In a new piece by Market Watch, readers learn about the complex process involved in rehabilitating affordable housing units. The article chronicles the lengthy and costly process of rehabilitating 410 Cedar Street, a 30-unit affordable housing development in the Takoma neighborhood of Washington, D.C. The existing development had fallen into disrepair following several years of deferred maintenance and was severely damaged during a storm in 2016.
The article describes the intricate puzzle that pieces together an affordable housing deal, that of which dozens of participants including lenders, attorneys, property managers, investors, and others must work together to solve. According to the report, by the time the rehabilitation of Cedar Street is complete, it will have taken over three years and $13 million.
MarketWatch also details some of the tools deployed to restore the Cedar Street housing units, including the use of the Low-Income Housing Tax Credit (LIHTC) program, as well as working closely with the national community development organization Local Initiatives Support Corporation (LISC). Additionally, Washington, D.C. has a unique tool, the Tenant Opportunity to Purchase Act (TOPA), that allowed the tenants of Cedar Street to organize when the landlord decided to sell the property and identify an alternative buyer.