The proposed bill establishes a Long-Term Subsidy Contract (LTSC) 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. Under this agreement, DCHA will provide an annual housing subsidy of $486,960 for a term of fifteen years to support the Local Rent Supplement Program (LRSP), facilitating the provision of twenty-two affordable housing units within a larger project of 106 units, which includes Permanent Supportive Housing for low-income residents. The bill outlines the selection process for the contractor, compliance with housing quality standards, and the responsibilities of both DCHA and the property owner, ensuring that the project aligns with the District's Consolidated Plan and the Mayor's affordable housing goals.

Additionally, the bill includes provisions to protect current tenants from displacement, mandates compliance with various federal and local regulations, and emphasizes the importance of nondiscrimination in employment practices related to the project. It specifies that the owner must disclose any related government assistance and adhere to wage determinations for construction workers, ensuring fair labor practices. The contract also includes guidelines for tenant leases, the management of rental subsidies, and the conditions under which the LTSC may be transferred, reinforcing accountability and compliance throughout the project. Overall, the legislation aims to enhance affordable housing options while safeguarding tenant rights and ensuring responsible management of public funds.