The proposed bill establishes a long-term subsidy contract between the District of Columbia Housing Authority (DCHA) and Flats at South Capitol LLC, aimed at developing affordable housing at 3838 South Capitol Street, SE. The contract allocates an annual subsidy of $486,960 for fifteen years to support the construction of 106 housing units, including 22 units specifically designated for low-to-moderate income families under the Local Rent Supplement Program (LRSP). The bill outlines the responsibilities of both parties, including compliance with housing quality standards, tenant selection processes, and provisions to prevent discrimination in leasing practices. It also emphasizes the importance of community engagement and adherence to labor standards throughout the project.

Additionally, the bill includes provisions for the management of rental subsidy payments, ensuring that they are calculated based on the contract rent minus 30% of the household income for eligible families. It mandates that property owners maintain their units in compliance with housing quality standards and allows DCHA to inspect these units to enforce compliance. The contract also stipulates that any changes to the agreement must be documented in writing and signed by both parties, and it prohibits the displacement of current tenants from subsidized units. Overall, the legislation aims to enhance affordable housing opportunities while ensuring accountability and compliance with applicable laws and regulations.