District of Columbia Housing Authority
1133 North Capitol Street, NE Washington, OC 20002-7599
(202) 535-1000
Tyrone Garrett, Executive Director
June 25, 2020
The Honorable Phil Mendelson
Chairman
Councilof 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 Council Contract Summary for the Agreement to Enter into a Long
Term Subsidy Contract (ALTSC) between the District of Columbia Housing Authority
(DCHA) and NW One Phase I ADU Owner, LP (the Owner). DCHA proposes to provide a
housing subsidy to the Owner in the initial annual amount of $2,227,392 for a multi-year term of
fifteen (15) years, in supportofthe Districts Local Rent Supplement Program (LRSP) to
provide affordable housing units for extremely low-income individuals at Northwest One
Apartments located at "2" L Street NW, Washington DC.
As always, I am available to discuss any questions you may have regarding the proposed
ALTSC. In order to facilitate a response to any questions concerning this ALTSC, please have
yourstaff contact me at (202) 535-1513.
I look forward to your favorable considerationof this proposed ALTSC agreement.
Sincerely,
Tyrone Garett
Executive Director, District of Columbia Housing Authority
Enclosures
TG/hg
ce: Nyasha Smith, Secretary to the Council
Date: June 25, 2020
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: 2020-LRSP-01A
Proposed Contractor: NW One Phase I ADU Owner, LP (the Owner)
Contract Amount (Base Period): $2,227,392 Annually
Unit and Method of Compensation: Housing Assistance Payments, paid monthly
Term of Contract: 15 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 the Owner. DCHA proposes to provide a housing subsidy to the Owner in the
initial amount of $2,227,392 annually for a multi-year term of fifteen (15) years, in support of the
Districts Local Rent Supplement Program (LRSP) to provide sixty-five (65) affordable
housing units at Northwest One Apartments located at 2 L Street, NW for families earning
thirty percent (30%) or below of the Area Median Income (AMI).
Northwest One Phase I (the Project) will consist of one hundred and fifty (150) units of
affordable housing and seventy (70) market-rate units. Of the one hundred and fifty (150)
affordable units, seventy-three (73) will be reserved for residents earning no more than sixty
percent (60%) of the AMI; the remaining seventy-seven (77) units will be reserved for residents
earning no more than thirty percent (30%) AMI. Of the seventy-seven (77) units, sixty-five (65)
of these units will benefit from project based rental subsidy through the LRSP.
(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 June of 2019, the District of Columbias Department of Housing and Community Development
(DHCD) issued a Request for Proposals (RFP) regarding the availability of funds from
multiple district agencies. Of the thirty-seven (37) proposals received, two (2) developers were
selected from the RFP to develop affordable housing. One of which, the Owner, will be providing
affordable housing and permanent supportive housing units for extremely low income families
making zero to thirty percent (0-30%) of the AMI, as well as the chronically homeless and
individuals with mental or physical disabilities throughout Washington, DC.
Under the RFP, the 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, due to the evolving budget priorities in the District amidst the COVID-19
public health emergency, for the first round of selections DHCD ultimately selected the two (2)
proposals that did not require Housing Production Trust Fund (HPTF) gap financing.
(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:
The developer is comprised of three entities which include affiliates of MidAtlantic Realty
Partners (MRP), Taylor Adams Associates (TAA), and CSG Urban Partners (CSG). MRP
is a full-service, vertically-integrated real estate owner, operator, and developer focused on the
Washington, DC metropolitan area with a presence in other East Coast gateway markets. MRP
has completed $4.1 billion in residential, office, and industrial real estate transactions since being
founded in 2005 and has grown to forty-six (46) development/investment team members and one
hundred and fifty (150) total employees. MRP has a breadth of experience across a variety of
asset classes including office, residential, and industrial development.
Taylor Adams Associates (TAA) is a DC-based SBE certified company specializing in public
and private real estate transactions. TAA is responsible for the development of over 2,200 units of
housing, including 1,400 affordable units. Their extensive public-private partnership experience
includes real estate projects of all types including public buildings, social infrastructure, mixed-
use, affordable housing, retail, residential, and office.
CSG was founded in 2003 and is a full-service real estate development and consulting firm
located in the District. In addition to developing real estate projects, CSG also provides strategic
real estate advisory services to non-profit organizations, churches, religious organizations, and
public and private entities. As a minority and woman-owned business with over fifty (50) years of
combined commercial real estate industry experience among its founders, CSG brings broad
experience and superior qualifications to all of its endeavors.
Additionally, Audubon Enterprises (Audubon) is serving as consultant on this project.
Audubons principals have more than twenty (20) years of experience financing a variety of asset
classes from small retail to institutional sized mixed-use facilities ranging in size from as little as
$1,300,000 up to more than $800,000,000.
(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
2
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 Northwest One Apartments, located at 2 L Street, NW, in support of the
Districts LRSP. The project is consistent with the Districts 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 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.:
NW One Phase I ADU Owner, LP is not certified as a local, small, or disadvantaged business
enterprise.
3
(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 contracts 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 6/28/19 and extended through 9/30/19. See link:
https://dhcd.dc.gov/page/2019-rfp-consolidated-request-proposals-affordable-housing-projects-
0%20a.
4
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: June 12, 2020 Notice Number: L0004180993
NW ONE PHASE I ADU OWNER LP FEIN: **-***8012
3050 K ST NW STE 125 Case ID: 488828
WASHINGTON DC 20007-5122
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
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)
47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Marc Aronin
Chief, Collection Division
To validate this certificate, please visit MyTax.DC.gov. On the MyTax homepage, click Clean Hands
and then the Validate a Certificate of Clean Hands hyperlink.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
GOVERNMENT OF THE DISTRICT OF COLUMBIA
PROFILE SUMMARY
(CONTRACTs TO PURCHASE, SELL, ACQUIRE, TRANSFER, LEASE OF REAL
PROPERTY/ EXCLUSIVE RIGHT AGREEMENTs/LOANs & GRANTs OVER $1M/INTRA-
DISTRICTs)
Contracting Agency: District of Columbia Housing Authority Agency Code:
Using Agency: District of Columbia Housing Authority Agency Code:
Loan/Grant/Lease Sub-recipient Name: NW One Phase I ADU Owner, LP I.D. #: 2020-
LRSP-01A
Should the D.C. Council have any questions regarding this loan/grant/lease, please contact:
Hammere Gebreyes 202-216-4460
Program Manager Telephone Number
TYPE OF DOCUMENT SUBMITTED
1. Loan/Grant/Lease Modification 4. Unwritten or Informal Contract
2. Exercise of Grant Option Year (E. O.) 5. Lease of Real Property
3. Loan/Grant/Lease Agreement for: 6. Other:
ALTSC Housing Subsidy
__________________________________
LOAN/GRANT TYPE
1. Subsidy LRSP Housing Subsidy 4. Cost Reimbursement
2. Loan Price
5. Time and Material
3. Task Order 6. Advance Payment
5
GRANT/LOAN/LEASE INFORMATION
Grant/Loan/Lease No. : DCHA Subsidy: $2,227,392.00
Subsidy Amt. Required This FY: $2,227,392.00 Amt. Required Next FY: NA
Caption: NW One Phase I ADU Owner, LP Term: 15 year term
Does this Housing Subsidy Amount exceed $1 million: Yes No
If yes, please attach a copy of the DC Council approval and provide the following information:
Date received:__________________ Date approved:
LEASE INFORMATION - N/A
Lease No.:______________________ Total Cost
Location:_______________________ Annual Cost
Sq. Ft. Leased: __________________ Cost Per Sq. Ft.
Total Bldg. Sq. Ft.:_______________ % Sq. Ft. Leased By D.C.
BRIEF DESCRIPTION OF GRANT/LOAN/LEASE
SOURCE OF FUNDING
1. Appropriated 4. Intra-District
Local Rent Supplement Program
2. Capital 5. Inter-Jurisdictional
3. Grant ( ) 6. Other: (Indicate: ) HPTF
If procurement action is funded by grant or other non-capital or non-appropriated funds, will the
District need to expend some portion of its funds prior to receiving funds from the grantor or
other funding source?
Yes No
If Yes, indicate the amount the District will need to expend and the percentage this amount
represents of the total funds required to support the effort. District Funds $
%______________________.
CERTIFICATIONS
I hereby certify that the proposed for the Agreement to Enter into a Long Term Subsidy Contract
(ALTSC) between District of Columbia Housing Authority (DCHA) and NW One Phase I
ADU Owner, LP to provide annual subsidy for sixty five (65) affordable housing units, for a
term of fifteen (15) years, in the initial annual amount of Two Million, Two Hundred Twenty
Seven Thousand Three Hundred Ninety Two and Zero Cents ($2,227,392.00) to be financed
from DCHA's allocation of Local Rent Subsidy funds, is in compliance with the applicable
Federal and District of Columbia (the District) Regulations and the DCHAs policies and
procedures.
oe
6/25/20
fo!
Cutive Director, DCHA
Ihave reviewed this proposed ALTSC action and have determined that upon the District's
release of the Local Rent Subsidy funds and the satisfactionofall requirements ofthe
ALTSC, DCHA will make available an annual subsidy in the initial annual amount ofTwo
Million, Two Hundred Twenty Seven Thousand Three Hundred Ninety Two and Zero Cents
($2,227,392.00). This action is within DCHAs apportionment and budget authority, and is
within the District's Financial Plan and Budget for FY20, and such funds are available for
administration by DCH4/to support the action.
6/25/20
Barbara Chen Date
Directorof Finance, DCHA
MEMORANDUM
TO: Tyrone Garrett
Executive Director
Carolyn Punter
Sr. Vice President, Housing Choice Voucher Program
FROM: Andrea Powell
Chief Counsel, Real Estate
DATE: June 25, 2020
SUBJECT: Local Rent Supplement Program Agreement to Enter into a Long Term
Subsidy Contract between the District of Columbia Housing Author