Community Preservation and Development Corp. (CPDC) came to Community Housing Capital (CHC) for a $17.8 million acquisition loan for the Randle Hill Apartments. This 96 unit rent-controlled property is a naturally affordable complex with 50 apartments rented to elderly or disabled residents or those with rental assistance vouchers. The remaining apartments are rented to market-rate residents with varying incomes. Rent control does not guarantee affordability, and with restricted income from rents, the property would be unable to continue to meet the future maintenance and renovation requirements of the development. CPDC estimated that the property would require rehabilitation of approximately $35,000-$40,000 per unit.
To provide permanent affordable housing in the District, CPDC financially restructured and renovated the property with long-term 4% LIHTC funds and other financings. The LIHTC transaction removes rent control but restricts income to 60% of area median income (AMI). While Randle Hill’s current rents are well within tax credit limits, CPDC set aside a portion of the units to be non-tax credit units, based on tenant eligibility. The non-tax credit units will be for residents that do not qualify for tax credits (usually over income), so those units will also be preserved.
CPDC is a strong and experienced nonprofit affordable housing developer in the Washington, D.C. metro area. Since 1989, CPDC has increased the stock of affordable housing in the Mid-Atlantic region by more than 5,000 units and has owned or redeveloped more than 30 affordable rental housing communities throughout Washington, D.C., Maryland, and Virginia.