Refinancing also creates new and enhanced employment and educational services for residents
WASHINGTON, D.C. (Dec. 4, 2015) WinnCompanies, an award-winning national property development and management company, today joined with Mayor Muriel Bowser and District housing leaders to formally begin work on a $69-million rehabilitation that will preserve 303 apartments as low-income housing for decades to come.
The massive two-year effort not only will completely modernize every aspect of the Atlantic Gardens and Atlantic Terrace apartments and maintain both communities as critically needed Project-Based Section 8 housing for 750 residents, but also will strengthen the job placement and educational services as well.
This project is concrete evidence of our commitment to maintaining the highest possible quality affordable housing communities in the District of Columbia, said Gilbert Winn, CEO of WinnCompanies. My father had the vision and the tenacity to invest in these properties more than three decades ago. We're pleased to be able to team up with residents, local officials to re-affirm that commitment and ensure a bright future for our residents and these communities.
The work will upgrade and modernize resident apartments, including kitchens, bathrooms, appliances, flooring, doors, lighting, plumbing, wiring, HVAC systems, smoke detectors and paint. Curbs, sidewalks, parking lots, gutters, fencing, lighting and landscaping also will be repaired or improved.
The affordable nature of the properties will be guaranteed for at least 40 years through an extension of the current Housing Assistance Payment contract and the use of Federal Low Income Housing Tax Credits and monies from the DC Housing Production Trust Fund.
Today's announcement is yet another example of my Administration's efforts to ensure our city remains inclusive and affordable for anyone who wants to call the District home, said Mayor Bowser. We will continue to fight to preserve, protect and produce quality affordable housing in all eight wards.
Partnerships between WinnCompanies and District non-profits, including United Planning Organization and City Gate, will bring new and enhanced services to residents, including job placement programs, expanded early childhood learning opportunities and new computer learning options.
This project brings me a happy sense of dÃ©j vu because we are renewing and revitalizing the commitment I made to these communities 33 years ago, saidArthur Winn, founder and principal of WinnCompanies. We are writing a new chapter in a great story. It's a story about stepping up to the plate and keeping your promises, even when that may be hard, because it's the right thing to do for people who need affordable, quality places to live.
New learning centers will be constructed at both properties; a new community room will be created at Atlantic Gardens; and, the community room at Atlantic Terrace will be expanded. Two new playgrounds will be constructed at Atlantic Gardens and a third will be upgraded at Atlantic Terrace. Security systems will be enhanced and laundry facilities will be expanded at both communities.
I am impressed with the work being done by WinnCompanies. A solid effort has been made with the $69 million dollar rehabilitation of Atlantic Gardens and Atlantic Terrace properties, said Ward 8 Councilmember LaRuby May. I must acknowledge the partnerships of WinnCompanies, City Gate, and the United Planning Organization. The results of their collaboration will bring enhanced services to the residents of both communities with early childhood learning programs, computer literacy classes, and workforce development to include job placement. Thank you WinnCompanies, City Gate, and United Planning Organization for your commitment and contribution to this community.
WinnCompanies will award a significant portion of the renovation work to Certified Small Business Enterprises in the District, with preferences for businesses in Ward 8 and District residents. Approximately 100 construction jobs and four permanent jobs will be created.
WinnCompanies' renovation of Atlantic Gardens and Atlantic Terrace exemplifies the type of affordable housing developments I want for the District, said DHCD Director Polly Donaldson. It preserves 303 units of affordable housing for 40 years, all without displacing any current residents. Plus, it uses local small businesses for much of the work, and embraces green building standards that will save the residents on their utility bills and promote environmental stewardship.
The U.S. Department of Housing & Urban Development, the DC Department of Housing and Community Development (DHCD), the DC Housing Finance Agency(DCHFA), Citi Community Capital, DC Sustainable Energy Utility and Boston Financial Investment Management are providing financing.
DCHFA's issuance of $32.1 million in tax-exempt obligations to fund the redevelopment of Atlantic Gardens and Atlantic Terrace is an investment in Ward 8, as well as an example of the Agency's commitment to preserving, maintaining and expanding affordable housing in the District, said Maria K. Day-Marshall, Interim Executive Director, DCHFA. This impactful project is the Agency's first transaction of Fiscal Year 2016. In addition to the tax-exempt debt, the project was partially financed by $21.2 million in 4 percent low income housing tax credit (LIHTC) equity underwritten by the Agency's Public Finance Division.
The phased renovations are expected to be completed by September 2017. Affected residents will be housed in vacant units on site or nearby when work impacts their building. Both properties will be certifiable as Enterprise Green Communities once the project is done. Keith Construction is the general contractor and The Architectural Team is the architect.
WinnCompanies acquired the properties in 1982. The two communities occupy eight acres along 3rd and 4th streets in Southeast. Atlantic Gardens, built in 1948 and last renovated in 1982, features 105 apartments within five three-story garden-style buildings. Atlantic Terrace, built in 1964 and last renovated in 1988, is comprised of 195 units in six three- to four-story garden-style buildings.
WinnCompanies manages 1,340 apartments at eight properties in Washington, DC. In 2013, it completed a similar large-scale renovation and refinancing of the Samuel Kelsey Apartments, a 153-unit subsidized community for elderly in Columbia Heights that it has owned since 1983. The refinancing of that property will maintain it as affordable through the year 2041.
In addition, WinnCompanies this spring entered into a development agreement with the Sursum Corda Cooperative Housing Development, which consists of 199 low-income housing units near Union Station. The Cooperative is currently requesting a zoning change that would allow Sursum Corda to implement the D.C. Office of Planning's Small Area Plan, which was developed after a comprehensive community-focused, 18-month-long process.