Tomorrow with the full support of Ward 1 CM Nadeau, the Council will pass Bill 23-884, Bruce Monroe Extension of Disposition Authority Act of 2020 giving the developer an additional 3 years to perpetuate failure while pretending that the Park Morton New Community Initiative (NCI) development project is still viable.  With passage, the Council will take full co-ownership of NCI failures.

 

It will also marks another council period in which no new housing units or jobs production have benefit residents.  Instead more than half the residents of Park Morton which began the council period have been intimidated and displaced from their Park Morton homes.  Over 70 of the 133 families have been displaced contrary to NCI principles.   

 

Again, in spite of growing evidence that after 6 years the current Park Morton NCI as structured is a complete failure for residents and no longer viable, CM Nadeau remains under the delusional belief that some how DMPED and DCHA will get their act together on behalf of residents.    Well, last week’s DCHA board hearings on the New Market Tax Credits (NMTC) debacle should be enough evidence even for CM Nadeau.

 

In short, DCHA through its subsidiary DC Housing Enterprises (DCHE) was forced in desperation to drop investing $6M in 28 Lincoln Heights NCI public housing replacement units because DMPED failed to provide $3M in gap funding; although they, DMPED’s NCI Team, had 1 year to come up with the funding.  Instead DCHA was forced to pass a Resolution 20-21 authorizing that $6M to be invested in a South Central Los Angeles Hospital project to avoid loosing the $6M and jeopardizing tens of millions more in future NMTC investments for city projects.

 

If the Council approves B23-884 tomorrow in deference to CM Nadeau, they are effectively endorsing the “Keystone Cops” of housing and economic development that NCI as become as evidenced in the DCHA hearings, see links below.  The finger pointing and denial exhibited by officials and experts was embarrassing. 

 

DCHA 12/09/2020 Board of Commissioners Meeting [Start 42:00]

https://www.facebook.com/dchousing/videos/700660627515320 

 

12/11/2020 DCHA BOC Emergency Meeting Part 2

https://www.facebook.com/dchousing/videos/314324509700433

 

The reality is that if the DMPED/DCHA NCI partnership could not after a year get the 28 Lincoln Heights replacement units as part of the Strand Theater Project to closing after a year with all the advantages of time, public land, funding and no legal impediments, there is no rational reason to continue give Park Morton NCI developers carte blanche  facing much greater impediments and pressures. 

 

The Council @ Park Morton (resident council) and its Equity Team has asked the Council to waive deference and not pass B23-884, but instead only a temporary bill, 120 days, to allow time for Park Morton NCI to be restructured to ensure residents are for once “put first” and the project meets standards of development and racial equity.   

 

Especially now with the insight in to the current state of NCI loosing $6M in NMTC has provided, the Council is obligated to act in the interest of Park Morton residents, equitable development and racial equity.    Understanding, that approving B23-488 as is means that they are ignoring the evidence and taking full ownership of NCI’s Keystone ways. 

 

As well, The Council @ Park Morton and the Equity Team urges the community to reach to council reach out to Council recognize the evidence and save NCI from its Keystone self.  And adopt the Park Morton Equity Plan. 

 

William

 

————————

 

 

Park Morton NCI is depended on the same source (DMPED) of gap funding as The Strand.  The deals of structured similarly, except The Strand is better positioned. 

 

The Strand

 

Received a commitment of $14.4M in  construction financing from Citibank’s Citi Community Capital fund. 

 

In September 14th 2020 received a second 2 year PUD extension because DMPED and the development team could not put the financing together a financing capital stack for the Strand which most NCI projects depend.

 

 – Low Income Housing Tax Credits (LIHTC) 

 – DMPED Gap Financing (DMPED already put in $15.6M loan with a $5.7M increase in 2018.

 – NMTC financing which they just lost.

 – Historic Tax Credits, which they lost (~3.0M)

 – Opportunity Zone Tax Credits (a hope for)

 – A DC Grocery Tax Credit 

 – 15 Year Local Rent Supplements Contract (LRSP, $6.85M)  

 – DC Housing Finance Agency (DCFHA) $26.6M bonds, 2019.

 

The Strand has also received more LDA extensions that I can count, at least since 2009.

 

This kind of complex capital stack for the Strand is driven by the desire for these large, dense housing projects, but almost ways come at the expense of current residents and communities.  With all of these moving parts no wonder projects can’t get done, while incentivizing developers to wait for the next public handout or tax credit. 

 

Bill 23-844 is basically incentivizing Park Morton Developers to follow the path of the Strand developers.

 

 

 

———————————————————————————————————–

Testimony of William H Jordan, Member Park Morton Equity Team  on
RESOLUTION 20-21 TO AUTHORIZE DC HOUSING ENTERPRISES TO MAKE FINAL DEPLOYMENT OF REMAINING $6,000,000 IN NEW MARKETS TAX CREDIT AUTHORITY TO THE RENAISSANCE NEW MARKETS FUND LLC

 

 

Chairman Albert and Board,

 

I urge the board to seize the opportunity of the current New Market Tax Credit (NMTC) debacle to make the necessary structural and operational changes to the New Communities Initiative (NCI) and DCHA’s ongoing role.   The current $6M allocation emergency and the jeopardy to DCHE’s $122M NMTC program is a direct result of structural inequities for DCHA residents inherent in the city’s NCI program and operational deficiencies in the execution of NCI’s Build-First and replacement unit principles.

 

The Board would be foregoing its fiducial and moral responsibility by passing Resolution 20-21 without simultaneously changing DCHA’s structural relationship to NCI.  Moving forward as being proposed is akin to shaving 6 feet from the tip of the iceberg after the Titanic struct it to save the passengers’ grandchildren.

 

The primary PROBLEM here is DMPED’s mission creep and rudderless management of NCI “Build-First”, replacement unit obligations and related financing gaps.  This pattern was evident here at Lincoln Heights NCI, but also Barry Farm and Park Morton. The immediate SOLOUTION is to transfer the responsibility for NCI to DCHE, beginning with Park Morton NCI and related Park Morton Equity Plan (PMEP).   In fact, DMPED no longer has an executive/senior level Director of NCI.

I urge the board today to avoid Titanic results adopt the following modifications to Resolution 20-21:

 

The 6^th WHEREAS –  after ‘(the “Strand Project”)’ add “for the purposes of financing and building 28 Lincoln Heights Build-First units;”

 

The 8^th WHERAS – after “NHP Foundation” incert “and its public partner DMPED”

 

Add after the final and addition BE IT RESOLVED saying – “BE IT RESOLVED, DCHA Board urges DMPED to begin the transfer the responsibility for the NCI program to DCHE.  And beginning this transfer process with Park Morton NCI project with the purpose of moving the project forward including the implementation of the PMEP.”

 

See Attached Backup Materials:

 

– Excerpt Committee Report Bill 21-658, “Extension to Time to Dispose of the Strand Theater Act of 2016” (12/6/16

 

– Contract CA22-0551 – $15,600,000 DMPED Loan to developer (6/20/18)

 

– Z.C. Case No. 17-19 The Warrenton Group and NHP Foundation (6/11/18)

 

– PR23-0322 – 15 Year LRSP Contract valued at $456,456 per year to developer (5/20/19)

– DCHA Resolution 19-17 LRSP (5/8/19)

 

– Z.C. Case No. 17-19A The Warrenton Group – 2yr Zoning Extension (9/14/20)

 

————————————————————————————————