Douglas Development Corp. is working with the District to secure $38.5 million in federal loan guarantees to back its New City DC project near Ivy City, arguing it can't get the project off the ground without the backing.
The 1.6 million-square-foot project is “not financially feasible” without the loan guarantee as the company “cannot attract additional private financing” unless it gets access to that $38.5 million, city officials wrote in an application, citing information from Douglas, posted to the District's website Sept. 21.
The D.C. Council in July agreed to let officials apply for the loan guarantees as one step of many to find new affordable housing funding. Lawmakers approved the DHCD to leverage $5 million in Community Development Block Grant funding to provide up to $88 million in loans in 2021.
The application has not yet been submitted to HUD, DHCD Director Polly Donaldson said in a statement.
Washington Business Journal/Alex Koma