DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY 25th Anniversary 1979–2004 ANNUAL REPORT Wheeler Creek Estates 25th Anniversary Affordable Housing Development Award of Excellence Housing Families www.dchfa.org Affordably “I want to congratulate the staff and leadership of the D.C. Housing Finance Agency for 25 years of creating 2004 Annual Report affordable housing for our city’s residents. Whether it is providing millions for an apartment complex or thousands TABLE OF CONTENTS for a below-market mortgage loan, the HFA is one of the city’s champions of affordable housing. I thank you, and the residents of Washington thank you for helping ensure low- and moderate-income individuals have affordable places to call home.” Anthony A. Williams, Mayor Message from the Chair 2 Message from the Executive Director 3 MISSION STATEMENT DEDICATION Fiscal Year 2004 Accomplishments 4 The District of Columbia Housing The District of Columbia Housing Finance Fiscal Year 2005 Objectives 5 Finance Agency (HFA) was estab- Agency annual report for the fiscal year Home Resource Center 6 lished in 1979 to stimulate and ending September 30, 2004 is respectfully expand homeownership and rental submitted to: McKinney Act Savings Loan Fund Program 8 housing opportunities in Washing- HFA Milestones 10 ton, D.C. We accomplish our mis- The Honorable Anthony A. Williams sion by issuing mortgage revenue Mayor, District of Columbia Ward 1 13 bonds that lower the homebuyer’s The Honorable Linda W. Cropp cost of purchasing and rehabilitating Ward 2 37 Chair, Council of the District of Columbia a home and the developer’s costs of Ward 3 45 acquiring, constructing and rehabili- The Honorable Harold Brazil tating rental housing. We embrace Chair, Committee on Economic Development Ward 4 47 our responsibility with conviction and pledge our best efforts to serve as The Honorable Carol Schwartz (At-Large) Ward 5 53 the city’s champion for homeowners The Honorable David A. Catania (At-Large) and renters and to act as the city’s The Honorable Phil Mendelson (At-Large) Ward 6 63 principal catalyst for neighborhood The Honorable Jim Graham (Ward 1) Ward 7 71 investment. The Honorable Jack Evans (Ward 2) The Honorable Kathleen Patterson (Ward 3) Ward 8 81 The Honorable Adrian Fenty (Ward 4) The Honorable Vincent B. Orange, Sr. (Ward 5) HFA Staff 119 VISION STATEMENT The Honorable Sharon Ambrose (Ward 6) The Honorable Kevin P. Chavous (Ward 7) Financial Statements 127 We are committed to working coop- The Honorable Sandra Allen (Ward 8) eratively and closely with our housing partners to create attractive, stable Councilmember Elect Kwame Brown (At-Large) Councilmember Elect Vincent Gray (Ward 7) and vibrant neighborhoods. Councilmember Elect Marion Barry (Ward 8) District of Columbia Housing Finance Agency 1 Message from Message from THE CHAIR THE EXECUTIVE DIRECTOR As you will see in our anniversary report, the HFA has a Twenty-five years ago, our Board of Directors, staff 25-year record that all Washingtonians can regard with pride. Since and housing partners committed themselves to investing in people 1979, we have issued over $2.1 billion in mortgage revenue bonds to and neighborhoods. Twenty-five years later, and having earned an finance over 16,900 affordable housing units, 8,422 of them in the A3 investment-grade credit rating, the HFA is considered among past six years. the finest in the nation for its solid financial management, creative Not only do we have a solid history of carrying out our main investment strategies and innovative solutions for bridging mission—financing affordable home mortgages and new and Washington’s affordability gap. rehabilitated multifamily housing—but we also have reached out Since its founding in 1979, the HFA and its partners have to make housing possible for those who have the most difficulty invested over $2.1 billion in the residents and neighborhoods buying or renting, including special needs groups and individuals of Washington. Its sound investment practices have produced who are seen as credit risks or who need hands-on guidance. and preserved over 16,900 affordable housing units, helped The HFA has also been an innovator by securitizing prospective about 6,000 people achieve their dreams of homeownership and payments from the federal McKinney Act to use as bridge loans for nonprofit housing developers; financed the special housing needs of our senior citizens, veterans, combining other city housing monies with HFA bond funds to provide interest rates of below persons living with HIV/AIDS, the homeless, battered women and abandoned children. 4% to low-income homebuyers; providing taxable bond funding to national lenders to finance I am immensely proud of our accomplishments. More importantly, I look forward to another affordable housing in the current low-interest environment; and encouraging multifamily housing 25 years of equal success at serving the affordable housing needs of our residents. developers to increase replacement reserves over those required by federal lenders and insurers in order to promote long-term housing durability. As we look forward, we will vigorously search out new affordable housing financing opportunities and make builders and buyers aware of our customer-friendly, service orientation. We will continue to work with our partners in the federal and local government and in the housing and lending industries to maximize our usefulness. We will joint venture with for-profit and nonprofit developers to use our newly legislated ability to develop as well as finance affordable housing for communities throughout Washington. The current HFA Board of Directors has played only a small part in the 25-year success of the agency. We thank our enterprising and capable staff for their contributions, our executive and council leadership and our many public and private partners. We look forward with enthusiasm to the challenges ahead. Isaac Green Kathleen Miles Michael Wheet 2 District of Columbia Housing Finance Agency District of Columbia Housing Finance Agency 3 Fiscal Year 2004 Fiscal Year 2005 ACCOMPLISHMENTS OBJECTIVES Financial Programmatic: Multifamily Financial Programmatic: Single-Family • Realized $2.163 million in Net Earnings Rental Housing • Earn $1.385 million in revenue Homeownership Programs • Increased Operating Reserves by $1.912 • Issued $31.3 million in tax-exempt bonds • Increase Operating Reserves by $1.323 • Provide homeownership counseling to million, from $13.742 million to and $4.7 million in tax-exempt bridge million, from $15.654 million to approximately 2,000 borrowers $15.654 million bonds for the construction, acquisition $16.997 million and/or rehabilitation of 524 rental units Legislative Initiatives Programmatic: Single-Family • Funded $13.2 million for 1330 7th Street Programmatic: Multifamily • Seek legislative amendments to the Homeownership Programs Apartments Rental Housing Housing Production Trust Fund and the • Counseled 1,535 clients citywide • Funded $9.1 million for Congress Park II Fund approximately 1,688 units of Housing Act of 2002 to authorize transfer • Opened satellite office east of the river at • Funded $5.8 million for J.W. King affordable housing at a total community of such funds to the HFA 4415 South Capitol Street, SW Seniors Center investment of approximately $123 million Management and Administrative • Generated $89,750 in revenues from • Funded $7.9 million for Savannah in tax-exempt and taxable bonds housing counseling contracts Heights Apartments • Solidify the HFA’s investment niche • Fund $7.4 million for George by working with stakeholders, Mayor, Washington Carver councilmembers and government agencies Legislative Initiatives General • Fund $11 million for Hunter Pines to determine how the HFA can most • Achieved re-appointment of two • Completed physical and environmental Apartments effectively use its resources to help leverage board members improvements of HFA headquarters • Fund $7.9 million for Wesley House city financial investments to develop • Continued exemption of HFA-sponsored • Released interactive outreach CD-ROM Apartments neighborhoods projects from recordation and transfer taxes • Launched full-scale Web site in English • Fund $20 million for Arboretum Place • Establish a trust fund for use in HFA and Spanish Apartments multifamily and single-family programs • Fund $13.5 million for Henson • Develop general compliance manual Tax-Exempt Tax-Exempt LIHTC/ and tax credit compliance guidelines for Units CDBG HPTF Ridge Phase II Bonds Bridge Bonds DCHFA use by owners, developers, management • Fund $9 million for Capper Senior Phase I 1330 7th Street companies and on-site management 136 $13,240,000 $5,950,082 $2,187,557 Apts. • Fund $12.4 million for Faircliff Plaza West personnel Congress • Fund $10.5 million for Shipley Park • Strengthen and reorganize administrative 214 $4,900,000 $4,160,000 $5,196,000 Park II Apartments systems and develop staff skills J.W. King • Fund $19 million for Platinum Realty Pool 74 $5,290,000 $515,000 $3,718,400 Seniors Center • Fund $12 million for Capitol Gateway Savannah Single-Family Rental 100 $7,895,000 $4,032,000 $984,853 Heights Apts. TOTALS 524 $31,325,000 $4,675,000 $18,896,482 $984,853 $2,187,557 4 District of Columbia Housing Finance Agency District of Columbia Housing Finance Agency 5 HOME RESOURCE CENTER HOME RESOURCE CENTER The HFA received its certification as a income level can afford to purchase a home. In comprehensive housing counseling agency in June 1991. 2001, the HFA was able to offer the incredibly Within the first year, more than 850 potential homeowners low rate of 3.75% for a 30-year fixed mortgage were counseled. Now, the HFA is one of the premier loan. The Home Resource Center also serves as organizations in Washington that provide individuals the primary intake department for the agency’s with credit, budget and housing counseling as well as Single-Family Mortgage Bond Program. Coun- homeownership counseling for individuals looking to selors assist first-time homebuyers who normally purchase homes in specific housing developments.