Street LLC (the “Owner”) for legal sufficiency.
Project: Wagner Senior
2401 25th Street SE DC is a vacant parcel of land comprised of 19,601 SF. The development joint venture
(described below) obtained control of the vacant lot via a purchase and sale agreement and, with plans to
deliver 67 units of permanently affordable senior rental housing on the site. In order to achieve the proposed
density on this lot, a consolidated planned unit development and related map amendment was required. The
JV is between Justice Housing Inc. (“JHI”), a 501c3 nonprofit, and Miller Housing (“MILLER”).
Starting in 2020, MILLER began engagement with members of the community and the Advisory
Neighborhood Commission and ultimately garnered unanimous support from the Advisory Neighborhood
Commission and subsequently from the Zoning Commission for the District of Columbia. MILLER received
the requisite Zoning Commission Order allowing for the proposed development on the site.
This application proposes developing 67 senior rental housing units in one newly constructed building. The
units will be affordable to households earning between 30% of AMI (the PSH units) a