PR 25-0707 — Relief for River East at Grandview Condominium Owners Emergency Declaration Resolution of 2024

___________________________ENROLLED CouncilmemberORIGINAL RobertA C.RESOLUTION 25-480 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA April 2, 2024 To declare the existence of an emergency regarding the need to provide financial relief and other assistance to the current owners of the condominium units at the River East at Grandview Condominiums.

White, Jr.

4 A PROPOSEDRESOLUTION ________ 8 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA ______________________ To declare the existence of an emergency regarding the need to provide financial relief and other assistance to the current owners of the condominium units at the River East at Grandview Condominiums.

(a) In 2011, the Department of Housing and Community Development (“DHCD”) provided a loan to Stanton View Development LLC (“Stanton View”) to cover predevelopment and acquisition costs for a Ward 8 property at 1260 to 1272 Talbert Street, S.E.,SE, Washington, DC 20020, at which Stanton View planned to develop 46 for-sale affordable housing units.

(b) In 2014, Stanton View transferred the property to Rivereast at Anacostia LLC for development, who decided instead to develop rental units and who received a Housing Production Trust Fund (“HPTF”) loan from DHCD, with the support of the Council, to do so.

(d) From July 2017 to February 2019, 46 households purchased homes at 1262 Talbert Street, S.E.,SE, in a building that has been called several different but similar names:

(e) Many of the 46 households were led by Black women becoming homeowners for the first time using the District’s Home Purchase Assistance ProgramProgram, (“HPAP”), and the newly formed community included retirees, recent graduates, young couples, veterans, parents, and parents-to-be.parents- to-be.

(g) Since the evacuation almost 3 years ago, River East at Grandview owners have ENROLLED ORIGINAL worked diligently to untangle the tremendous financial, legal, and emotional web into which they were thrown.

(n) Later that month, DHCD, DOB, the Department of Insurance, Securities, and BankingBanking, (“DISB”), representatives from Chairman Mendelson’s and Housing Committee Chairperson Councilmember Robert White’s offices, and River East at Grandview Condominium Association board members met to discuss a path forward.

(t) Since the March 88th meeting, NACA counselors have completed individual housing counseling sessions with a majority of the River East at Grandview owners.

ENROLLED ORIGINAL (u) The counseling sessions, and the feedback from owners, have highlighted the critical need for deep financial assistance for many River East at Grandview owners to successfully compete in today’s housing market and to finally move on from this dilemma.

(w) These measures are immediately necessary to ensure that River East at Grandview owners can access stable housing before their rental supports expire and to begin to provide an 96 overdue solution to 46 households who have endured ongoing uncertainty and stress since the devastating loss of their River East at Grandview homes almost 3 years ago.

The(a) CouncilIn of2014, theCouncil Districtauthorized ofup Columbiato determines$40 thatmillion thein circumstancesTax enumeratedIncrement inFinancing section(“TIF”) 2for constitutethe emergencydevelopment circumstancesof makingSkyland itTown necessaryCenter thatin the ReliefSkyland forTown RiverCenter EastOmnibus at Grandview Condominium Owners Emergency Act of 20242014 be(D.C. adopted after a single reading.

Law 20-110;

D.C.

Official Code § 2-1217.35a et seq.).

(b) The project was divided into 3 phases:

Phase 1 was a 263-unit apartment building with 84,500 square feet of retail space;

Phase 2 was 42,000 square feet of community-serving retail space;

Phase 3 will be 126 for-sale townhomes, 75 affordable apartments for seniors, and approximately 8,000 square feet of retail space.

Phase 1 topped-out in July of 2019.

Phase 2 fully leased all retail space in September of 2023.

Phase 3 is ready to begin construction.

(c) Due to market conditions, funding provided by the TIF no longer supports the anticipated timeline of the third and final phase which will complete the Skyland Town Center project.

The Deputy Mayor for Planning and Economic Development proposes a partial conversion of $15 million from the original $40 million TIF authorization.

(d) Phase 3 has received the necessary permits and zoning approvals to begin construction.

Without the timely receipt of funds, this phase will languish and jeopardize the completion of the project.

Additionally, the developer will face financial hardship from either being forced to take out loans to complete the project in a timely manner or risk failure of the project.

(e) In 2023, the developer completed a refinance of a portion of the project investing significant new private capital into Skyland Town Center, demonstrating their continued commitment to bringing the District’s original vision to fruition.

The developer continues to actively support the completion of this project, but a quicker delivery of already planned financing for this project is necessary for timely completion.

The Council determines that the circumstances enumerated in sections 2 and 3 constitute emergency circumstances making it necessary that the Relief for River East at Grandview Condominium Owners Emergency Act of 2024 be adopted after a single reading.

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