Joseph Development, Inc. and Wesley Housing Close on 410 Cedar St. Apartments
Washington, DC – June 10, 2020: Last week, Joseph Development, Inc. (JDI) and leading non-profit affordable housing developer, Wesley Housing, closed on renovation financing of 410 Cedar Street Apartments, a 30-unit multifamily development in Takoma (Ward 4), less than one quarter mile from the metro. The tenants of the property, the Cedar Street Tenants Association (CSTA), chose the development team to acquire and rehabilitate the property via the District’s Tenant Opportunity to Purchase Act (TOPA) in 2018. Over half the building has been uninhabitable since 2017 as a result of storm damage that was never repaired by the prior owner.
The project is a true partnership among JDI, Wesley Housing, CSTA, the District of Columbia, and Bank of America, who is both the project’s lender and tax credit investor. The $14M project is being financed by a combination of 9% Low Income Housing Tax Credit equity ($4.4M), a Housing Production Trust Fund subordinate loan ($4.5M), Federal Historic Rehabilitation Tax Credit Equity ($1.25M), and long-term permanent senior debt ($3.35M).
“We have waited a very long time for this so, the Tenant Association is delighted to be on our way to having a greatly improved and affordable place to live. We also look forward to continuing to work with JDI and Wesley Housing on building the kind of diverse and welcoming apartment community that serves as a model for current and future tenants,” said CSTA President and longtime resident, Jennifer Sumler.
Gerry Joseph, President of JDI said, “We are very excited to finally be able to get started with the renovation of this wonderful housing resource that has been neglected and underutilized for a long time. We are significantly upgrading and preserving this property as affordable housing for not just the current tenants but for generations to come. We are extremely grateful for the faith and trust that has been placed in us by all of our partners.”
“Wesley Housing is looking forward to providing the residents of 410 Cedar Street with the safe, upgraded community they have long been waiting for,” Wesley Housing President/CEO Shelley Murphy said. “The property is in dire need of rehabilitation, and the improved living conditions and the ability to maintain its affordability will have a lasting effect on the community.”
The rehabilitation scope includes: all new plumbing and heating; upgraded electrical service; individual air handlers, A/C, and hot water (all electric); all new interior finishes, kitchens, baths, and paint; compliance with National Park Service standards for Historic Preservation; various “green” features; masonry repairs; a new fire alarm system; and an electronic access system. The community will also feature a new laundry room, community meeting room, bicycle storage, and attractive landscaped grounds. The project is expected to complete in 12 months.
When finished, 100% of the units in the building will be affordable under the following breakdown: 3 units (10%) will be affordable for earners at or below 30% of the Area Median Income (AMI); 23 units (77%) will be affordable at or below 60% of AMI; and 4 units (13%) will be affordable at or below 80% of AMI (for the existing tenants). In addition, the unit mix of the building will be adjusted to become more family friendly, introducing four more two-bedroom units and one three-bedroom.
“Preserving affordable housing is a very important strategy to help tenants remain in the District,” said DC Department of Housing and Community Development Director Polly Donaldson. “The tenants were engaged and determined to use the financial resources that we have available. We are very fortunate to have the tools that could help them.”
About Wesley Housing: Wesley Housing, a leading nonprofit developer in Northern Virginia and the District of Columbia, has been working to provide affordable rental housing for families for more than 45 years. Since its founding, Wesley Housing has emerged as a premier developer of affordable housing. Wesley Housing has acquired or developed 2,300 rental units, providing quality housing for thousands of at-risk individuals and families each year. Wesley Housing supplements housing with supportive services to build up the lives of its residents, including low- and moderate-income families, older adults, and individuals with disabilities and/or chronic disease. For more information, please visit www.wesleyhousing.org and follow @WesleyHousing on social media.
About Joseph Development Inc. (JDI): The principal of JDI, Gerry Joseph, has over 35 years of experience as a developer if affordable housing working in both the non-profit and for profit sectors. Throughout his career he has had responsibility for the development of over 5000 units of affordable housing involving over $600 million in financing. Working with his wife and business partner Maureen Romano, JDI has developed a particular focus working closing with tenant groups to insure that they are not displace by rampant development .