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Somerset Development Company, Jonathan Rose Companies, and Housing Up have begun construction on The Faircliff affordable housing project in Washington, DC.

Partnership Begins Construction on $110M Affordable Residence in Columbia Heights

Somerset Development Company, Jonathan Rose Companies and Housing Up have begun construction on The Faircliff, a $110-million, 125-unit affordable housing project located in the Columbia Heights neighborhood of Washington, DC.

The all-electric building, which according to the developers is among the most sustainable yet in DC, will be built alongside Novel 14, a 197-unit market rate apartment building built by Crescent Communities.

The Faircliff and Novel 14 together will replace the former Faircliff Plaza East apartment complex and offer units to households with income at or below 50% AMI.

 “This property was our first acquisition after we founded the company over twenty years ago, with the belief that the resurgence of Columbia Heights should first and foremost benefit the longstanding residents of this neighborhood,” said Anya Kamara, partner and director of development of Somerset Development Company.

Community amenities including a courtyard with playground, community room, learning library, fitness center, rooftop event space and a community garden.

Project Financing

Financing for the $110 million development was arranged through an innovative mix of public and private resources, including $49.3 million in tax-exempt bonds issued by the DC Housing Finance Agency (DCHFA), a $16.9 million loan from the DC Department of Housing and Community Development’s Housing Production Trust Fund, and a $439,452 initial annual rental subsidy from the DC Housing Authority to support nine 3-bedroom units of Permanent Supportive Housing (PSH) dedicated for formerly homeless families.

Capital One, National Association provided a $35.1 million FHA 221(d)(4) permanent loan and Boston Financial Investment Management represented Capital One as investors in the $42.4 million in low-income housing tax credit equity. This is Capital One’s second financing with the Jonathan Rose Companies and Somerset Development partnership.

Prior to closing, Eagle Bank provided a $25 million bridge loan to finance resident relocation and predevelopment costs.

DC Green Bank, established under the leadership of Mayor Muriel Bowser and the DC City Council in 2018 to accelerate the deployment of affordable private and public capital for clean energy projects, delivered a $1.85 million predevelopment loan to enable the project to achieve LEED Platinum and Phius sustainable design certifications.

Local Initiatives Support Corporation also provided a $500,000 predevelopment loan for the project.

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Inside The Story

Somerset Development Company's Kamara

About Lisa McDuffie

Lisa McDuffie arrives at ConnectCRE via REALTOR® world, where she served for nearly two decades as communications director for one of the nation’s largest REALTOR® organizations. She supported two membership-elected presidents who were commercial real estate practitioners, and managed the communications initiatives of the organization’s commercial special interest group. When not following the latest commercial real estate news, Lisa is zeroed in on her charismatic off-the-track thoroughbred as she makes the transition from an utterly failed racehorse to a lovely show hunter.

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