NHT Ingenuity DC I Project
Energy burden plays an important and often overlooked role in housing affordability. Energy efficiency lowers costs for both property owners and residents, improves resident health and lowers carbon emissions. NHT leverages its experience in greening its own housing portfolio to help other housing-owners embrace energy retrofits and renewable power.
In 2018 NHT and its partner Urban Ingenuity, pioneered a unique approach to harnessing solar energy for affordable housing with our NHT Ingenuity DC I project. NHT partnered with six local affordable housing owners (SOME, Victory, Mi Casa, Mission First, Urban Atlantic, and Somerset) to develop 1,407 kW of solar energy across 23 properties including apartments for families, senior-living facilities, a nonprofit office building, and a Baptist church in Southeast Washington DC.
The NHT Ingenuity DC I project was financed with a loan from Amalgamated Bank, equity through the sale of Solar Investment Tax Credits syndicated by Monarch Private Capital, a Solar for All Grant, and developer equity. Income from the sale of DC’s Solar Renewable Energy Credits helps repay the debt.
Housing owners and residents benefit from NHT’s DC solar pool. Property owners earn an upfront developer fee and enjoy reduced energy costs. Lower operating expenses often allows mission-based housing owners to support Resident Services through increased staffing, additional programming, and upgrades to community areas. So Others May Eat has also provided rent relief for families hardest hit by the COVID-19 pandemic.
In 2019, the new solar installations generated approximately $120,000 in benefits for an average of $157 per family. NHT is thrilled to work with its partner organizations to provide this immediate relief to DC residents, and continue to work to improve and expand its reach in the region.
Woodmont Crossing, a 12-building garden style property in Southeast Washington, DC is part of The NHP Foundation’s seven-property TOPA portfolio. TOPA, unique to the District, is an inherently creative method for providing and maintaining affordability for existing residents.
The program offers residents and tenant associations the opportunity to become owners of the building in which they rent and exert decision-making influence on building maintenance and operations.
The NHP Foundation is fortunate to be considered a quality partner to several tenant associations and based on this history, The Woodmont Crossing United Tenants Association asserted its rights under TOPA and selected NHPF as the developer best suited. NHPF acquired Woodmont Crossing in February 2018 and construction started on an $18 million rehabilitation of the property shortly thereafter.
Residents of Woodmont Crossing have benefited from the TOPA arrangement as true partners in the decision-making process. Residents have a say in the renovation process and as a TOPA partner, NHPF was able to prevent large rent hikes to existing Woodmont Crossing residents.
In addition to the Woodmont Crossing United Tenants Association, other partners who made the $44.6 million transaction possible included a $25.5 million loan from the District of Columbia Housing Finance Agency (DCHFA) financed through that agency's first time participation in U.S. Department of Housing and Urban Development (HUD) Level 1 50/50 Risk Share 542 (c) program.
LIHTC Equity financing of $12.1 million was provided by Royal Bank of Canada (RBC).
NHPF’s Woodmont Crossing purchase represents the kind of creative partnerships that are needed to preserve housing for families and seniors in the D.C. area.