DC Housing Preservation Strike Force recommended the creation of a private-public preservation fund as one of six critical strategies to preserve affordable rental housing in the District. Mayor Muriel Bowser invested $10 million in local funds for the Housing Preservation Fund in DHCD’s FY17 and FY18 Budget.
Along with other private and philanthropic investments, the $10 million will be used to grow the fund to approximately $30 million—or a combined total of $80 million. These monies will quickly provide short-term bridge acquisition and pre-development financing to eligible borrowers. Properties targeted for fund investments are occupied multi-family housing of over five units, in which at least 50 percent of units are currently affordable to households earning up to 80 percent of the median family income (MFI).
The fund has two managers: (1) Capital Impact Partners, a Certified Community Development Financial Institution (CDFI) based in Arlington, Virginia; and (2) LISC-DC, which over its 30-year history, has preserved over 3,700 units of affordable housing in the District.
The companies were selected from responses to a DHCD solicitation in late 2017 seeking the following qualifications: (1) a substantial record of affordable housing and community development lending nationally and/or in the District during the last five years; (2) a strong record of success in its lending activities; (3) access to its own private funds to invest in the Fund or the solid commitment of monies to create the Fund; (4) ready to immediately proceed with implementing the Fund; and (5) a substantial record of providing technical assistance and pre-development loans to developers.