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June 24, 2025
The Honorable Phil Mendelson, Chairman
Council of the District of Columbia
1350 Pennsylvania Avenue, N.W., Suite 402
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to D.C. Official Code § 42-2702.07, and on behalf of the Board of Directors (the “Board”)
of the District of Columbia Housing Finance Agency (the “Agency”), you are hereby notified that
on June 3, 2025 the Board enacted an Eligibility Resolution for tax- exempt and/or taxable
multifamily housing mortgage revenue bond financing in an amount not to exceed $47,000,000
for the acquisition, new construction, and equipping of the Barry Farm Flats project (the
“Development”). The Development is expected t o be located at 1001 Obama Way , S.E.,
Washington, D.C. 20020, in Ward 8. After completion, the Development is expected to consist of
approximately ninety-eight (98) residential rental units.
A copy of the Eligibility Resolution for the DC Council’s review is enclosed as Exhibit A. A
detailed description of the Development and its intended benefits are provided in the development
financing memorandum enclosed as Exhibit B. If you have any questions, please contact me at
(202) 777-1600.
Sincerely,
Michael L. Hentrel
General Counsel
Enclosures
EX
HIBIT A
DCHFAResolutionNo.2025-07BarryFarmFlatsEligibilityResolution
DISTRICTOF COLUMBIAHOUSINGFINANCEAGENCYRESOLUTIONAS TO THE ELIGIBILITYOF BARRY FARM FLATSFOR TAX-EXEMPTAND/ORTAXABLEMULTIFAMILYHOUSINGMORTGAGE
REVENUEBOND FINANCING
WHEREAS, theDistrictofColumbiaHousingFinanceAgency(the
“Agency’)receivedarequestfromBarryFarmFlats|LLC(the“Applicant’)thatthe
Agencyprovideacquisition,rehabilitation,andequippingfinancingforBarryFarm
Flats,whichuponcompletion,isexpectedtoconsistofninety-eight(98)residential
unitsfinancedwithmultifamilyhousingmortgagerevenuebondsandisexpected
tobe locatedat1001Obama Way,Washington,DC 20020inWard8(the
“Project’);
WHEREAS,theApplicantshaveelected,pursuanttoSection142ofthe
InternalRevenueCodeof1986,asamended(the“Code’),tosetasideatleast
fortypercent(40%)oftheunitsforhouseholdsatorbelowsixtypercent(60%)of
theareamedianincome("AMI").TheApplicantsmeetthesetasiderequirements
fortheoptionknownas“incomeaveraging’forthisProjectandtheaverageofthe
imputedincomelimitationsdesignatedshallnotexceedsixtypercent(60%)ofAMI;
WHEREAS,theApplicantsareeligibleforLowIncomeHousingTaxCredits
pursuanttoSection42oftheCode,andhaveelectedtosetasideatleastone
hundredpercent(100%)oftheunitsattheProjectforhouseholdsatorbelowsixty
percent (60%) of AMI. The Applicantsmeet the set aside requirements for the
optionknownas“incomeaveraging’forthisProjectandtheaverageoftheimputed
incomelimitationsdesignatedshallnotexceedsixtypercent(60%)ofAMI;
WHEREAS,theAgencyhasconducteda preliminaryreviewoftherequest
forfinancingoftheProjectinordertodetermine,amongotherthings,thatthe
Projectandthefinancingrequestedtherefor,complywiththerequirementsofthe
DistrictofColumbiaHousingFinanceAgencyAct,D.C.Law2-135,asamended,
D.C.Code§42-2701.01etsea.(the"Act");
WHEREAS,theApplicantshaverequestedfinancinginanamountnotto
exceed$47,000,000throughanofferingoftheAgency'sTax-Exemptand/or
TaxableMultifamilyHousingMortgageRevenueBonds(the"Bonds")forthe
financing,includingthefinancingofreasonablyrelatedandsubordinatefacilities
andanypermissiblereimbursementexpenses,oftheProject;
WHEREAS,allora portionoftheProjectmaybefinancedwithproceedsof
theAgency'sTax-ExemptMultifamilyHousingMortgageRevenueBonds,and
suchportionthatisnotfinancedwiththeAgency'sTax-ExemptMultifamily
HousingMortgageRevenueBondsmaybefinancedwithproceedsoftheAgency's
TaxableMultifamilyHousingMortgageRevenueBonds;
WHEREAS,AgencystaffrecommendstheissuanceoftheBondsinan
amountnottoexceed$47,000,000,inoneormoreseries,forthebenefitofthe
ApplicantsorotherrelatedentityaffiliatedwithorrelatedtotheApplicantsthatwill
ownandoperatetheProject(the"Borrower’);and
WHEREAS,providingthefinancingrequestedfortheProjectwillconfera
publicbenefitandservethepublicinterestbyloweringthecostofandexpanding
availablehousingopportunitiesforlowandmoderateincomeresidentsofthe
DistrictofColumbia(the“District’),allinaccordancewithandinfurtheranceof the
purposes ofthe Act inthe followingmanner:
1 Makingavailableapproximatelyninety-eight(98)units,onehundredpercent(100%) of which are estimatedto be affordableto
householdswithincomesatorbelowsixtypercent(60%)ofAMI.TheApplicantsmeettheoccupancyset-asiderequirementsfortheoptionknownas“incomeaveraging’forthisProjectandtheaverageoftheimputedincomelimitationsdesignatedshallnotexceedsixtypercent(60%)ofAMI;
ProvidingopportunitiesforconstructionjobstoDistrictresidentsbyrequiringthattheApplicantsandtheBorrowergiveprioritytoDistrictresidents;and
Contributingto the overallsocialand economic improvement of the
Ward 8 neighborhood.
NOW THEREFORE, BE IT RESOLVED by the Board of Directorsof the
Agency (the“Board”)that:
1. Basedupona reviewoftherequestbyAgencystaffasitrelatestothe
Project,thereporton suchreviewtotheBoard,thefavorable
recommendationoftheExecutiveDirector/CEO,and upondue
deliberationandconsultationwithAgencystaff,theBoardhereby
determinesthat,basedontherequirementsofeligibilityforfinancingby
theAgency,theProjectanditsfinancingbytheAgencywillmeetthe
requirementsoftheAct
Finalapprovalof any financingshallbe subjectto such terms,
conditions,and documentation acceptableor deemed necessary by the
Agency.
Thisreservationofvolumecapintheamountof$47,000,000,tothe
extentavailabletotheAgency,isfora periodofonehundredeighty
(180)calendardays,whichperiodmay be extendedatthesole
discretionoftheBoard.
AdoptionofthisEligibilityResolutionshallnotconstituteacommitment
fromtheAgencytoissuetheBondsortoprovidefinancingforthe
Project.
TheExecutiveDirector/CEOisauthorizedtoundertakesuchactionsas
arerequiredtobetakenpursuanttotheActandtheregulationsofthe
Agency,includingtheselectionoftaxprofessionalservices.
TheExecutiveDirector/CEOisherebyauthorizedanddirectedtosend
totheChairpersonoftheCounciloftheDistrictofColumbiawritten
notificationoftheadoptionofthisEligibilityResolutiondescribingthe
natureoftheProjectandthebenefitsdesignedtoresulttherefromas
requiredbyD.C.Code§42-2702.07.
This EligibilityResolutionshalltake effectimmediately.
DCHFA ResolutionNo. 2025-07
ADOPTED ON JUNE 3,2025
AT A SPECIAL MEETING OF THE BOARD OF DIRECTORS.
ROLL CALL VOTE:
HeatherWellington:APPROVEDScottieIrving :APPROVEDYohanceFuller:APPROVEDCarriRobinson: RECUSED
EX
HIBIT B
MULTIFAMILY UNDERWRITING MEMORANDUM
INDUCEMENT RESOLUTION APPROVAL
BARRY FARM RENTAL FLATS
1001 OBAMA WAY, WASHINGTON, DC 20020 (WARD 8)
98 UNITS
GENERAL TENANCY
DEVELOPER: PRESERVATION OF AFFORDABLE HOUSING &
DISTRICT OF COLUMBIA HOUSING AUTHORITY
NEW CONSTRUCTION, NOT TO EXCEED $47,000,000
Maximum LTV: 80%, MINIMUM DEBT SERVICE: 1.15x, AS REQUIRED BY LENDER
KIRA ANTOINE
DATE: May 23, 2025
2
Project Name:
Project Address:
Ward:
Ce
nsus Tract
DDA/QCT?
# of Units
Building Type:
Primary Developer:
Tax Exempt Bond Issuance Amount:
AMI Restrictions:
Applicable Subsidy:
Development Team:
General Contractor:
Property Manager:
Architect:
Construction Lender:
Permanent Lender:
Bond Counsel:
Date Completed: RECS? Budgeted Expense:
9/6/2023 None N/A
Neighborhood:
Walk Score:
Transit Score:
Total Development Cost Per Unit:
Underwritten Vacancy Rate:
Underwritten OpEx Per Unit:
PAM OpEx Per Unit Range:
Appraised Value:
LTV:
Capture Rate:
Penetration Rate:
Type:
Public Offering
Tax Exempt Bond Amount Aggregate Basis/Bond Basis 50% Test
$44,760,000 82,892,727 54%
Debt Execution: Fannie MTEB
Term Sheet: Underwritten:
Amount: $13,900,000
Interest Rate 7.40%
Amortization: 40
Term: 17
DSCR: 1.27x
LIHTC Equity Raise Rate: Total Amount:
Federal LIHTC Raise Rate: $0.87 $35,036,287
DC LIHTC Raise Rate: $0.70 $6,992,014
Yes
74.01
Project Based Vouchers
Overview:
Real Estate Considerations:
Land Considerations:
Submarket:
Environmental Study:
Barry Farm
46
76
98
Preservation of Affordable Housing, Inc.
$44,760,000
80% AMI or Less
Multifamily Lending and Neighborhood Investments
Credit Approval Request
Barry Farm Rental Flats
1001 Obama Way, Washington, DC, 20020
8
New Construction
18%
Moseley Architects
JPMorgan Chase
JPMorgan Chase
TBD
N/A
Buyer:
HEP Construction / Banneker Ventures
POAH Communities
$962,739
Permanent Debt:
7%
$12,639
Name:
Bond Issuance:
Financing:
$12,124 - $13,296
$77,245,000
0.6%
13%
50% Test:
3
SITE AERIAL:
TRANSACTION SUMMARY:
The Multifamily Lending and Neighborhood Investments (“MLNI”) underwriting staff requests the
inducement from the District of Columbia Housing Finance Agency’s (“DCHFA” or the “Agency”) Board of
Directors (the “Board”) for the issuance of tax-exempt bonds in an amount not to exceed $47,000,000 to
finance a portion of the costs to construct 98 units at Barry Farm Rental Flats (the “Development” )
Phase I. The Senior Loan will be constrained to 80% stabilized Loan to Value (LTV) and 1.15x amortizing
debt service coverage ratio (DSCR), as required by lender.
The Barry Farm complex is one of the four targeted neighborhoods of the Office of the Deputy Mayor of
Planning and Economic Development’s (DMPED) New Communities Initiative (NCI) program. The goal of
NCI is to revitalize distressed subsidized housing and redevelop four targeted neighborhoods in the
District of Co lumbia, including Barry Farm, in Ward 8, Lincoln Heights/Richardson Dwellings in Ward 7,
North West One in Ward 6, and Park Morton in Ward 1.
The Barry Farm complex is a 34-acre site that was previously improved with the 432 -units known as
Barry Farm Dwellings (duplexes) and the 12-unit Wade Road Apartments. Tenants were relocated offsite
between the second quarter of 2017 and second quarter of 2019. Both Wade Road Apartments and
Barry Farm Dwellings were demolished between the second quarter of 2018 and January 2021. A
portion of Barry Farm Dwellings (five buildings with 52 units along Stevens Road Southeast) and their
landscape were designated as a historic district in 2020. The buildings within the historic district will be
retained and rehabilitated into house a museum . The projected construction completion date for the
entire Barry Farm complex is 2030.
The site is currently owned by the D istrict of Columbia Housing Authority (DCHA). As of September 22,
2023, DCHA executed an option to ground lease contract between Barry Farm Flat s I LLC (“Owner” and
“Borrower”) and DCHA pursuant to the Barry Farm Master Development Agreement. The option expires
December 31, 2025, unless extended by a written amendment to the agreement. The term of the
ground lease will be for a term of 99 years from the date of execution.
Barry Farm Rental Flats is the third development to be financed in the Barry Farm complex and will
target households earning between 30% and 80% Area Median Income (AMI) . The project will consist of
98 stacked flats with seven one-bedroom units, 40 two-bedroom units, 32 three-bedroom units, 15 four-
bedroom units, and four five-bedroom units.
The Project will be a Faircloth -to-Rental Assistance Demonstration (RAD) conversion. Under 24 CFR §
905.604, public housing units owned or partially owned by public housing authorities (PHAs) can be
developed or modernized through mixed-finance transactions. All 98 units will be restricted at the 30%,
50%, 60%, and 80% AMI levels. There are no permanent supportive housing units (PSH). Additionally,
the Project will offer 42 two, three, four, and five-bedroom replacement public housing units. The
replacement public housing units will be restricted at the 30% and 50% AMI levels, and they will be
subsidized with federal Project Based Vouchers (PBV) and Moving to Work (MTW) funds from DCHA (a
MTW authority). The PBVs are unit- specific, and thus, the subsidy remains with the unit if a tenant
moves out. Additional information regarding the Project’s contract rents is detailed in the “Income”
section of the memorandum.
Nine of the two -bedroom units will be “live work units”, specifically designed to support artists and
creative professionals by allowing tenants to have dedicated work space within their unit. The live work
units are subject to the same income eligibility requirements and will be marketed alongside the
Development’s other affordable units, however, the live work units will also be marketed th rough local
arts organizations, community art centers, and creative networks (e.g., Anacostia Business Improvement
6
District and Congress Heights Arts and Cultural Center). The aim is to be inclusive of a broad range of
creative disciplines and priority may be given to applicants who can demonstrate active practice in a
creative field (e.g., submission of a portfolio, resume, or other evidence of artistic work) . Artists and
creative professionals will be given preference for live work units, although these units are available to
all demographics.
Approximately 0.5 miles from the Anacostia Metro Station in Ward 8, the Development is located in an
accessible, heavily trafficked area near essential amenities such as schools, transit, parks,
entertainment, cultural institutions, and health care. Notable in-unit amenities include in -unit laundry
and dishwashers. All tenants i n the Barry Farm complex will have access to the integrated park system
designed within the community , a bike trail to be constructed on Firth Sterlin g Ave, and a community
center that provides extensive economic empowerment for Barry Farm residents called the Growing
Resident Opportunity for Wealth (G.R.O.W) Center.
The capital stack for the Development will consist of permanent financing in the approximate amount of
$13,900,000 as a Fannie Mae MTEB Loan, $12,500,000 DMPED loan, $4,900,000 DCHA Ground Lease
Seller Note, $10,165,293 DCHA Subordinate Loan, $35,036,287 in Federal Low -Income Housing Tax
Credit (LIHTC) equity , $7,048,234 in DC LIHTC equity, $217,500 in Solar ITC proceeds, $465,500 in 45L
proceeds, $718,620 in Geothermal ITC proceeds, a $4,736,337 Deferred Developer Fee, and $ 4,661,680
in Bond Reinvestment Proceeds. The total development cost is $94,348,450 ($962,739/unit), inclusive of
the acquisition costs, hard and soft costs, financing costs, developer fee, and reserves and escrows.
The Owner and borrowing entity for the Development is Barry Farm Flats I, LLC. Barry Farm Flats I
Manager, LLC is the Borrower’s Managing Member with 0.01.% direct ownership interest in the
Borrower. NHT Equity, LLC is the Borrower’s tax credit Investor Member with 99.99% direct ownership
interest in the Borrower. Preservation of Affordable Housing, Inc. (POAH) is the Managing Member of
Barry Farm Flats I Manager, LLC with 99.99% ownership interest in Barry Farm Flats I Manager, LLC.
Barry Farm Rental Flats HA, LLC, a DCHA subsidiary, is the Special Member of Barry Farm Flats I
Manager, LLC with a 0.01% ownership interest in Barry Farm Flats I Manager, LLC.
ELIGIBILITY TO RECEIVE TAX-EXEMPT BONDS:
The Development received a LIHTC threshold evaluation and evaluation score as part of DHCD’s 202 3
Consolidated RFP round. The Development was eligible for and applied to DCHFA’s July 2024 Readiness
Round. The application package provided by the Sponsor was complete and satisfied the July 2024
Readiness criteria. Additionally, the Development received a high enough DHCD evaluation score to
proceed in DCHFA’s underwriting process.
7
PROJECT READINESS:
On June 28, 2024, the Sponsor submitted permit application s to the Department of Buildings (DOB)
under their Accelerated Plan Review (APR) process . As of April 2025, the Sponsor has multiple active
building permits under review. The Sponsor plans to receive the final building permits in May 2025. Prior
to Final Bond the Agency will require final building permits for the project. The Sponsor has received
initial construction pricing as of February 25, 2025. The estimated construction cost of $401/square foot
is in line with recently closed DCHFA projects (see Appendix 2). The GC contract is expected to be
finalized in 2Q2025. The Agency wil l require the guaranteed maximum price (GMP) contract prior to
final bond. The Sponsors are currently in the process of finalizing the First Source contract and will
provide an execute d First Source Agreement prior to Final Bond. The Agency believes the project can
close within 180-days of inducement.
STRENGTHS / RISKS (KEY MITIGANTS):
1. Reputational Risk: The Agency will provide $44 ,760,000 in tax-exempt bond volume cap to the
transaction and will be publicly associated with the Development.
o Reputational Risk Mitigant: Preservation of Affordable Housing, Inc. is an experienced
affordable housing developer, creating or preserving more than 13,000 housing units
across 131 properties . POAH is also the Sponsor for the Asberry (completed as of
October 2024 ) and the Edmondson (to be completed by 4Q2026) which are both
DCHFA-financed and a part of the Barry Farm complex . Also, DCHFA staff analyzed
POAH’s consolidated fiscal year end 2024, 2023, and 2022 financial statements to
determine POAH’s financial capacity to guarantee the Development. The ratios indicate
that POAH has adequate financial strength, liquidity, working capital, and net worth.
2. Construction Risk: HEP Construction (HEP) and Banneker Ventures (Banneker) have not served
as general contractors for affordable housing developments.
o Construction Risk Mitigant: Prior to final bond, the general contractor will provide a
payment and performance bond for the full construction contract. Further d etails
regarding HEP and Banneker ’s experience is provided within the general contractors
section below.
3. Security Risk: The Development site is in an elevated crime risk area.
o Security Risk Mitigant: POAH has developed a security plan for Phase I of the Barry
Farm redevelopment in consultation with Lowers and Associates (Security Consultant),
the Metropolitan Police Department (MPD) , and DCHA. The plan outlines a variety of
security measures to ensure that the Development, residents, and community receive
optimal coverage during construction and operation. Security plan coverage includes 2-3
security office rs (conducting interior/exterior patrols and vehicle patrols) , electronic
access control systems requiring a fob to operate, a combination of LED and
incandescent light fixtures on exterior walls and interior common areas, video
surveillance cameras that are continuously monitorin g or motion activated , alarm
systems which are monitored by a central station and has capabilities to communicate
8
with local law enforcement in the case of emergency . See the security section for the
detailed security offering.
STRENGTHS:
1. Replacement Public Housing Units: The original Barry Farm and Wade Road Apartments
included 444 public housing units combined. The redeveloped Barry Farm complex will provide
380 replacement public housing units, while adding 52 4 new units of mixed -income rental
housing on the site and 100 new homeownership units. Barry Farm Rental Flats will provide 42
replacement units for tenants returning to the Barry Farm community . The Barry Farm complex
will provide a total of 1,004 units. Please note an additional 100 replacement units were
previously built in other off-site developments (Sheridan Station and Matthews Memorial).
2. Location: The Development is 0.05 miles from the Anacostia Metro station which services the
Green line and within 0.2 miles from multiple bus stops. The Development is near amenities
such as schools, transit, parks, entertainment, cultural institutions, and health care, including
the Barry Farm Recreation Center (separate from the Development and operated by DC
Department of Parks and Recreation), which offers a senior lounge, indoor pool, and computer
lab.
3. Large Family Sized Units: The Development offers fifteen four-bedroom and four five-bedroom
unit floorplans to accommodate large families.
4. Community Involvement: Since Barry Farm residents were relocated off-site, POAH has worked
with DCHA and Far S outheast Family Strengthening Collaborative to ensure that residents are
engaged in the redevelopment process. Over the last 10 years, POAH has conducted resident
meetings, charrettes and hosted several community events to ensure that residents and
community stakeholder voices are heard. POAH hired a Community Impact Coordinator (CIC)
who is dedicated to Barry Farm to provide the community with a point of contact while
relocated off- site. This CIC connects residents to necessary services and supports, including
workforce development and case management. POAH has hosted over 50 resident engagement
activities and will continue to engage residents and the broader Barry Farm community.
LOAN STRUCTURE:
The Development will be financed through the issuance of $ 44,760,000 in DCHFA tax exempt bonds
($30,860,000 short term bonds and $13,900,000 long term bonds). Both the short- and long-term bonds
will be cash collateralized with a construction loan and permanent loan, as well as other financing
sources.
JPMorgan Chase is providing a 3 2-month construction loan with one (6 -month) extension option. The
construction loan is priced over the 1-month SOFR plus a 225 basis points (bps) leader spread. The
construction loan will be repaid from equity funded up to and including conversion to the permanent
financing and from the permanent financing . The projected construction loan interest rate is 7.10%
inclusive of a 50 bps spread to account for rising interest rates.
9
JPMorgan Chase will originate a $ 13,900,000 Fannie Mae MTEB permanent loan with a 17 -year loan
term and 40 -year amortization schedule. The 40-year amortization schedule is subject to Fannie Mae
approval and will be finalized prior to f inal bond. The projected permanent loan interest rate is 7.40% ,
inclusive of a 6.5% Fannie Mae interest rate, 40 bps issuer fee , and 50 bps cushion. The loan will be
limited to 80% of the Development’s “as-stabilized” value. Loan amounts and interest rates are subject
to change based on the timing of the rate lock.
SUMMARY OF CONSTRUCTION SOURCES AND USES:
Sources $ Uses $
Construction Loan: $44,392,000 Acquisition: $4,900,000
DMPED Loan: $12,500,000 Construction: $54,770,254
DCHA Ground Lease Seller Note: $4,900,000 Soft Costs: $8,179,564
DCHA Subordinate Loan: $10,165,293 Financing Fees: $15,377,463
Solar ITC: $217,500 Developer Fee: $1,224,771
45L: $465,500
Geothermal ITC: $718,620
Construction Period Federal LIHTC
Equity: $7,007,257
Construction Period DC LIHTC Equity: $1,409,647
Bond Reinvestment Income: $2,676,234
Total Construction Sources $84,452,051 Total Construction Uses $84,452,051
SUMMARY OF PERMANENT SOURCES AND USES:
Sources $ Uses $
Fannie MTEB Senior Loan: $13,900,000 Acquisition: $4,900,000
DMPED Loan: $12,500,000 Construction: $54,770,254
DCHA Ground Lease Seller Note: $4,900,000 Soft Costs: $8,179,564
DCHA Subordinate Loan: $10,165,293 Financing Fees: $15,377,463
Federal LIHTC Equity: $35,036,287 Developer Fee: $8,817,907
DC LIHTC Equity: $7,048,234 Reserves and Escrows: $2,303,264
Solar ITC : $217,500
45L: $465,500
Geothermal ITC: $718,620
Deferred Developer Fee: $4,735,337
Bond Reinvestment Proceeds: $4,661,680
Total Permanent Sources $94,348,450 Total Permanent Uses $94,348,450
10
FINANCIAL ASSUMPTIONS:
Permanent Loan All-In Interest Rate 7.40%
20-Year MMD Index 6.50%
DCHFA Issuer Fee 0.40%
Buffer 0.50%
Permanent Loan Amortization 40 Years
Forward Period 36 Months
Permanent Loan Term 17 Years
Minimum Amortizing DSCR 1.15x
DCHFA FEE SCHEDULE:
Application Fee $44,469
Financing Fee $889,380
Issuer’s Counsel $45,000
DCHFA LIHTC Allocation Fee $241,736
Construction Monitoring Fee $547,703
DHCFA Bond Admin Fee (Short Term, Construction) $416,749
DHCFA Bond Admin Fee (Long Term, Permanent) $155,760
Total $2,340,796
The DCHFA Bond servicing fee is calculated as 40 basis points per year for the long -term bond amount
and 50 basis points per year for the short -term bond amount. These fees are applicable during the
period between financial closing and permanent loan conversion. These fees are payable at financial
closing. If the time period prior to conversion increases from the initial estimate, the Agency will charge
the Sponsor a higher revised amount. If the time period decreases, the Agency will reimburse the
Sponsor for fees that were not required.
11
SUBORDINATE DEBT:
The development will be financed with a $12,500,000 DMPED New Communities Initiative (NCI) loan,
$4,900,000 DCHA Ground Lease Seller Note, and $10,165,293 DCHA Subordinate Loan. The terms for the
subordinate debt are as follows:
DMPED NCI Loan
DCHA Ground Lease Seller
Note DCHA Subordinate Loan
Loan Amount $12,500,000 $4,900,000 $10,165,293
Interest Rate 3.00% 0.00% 0.00%
Loan Term 40 99 45
Repayment Cash Flow Contingent Cash Flow Contingent Cash Flow Contingent
Collateral 2nd Deed of Trust
Leased Premises,
Improvements to Land, and
all proceeds of such
property, subordinate to
any security interest
granted to a Leasehold
Mortgagee
Assets assigned to the
Lender, Right of Entry,
Assignment of work product
produced or obtained by the
Borrower, Borrower's
interest in work product
agreements
Recourse/
Non-Recourse Non-Recourse Non-Recourse Non-Recourse
The DCHA loan is a predevelopment loan that will become a subordinate loan at construction loan
closing. The Development’s land is owned by DCHA and will be conveyed to the Owner at construction
loan closing via a sale/lease structure which includes a ground lease seller note.
12
TAX CREDIT STRUCTURE:
Federal LIHTC Equity: The Sponsor selected NHT Equity, LLC as the Federal LIHTC investor for the
transaction. NHT Equity, LLC is a subsidiary of the National Affordable Housing Trust, Inc. (NAHT) and will
facilitate the investment using funds from NAHT’s equity fund. NHT Equity, LLC will acquire a 99.99%
limited partner interest in the Development at the purchase price of $0.87 per $1.00 of Federal LIHTCs.
NHT Equity, LLC intends to make a total investment of $35,036,287 for Federal LIHTC equity. The equity
investment will be disbursed 15% at closing, 5% at 50% of lien free completion, 40% at 100% lien free
completion, 39% at stabilization and repayment of construction loan, and 1% at issuance of the IRS Form
8609.
Federal LIHTC Equity:
LIHTC Calculation Acquisition Construction
Eligible Basis $245,000 $77,264,656
Adjusted Basis $245,000 $77,264,656
Projected Applicable Fraction 100% 100%
QCT 100% 130%
Projected LIHTC Qualified Basis $245,000 $100,444,053
$100,689,053
Tax Credit Rate 4.00%
Annual LIHTC Amount $4,027,562
L.P. Ownership 99.99%
Investor Pay Rate $0.87
Projected LIHTC Investor Equity $35,036,287
13
DC LIHTC Equity:
In addition to federal LIHTCs, Barry Farm Rental Flats is eligible to receive DC LIHTCs based on the
District of Columbia Low-Income Housing Tax Credit Clarification Amendment Act of 2020. The act states
that any project that qualifies for a 4% or 9% allocation will also be eligible for DC LIHTCs in an amount
equal to 25% of the Federal LIHTC value received from the qualifying project. NHT Equity, LLC will
purchase the credits at $0.70 per $1.00 state tax credit. NHT Equity, LLC intends to make a total
investment of $7,048,234 for DC LIHTC equity. The equity investment will be disbursed 15% at closing,
5% at 50% of lien free completion, 40% at 100% lien free completion, 39% at stabilization and
repayment of construction loan, and 1% at issuance of the IRS Form 8609.
DC LIHTC Calculation
Annual Federal LIHTC $4,027,562
25% of Total Allocation 25%
DC Tax Credit Amount $1,006,891
Pricing Per Credit $0.70
Total DC LIHTC Equity (over 10 years) $7,048,234
DDA/ QCT Map:
As depicted below, the Development is in a Qualified Census Tract (QCT) and is eligible for a basis boost.
14
SPONSOR /DEVELOPER/ GUARANTOR ANALYSIS:
Developer: Preservation of Affordable Housing
POAH is a national nonprofit organization specializing in the acquisition, rehabilitation, and long -term
preservation of affordable housing. Since its founding in 2001, POAH has preserved or created more
than 13,000 units of housing at approximately 131 properties . POAH has developed three DCHFA -
financed properties, including two Barry Farm developments, The Asberry (completed as of October
2024) and the Edmondson (to be completed by 4Q2026). The senior management team at POAH
includes, but it is not limited to: Aaron Gornstein (President and CEO), Rochelle Beeks (President, POAH
Communities), Rodger L. Brown, Jr. (Managing Director, Real Estate Development), and Cory S. Mian
(Senior Vice President, Real Estate Development).
Aaron Gornstein became the President and CEO of POAH, Inc. in June 2015. From 2012 -2015, Gornstein
served as undersecretary for the Massachusetts Department of Housing and Community Development
(DHCD). Prior to that, he served as executive director of Citizens’ Housing and Planning Association
(CHAPA) for 21 years.
Rodger L. Brown Jr is POAH’s Managing Director, Real Estate Development. Rodger brings more than 30
years of experience producing affordable housing to his role and has been a part of the POAH
organization since 2004. Prior to joining POAH, Rodger operated a real estate consultancy providing
project structuring and development consulting services to a range of for- profit, non -profit, and
governmental entities.
Cory Mian is POAH's Senior Vice President for Real Estate Development. Prior to joining POAH, she
worked at MMA Financial in their underwriting and asset management groups. Of note, the primary
POAH development contacts for the Development are Maia Shanklin Roberts (Vice President of Real
Estate Development), and Aviad Kopelowitz ( Development Manager). Prior to POAH, Maia Shanklin
Roberts was a senior associate at Ballard Spahr LLP and an associate at Bocarsly Emden Cowan Esmail &
Arndt LLP. Additionally, Maia Shanklin Roberts earned a J.D. from American University, Washington
College of Law, a Master's in Community Planning from University of Maryland, College Park, and
Bachelor of Arts in Urban Studies from Stanford University.
DCHFA staff analyzed the Guarantor’s consolidated fiscal year end 2024, 2023, and 2022 financial
statement to determine the Guarantor’s financial capacity to guarantee the Development. The ratios
indicate that the Guarantor has adequate financial strength, liquidity, working capital, and net worth.
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Co-Developer: District of Columbia Housing Authority
DCHA will serve as the Development’s co -developer through its affiliated entity Capital Housing
Partners, LLC and its parent entity, DC Housing Solutions Inc. , a 501(c)(3) organization that serve as the
development arm of DCHA. DCHA has extensive experience and the financial capacity to serve as co -
developer to further their mission of providing affordable housing in the District of Columbia.
Capital Programs at DCHA are led by John Stringfield (Senior Vice President of Office of Capital
Programs), and it is comprised of three divisions, one of which is Real Estate Development. The Real
Estate Development team includes Andre Gould (Associate Vice President of Development) and Vincent
Carlos Grey (Real Estate Development Manager).
Andre Gould has over 20 years of real development experience in the greater District of Columbia,
Virginia, and Maryland area. Since becoming the Associate Vice President (AVP) of Development for the
DCHA in 2021, Mr. Gould has led the entitlement, design, and financing of more than $236 million in
transactions, including Faircloth to RAD transactions. Mr. Gould has a Bachelor of Architecture from
Cornell University.
Vincent Carlos Gray has 15 years of experience working within the affordable housing development
industry. Prior to DCHA, Mr. Gray worked on the development team that redeveloped the Arthur
Capper/Carrollsburg public housing property. In partnership with Urban Atlantic Development and EYA
Development, the 26-acre Capper redevelopment pipeline delivered new townhomes, a senior building,
community center, 2 multifamily apartment buildings, public green space, and a PILOT Bond public
infrastructure project. Mr. Gray has an undergraduate degree from the University of Virginia and
Master’s in Real Estate Finance from Georgetown University.
OWNERSHIP STRUCTURE:
The borrowing entity for the Development is Barry Farm Flats I, LLC . Barry Farm Flats I Manager, LLC is
the Borrower’s Managing Member with 0.01.% direct ownership interest in the Borrower . NHT Equity,
LLC is the Borrower’s Investor Member with 9 9.99% direct ownership interest in the Borrowe r.
Preservation of Affordable Housing, Inc. is the Managing Member of Barry Farm Flats I Manager, LLC
with 99.99% ownership interest in Barry Farm Flats I Manager, LLC. Barry Farm Rental Flats HA, LLC, a
DCHA subsidiary, is the Special Member of Barry Farm Flats I Manager, LLC with a 0.01% ownership
interest in Barry Farm Flats I Manager, LLC. The Borrower will enter into a development services
agreement with POAH and DCHA , or their affiliates as developers, with a fee split of 67% to POAH and
33% to DCHA. The Borrower ownership structure is illustrated below.
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17
GENERAL CONTRACTOR:
HEP Construction Inc. and Banneker Ventures, both Minority Business Enterprises and Certified Business
Enterprises, have formed a joint venture, HEP -BV JV, LLC, that will serve as the general contractor for
the Development. The joint venture was necessary to ensure sufficient bonding capacity for the
Development.
Banneker has successfully completed the construction of $100 million in new construction and
renovation projects as a General Contractor for institutional clients in Washington, DC, Maryland,
Virginia, Pennsylvania and New Jersey.
HEP is a full- service construction firm that provides services to federal/local government and
commercial clients. HEP has successfully completed over $68 million in projects to date.
Banneker, the Managing Venturer of the joint venture will oversee all contractual and financial aspects
of the project ensuring compliance with the joint venture agreement, subcontractor management, and
bonding requirements. HEP will provide overall leadership and strategic oversight for the project,
ensuring that construction is completed on schedule, within budget, and in compliance with contractual
obligations. Both will collaborate to ensure the success of the project.
HEP-BV JV, LLC has provided construction services on three multifamily developments in the District
totaling 101 affordable housing units. In addition to these three joint venture developments, Banneker
and HEP have collaborated on over 20 additional projects across the region, representing a combined
construction value exceeding $100 million. For each of these engagements the HEP and Banneker joint
venture has delivered the following construction management services:
• Preconstruction and Estimating: conceptual budgeting, value engineering, and detailed cost
estimating
• Project Management: scheduling, subcontractor procurement, and construction coordination)
• On-Site Construction Supervision : day-to-day oversight by experienced superintendents and
field managers
• Safety Management: implementation and enforcement of comprehensive OSHA -compliant
safety plans
• Quality Control: rigorous quality assurance protocols and compliance monitoring throughout all
phases of construction
• Accounting and Cost Controls: transparent financial reporting, invoice processing, and real- time
budget tracking
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PROPERTY MANAGEMENT:
POAH Communities, LLC (POAHC) is the Development’s proposed property manager . POAHC has
specialized in the professional management of affordable multifamily housing for more than 15 years
and currently manages all of POAH’s subsidized and market rate apartments in Connecticut, the District
of Columbia, Illinois, Kansas, Maryland, Massachusetts, Michigan, Missouri, Ohio, Kentucky, New
Hampshire and Rhode Island. This includes The Edmondson (to be completed by 4Q2026 ) and The
Asberry (Complete) , both DCHFA-financed developments located within the Barry Farm complex .
POAHC’s management portfolio is financed with a variety of affordable housing programs including low -
income housing tax credits, bonds, conventional financing, and a multitude of specialized HUD programs
and secondary financing sources.
POAHC currently manages 13,226 units inclusive of 202 units in Washington, DC. DCHFA’s Portfolio and
Asset Management (“PAM”) Staff indicated that there are no current outstanding issues with the
management company.
ARCHITECT:
Moseley Architects, Architect of Record, has been working in affordable multifamily housing for over 25
years and has completed the design and documentation on over 20,000 units. They have been
dedicated to the creation of affordable housing for seniors, families and students and has the
knowledge and experience with LIHTC, HUD, RAD, Housing Authorities and nonprofits. Moseley started
their work in the Washington, DC area with a dormitory project for the SEED School in Anacostia in
1998. Since then, they have completed multifamily housing projects in all the surrounding counties
including Prince Georges, Montgomery, Howard, Loudoun and Fairfax. Some of their major projects in
this region include: Glenarden Hills in Prince Georges County, 273 units; Witter Place in Alexandria, 94
units and North Hill, also in Alexandria, has 279 units. Their affordable housing projects in Washington,
DC include Paradise Community Center and Connecticut Plaza Apartment . The firm has not worked on
any DCHFA finance projects.
SITE CONTROL:
The Development’s land is currently owned by the District of Columbia Housing Authority. As of
September 22, 2023, DCHA executed an option to ground lease contract between Barry Farm Flats I LLC
and DCHA pursuant to the Barry Farm Master Development Agreement. The Option expires December
31, 2025, unless extended by a written amendment to the agreement. The term of the ground lease will
be for 99 years. The total rent due for the ground lease will equal the Development’s land value for the
parcel or parcels encompassed by the ground lease. The Owner will pay for the ground lease through a
no-interest seller note from DCHA.
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ENVIRONMENTAL REPORT:
A Phase I environmental assessment report was completed by Hale y & Aldrich, Inc. (Haley & Aldrich) on
September 6, 2023. The assessment was performed in conformance with the scope and limitations of
the ASTM International (ASTM) E1527 -21 Standard and All Appropriate Inquiries (AAI) Rule. As part of
this Phase I, Haley & Aldrich conducted visual observations of the development and neighboring
properties, reviewed federal, state, tribal, and local environmental database information, federal and
state environmental files, previous reports, and available site historical use records, and formulated
conclusions regarding the potential presence and impact of Recognized Environmental Conditions
(RECs). The Phase I revealed no evidence of RECs, Controlled RECs, or Historical RECs associated with the
subject property. Haley & Aldrich did not recommend further assessment.
ZONING & ENTITLEMENTS:
The current zoning classification for the site is BF-2, which permits predominantly moderate-density row
and semi-detached buildings with residential and live -work dwelling units and flats . The BF -2 zone also
intends to permit open and green space suitable for passive private enjoyment and active community
recreation and amenities, as appropriate. The zone allows a maximum building height of 40 feet and an
80 percent lot occupancy. The stacked flats will have a maximum building height of 40 feet and a
maximum lot occupancy of 80%.
The parking requirement for the Development is one parking space for every two dwelling units (0. 03
spaces per acre). The minimum vehicle parking requirement may be reduced by 50% if the Development
is located within 0.5 miles of a Metrorail station that is currently in operation, 0.25 miles of a streetcar
line, or 0.25 miles of Corridor Network Metrobus Routes . The Development will include 30 off -street
parking spaces , of which two parking spaces will comply with Americans with Disabilities Act (ADA)
standards, and 43 street parking spaces.
The Development is designed to conform to the BF-2 zoning requirements.
DEVELOPMENT AGREEMENT:
On April 27, 2017 , the Sponsor formed entity , Barry Farm Redevelopment Associates, LLC, entered into a
Master Development Ag reement with DCHA . The purpose of the agreement is to establish a framework
for the redevelopment of the 34 -acre Barry Farm complex , define the roles and responsibilities of the
parties, and to establish the requirements for the various agreements that will govern the site’s
components. POAH serves as Master Developer of the si te, responsible for overseeing and executing all
aspects of the Barry Farm redevelopment , including but not limited to master planning, relocation,
demolition, infrastructure improvements, and the design, engineering, construction, testing , financing,
leasing, and sale of Barry Farm projects. DCHA is responsible for overseeing and facilitat ing the
Development and assisting in obtaining DMPED funding and subordinate financing.
The Sponsor acknowledges that portions of the Barry Farm complex will remain occupied by residents
during construction activities related to the Development and is committed to designing, planning, and
constructing the Development with the utmost care to minimize any material disruption to the Barry Farm
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community, ensuring that the daily operations of the community are not affected, except where
unavoidable.
Per the Relocation and Re- Occupancy Plan, “Any resident living at Barry Farm or Wade Apartments on or
after October 11, 2012 is considered to be a former or current resident of Barry Farm/Wade Apartments
(BF/W) and has a priority right to return to a newly built replacement unit. BF/W residents living in one of
the replacement units at Sheridan Station or Matthews Memorial are considered BF/W resident s, even if
they moved to the replacement unit before October 11, 2012. If they wish to return to the site, they may
have lesser priority for a unit than any BF/Wade resident who has not returned to a replacement unit.”
The households occupying Barry Farm Dwellings and Wade Road Apartments after October 11, 2012 are
eligible for all relocation benefits. These relocation benefits include related moving assistance,
relocation vouchers, and ongoing counseling/advisory assistance. There is a Relocation Team that
maintains frequent communication with DCHA’s Operations Division. The Relocation and Re-Occupancy
Plan outlines various re -occupancy criteria items, but in general there will be a 90 -day notification
period prior to delivery of a unit and the Relocation Team will be in contact with former tenants to
facilitate the move. DCHA, however, will be in direct communication with the former Barry Farm
Dwellings and Wade Road Apartments tenants to facilitate their relocation back to Barry Farm (if elected
by the former tenant).
SCOPE OF WORK:
The scope of work for the Development includes the new construction of 98 rental dwelling units in
multiple stacked flat buildings, paving, landscaping, lighting, and other site work as is required for the
construction of this new community. This includes concrete foundations, wood framing, flooring, roof
trusses, TPO membrane roofing, brick masonry veneer, fiber cement siding and panels, doors, and
windows. Interior finishes include hardware, woodwork, vinyl flooring and carpeting. The building scope
of work also includes installation of plumbing, fire suppression, heating/air conditioning systems,
lighting, electrical, telecommunication and multi- media wiring and devices. The Development will be
compliant with Enterprise Green Communities: EGC Plus 5 and will also implement an integrated pest
management program equivalent to the HUD Healthy Homes Initiative. All units will have Energy Star
rated appliances that include electric range, refrigerator, microwave/range hood (combo), dishwasher,
front loaded washer, and front-loaded clothes dryer.
The stacked flats are slated to be constructed of light -framed wood construction. The Development will
be built to type VA construction standards for all buildings. All framing will bear onto shallow
foundations which include wall footings, turned thickened slab edges, and cast -in-place concrete
foundation walls.
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TENANT SERVICES:
POAH will provide resident services for the Development’s tenants . A Community Impact Coordinator
(CIC) will work with residents to provide resources in key outcome areas: housing, health, community
engagement, youth engagement, wealth building and employment and financial stability. The
Community Impact Coordinator will collaborate with property management and maintenance to
support the residents’ success while maintaining the physical and financial health of the property.
All residents of the Barry Farm redevelopment will have access to the G.R.O.W. (Growing Resident
Opportunity for Wealth) Center located on the ground floor of the Asberry. The G.R.O .W Center will
utilize a coaching model to offer a continuum of supports to promote wealth building and economic
mobility for residents. POAH will partner with local organizations, financial institutions, and government
agencies to provide financial education workshops and seminars covering topics like budgeting, credit
management, saving, and investing.
Additionally, residents at the Rental Flats project will be able to participate in the Barry Farm leadership
council, which was developed to give agency to former Barry Farmer residents who are now relocated
offsite. Once the redevelopment is completed, POAH will broaden the membership to include residents
in each of the new development projects. The leadership council will be empowered to actively
participate in decision -making processes, advocate for their needs and concerns, and enhance the
quality of life within Barry Farm and the larger Ward 8 community.
A portion of the resident services budget for the Barry Farm complex will be covered by the
Development. Barry Farm Rental Flats will cover $65,000 for a Senior Community Impact Coordinator
and $23,000 for programing. An amount of $6,000 for administration costs will be covered by deferred
developer fee payments, grant funds, and fundraising proceeds.
The services will be funded from the operating budget, deferred developer fee payments, grant funds
and fundraising proceeds. POAH is committed to covering the costs of resident services for 15 years
through annual allocations.
POAH and POAH Communities are also working toward the establishment of a dedicated Resident
Services Fund with the mission to advance the understanding and practices of using housing as a
platform for resident success and community improvement. The fund’s key focus is to sponsor activities
to upward mobility and personal achievement, invest in collaboration with both program and policy
advocates, identify and integrate program models into effective s ite-to-site transfer, and identify
barriers to successful adoption of model practices in policy at the state and federal level while
advocating to ease or remove them.
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MARKET DESCRIPTION:
The Development is in the Barry Farm neighborhood in Ward 8. The Development is located within 0.5
miles from the Anacostia Metro Station, which services the Green Line. Additionally, the Development is
located within 0.2 miles from a bus stop that services Routes A2, A4, A6, A7, A8, W2, and W3. Further,
the Development is located adjacent to the Barry Farm Recreation Center (separate from the
Development and operated by DC Department of Parks and Recreation), which offers a senior lounge,
indoor pool, and computer lab. The Development is in an accessible, heavily trafficked area near
essential amenities such as schools, transit, parks, entertainment, cultural institutions, and health care.
SECURITY:
The Development site is in an elevated crime index area.
• The July 2024 market study for the Development relied upon data from Crime Grade which
collects data from the Federal Bureau of Investigation (FB), local law enforcement and agencies,
state criminal justice departments, and Best Neighborhoods (Crime Grade’s parent
organization). Crime Grade’s rating system translates crime statistics into letter grades ranging
from A+ (safest) to F (least safe). The Development’s area received a C- meaning the area has
average safety with moderate crime rates.
• Per DC Crime Index, within a one -mile radius of the development, 131 criminal incidents
occurred within the last year and the number of crimes within a one -mile radius of the
Development decreased by 56 over the last year.
The security plan (included in the Addendum) for Phase I of the Barry Farm complex outlines a variety of
security measures to ensure that the properties during construction and operation provide coverage for
residents and the community. Security measures for the Barry Farm Rental Flats include:
• Perimeter Fencing and Gates
o Installation of fencing at spaces and control access points.
o Use of gates with controlled access systems such as fobs or access codes to enter these
spaces are for residents, management, and maintenance only.
• Surveillance Cameras
o Deployment of CCTV cameras strategically at entrances, exits, parking areas, and other
vulnerable spots.
• Security Lighting
o Installation of adequate lighting throughout the community, especially in dark or
secluded areas.
o Use of motion-activated lights to deter potential intruders.
• Landscaping and Design Considerations
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o Maintenance of clear sight lines to minimize hiding spots through thoughtful
landscaping.
o Structures and vegetation will not obstruct views or provide cover for intruders.
• Secure Parking Areas
o Parking will be located in designated areas and will be well-lit and monitored.
• Technology Integration:
o Smart home technology will be installed for residents, such as doorbell cameras and
smart locks.
• Exterior Security
o Exterior cameras will monitor activity around the perimeter of Barry Farm Rental Flats
as shown in Exhibit B of the security plan.
To enhance the safety and security of residents, staff, guests, and the vendors at The Asberry, The
Edmonson and The Rental Flats, a Phase I security plan for Barry Farm, including on-site security guards,
has been implemented in collaboration with a contracted third -party security company, the
Metropolitan Police Department (MPD) and DCHA.
The Sponsor has provided a security plan for Phase I of the Barry Farm complex, including Barry Farm
Rental Flats, which will include two security officers who will conduct interior and exterior patrols of
both The Asberry, The Edmonson and Barry Farm Rental Flats. In addition to patrolling the properties,
the security officers will conduct vehicle patrols throughout the Barry Farm neighborhood. From
October to April, the two security guards will patrol 24/7, seven days per week and one patrol vehicle
will be available.
Given the proximity of the properties to the Goodman League basketball courts, north of the
Development, a two-prong scheduling approach will be implemented to ensure that there is sufficient
security to monitor increased vehicle and foot traffic. During the Goodman League season (May to
September), one additional officer will be added to the patrol and two patrol vehicles will be available.
One security officer will provide 24/7 coverage for seven days per week, while the other two officers will
provide coverage from 4pm to 12am Mondays through Saturday.
Security costs and coverage will be shared between all projects in Phase I, including The Asberry (108 -
unit apartment building completed as of October 2024), The Edmonson (139 -unit apartment building
under construction), Barry Farm Rental Flats (98 stacked flats ), and eventually Building 2 (187 -unit
apartment building) . The Management and Cost Sharing Agreement (“Cost Sharing Agreement”)
memorializes the way staffing costs, including security, will be shared amongst the developments. Each
development will be responsible for its share of the shared employee costs, determined on a pro rata
per unit basis. At the closing of Barry Farm Rental Flats, the Cost Sharing Agreement will be amended to
correctly reflect the allocation of staff across the three active developments.
The shared security costs for The Edmondson, The Asberry, and Barry Farm Rental Flats will be funded
through property operations, property construction funds, and other District sources (ex. DMPED
Infrastructure Loan proceeds).
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• The proportion of the security costs funded through the noted sources will also change as the
property construction funds, for example, are no longer available. Thus, the property
construction fund portion will be replaced by an increased amount from property operations.
• The overall security officer budget, for three security officers, is $506,891 of which $286,781 (or
$2,926 per unit) will be allocated to Barry Farm Rental Flats, $89,792 (or $645 per unit) to The
Edmondson, and $148,317 (or $1,373 per unit) to The Asberry.
• Any shortfalls in costs (ex. property operations are insufficient to cover the security costs for the
security officers) will be paid by POAH.
POAH has also developed a Neighborhood Safety Plan, which consists of expanding their relationship
with the Metropolitan Police Department and partnering with DC violence prevention organizations and
agencies. Of note, DCHA owns the adjacent/nearby parcels in the greater Barry Farm redevelopment
site and these adjacent/nearby parcels are primarily vacant. DCHA will be responsible for the overall
security plan for the adjacent/nearby parcels in the Barry Farm complex. Per MLNI staff conversations
with DCHA, the following security measures are proposed:
• DCHA’s Office of Public Safety (DCHA OPS) will drive through/patrol the adjacent Barry Farm
parcels daily when responding to and from properties in far SE. There are no set hours for the
patrol and coverage will be provided on each tour (three per day), only as time and other
priorities permit, and foot coverage of undeveloped areas of the greater Barry Farm
redevelopment site will be limited.
• MPD has primary jurisdiction on public spaces (ex. any activity happening on Sumner Road SE).
DCHA OPS and MPD have a history of working closely together at properties.
• DCHA OPS has arrest powers for activity occurring at their sites.
• DCHA and M PD will engage and coordinate with the on -site, third -party security firm at the
Development to make sure that there are primary points of contact on both ends to facilitate
the flow of information regarding community safety concerns.
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VACANCY AND ABSORPTION:
According to the July 2024 market study by AreaProbe , there is a 12.52 % percent vacancy rate for the
primary market area (PMA) ; however, the LIHTC properties within three miles of the D evelopment are
operating at an average 4% vacancy. The market study shows adequate demand for the Development to
operate as an affordable LIHTC property following construction. To lease the 56 units that are not
reserved as replacement units, management will need to capture 0.6 percent of the income- eligible
renter market. The unreserved units are expected to be fully leased within eight months after
construction, assuming an absorption rate of seven units per month . The PMA’s 1,235 existing and
planned LIHTC units divided by its 9,469 eligible households provides a 13% penetration rate which
indicates that the market can accommodate more housing. The Asberry, another Barry Farm
development completed in October 2024, has leased 76 out of 108 units as of May 2025 with an
absorption of approximately 11 units per month. This indicates that the expected lease up of Barry Farm
Rental Flats is relatively on par with existing developments.
As illustrated in the table above, the LIHTC properties in the Development’s PMA reported high
occupancy rates. This data trend indicates strong demand for affordable housing in the PMA with
comparable unit types and for the Development to operate as a mixed -income LIHTC property when
placed in service. Of the 890 LIHTC units surveyed, most buildings were operating with 90%-100%
occupancy rates.
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APPRAISAL:
DCHFA underwriting staff have reviewed the appraisal, dated July 5, 2024, prepared by AreaProbe for
the Development. T here appears to be an adequate demand for the Development to operate as an
affordable LIHTC property following the proposed construction . The appraisal concludes an “As
Stabilized” prospective market value of $ 77,245,000, assuming restricted rents. The appraisal also
concludes an “As Stabilized” market value of $34,700,000, assuming market rents. Valuation under the
restricted income scenario includes the tangible value of the real property income stream and the
intangible value, $45,345,000, created by the LIHTC s. The projected $ 13,900,000 permanent loan and
“As Stabilized” restricted value of $77,245,000 reflects a permanent loan LTV of 18% or below which is
within the permanent loan lender’s requirements.
UNDERWRITING NOTES:
Please see unit mix below:
Unit Type # of Units AVG Unit Size (SqFt)
1 Bedroom 7 696
2 Bedroom 40 1,095
3 Bedroom 32 1,237
4 Bedroom 15 1,555
5 Bedroom 4 1,806
Total 98 1,213
Please see affordability mix below:
% AMI # of Units % of Units
30% 11 11%
50% 31 32%
60% 41 42%
80% 15 15%
Total 98 100%
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INCOME:
Gross Potential Rent (Affordable Rent Revenue) : The MLNI Underwriting Staff has underwritten Gross
Potential Rent /Affordable Rent Revenue based on proposed rents at stabilization. The property will
consist of 98 units, with 11% of units at 30% AMI or less, 32% of units at 50% AMI or less, 42% of units at
60% AMI or less, and 15% of units at 80% AMI or less. There are no permanent supportive housing units
(PSH).
The Project will be a Faircloth -to-Rental Assistance Demonstration (RAD) conversion. Under 24 CFR §
905.604, public housing units owned or partially owned by public housing authorities (PHAs) can be
developed or modernized through mixed -finance transactions. Forty -two (42) of the 98 units will be
two, three, four, and five-bedroom replacement public housing units. The replacement public housing
units will be restricted at the 30% and 50% AMI levels, and they will be subsidized with federal Project
Based Vouchers (PBV) under a Housing Assistance Payment Contract (HAP) and Moving to Work (MTW)
funds from DCHA (a MTW authority). The PBVs are unit -specific, and thus, the subsidy remains with the
unit if a tenant moves out). Of note, tenants in the replacement public housing units will contribute 30%
of their income towards rent.
The following formula details the calculation of the total contract rents for the proposed subsidized
units at the Project:
HAP Contract Rent (HUD’s contribution) + MTW Augmentation Rent (DCHA’s contribution) =
Total Contract Rent
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The table below illustrates the stabilized rents at the property:
Market/
Affordable
1 BR 60% Affordable N/A 4 651 $1,552 94 $1,458
1 BR 60% Affordable N/A 2 784 $1,552 94 $1,458
1 BR 60% Affordable N/A 1 700 $1,552 94 $1,458
2 BR 30% Affordable PBV 1 1,003 $2,545 109 $2,436
2 BR 50% Affordable PBV 7 1,024 $2,545 104 $2,441
2 BR 50% Affordable N/A 7 968 $2,545 104 $2,441
2 BR 60% Affordable N/A 8 1,024 $1,879 104 $1,775
2 BR 60% Affordable N/A 8 968 $1,879 104 $1,775
2 BR 60% Affordable N/A 4 1,437 $1,879 115 $1,764
2 BR 80% Affordable PBV 5 1,437 $1,879 115 $1,764
3 BR 30% Affordable PBV 5 1,244 $3,182 123 $3,059
3 BR 50% Affordable PBV 3 1,244 $3,182 123 $3,059
3 BR 50% Affordable N/A 2 1,436 $3,182 134 $3,048
3 BR 60% Affordable N/A 3 1,244 $2,172 123 $2,049
3 BR 60% Affordable N/A 10 1,184 $2,172 123 $2,049
3 BR 80% Affordable PBV 9 1,244 $2,172 123 $2,049
4 BR 30% Affordable PBV 4 1,503 $3,754 141 $3,613
4 BR 30% Affordable PBV 1 1,503 $3,754 148 $3,606
4 BR 50% Affordable PBV 4 1,528 $3,754 141 $3,613
4 BR 50% Affordable N/A 4 1,513 $3,754 141 $3,613
4 BR 60% Affordable N/A 1 1,601 $2,423 141 $2,282
4 BR 80% Affordable PBV 1 2,048 $2,423 141 $2,282
5 BR 50% Affordable PBV 2 1,806 $4,317 158 $4,159
5 BR 50% Affordable PBV 2 1,806 $4,317 166 $4,151
Avg
able
Unit Type % AMI Subsidy
Assumption # of Units Unit Size
(Sq. Ft)
Utility
Allowance
Net Underwriting
Rents / Wtd Avg.
98 1,213 $2,516 $119 $2,553
Rent/Wtd
Avg.
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NET OPERATING INCOME:
The MLNI Staff has underwritten the property’s NOI to $1,382,868 which supports a permanent
mortgage of $13,900,000 with an amortizing DSCR of at least 1.15x in Year 1.
Vacancy: The MLNI Staff has underwritte n the property’s economic vacancy to 7.0% (3% vacancy and
4% collection loss).
Effective Gross Income (EGI): The EGI has been underwritten to $ 2,621,469 or $ 26,749/unit. The
developer has assumed an increase in LIHTC rents at a rate of 2% per year.
RENT COMPARABLES:
The average LIHTC one-bedroom unit (determined by AreaProbe’s survey) is leased for $1.95 per square
foot with an average rent of $1,298. The average two-bedroom unit is leased for $1.67 per square foot
with an average rent of $1,512. The average three-bedroom unit is leased for $1.45 per square foot with
an average rent of $1,734. The average four-bedroom unit is leased for $1.58 per square foot with an
average rent of $2,101 . The Development’s proposed rents are within the ranges indicated by the tax
credit apartment projects surveyed in the primary market area. Given the Development’s strengths,
specifically new in-unit amenities, renovated features, security features, and close proximity to a metro
station, it is expected to fully lease quickly at the proposed rents.
The AreaProbe market study suggests that LIHTC properties in the immediate area will perform well at
high or low AMI restrictions.
1BR 2BR 3BR 4BR
Barry Farm Rental Flats 1,462 1,756 2,031 2,265
Maple View Flats 60% 1,670 2,000 2,253 -
Sheridon Station 60% - 1,485 1,815 -
Tobias Henson 60% 1,080 1,295 1,385 2,243
Stanton Glen 60% 1,121 1,338 1,541 2,365
Cascade Park 60% 1,330 1,413 1,559 1,696
TRIO at Stanton Square 60% 1,290 1,450 - -
Average 1,298 1,497 1,711 2,101
LIHTC Maximum 1,695 2,035 2,351 2,623
Subject Compared to LIHTC Maximum -14% -14% -14% -14%
60% LIHTC Rental Comps - Barry Farm Rental Flats
30
EXPENSES:
Total expenses are underwritten to $1,297,943 or $13,244/unit including reserves, trustee fees, and
LIHTC monitoring fees. Below are expense comps provided by DCHFA’s Portfolio Asset Management
Staff:
The DCHFA Portfolio & Asset Management staff provided operating expense comparables for analysis.
The properties analyzed are similar to the Development in age or date of recent renovation (within 15
years), income restrictions, tenant -paid utilities and property type (mid- rise). Two of the three
comparables are between 112 to 121 units, similar to the Development, with one comparable consisting
of 93 units. The annual, per unit operating expenses (before reserves, trustee fees, and LIHTC
monitoring fees) for the comparable range from $12,124 to $13,207. The projected operating expense
of $13,244/year for the Development is slightly above the comparable set, however the difference is so
small that it is not significant.
Property Name Barry Farm Rental Flats 2442 MLK Apartments Stanton Square Apartments
Audit Year NA 2024 2024
Year Built NA 2021 2017
Building Type Mid-Rise| 4 floors Mid-Rise Mid-Rise
Number of Units 98 112 121
AMI 100% @ 80% AMI - 30% AMI 100% @ 50% AMI to 30% AMI 100% @ 60% and lower
EGI 2,734,221$ 2,202,808$ 1,987,524$
O
ccupancy 96% 99% 97%
Risk Share or Private Placement Private Placement Non-Risk Share Non-Risk Share
Real Estate Tax Status Exempt Non-Exempt Non-Exempt
Ward
Ward 8 | SE | Washington
Highlands Ward 8 | SE | Anacostia Ward 8 | SE | Congress Heights
Operating Expenses
Administrative 487,769$ 513,401$ 792,491$
Operating and Maintenance 443,174 422,683 264,194
Utilities 207,000 196,796 208,132
Tax, Insurance, & License 160,000 346,327 202,176
Total 1,297,943$ 1,479,207$ 1,466,993$
Per Unit Per Annum
Administration 4,977 4,584 6,550
Maintenance 4,522 3,774 2,183
Utilities 2,112 1,757 1,720
Tax, Insurance, & License 1,633 3,092 1,671
Total 13,244$ 13,207$ 12,124$
Expense/Income Ratio 47% 67% 74%
Distance Subject 0.4 Miles 0.9 Miles
DSCR 1.15 1.12 1.15
Tenants Services
Real Estate Taxes -$ 111,291$ 134,562$
Total Adjustments (Real Estate Taxes) - 994 1,112
Total Expenses after adjustment - 1,367,916 1,332,431
Total Expense (per unit) 13,244 12,214 11,012
31
TIMELINE:
REGULATORY REQUIREMENTS:
Regulatory Use Restriction
In accordance with IRS Section 142 requirements for tax exempt bonds, the Sponsor has elected to set
aside a minimum of 40% of the units for households with incomes at or below 60% of AMI. Pursuant to
IRS Section 42 requirements for tax credits and to maximize tax credit equity, the Sponsor may elect to
proceed with the income averaging set aside. Under the new provision, income and rent limits for at
least 40% of the units must average 60% AMI or less. The individual units’ designations must be in 10%
increments ranging from 20% to 80%. The tax -exempt bonds qualified project period will be reflected in
the Tax Regulatory Agreement between DCHFA and the Sponsor. The 15 -year tax credit compliance
period and the perpetual extended use period will be reflected in the Indenture of Restrictive Covenants
for Low Income Housing Tax Credits between DHCD and the Sponsor.
Minority and Local Business Entities’ Participation
The borrower will be required by the Tax Regulatory Agreement to comply with all District and federal
laws concerning contracting and procurement, including the Small, Local, and Disadvantaged Business
Enterprise Development and Assistance Act of 2005, as amended (DC Code § 2-218.01 et seq.), the
Workforce Intermediary Establishment and Reform of First Source Amendment Act of 2011, as amended
(DC Code § 2-219.01 et seq. (First Source Act)), D.C. Law 2 -156, Section 5 (Apprenticeship Program), and
will execute a First Source Employment Agreement (First Source) with the District of Columbia
Department of Employment Services (DOES) and a subcontracting agreement with the Department of
Small and Local Business Development. District Government contracts exceeding $250,000 require a 35
percent subcontracting set-aside with small businesses certified under the CBE Program.
Closing Timeline
DCHFA Initial Credit Approval/Review 5/27/2025
TEFRA Hearing TBD
Stage III Application Submitted TBD
TEFRA Mayoral Approval TBD
Completion of third party reports TBD
Construction Contract Finalized TBD
Lender Approvals TBD
Investor Approval TBD
Permits TBD
DCHFA Board Meeting Final Bond Approval TBD
Close TBD
32
Green Building Requirements
The Sponsor will be required to fulfill the requirements of the Green Building Act. It is anticipated that
the Development will design the project to Enterprise Green Communities: EGC Plus 5 and will also
implement an integrated pest management program equivalent to the HUD Healthy Homes Initiative
The Development anticipates receiving permits in receive its permits in May 2025. As part of the
permitting process, the Department of Building’s (DOB) Green Building Division or approved third party
will conduct a Green Review for projects over 10,000 square feet. The Green Review ensures compliance
with District’s Energy Conservation Code and Green Building Act or Green Construction Code.
Inclusionary Zoning
In July 2010, the District of Columbia Zoning Commission approved emergency amendments specifying
that projects with the following characteristics will be exempt from the inclusionary zoning (“IZ”)
regulations:
• At least 80% of units must be affordable.
• Rent and sale prices must not be above maximum limits for the affordability program.
• Units must remain affordable for at least 30 years.
• A Covenant for affordability must be recorded against the properties.
Based on the above standards, the Development is exempt from IZ regulations during the 30-year period
that the DHCD LIHTC Indenture of Restrictive Covenants is enforced. However, an IZ covenant must still
be recorded. The IZ covenant will be subordinate to DCHFA and DHCD’s covenants while they are active
and will only take effect when the two covenants expire.
SUMMARY/CONCLUSION/RECOMMENDATION:
Having reviewed the Development’s budget, planned financing and operating projections, the
transaction appears to be feasible. The d evelopment consists of 98 stacked flats and a total of 49
buildings. It is planned that 85% of units will be set aside for residents making of 60% AMI or below and
15% of units at or below 80% AMI. The project meets the average income with an average income of
57% AMI. The develop ment will provide improved , affordable housing to a submarket in which
affordable LIHTC properties are experiencing very low vacancy rates; evidence of a need for the
proposed affordable housing units. The Multifamily and Neighborhood Investment underwriting staff
recommends that the Board authorizes initial inducement approval of bonds in an amount not to exceed
$47,000,000 to finance a portion of the costs to build the proposed development.
33
BARRY FARM RENTAL FLATS - PROJECT INFORMATION SHEET
Item Facts
Development Type: New Construction
Project Type: Private Placement
Project Name: Barry Farm Rental Flats
Location: 1001 Obama Way SE
Ward: Eight (8)
Tax Exempt Bond Amount: Not To Exceed $47,000,000
Credit Enhancement: Fannie M.TEB
Total Acquisition Costs/Unit: $4,900,000 or $50,000 per unit
Construction, Site work Costs/Unit: $45,130,331 or $460,514 per unit
Total Development Costs/ Unit: $94,348,450 or $962,739 per unit
Evidence of Site Control: Ground Lease
Mortgagor/Sponsor: JPMorgan Chase
General Contractor: HEP Construction/Banneker Ventures
Architect of Record: Moseley Architects
Management Agent: POAH Communities
Sponsor's Attorney: TBD
# of Buildings: 49
# of Units: 98
# of Parking Spaces: 73
Current Zoning: BF-2
Census Tract/ QCT: 74.01/Yes
Land Size: 1.49 Acres
Building Size: 136,743 sq. ft.