unds will support and preserve affordable housing in the Washington, DC area
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced that the Department of Housing and Community Development (DHCD) in Washington, DC will receive a $38.8 million loan guaranteed by HUD to fund a variety of affordable housing rehabilitation projects that will preserve and increase the number of affordable units in the District.
The funding announced today is guaranteed through HUD’s Section 108 Loan Guarantee Program (Section 108), which provides local governments with a public investment tool to help renew communities and catalyze development in underserved areas. Section 108 provides access to low cost, flexible financing that can serve as the public commitment often needed to inspire private investment to further stimulate community development in distressed areas.
“These guaranteed loans will help to develop and preserve affordable housing to serve low-income families in Washington, DC,” said James Arthur Jemison, Principal Deputy Assistant Secretary for Community Planning and Development. “Today’s funding announcement demonstrates HUD’s commitment to working collaboratively with communities to help revitalize neighborhoods and realize their priorities.”
“We thank President Biden and his Administration for approving this investment in much-needed affordable housing for DC residents. Building back better and ensuring an equitable recovery means working together across every level of government to meet the needs of those who have been hit hardest by the pandemic and the economic crisis it caused. We know that for many Washingtonians, access to safe and affordable housing is the first step to getting back on their feet,” said Mayor Muriel Bowser. “As we continue through our response and recovery, this funding will allow us to double down on our ongoing housing efforts, protect DC’s stock of affordable housing, and give more Washingtonians a fair shot.”
DHCD is using Section 108 guaranteed loan funds to establish an affordable housing rehabilitation loan fund that will provide third-party loans for the preservation of housing for households earning up to 80 percent of the area median family income. The loan fund will be established to expand the DHCD’s financing capacity, enabling preservation of additional affordable housing in the District of Columbia.
Additionally, these loan funds will rehabilitate owner-occupied affordable housing and existing affordable rental properties that will use Low Income Housing Tax Credits (LIHTC) and Limited Equity Cooperatives that typically have difficulty securing competitive financing terms from the private market. Loans for both types of projects will be made to qualified for-profit and nonprofit developers with eligible affordable housing projects.