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March 20, 20 26
The Honorable Phil Mendelson
Chairman
Council of the District of Columbia
1350 Pennsylvania Avenue NW, Suite 504
Washington, DC 20004-3003
Dear Chairman Mendelson:
Pursuant to D.C. Official Code §2-352.02, I have enclosed, for consideration by the Council of the District of Columbia,
the (a) Council Contract Summary for the Agreement to Enter into a Long-T erm Subsidy Contract (“ALTSC”) between
the District of Columbia Housing Authority (“DCHA”) and 229 M Street NE Owner LLC (“Owner”), and (b) Local Rent
Supplement Program Contract No. 2026-LRSP-01A Approval Resolution of 2026. DCHA proposes to provide a housing
subsidy to the Owner in the initial amount of $615,228 annually for a multi-year term of twenty (20) years, in support
of the District’s Local Rent Supplement Program to provide twenty-four (24) affordable housing units at 2229 M
located at 2229 M Street, NE.
As always, I am available to discuss any questions you may have regarding the proposed ALTSC. In order to facilitate a
response to any questions concerning this ALTSC, please have your staff contact my Chief of Staff, Alethea McNair at
(202) 993-8190.
I look forward t o your favorable consideration of this proposed ALTSC agreement.
Sincerely,
Ke
ith Pettigrew
Executive Director, District of Columbia Housing Authority
Enc
losures
KP/h
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cc
: Nyasha Smith, Secretary to the Council
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A PROPOSED RESOLUTION
~~ ~ Phil Mendelson
at the request of District of
Columbia Housing Authority
IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
To approve an agreement to enter into a long-term subsidy contract for twenty (20) years in
support of the District's Local Rent Supplement Program to fund housing costs
associated with affordable housing units for Contract No. 2026-LRSP-0lA with 2229 M
Street NE Owner LLC for program units at 2229 M located at 2229 M Street NE.
RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
resolution may be cited as the "Local Rent Supplement Program Contract No. 2026-LRSP-0lA
Approval Resolution of 2026".
Sec. 2. (a) In 2007, the District passed Title II of the Fiscal Year 2007 Budget Support
Act of 2006 ("BSA") to provide funding for affordable housing for extremely low-income
households in the District. The passage of the BSA created the Local Rent Supplement Program
("LRSP"), a program designed to provide affordable housing and supportive services to
extremely low-income District residents, including those who are homeless or in need of
supportive services, such as elderly individuals or those with disabilities, through project-based,
tenant-based, and sponsored-based LRSP affordable housing units. The BSA provided for the
District of Columbia Housing Authority ("DCHA") to administer the LRSP on behalf of the
District.
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(b) In June of 2019, the District of Columbia’s Department of Housing and Community 1
Development (“DHCD”) issued a Request for Proposals (“RFP”) regarding the availability of 2
funds from multiple district agencies, including DCHA, DHCD, the Department of Behavioral 3
Health, the Department of Human Services, and the District of Columbia Housing Finance 4
Agency. Of the twenty-one (21) total proposals received, eleven (11) developers were chosen to 5
work with DCHA and others to develop affordable housing and permanent supportive housing 6
units for extremely low-income families making zero to thirty percent (30%) of the area’s 7
median income, as well as the chronically homeless and individuals with mental or physical 8
disabilities throughout Washington, DC. 9
After meeting the requirements for DHCD review and LRSP subsidy eligibility, 10
proposals were evaluated on various underwriting and prioritization criteria including financial 11
feasibility, project sustainability, development team capacity, amount of capital requested, 12
nonprofit participation, and furtherance of the development of affordable housing. Additionally, 13
DCHA has determined that the proposed project meets the District of Columbia’s Consolidated 14
Plan and the Mayor’s goal for providing affordable housing opportunities in neighborhoods. 15
Upon approval of the contract by the Council, DCHA will enter into an agreement to 16
enter into a long-term subsidy contract (“ALTSC”) with the selected housing providers under the 17
LRSP for housing services. 18
(c) There exists an immediate need to approve the long term subsidy contract with 2229 19
M Street NE Owner LLC under the LRSP in order to provide long-term affordable housing units 20
for extremely low-income households for units located at 2229 M Street, NE. 21
(d) The legislation to approve the contract will authorize an ALTSC between DCHA and 22
2229 M Street NE Owner, LLC with respect to the payment of a rental subsidy and allows the 23
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owner to lease the rehabilitated units at 2229 M and house extremely low-income households 1
with incomes at thirty percent (30%) or less of the area median income. 2
Sec. 3. Pursuant to section 451 of the District of Columbia Home Rule Act, approved 3
December 24, 1973 (87 Stat. 803; D.C. Official Code § 1-204.51), and section 202 of the 4
Procurement Practices Reform Act of 2010, effective April 8, 2011 (D.C. Law 18- 371; D.C. 5
Official Code § 2- 352.02), the Council approves the ALTSC with 2229 M Street NE Owner, 6
LLC to provide an operating subsidy in support twenty four (24) affordable housing units in 7
an initial amount not to exceed $615,228 annually. 8
Sec. 4. Transmittal. 9
The Council shall transmit a copy of this resolution, upon its adoption, to the District of 10
Columbia Housing Authority and the Mayor. 11
Sec. 5. Fiscal impact statement. 12
The Council adopts the fiscal impact statement of the Chief Financial Officer as the 13
fiscal impact statement required by section 4a of the General Legislative Procedures Act of 1975, 14
approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 15
Sec. 6. Effective date. 16
This resolution shall take effect immediately. 17