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September 16, 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 July 8, 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 $25,075,000
for the new construction and equipping of the 950 Eas tern project (the “Development”). The
Development is expected to be located at 950 Eastern Avenue, Washington, D.C. 20019 in Ward
7. After completion, the Development is expected to consist of a five-sto ry building,
containing a total of approximately f ifty-six (56) 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,
M
ichael L. Hentrel
General Counsel
E
nclosures
EXHIBIT A
DCHFAResolutionNo.2025-08950 Eastern Avenue
EligibilityResolution
DISTRICTOFCOLUMBIAHOUSINGFINANCEAGENCY
RESOLUTIONASTOTHEELIGIBILITYOF950EASTERNAVENUEFOR
TAX-EXEMPTANDIORTAXABLEMULTIFAMILYHOUSINGMORTGAGE
REVENUEBOND FINANCING
WHEREAS,theDistrictofColumbiaHousingFinanceAgency(the
“Agency")receivedarequestfrom950EasternAveTM LLC(the“Applicant’)that
theAgencyprovideconstructionandequippingfinancingfor950EasternAvenue,
whichuponcompletion,isexpectedtoconsistoffifty-six(56)residentialunits
financedwithmultifamilyhousingmortgagerevenuebondsandisexpectedtobe
locatedat950EasternAvenueNE,Washington,DC 20019inWard7 (the
“Project’);
WHEREAS,theApplicantshaveelected,pursuanttoSection142ofthe
InternalRevenueCodeof1986,asamended(the“Code’),tosetasideatleast
fortypercent(40%)oftheunitsforhouseholdsatorbelowsixtypercent(60%)of
the area median income ("AMI");
WHEREAS,theApplicantsareeligibleforLowIncomeHousingTaxCredits
pursuant to Section 42 of the Code and have elected to set aside at least one
hundredpercent(100%)oftheunitsatthe Projectforhouseholdsatorbelowsixty
percent(60%)ofAMI;
WHEREAS,theAgencyhasconductedapreliminaryreviewoftherequest
forfinancingoftheProjectinordertodetermine,among otherthings,thatthe
Projectandthefinancingrequestedtherefor,complywiththerequirementsofthe
DistrictofColumbiaHousingFinanceAgencyAct,D.C.Law2-135,asamended,
D.C.Code§42-2701.01etsea.(the“Act");
WHEREAS,theApplicantshaverequestedfinancinginanamountnotto
exceed$25,110,000throughanofferingoftheAgency'sTax-Exemptand/or
TaxableMultifamilyHousingMortgageRevenueBonds(the"Bonds")forthe
financing,includingthefinancingofreasonablyrelatedandsubordinatefacilities
andanypermissiblereimbursementexpenses,oftheProject;
WHEREAS,alloraportionoftheProjectmaybefinancedwithproceedsof
theAgency'sTax-ExemptMultifamilyHousingMortgageRevenueBonds,and
suchportionthatisnotfinancedwiththeAgency'sTax-ExemptMultifamily
HousingMortgageRevenueBondsmaybefinancedwithproceedsoftheAgency's
TaxableMultifamilyHousingMortgageRevenueBonds;
WHEREAS,AgencystaffrecommendstheissuanceoftheBondsinan
amountnottoexceed$25,110,000,inoneormoreseries,forthebenefitofthe
ApplicantsorotherrelatedentityaffiliatedwithorrelatedtotheApplicantsthatwill
ownandoperatetheProject(the“Borrower’);and
WHEREAS,providingthefinancingrequestedfortheProjectwillconfera
publicbenefitandservethepublicinterestbyloweringthecostofandexpanding
availablehousingopportunitiesforlow-andmoderate-incomeresidentsofthe
DistrictofColumbia(the“District’),allinaccordancewithandinfurtheranceofthe
purposesoftheActinthefollowingmanner:
1. Makingavailableapproximatelyfifty-six(56)units,onehundredpercent(100%)of whichareestimatedto be affordableto
householdswithincomesatorbelowsixtypercent(60%)ofAMI
2. ProvidingopportunitiesforconstructionjobstoDistrictresidentsbyrequiringthattheApplicantsandtheBorrowergiveprioritytoDistrictresidents;and
3. Contributingto the overallsocialand economic improvement in
Ward 7.
NOW THEREFORE,BE ITRESOLVEDbytheBoardofDirectorsofthe
Agency(the"Board’)that:
1.BaseduponareviewoftherequestbyAgencystaffasitrelatestothe
Project,thereporton suchreviewtotheBoard,thefavorable
recommendationofthe ExecutiveDirectorCEO,and upondue
deliberationandconsultationwithAgencystaff,theBoardhereby
determinesthat,basedontherequirementsofeligibilityforfinancingby
theAgency,theProjectanditsfinancingbytheAgencywillmeetthe
requirementsoftheAct.
2.Finalapprovalofany financingshallbe subjecttosuchterms,
conditions,anddocumentationacceptableordeemednecessarybythe
Agency.
3.Thisreservationofvolumecapintheamountof$25,110,000,tothe
extentavailabletotheAgency,isfora periodofonehundredeighty
(180)calendardays,whichperiodmay be extendedatthesole
discretionoftheBoard.
4,AdoptionofthisEligibilityResolutionshallnotconstituteacommitment
fromtheAgencytoissuetheBondsortoprovidefinancingforthe
Project.
5.TheExecutiveDirector/CEOisauthorizedtoundertakesuchactionsas
arerequiredtobetakenpursuanttotheActandtheregulationsofthe
Agency,includingtheselectionoftaxprofessionalservices.
6.TheExecutiveDirector/CEOisherebyauthorizedanddirectedtosend
totheChairpersonoftheCounciloftheDistrictofColumbiawritten
NotificationoftheadoptionofthisEligibilityResolutiondescribingthe
natureoftheProjectandthebenefitsdesignedtoresulttherefromas
requiredbyD.C.Code§42-2702.07
7. This EligibilityResolutionshalltake effectimmediately.
DCHFA ResolutionNo. 2025-08
ADOPTED ON JULY 8,2025
AT A MEETING OF THE BOARD OF DIRECTORS.
ROLL CALL VOTE:
Heather Wellington: ABSENT
ScottieIrving APPROVED
YohanceFuller APPROVED
CarriRobinson: APPROVED
EXHIBIT B
MULTIFAMILY UNDERWRITING MEMORANDUM
INDUCEMENT RESOLUTION APPROVAL
950 EASTERN AVENUE
950 EASTERN AVENUE NE, WASHINGTON, D.C. 20019 (WARD 7)
56 UNITS
GENERAL TENANCY AND FORMERLY HOMELESS TENANCY
DEVELOPERS:
CUBED PARTNERS, LLC
SHIFT CATALYST, LLC
UNITED PLANNING ORGANIZATION (UPO)
DEMOLITION AND NEW CONSTRUCTION
NOT TO EXCEED $25,075,000
MAXIMUM LTV: 90%, MINIMUM DEBT SERVICE: 1.15x, AS REQUIRED BY LENDER
GEOFFREY SHEPARD
DATE: JULY 8TH, 2025
2
Project Name:
Project Address:
Ward:
Census 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:
12/30/2021 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:
Conduit
Tax Exempt Bond Amount Aggregate Basis/Bond Basis 50% Test
$22,795,000 $42,208,605 54%
Debt Execution: Fannie M.TEB
Term Sheet: Underwritten:
Amount: $5,402,839
Interest Rate 7.00%
Amortization: 40
Term: 15
DSCR: 1.15x
LIHTC Equity Raise Rate: Total Amount:
Federal LIHTC Raise Rate: $0.85 $17,045,323
DC LIHTC Raise Rate: $0.50 $2,130,665
Yes
78.07
Yes
Overview:
Real Estate Considerations:
Land Considerations:
Submarket:
Environmental Study:
Burrville
56
62
56
Cubed Partners, LLC
$22,795,000
50% AMI or Less
Multifamily Lending and Neighborhood Investments
Credit Approval Request
950 Eastern Avenue
950 Eastern Avenue NE, Washington, DC, 20019
7
New Construction
50%
ZDS, Inc.
PNC Bank
PNC Bank
TBD
N/A
Buyer:
Hamel Builders
Gateway Management Services, LLC
$820,461
Permanent Debt:
7%
$10,189
Name:
Bond Issuance:
Financing:
$9,263 - $9,689
$10,800,000
0.60%
41.3%
50% Test:
3
Existing improvement at 950 Eastern Avenue
Historical use was 7-Eleven Convenience Store
4
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 $25,075,000 to
finance a portion of the costs to construct 56 units at 950 Eastern Avenue NE, Washington, D.C. 20019
(the “Development” or the “Property” ). The Senior Loan will be constrained to 90% stabilized Loan to
Value (LTV) and 1.15x amortizing debt service coverage ratio (DSCR).
The site is a 20,126 square foot (0.46 acre) irregular-shaped lot located in the Burrville neighborhood east
of Deanwood, in the far northeast quadrant of Washington, DC. The site is currently improved with a
vacant convenience store. The Sponsor plants to raze the existing building and redevelop the site with a
wood-framed building over a concrete podium.
On January 31, 2022, 950 Eastern Ave, LLC purchased the site fee simple from 7- Eleven, Inc. for
$1,600,000. On August 10, 2022, 950 Eastern Ave, LLC sold the site to 950 Eastern Ave TM, L.L.C. (the
“Borrower”) for $2,800,000. According to interviews conducted by the appraiser, Novogradac Consulting,
Inc., the difference in sales price is attributable to 7 -Eleven, Inc. disposing of excess real estate and as a
result, the pricing was not fully testing the market. In its appraisal dated January 12, 2022, Novogradac
concluded an “as-if vacant” value of $2,800,000, affirming the purchase price was in line with market
considerations.
The Borrower was incorporated on February 3, 2022, and consist ed of an affiliate of United Planning
Organization (“UPO”) with 51% interest, an affiliate of TM Associates Development, Inc. (“TM Associates”)
with 34.3% interest, and an affiliate of Kadida Development Group LLC (“KDG”) with 14.7% interest.
On May 30, 2025, Cubed Community Partners LLC (the “Sponsor”) acquired the membership interests of
TM Associates and KDG through a membership interest purchase agreement. The Sponsor entity is owned
50% by Ikeogu Imo and 50% by Emmanual Egoegonwa . This provides the Sponsor with site control. The
purchase included all relevant work products, including third-party reports, contracts, and governmental
approvals to develop the site as proposed.
Prior to financial closing, Cubed will sell a 9.8% interest in the Borrower to an affiliate of Shift Catalyst LLC
(“Shift Catalyst”). Thus, upon financial closing, the Borrower will consist of an affiliate of UPO (51%
interest), an affiliate of Cubed Community Partners (39.2% interest), and an affiliate of Shift Catalyst (9.8%
interest). Cubed Community Partners and Shift Catalyst will be the guarantors for the Development.
The Development will consist of one midrise (five -story) building, which will be restricted to residents
earning 30% and 50% of Area Median Income (“AMI”) or less. Forty -three (43) units will be reserved for
residents earning 50% AMI or less. The remaining thirteen (13) units will be set aside for residents earning
30% AMI or less. The thirteen (13) units at 30% AMI will be Permanent Supportive Housing (“PSH”) units
that operate with Local Rent Supplement Program (LRSP) subsidies from the District of Columbia Housing
Authority (DCHA). The PSH units will be set aside for formerly homeless tenants of D.C. On-site case
managers and the property management team will work hand in hand to address operational needs for
formerly homeless tenants. Of the fifty-six (56) units, twelve (12) will be one-bedroom units, twenty-seven
(27) will be two-bedroom units, and the remaining seventeen (17) units will be three-bedroom units.
5
The site is located in census tract 78.07 in Ward 7. The Development is 0.8 miles away from the Deanwood
Metro station, which serves the Orange Line , and is directly adjacent to a W4 bus stop. According to
WalkScore, the Development is considered Somewhat Walkable with a Walk Score of 56, a Transit Score
of 62 (Good Transit), and a Bike Score of 32 (Somewhat Bikeable).
The Development will be designed to meet the 2020 Enterprise Green Communities Plus criteria. Green
features for the Development will include Energy Star rated appliances, energy -efficient light fixtures ,
plumbing fixtures designed for low water usage, and a rooftop solar array. The Development’s amenities
will include a business center/computer lab, community room, two elevators, and free Wi-Fi in units and
common spaces. The in-unit amenities at the Development will include dishwashers, washer and dryers,
walk-in closets, and central air conditioning.
The Development will have below-grade parking with 28 parking spaces available for residents on a first -
come first -serve basis. The overall parking ratio is 0.5 spaces per unit, which complies with zoning
regulations. Additionally, the Development is located in an urban neighborhood with good access to public
transportation, which mitigates some parking need.
Security features include surveillance cameras monitoring the building exterior and the parking garage.
Kastle Systems will provide offsite 24 -hour monitoring of the surveillance cameras. The parking garage
will be accessed via a motorized roll-up door. The Sponsor plans to include a limited access control system
including door contacts, elevator systems, and controlled resident door locks. Two full -time armed
security guards are budgeted ($165,000) for 24/7 surveillance of the community.
The capital stack for the Development will consist of permanent financing in the approximate amount of
$5,400,000 as a Fannie Mae M.TEB loan, a $ 19,893,233 DHCD HPTF lo an, $17,045,323 in federal LIHTC
equity, $2,507,167 in D.C. LIHTC equity, a deferred developer fee of $ 808,271, a Section 45L tax credit of
$238,000, and a solar investment tax credit (ITC) of $51,000. The total development co st is $45,945,833
($820,461/unit), inclusive of the acquisition costs, hard and soft costs, financing costs, developer fee, and
reserves and escrows.
The Owner and Borrower for the Development is 950 Eastern Ave TM , L.L.C. The managing member for
the Borrower is 950 Eastern Ave CP MM, L.L.C., which will have a 0.01% direct ownership interest in the
Borrower. PNC Bank, N.A. is the Borrower’s tax credit Investor Member with 99.98% direct ownership
interest in the Borrower. RiseImpact Capital, LLC is the Borrower’s state tax credit Investor Member with
a 0.01% direct ownership in the Borrower. UPO 950 Eastern Ave LLC (an affiliate of United Planning
Organization) is the Managing Member of 950 Eastern Ave CP MM, L.L.C. with 51% ownership.
ELIGIBILITY TO RECEIVE TAX-EXEMPT BONDS:
The Development received a LIHTC threshold evaluation and evaluation score as part of DHCD’s Summer
2021 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.
6
PROJECT READINESS:
As of June 2025, the Sponsor had the majority of its approvals in-hand. The Sponsor plans to receive the
final buildings permits in August 2025. Prior to Final Bond the Agency will require final building permits
for the Development. The Sponsor has received initial construction pricing as of 2Q 2025, and the pricing
will hold throughout the remainder of 2025 . The Sponsor is currently carrying a contingency for change
orders of 5% and a contingency for rising construction pricing of approximately 5 %. This pricing
contingency will ensure that the transaction remains financially feasible if the construction pricing
increases when the GMP contract is finalized in August 2025. The estimated construction cost of
$358/square foot is in line with recently closed DCHFA projects (see Appendix 2). The GC contract is
expected to be finalized in August 2025. The Agency will require the guaranteed maximum price (GMP)
contract prior to Final Bond. The Sponsors are currently in the process of finalizing the First Source
Agreement prior to Final Bond. The Agency believes the Development can close within 180 days of
Inducement.
STRENGTHS / RISKS (KEY MITIGANTS):
RISKS:
1. Reputational Risk: DCHFA will be providing $22,795,000 in tax-exempt volume cap to the
transaction, and will be publicly associated with the Development.
o Reputational Risk Mitigant: The Sponsor has a strong track record as evidenced by the
past real estate development and consulting experience of the Sponsors.
o Prior to founding Cubed Partners, Emmanuel Egoegonwa served as Director,
Design and Construction for the Rockefeller Group’s Mid-Atlantic Region, where
he oversaw the completion of the redevelopment of 1901 L Street, a 212,500
square foot class-A office building in Washington, D.C. During his time at the
Rockefeller Group, Mr. Egoegonwa also directed the design and preconstruction
efforts on the 416,000 square foot repositioning of the WMATA HQ site located
at 600 5th St NW. Prior to the Rockefeller Group, Mr. Egoegonwa worked as a
Development Manager at Bozzuto Development, where his project experience
included over 1,400 multifamily units, including Union on Queen, a 193-unit
LIHTC development in Arlington, VA.
o Prior to founding Cubed Partners, Ikeogu Imo served as the Director of Finance
at Dantes Partners, where he structured and acquired financing for LIHTC
developments in the District, including Capitol Vista (104 units, new
construction) and Delta Towers (149 units, new construction).
7
o Cubed Partners is sponsor and co-developer of Union Wesley Apartments, a
127-unit senior affordable housing development in Fort Lincoln neighborhood of
D.C. The Union Wesley AME Zion Church controlled the development through
the Union Wesley House Development Corporation (“UWHDC”). UWHDC
partnered with Cubed Partners and Shift Capital to receive a 9% LIHTC award in
January 2024. Cubed Partners will be the on-ground developer, with Shift
Capital as balance sheet guarantor and UWHDC as co-owner. Cubed Partners
will have a 40% interest in the General Partner entity. This development is
projected to close on construction financing in August 2025. The 9% LIHTC
award will facilitate a moderate rehab of all 127 units (122 LIHTC and 5 market-
rate units). The scope of work includes elevator modernization, a new roof, a
700MW solar installation, all new appliances, energy efficient water and light
fixtures, upgrades to community and facilities centers, and limited structural
work. Hamel Builders will also be the GC for Union Wesley.
o Cubed Partners currently has 12 multifamily units in Southeast D.C.
o Shift Capital has 203 stabilized affordable units in Pennsylvania and Maryland
and $358 million in assets under management. In 2021, Shift Capital delivered J-
Centrel, a 116-unit mixed-use building in the Kensington neighborhood of
Philadelphia, PA. Of J-Centrel’s 116 units, thirty-three (33) are restricted to
households earning 80% AMI or less. More recently, Shift Capital partnered with
Brookwynn Capital to acquire and renovate the 118-unit Capital Square
Apartments in Brentwood, MD. Approximately 75 (65%) of the units will be
available to households earning between 40-60% AMI. Financing partners for
the Capital Square renovation include Prince George’s County and Community
Preservation Corporation (CPC).
STRENGTHS:
1. Deeply Affordable Unit Mix: The Development will set aside all the units for DC residents with
incomes less than 50% of AMI. This deeply affordable unit mix helps the Development serve more
lower income residents in Ward 7.
2. Family Sized Units: The Development will deliver family-sized units to the Burrville neighborhood,
Ward 7, and northeast Washington, D.C ., with 17 three-bedroom units, in a market where many
newer properties tend to include a higher share of one- and two-bedroom units.
8
LOAN STRUCTURE:
The Development will be financed through the issuance of $ 22,795,000 in DCHFA tax exempt bonds
($17,395,000 short-term bonds and $ 5,400,000 long-term bonds). Both the short- and long-term bonds
will be cash collateralized with a construction loan and permanent loan, respectively.
PNC Bank is providing a 24-month construction loan. The construction loan is priced over 1 -month SOFR
plus 335 bps spread to the lender. 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 7.50% inclusive of a 50 bps spread to account for rising interest rates.
PNC Bank will originate a $5,400,000 Fannie Mae MTEB permanent loan with a 15-year loan term and a
40-year amortization schedule. The loan will be limited to 90.0% of the “as-stabilized” value. The
projected permanent loan interest rate is 7.00%, inclusive of a 50 bps spread to account for rising
interest rates. Loan amounts and interest rates are subject to change based on the timing on the rate
lock.
9
SUMMARY OF CONSTRUCTION SOURCES AND USES:
Sources $ Uses $
Construction Loan: $14,450,585 Acquisition: $2,800,000
HPTF: $19,893,233 Construction: $30,339,553
Federal LIHTC Equity: $6,818,129 Soft Costs: $2,572,406
DC LIHTC Equity: $1,002,867 Financing Fees: $4,605,534
Developer Fee: $1,847,321
Total Construction Sources $42,164,813 Total Construction Uses $42,164,813
SUMMARY OF PERMANENT SOURCES AND USES:
Sources $ Uses $
Permanent Loan: $5,402,839 Acquisition: $2,800,000
HPTF: $19,893,233 Construction: $30,339,553
Federal LIHTC Equity: $17,045,323 Soft Costs: $2,572,406
DC LIHTC Equity: $2,507,167 Financing Fees: $4,605,534
Deferred Developer Fee: $808,271 Developer Fee: $4,617,965
Section 45L Tax Credit Equity: $238,000 Reserves and Escrows: $1,010,375
Solar ITC: $51,000
Total Permanent Sources $45,945,833 Total Permanent Uses $45,945,833
10
FINANCIAL ASSUMPTIONS:
Permanent Loan All-In Interest Rate 7.00%
U.S 10 Year Treasury Index 4.40%
Lender Spread 1.70%
Issuer Fee 0.40%
Buffer 0.50%
Permanent Loan Amortization 40 years
Lock Out Period 10 years
Permanent Loan Term 15 years
Minimum Amortizing DSCR (YR 3) 1.15
DCHFA FEE SCHEDULE:
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.
Application Fee $22,795
Financing Fee $455,900
Issuer’s Counsel $45,000
DCHFA LIHTC Allocation Fee $120,344
Construction Monitoring Fee $303,396
DCHFA Bond Admin Fee (Short Term, 50 BPS) $173,950
DCHFA Bond Admin Fee (Long Term, 40 BPS) $43,200
11
SUBORDINATE DEBT:
The Sponsor was awarded HPTF financing in the Summer 2021 RFP from DHCD. The HPTF subsidy is
anticipated at $19,893,233. The terms for the HPTF loan are as follows:
• Interest Rate: 3% on principal amount.
• Loan Term 42 years.
• Repayment: 75% of Free Cash Flow (as defined in the loan agreement).
• Collateral: Second Lien
• Non-Recourse
TAX CREDIT STRUCTURE:
Federal LIHTC Equity : The Sponsor selected PNC Bank, N.A. (“PNC Bank”) as LIHTC investor for the
transaction. Per the letter of intent (“LOI”), an affiliate of PNC Bank will have a 99.98% ownership interest
in the Development at the purchase price of $0.85 per $1.00 of federal tax credits. PNC Bank will provide
an estimated total equity investment of $17,045,323. The equity investment is subject to DHCD providing
a projected annual allocation of $ 2,005,733 for a total 10 -year allocation of $ 20,057,333. HFA
underwriting assumptions project a qualified basis of $50,143,332, an annual LIHTC amount of $2,005,733
and a total equity investment of up to $17,045,323.
12
DDA/QCT MAP:
As of 2025, the site is no longer located within a Qualified Census Tract (“QCT”). However , the Sponsor
submitted a complete application to DCHFA in 2024, when the site was still located within a QCT.
Therefore, the Development will remain eligible for the 30% basis boost as long as it closes no later than
730 days (two years) after the Sponsor submits a complete application to DCHFA. The Sponsor submitted
a complete application in July 2024 and is anticipated to close by Q4 of 2025.
LIHTC Calculation Acquisition Construction
Eligible Basis $154,250 $38,453,140
Adjusted Basis $154,250 $38,453,140
Projected Applicable Fraction 100% 100%
QCT 100% 130%
Projected LIHTC Qualified Basis $154,250 $49,989,082
$50,143,332
Tax Credit Rate 4.00%
Annual LIHTC Amount $2,005,733
L.P. Ownership 99.98%
Investor Pay Rate $0.85
Projected LIHTC Investor Equity $17,045,323
13
DC LIHTC:
In addition to the federal tax credits, the Development is eligible to receive the DC LIHTC based on the
District of Columbia Low-Income Housing Tax Credit Clarification Amendment Act of 2020. The DC LIHTC
applies to any project funded after October 1, 2021. The act states that any development that qualifies
for a 4% or 9% allocation will also be eligible for DC LIHTC in an amount equal to 25% of the value of the
Federal LIHTC received for the qualifying development.
RiseImpact Capital, LLC (“RiseImpact”) will be the DC LIHTC investor for the transaction and will have a
0.01% ownership interest in the Development. The purchase price will be $0.50 per $1.00 of state tax
credits.
DC - LIHTC
Total Federal LIHTCs generated by the project 20, 057,333
DC LIHTCs Generated by the project 5,014,333
DC LIHTC Equity Pricing 0.50
Equity Raised from DC LIHTC 2,507,167
DC LIHTC Fee due to DHCD 50,143
14
SPONSOR /DEVELOPER/ GUARANTOR ANALYSIS:
Co-Developer: Cubed Partners, LLC
Cubed Partners, LLC (“Cubed”) is a real estate investment firm based in the District of Columbia. Cubed
was founded in 2017. Cubed’s development team is comprised of Emmanuel (Manny) Egoegonwa as
Managing Partner and Co -Founder, and Ikeogu (I.K.) Imo as Managing Partner and Co -Founder. Mr.
Egoegonwa is a design, development, and construction professional with over 15 years of experience in
the multifamily and commercial real estate sector. He is responsible for all development activities at
Cubed. Mr. Imo is an investment professional with a wide range of experience from investment banking ,
private equity, and real estate development finance. He is responsible for all acquisition and financing
activities for Cubed.
Prior to founding Cubed Partners, Emmanuel Egoegonwa served as Director, Design and Construction for
the Rockefeller Group’s Mid-Atlantic Region, where he oversaw the completion of the redevelopment of
1901 L Street, a 212,500 square foot class -A office bu ilding in Washington, D.C. During his time at the
Rockefeller Group, Mr. Egoegonwa also directed the design and preconstruction efforts on the 416,000
square foot repositioning of the WMATA HQ site located at 600 5th St NW. Prior to the Rockefeller Group,
Mr. Egoegonwa worked as a Development Manager at Bozzuto Development, where his project
experience included over 1,400 multifamily units, including Union on Queen, a 193 -unit LIHTC
development in Arlington, VA.
Prior to founding Cubed Partners, Ikeogu Imo served as the Director of Finance at Dantes Partners, where
he structured and acquired financing for LIHTC developments in the District, including Capitol Vista (104
units, new construction) and Delta Towers (149 units, new construction).
Cubed Partners is sponsor and co -developer of Union Wesley Apartments, a 127 -unit senior affordable
housing development in Fort Lincoln neighborhood of D.C. The Union Wesley AME Zion Church controlled
the development through the Union Wesley House Development Corporation (“UWHDC”). UWHDC
partnered with Cubed Partners and Shift Capital to receive a 9% LIHTC award in January 2024. Cubed
Partners will be the on -ground developer, with Shift Capital as balance sheet guarantor and UWHDC as
co-owner. Cubed Par tners will have a 40% interest in the General Partner entity. This development is
projected to close on construction financing in August 2025. The 9% LIHTC award will facilitate a moderate
rehab of all 127 units (122 LIHTC and 5 market -rate units). The sc ope of work includes elevator
modernization, a new roof, a 700MW solar installation, all new appliances, energy efficient water and
light fixtures, upgrades to community and facilities centers, and limited structural work. Hamel Builders
will also be the GC for Union Wesley.
Cubed Partners currently has 12 multifamily units in Southeast D.C.
15
Co-Developer: Shift Catalyst, LLC
Shift Catalyst, LLC (“Shift”) is a real estate development and investment firm focused on affordable
housing and community development headquartered in Philadelphia. Shift currently has $385 million in
assets under management, $88 million in equity under management, and has developed over 1,000
residential units.
It is also worth mentioning that Shift has recently expanded its portfolio of investments into affordable
housing and LIHTC developments. Shift is currently developing a mixed -use, market-rate and affordable
development in Philadelphia, PA, known as the Residences at the Beury. Other notable affordable
developments include The Metropolitan, North Philadelphia Amtrak Station, and a mixed -income
residential development in National City, CA (San Diego County), known as 921-999 National Blvd.
Shift Capital has 203 stabilized affordable units in Pennsylvania and Maryland and $358 million in assets
under management. In 2021, Shift Capital delivered J -Centrel, a 116 -unit mixed -use building in the
Kensington neighborhood of Philadelphia, PA. Of J -Centrel’s 116 units, thirty-three (33) are restricted to
households earning 80% AMI or less. More recently, Shift Capital partnered with Brookwynn Capital to
acquire and renovate the 118-unit Capital Square Apartments in Brentwood, MD. Approximately 75 (65%)
of the units will be available to households earning between 40 -60% AMI. Financing partners for the
Capital Square renovation include Prince George’s County and Community Preservation Corporation
(CPC).
Shift (the “Guarantor”) will be responsible for providing completion and financial guarantees for the
Development, and its primary role in the partnership is as the financial sponsor. DCHFA staff analyzed the
Guarantor’s consolidated fiscal year end 2023 financial statements to determine its financial capacity .
Shift Catalyst, LLC was incorporated on June 10, 2022, and the first full year of financial statements were
compiled in 2023.
16
OWNERSHIP STRUCTURE:
The borrowing entity for the Development will be 950 Eastern Ave TM L.L.C., a District of Columbia limited
liability company (the “Owner” or “Borrower”). The following organization chart reflects the anticipated
ownership structure when the LIHTC equity investors are admitted to the partnership upon financial
closing of the construction loan. The managing member of the Borrower is 950 Eastern Ave CP MM L.L.C.
with a 0.01% ownership interest. The federal tax credit investor is PNC Bank, which will have a 99.98%
ownership interest in the Borrower. The state tax credit investor is RiseImpact, which will have a 0.01%
ownership interest in the Borrower.
Organization Chart
Ri se Impact
Tax Credit Investor Entity
(State Investor Member)
0
.01%
UPO 950 Eastern Ave LLC
a District of Colum bia
lim ite d liability com pany
(
Managing Member)
51%
CP 950 Eastern Ave LLC
a District of Colum bia
lim ite d liability com pany
(
Cubed Member)
39.2%
Shift Catalyst or its affiliate
(Shi ft Member)
9.8%
950 Eastern Ave TM L.L.C.
a District of Colum bia
lim ite d liability com pany
(
Project Owner)
950 Eastern Ave CP MM L.L.C.
a District of Colum bia
lim ite d liability com pany
(
Managing Member)
0.01%
PNC
Tax Credit Investor Entity
(Investor Member)
9
9.98%
17
GENERAL CONTRACTOR:
Hamel Builders (“General Contractor”) is the general contractor for the Development. Hamel Builders was
founded in 1988 and the firm has developed over 35,000 units of multi -family residential, affordable
housing, adaptive reuse, senior living, historic, and mixed -use development, including about 7,000
resident-in-place renovations. Hamel Builders currently has several projects under construction including
the following communities financed by DCHFA: The Asberry, Belmont Crossing Phase I, Alabama
Apartments, The Clara, Park Morton (Mid-Rise), Ridgecrest Phase I, Villages of East River, and 2911 Rhode
Island.
DCHFA’s construction management team finds Hamel Builders qualified and a reliable general
contractor from prior work experience.
General Contractor Scorecard
PROPERTY MANAGEMENT:
The proposed property management agent is Gateway Management Services, LLC (“Gateway”). Lester
Severe is President of Gateway. Mr. Severe has over 35 years of experience in managing affordable
multifamily housing. Prior to joining Gateway, Mr. Severe served as President of TM Associates
Management, Inc. from 2000 to 2015. Gateway currently manages 36 properties comprising over 1,100
units.
In the District, Gateway currently manages Langston Lane, a 118-unit LIHTC property in Ward 8. In addition
to Langston Lane, Gateway manages 149 LIHTC units across its portfolio as well as 264 units with HUD
subsidy. The remaining 577 units in Gateway’s portfolio are funded through the USDA’s Section 515 Rural
Rental Housing Program (“RD 515”).
The staffing plan for the Development includes one full- time property manager on site, one full- time
maintenance technician on site, and one part-time leasing consultant during lease-up and stabilization.
Project 1 Project 2 Project 3 P roject 4
Project Name 17 Mississippi Avenue Providence Place L iberty Place Sta nton Squa re
Project Location 17 Mississippi Ave SE 601 50th Street NE 901 3r d Street NW 2910 Stanton Road SE
Construction Completion Date: March '23 Feb '23 J an '22 May '21
Total C onstruction C ost $13,678,976 $23,710,042 $23, 231,136 $28,450,618
Total Number of Units 41 93 71 121
Total Construction Cost/Unit $333,634 $254,947 $327, 199 $235,129
On Time Delivery Yes Yes Ye s Yes
Project Description Mid-Rise Mid-Rise H igh-Rise Mid-Rise
CBE & MBE Goals Achieved? Yes - Above 35% Yes - Above 35% Y es - Above 35% Yes - Above 35%
First Source Goals Achieved? Yes Yes Ye s Yes
18
ARCHITECT:
ZDS Inc. will be the architect of record for the Development . ZDS Inc. is a multi -disciplinary design firm
that provides architectural and interior design services to the affordable housing, market-rate multifamily,
hospitality, commercial and higher education industries. Founded in 2019, the Washington, D.C. office is
led by Managing Director Robert McClennan. Mr. McClennan has extensive experience within the
affordable multifamily housing space in D.C., Maryland, and Virginia.
Mr. McClennan’s prior LIHTC projects —completed while working for Bonstra | Haresign Architects —
include:
• Vivre DC—49 unit, market-rate development in Washington, D.C.
• The Cadence—97 unit, 4% LIHTC development in Arlington, VA.
• Jackson Crossing—78 unit, 9% LIHTC development in Alexandria, VA.
SITE CONTROL:
On January 31, 2022, 950 Eastern Ave, LLC purchased the site fee simple from 7- Eleven, Inc. for
$1,600,000. On August 10, 2022, 950 Eastern Ave, LLC sold the site to 950 Eastern Ave TM, L.L.C. (the
“Borrower”) for $2,800,000. According to interviews conducted by the appraiser, Novogradac Consulting,
Inc., the difference in sales price is attributable to 7 -Eleven, Inc. disposing of excess real estate and as a
result, the pricing was not fully testing the market. In its appraisal dated January 12, 2022, Novograd ac
concluded an “as-if vacant” value of $2,800,000, affirming the purchase price was in line with market
considerations.
The Borrower was incorporated on February 3, 2022, and consisted of an affiliate of United Planning
Organization (“UPO”) with 51% interest, an affiliate of TM Associates Development, Inc. (“TM Associates”)
with 34.3% interest, and an affiliate of Kadida Development Group LLC (“KDG”) with 14.7% interest.
On May 30, 2025, Cubed Community Partners LLC (the “Sponsor”) acquired the membership interests of
TM Associates and KDG through a membership interest purchase agreement. The Sponsor entity is owned
50% by Ikeogu Imo and 50% by Emmanual Egoegonwa. This provides the Sponsor with site control. The
purchase included all relevant work products, including third-party reports, contracts, and governmental
approvals to develop the site as proposed.
Prior to financial closing, Cubed will sell a 9.8% interest in the Borrower to an affiliate of Shift Catalyst LLC
(“Shift Catalyst”). Thus, upon financial closing, the Borrower will consist of an affiliate of UPO (51%
interest), an affiliate of Cubed Community Partners (39.2% interest), and an affiliate of Shift Catalyst (9.8%
interest). Cubed Community Partners and Shift Catalyst will be the guarantors for the Development.
19
ENVIRONMENTAL REPORT:
A Phase I environmental assessment report was completed by ECS Mid-Atlantic, LLC (ECS) on December
30, 2021. An updated Phase I will be required for Final Bond. The assessment was done in conformance
with the Standard Practice for Environmental Site Assessments: Phase I Environmental Site Process (ASTM
Standard E 1527-13) and the US EPA’s All Appropriate Inquiries rule. The Phase I environmental
assessment report found no evidence of Recognized Environmental Conditions (“RECs”), Historic
Recognized Environmental Conditions (“HRECs”), Controlled Recognized Environmental Conditions
(“CRECs”), or Business Environmental Risks (“BERs”).
ZONING & ENTITLEMENTS:
According to the District of Columbia Office of Zoning, the Proposed Development site is zoned MU-4. The
Development’s MU-4 designation allows for the Development to have a maximum FAR of 2.5, a maximum
height of 50 feet, and a rear-yard requirement of 15 feet. The zoning also requires one parking space per
three units exceeding four units. The MU -4 zoning classification does not have a designated maximum
number of units per acre. Due to the Development’s affordability, inclusionary zoning will apply, boosting
the FAR by 20%, which increases the maximum FAR to 3.0 and the maximum lot occupancy to 75%. The
building can be constructed by right under the MU-4 zoning.
SCOPE OF WORK:
The site is currently improved with a vacant convenience store that was constructed in the 1980s. The
convenience store will be demolished in order to construct a fifty-six (56) unit multifamily building. Of the
fifty-six (56) units, twelve (12) will be one-bedroom units, twenty-seven (27) will be two-bedroom units,
and the remaining seventeen ( 17) units will be three -bedroom units . The Development will be
approximately 85,835 square feet with a five-story wood frame over concrete podium. Of the fifty-six (56)
units, nine (9) will be allocated as ANSI Type A and will meet wheelchair accessibility standards with
maneuvering clearances, controls with reach ranges, and accessible sinks and spaces within the kitchen
and bathrooms.
The Development will have one level of below -grade parking with twenty-eight ( 28) parking spaces
available for residents on a first -come first-serve basis. The overall parking ratio is 0.5 spaces per unit,
which complies with zoning regulations. Additionally, the Subject is located in an urban neighborhood
with good access to public transportation, which mitigates some parking need. The Development will have
over 1,100 square feet of community space on the ground floor where United Planning Organization will
provide hands -on resident services throughout the life of the Development . Residents will also have
access to secured mail and package rooms on the ground floor as well as an outdoor space at the rooftop
level to congregate and hold activities.
The Development will be designed to meet the 2020 Enterprise Green Communities Plus criteria. Green
features for the Development will include Energy Star rated appliances, energy-efficient light fixtures,
plumbing fixtures designed for low water usage, and a rooftop solar array. The Development's amenities
will include a business center/computer lab, community room, elevators, and free Wi-Fi. The in -unit
amenities at the Development will include dishwashers, washer and dryers, walk-in closets, and central
air conditioning.
20
The Development will have below-grade parking with 28 parking spaces available for residents on a first -
come first -serve basis. The overall parking ratio is 0.5 spaces per unit, which complies with zoning
regulations. Additionally, the Development is located in an urban neighborhood with good access to public
transportation which mitigates some parking need.
SECURITY:
The Sponsor plans to include a limited a ccess control system including door contacts, elevator systems
requiring key fobs for operation , and an entry intercom system. Other security features include
surveillance cameras monitoring the building exterior and the parking garage. Kastle Systems will provide
offsite 24-hour monitoring of the surveillance cameras. Two full-time armed security guards are budgeted
($165,000) for 24/7 surveillance of the community.
GENERAL TENANT SERVICES:
The Sponsors intend to retain the services of the United Planning Organization (UPO) as the Resident
Services provider and Permanent Supportive Housing provider. For 60 years, UPO has operated nearly 30
programs to more than 50,000 D.C. residents each year through 400+ dedicated employees. Services will
be sustained by UPO with funding from federal grants , private foundations, local public grants, and
individual donors.
The year-one resident services budget for the Development is below:
Resident Services Budget
Description Budget
Personnel $78,816
Contractual $7,500
Supplies $6,000
Travel $6,750
Programmatic $179,380
Other costs $9,000
Indirect costs $45,474
Total Expenses $332,920
21
UPO will work out of the Development’s community space to offer place- based, supportive services to
residents, including:
• UPO training, education, housing, and other supportive services
• Community meetings
• Community needs assessment focus groups
• Community organizing
• Leadership/advocacy skills development through UPO’s Community Leadership Academy
• Community-inspired social events meant to encourage community building
• UPO-offered, periodic trainings, workshops, and seminars
• UPO -offered services for those who meet income qualifications either on -site or though
remote/hybrid means
• Food security and other supports (e.g., groceries, PPEs, Turkey give-a-ways, books, laptops, etc.)
While most programs will be offered on site, others may be conducted remotely or through hybrid
virtual/remote access. Such programs include:
Vocational Training: Residents will be in proximity to UPO’s Building Careers Academy (BCA) located at
915 Girard Street NE, which is a 16-minute ride from the Development and can be easily accessed from
the Rhode Island Avenue Metro station. BCA is operated under UPO’s Workforce Institute which offers 10
credentialing vocational training courses in high-demand job sectors for the region. Residents meeting
CSBG income requirements can earn a credential in culinary arts, hospitality, transportation, early
education associate, construction trades, and IT, among others.
Employment Services: Residents at the Development will also have access to UPO’s Employment Support
services offered at UPO’s Petey Greene Center located at 2907 Martin Luther King, Jr. Ave SE, a 13-minute
ride from the Development. Residents meeting CSBG income requirements can receive employment
support including job search, interview preparation, resume building, job placement services, and case
management services to help them to secure other supports needed to become self-sufficient.
Financial Empowerment Services : All residents at the Development will have access to UPO’s Financial
Empowerment Center (FEC) services offered at the Petey Greene Center. The FEC offers professional,
financial counseling to enable residents to address their financial challenges, needs, and plans for their
futures. Residents will receive free, one -on-one professional counseling assistance with money
management, budgeting, reducing debt, establishing and improving credit, connecting to safe and
affordable ban king services, building savings, and referrals to other services and organizations. This
program can be offered on site on a limited basis, annually. Additionally, this service can be offered
through a combination of remote/hybrid means.
22
Free Tax Prep Services: As part of UPO’s offering of wealth -building support services, UPO will offer
residents free tax preparation services through its VITA (Volunteer Income Tax Assistance) program.
Residents at the Development who have incomes of $67,000 or less will qualify for this service. This service
is also offered at UPO’s Petey Green Center and offered through remote/hybrid access points.
Early Education Services: Although UPO does not plan to offer on -site early learning services at the
Development, it is important to note that residents with young children, ages 0 -3, needing early learning
(day care) services will be in close proximity to two nearby UPO-operated early learning centers: Paradise
Early Learning Center (located within 1.7 miles of the Development) and the CW Harris Elementary School
center (located within 1.5 miles of the Development).
UPO works extensively with their network of partner organizations such as the Latino Economic
Development Corporation, Community Connections, Salvation Army, and Catholic Charities to
supplement UPO services or to provide additional outlets that may be more convenient. These are only a
few examples of the extensive relationships UPO has with social service organizations that continue to
integrate their services to better the lives of District residents.
PERMANENT SUPPORTIVE HOUSING SERVICES:
In 2018, UPO applied for and was awarded a Human Care Agreement (HCA) contract to perform as a PSH
provider for the District of Columbia. The PSH program is offered under UPO’s Community Health Division.
Currently, UPO’s PSH program provides services to 32 families and 36 individuals throughout Washington,
D.C. UPO will be providing services for the Development’s thirteen (13) PSH units.
The Development will be categorized as a Limited Site -Based PSH . Through its HCA contract, UPO will
provide a set of services and interventions focused on assisting the clients participating in the PSH
program to obtain and retain permanent housing and move towards self-sufficiency based on the client’s
goals and preferences outlined in their case management plan. These services include coordinate of and
assisting clients to access financial assistance, tenancy supports, social services, and other resources
available in the community.
Case management services at the Development will include on-site case management staff being available
in the building to assist PSH residents during UPO’s regular hours of operation (Monday through Friday).
UPO will provide case management services in the 1,100 square foot community space located on the
ground floor of the Development. In addition to the PSH staff, the Development will also include a full-
time property manager on site and 24/7 surveillance by armed security guards.
MARKET DESCRIPTION:
The Development is located in the northeast quadrant of the District of Columbia. The neighborhood
surrounding the site consist of uses including multifamily residential uses, rowhouses in average to good
condition, commercial uses concentrated along corridors such as Eastern Avenue NE, Division Avenue NE,
and Sheriff Road NE, along with institutional uses including schools, recreation centers, and houses of
worship. The site is located adjacent to a W4 WMATA Metrobus stop and 0.8 miles from the WMATA
Deanwood Metro station, which serves the Orange Line. The site is designated as “Somewhat Walkable”
by WalkScore with a score of 56 and “Somewhat Bikeable” with a score of 32.
23
VACANCY AND ABSORPTION:
Based on the January 2022 Market Feasibility Study prepared by Novogradac Consulting LLP, the
aggregate stabilized physical vacancy rate in the 950 Eastern Avenue market area is low at 0.9%. An
updated market study will be required for Final Bond. The aggregate physical vacancy among LIHTC
communities is 0.7%. Of the seven nearby LIHTC communities, five reported waitlists ranging from 15-40
households. These trends indicate strong demand for affordable housing in the market area. Strengths of
the Development will include its new construction and competitive unit sizes. The transaction has been
underwritten with an economic vacancy of 7% (4% physical vacancy and 3% bad debt).
The table below displays a list of income restricted properties with available vacancy rates in the Lower
Northeast submarket as of January 2022.
24
Currently in the District there are elevated collection loss rates, which may still be in effect when the
community is placed in service. Based on the November 2023 Cohn Reznick Affordable Housing Credit
Report, the average Debt Service Coverage Ratio (DSCR) for a LIHTC community in the District is 0.88x and
the average per unit cash flow is -$311 (owners are funding operations from their balance sheets due to
deficits). Additionally, in conversations with property managers , vacancy and collection loss rate s range
from 10% to 25%.
Fannie Mae has underwritten a vacancy and collection loss of 7%. ERAP reform is anticipated to
significantly shorten the timeframe for warranted evictions. When evictions are processed within a more
reasonable time frame, vacancy and collection loss should reduce to a level that is more in line with pre -
covid trends. The following analysis from Holland and Knight details the positive influence of the
Emergency Rental Assistance Reform Emergency Act of 2024 on expediting warranted evictions:
“Prior to the recent legislative amendments, the court was required to stay proceedings in eviction cases
when tenants filed an application for ERAP funds, even if the tenant were ineligible for the funds or would
not receive enough ERAP funds to cover the full amount of unpaid rent and the housing provider opts not
to pursue a payment plan to cover the remaining arrearages. Additionally, because of the quarterly
application process, tenants were able to secure multiple stays in an eviction case. Thus, ERAP processes
and procedures have resulted in lengthy eviction proceedings, contributing to a significant backlog in the
Landlord Tenant Branch of Superior Court. There are for significant changes under the Emergency Rental
Assistance Reform Emergency Amendment Act of 2024 that would help this lengthy process:
• A tenant must now describe the nature of their emergency in their ERAP application;
• The definition of “emergency situation” was refined to characterize emergency situations as those
resulting from an unforeseen or unusual event, such as a job loss or high medical costs, that
impacts an applicant's ability to pay rent and cannot be resolved without financial assistance
• The court may stay an eviction proceeding only once during the pendency of an ERAP application;
and
• A tenant is required to provide evidence that the ERAP application could result in sufficient rental
assistance to pay the full amount of rent owed or, if not, consent to enter into a payment plan
agreement with the housing provider to cover the remaining unpaid rent.
Laws adopted on an emergency basis take effect immediately following approval by the mayor and remain
in effect no longer than 90 days. The council may adopt legislations that keeps the amendments in place
on a permanent basis.”
Overall, the Development will set aside units at extremely affordable and deeply affordable income bands
of AMI. Given that the Development will be newly built and have modern amenities, DCHFA is comfortable
that the Development will lease-up according to plans. The projected absorption rate for the property is
three months or approximately 20 units per month.
25
APPRAISAL:
DCHFA underwriting staff has reviewed the appraisal prepared by Novogradac Consulting LLP and dated
January 12, 2022. An updated appraisal will be required for Final Bond. The appraisal concludes an “as-if
vacant” value of $2,800,000 and a prospective leased fee value under a restricted LIHTC scenario of
$10,800,000. The projected $ 5.40MM permanent debt and stabilized restricted value of $10,800,000
reflects a permanent loan LTV of 50.0%.
UNDERWRITING NOTES: UNIT MIX
The project unit mix is displayed below:
Unit Type # of Units AVG Unit Size (SqFt)
1 BR 12 609
2 BR 27 856
3 BR 17 1,024
Total 56 854
The project affordability mix is displayed below:
% AMI # of Units % of Units
30% 13 23%
50% 43 77%
Total 56 100%
26
INCOME:
Gross Potential Rent (Affordable Rent Revenue) : The MLNI Underwriting Staff has underwritten
GPR/Affordable Rent Revenue based on proposed rents at stabilization. The property will consist of fifty-
six (56) units, with 23% of the units set aside for households earning 30% of AM I or below, and 77% of
units set aside for households earning 50% of AMI.
The table below illustrates the stabilized rents at the property:
NET OPERATING INCOME:
The MLNI Staff has underwritten the property’s NOI to $463,334 which supports a permanent mortgage
of $5,400,000 with an amortizing DSCR of 1.15 in Year 1.
Vacancy: The MLNI Staff has underwritten the property’s economic vacancy to 7% (4% vacancy and 3%
bad debt).
Effective Gross Income (EGI): The EGI has been underwritten to $ 1,033,896 or $18,462/unit. The
underwritten EGI has assumed an increase in rents at a rate of 2% per year.
Market/
Affordable
1 BR 50% Affordable None Type A 3 615 $1,337 $1,261
1 BR 50% Affordable None 9 607 $1,337 $1,261
2 BR 30% Affordable LRSP/PSH Type A 3 856 $1,552 $1,465
2 BR 50% Affordable None 24 856 $1,609 $1,522
3 BR 30% Affordable LRSP/PSH 7 987 $2,030 $1,932
3 BR 30% Affordable LRSP/PSH Type A 3 1198 $2,030 $1,932
3 BR 50% Affordable None 7 987 $1,861 $1,763
/Avg
dable
Unit Type % AMI Subsidy
Assumption # of Units Unit Size
(Sq. Ft)
Net Underwriting
Rents / Wtd Avg.
56 854 $1,654 $1,566
Rent/Wtd
Avg.Accessibility
27
RENT COMPARABLES
The Development will offer thirteen (13) units at 30% AMI which will operate with Local Rent Supplement
Program (LRSP) subsidies from the District of Columbia Housing Authority (DCHA) . DCHFA staff reviewed
a 2022 market study completed by Novogradac Consulting, Inc. to determine the market’s ability to
assumed the proposed Development and the reasonableness of the projected rents. The LRSP subsidy
covers the portion of rent exceeding 30% of the participant’s adjusted gross income.
The Development will offer 43 units at 50% AMI. The Development’s underwritten net rents for 50% AMI
units are $1,413 for one-bedroom units, $1,696 for two-bedroom units, and $1,1959 for three-bedroom
units. These rents are 8 % below the 2025 LIHTC maximum rents. The market study concludes average
comparable rents at $998 for one -bedroom units, $1,173 for two -bedroom units, and $1,20 7 for three-
bedroom units. At the time of the market study (January 2022), two of the three comparable properties
were achieving maximum LIHTC rents. The remaining property, Bass Circle Apartments, reported rents set
below the maximum allowable levels. The Development will offer superior condition and superior
amenities to Bass Circle Apartments, including an in-unit washer/dryer.
AMI One-Bedroom T wo-Bedroom Three-Bedroom
950 Eastern Avenue (Subject) 50% 1,413 1,696 1,959
LIHTC Limits Achieving LIHTC Maximums 50% 1, 537 1,845 2,131
Bass Circle Apartments No 50% 778 875 946
St. Stephens Yes 50% 1,113 1,336
The Solstice Yes 50% 1,103 1,307 1,468
998 1,173 1,207
42% 45% 62%
-8% -8% -8%
*Comp rents are from January 2022 market study
50% AMI LIHTC Rental Comps - 950 Eastern Avenue
Subject Compared to LIHTC Maximum
Subject Compared to Comp Average
Average Rent Per Unit Type (Affordable)
28
EXPENSES
Total expenses are underwritten to $ 570,562 or $10,379/unit including reserves, trustee fees, or LIHTC
monitoring fees, and $9,929/unit without reserves and fees.
Below are expense comps provided by DCHFA’s Portfolio Asset Management Staff:
The DHCFA Portfolio & Asset Management (PAM) staff provided operating expense comparables for
analysis. The properties analyzed are similar to the subject in age or date of recent renovation (within 8
years), income restrictions, tenant-paid utilities, occupancy type (general/family) and property type (mid-
rise2). The three comparables are between 71-93 units, larger than the proposed Development’s fifty-six
(56) units. The annual, per-unit operating expenses (before reserves, trustee fees, and LIHTC monito ring
fees) for the comparable set ranges from $ 9,263 to $9,689. The projected per unit operating expense of
$10,379/year for the Development is higher than the comparable set, indicating conservative expense
projections.
Property Name 950 Eastern Ave Petworth Station The Avenue S t. Stephens
Audit Year 2025 2024 2024 2024
Y
ear Built 2027 2019 2018 2017
Building Type Mid-Rise| 5 floors Mid-Rise| 3 Floors Mid-Rise | 6 floors Mid-Rise | 4 floors
Number of Units 56 93 86 71
AMI 100% @ 50% AMI - 30% AMI 100% @ 60% and lower 100% @ 60% and lower 100% @ 60% and lower
EGI 1,010,488$ 1,369,195$ 1,222,411$ 1,018,767$
Occupancy 96% 98% 99% 97%
Risk Share or Private Placement Private Placement Non-Risk Share Non-Risk Share Non-Risk Share
Real Estate Tax Status Exempt Exempt Exempt Exempt
Ward Ward 7 | NE | Deanwood Ward 8 | SE | Congress Heights Ward 7 | NE | Deanwood W ard 7 | NE | Fort Dupont
Operating Expenses
Administrative 225,339$ 264,738$ 351,459$ 349,617$
Operating and Maintenance 241,616 346,305 249,884 151,344
Utilities 70,415 117,470 94,918 102,417
Tax, Insurance, & License 43,863 132,977 137,030 76,327
Total 581,233$ 861,490$ 833,292$ 679,706$
Per Unit Per Annum
Administration 4,024 2,847 4,087 4,924
Maintenance 4,315 3,724 2,906 2,132
Utilities 1,257 1,263 1,104 1,442
Tax, Insurance, & License 783 1,430 1,593 1,075
Total 10,379$ 9,263$ 9,689$ 9,573$
Expense/Income Ratio 58% 63% 68% 67%
Distance Subject 8 Miles 7.4 Miles 1.9 Miles
DSCR 1.15 0.85 0.95 1.17
Tenants Services
Real Estate Taxes -$ 85,784$ -$ -$
Total Adjustments (Real Estate Taxes) - 975 - -
Total Expenses after adjustment - 775, 706 - -
Total Expense (per unit) 10,379 9,263 9,689 9,573
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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 percent of the units for households with incomes at or below 60 percent of AMI.
Pursuant to IRS Section 42 requirements for tax credits and to maximize tax credit equity, the Sponsor has
elected to set aside 100 percent of the units at or below 60 percent of AMI for 40 years following the year
the Project is placed in service.
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 execut e 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.
Green Building Requirements
The Sponsor will be required to fulfill the requirements of the Green Building Act. The Development will
meet these requirements through construction under the 2020 Enterprise Green Communities Plus
Closing Timeline
DCHFA Inducement Approval 7/8/2025
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
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criteria. Green features for the Development will include Energy Star rated appliances, energy -efficient
light fixtures, plumbing fixtures designed for low water usage, and a rooftop solar array.
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 Project 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 Development consists of fifty-six ( 56) units. It is planned that forty-three (43)
of the units will be set aside for residents making 50% AMI o r below. The remaining thirteen ( 13) units
will be Permanent Supportive Housing units for formerly homeless tenants making 30% AMI or below.
The Development will deliver family-sized units in a market where many newer properties tend to include
a higher share of one- and two-bedroom units. The Multifamily Lending and Neighborhood Investment
underwriting staff recommend that the Board authorizes initial inducement approval of bonds in an
amount not to exceed $25,075,000 to finance a portion of the costs to build the proposed Development.
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950 EASTERN AVE - PROJECT INFORMATION SHEET
Item Facts
Development Type: Demolition and New Construction
Project Type: Conduit
Project Name: 950 Eastern Avenue
Location: 950 Eastern Ave NE, Washington, D.C.
Ward: Seven (7)
Tax Exempt Bond Amount: Not To Exceed $25,075,000
Credit Enhancement: Fannie M.TEB
Total Acquisition Costs/Unit: $2,800,000 or $50,000 per unit
Total Construction Costs/Unit: $30,339,533 or $541,778 per unit
Total Development Cost/Unit: $ 45,945,833 or $820,461 per unit
Evidence of Site Control: Fee Simple Deed
Mortgagor/Sponsor: 950 Eastern Ave TM MM L.L.C.
General Contractor: Hamel Builders
Architect of Record: ZDS Inc.
Management Agent: Gateway Management Services, LLC
Sponsor’s Attorney: To Be Determined
# Of Buildings: 1
# Of Units: 56
# Of Parking Spaces: 28
Current Zoning: MU-4
Census Tract/QCT: 78.07
Land Size: 0.46 (ACRES)
Building Size: 84,997 sf
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APPENDIX
1. Financial Model
2. Construction Comps