(WASHINGTON, DC) – Today as part of "Mayor Bowser’s “New Year, New Housing,” the Department of Housing and Community Development (DHCD) announced that Low-Income Investment Fund (LIIF), Capital Impact Partners and Local Initiatives Support Corporation-DC were selected as fund managers for the Affordable Housing Preservation Fund. Additionally, DHCD announced the disbursement of Fiscal Year 2020’s $10 million in Preservation Funds that when leveraged by the fund managers will bring the fund to a record $116 million.
“It is our challenge to be more creative in leveraging all of our resources whether public or private to preserve existing affordable housing,” said DHCD Director Polly Donaldson. “We are delighted to have partners that can help increase our capacity to preserve more affordable housing in the District. We have a lot to be proud of, but there’s more work to do.”
In March 2018, Capital Impact Partners and LISC-DC were selected as housing preservation fund managers with each leveraging $5 million for the preservation of affordable housing units. Since then, Capital Impact Partners has provided more than $28.2 million in financing for five (5) projects that have preserved 862 affordable housing units.
“We are excited to be working with the District once again to engage with residents and mission-driven developers to preserve affordable housing across the city,” said Diane Borradaile, chief lending officer for Capital Impact Partners. “We are eager to build on our success of preserving affordable homes in 2019.”
LISC-DC has provided $35.3 million in financing for 10 projects that have preserved 505 affordable housing units.
“LISC has been working in the District for 38 years. It’s remarkable to meet people who’ve lived in their homes for longer than that,” said Ramon Jacobson, executive director for LISC-DC. “The Preservation Fund allows us as a community to share the new prosperity for the Washingtonians who are the bedrock of our neighborhoods.”
LIIF has a strong track record of successfully preserving affordable housing through its Revolving Loan Fund (RLF) which is comprised of funds raised through a bond issuance and direct investments.
“As affordable housing becomes scarcer, low income DC residents need as many resources as possible to secure units,” said Holly Denniston-Chase, deputy director for LIIF Mid-Atlantic. “We look forward to working with DHCD, developers, and tenants to acquire additional housing units, improve property conditions, and ensure long term affordability.”
The goal of the preservation fund is to aid in achieving the policy objective of the DC Housing Preservation Strike Force: preserving the affordability of 100% of the District’s existing federally and city-assisted affordable rental homes. It offers eligible borrowers short-term financing for the pre-development and acquisition of occupied multi-family properties with more than five (5) housing units and half of the households earning up to $77,600 for a family of four.
The companies were selected from responses to a DHCD solicitation in August 2019 that outlined the following duties: 1) leverage public funds with private and or philanthropic funds to provide loans to borrowers for eligible activities; 2) market, underwrite, originate and service the preservation loans; 3) ensure compliance with the terms of the Housing Preservation Fund; and 4) coordinate monthly with DCHD on the use of the Housing Preservation Fund.