| |
 |
For Immediate Release
January 26, 2004 |
Contact: Karen Hinton
(703) 798-3109 |
|
From Misery to Model Clifton Terrace Reopens as Wardman Court
|
Historic Building Once In Ruins and Symbol of Slum Housing Restored To Original Beauty and Appeal
|
Washington, DC - Residents, federal and local officials, financial partners and developers of a Northwest housing complex-formerly known as Clifton Terrace and infamous for its deteriorated and unsafe conditions-marked the unveiling today of the historically renovated building, officially renamed Wardman Court.
"Unfortunately, Clifton Terrace has best been known for its violence and perilous living conditions, housing of last resort," said Leslie Steen, President of Community Preservation and Development Corporation (CPDC), the nonprofit developer of Wardman Court.
"We are here today to celebrate the rebirth of this historic complex. Gone are the drug dealers, prostitutes, and arson attempts. Instead this place is marked by the residents' current desires and future hopes. CPDC's partnership, begun five years ago, will extend past today in support of the resident's continued efforts to empower their own lives and effect positive change in this community."
Ava Goldman, senior vice president of Michaels Development Company (MDC), which partnered with CPDC to renovate Clifton Terrace added, "Not only has the partnership refurbished Wardman Court, but also it has contributed to the economic comeback of the Columbia Heights neighborhood."
"Together with CPDC, we acquired Clifton Terrace before Columbia Heights became a hot market neighborhood, when others advocated abandoning the residents and simply demolishing the complex. And, we are here to stay," continued Goldman.
Congresswoman Eleanor Holmes Norton and Washington, DC Mayor Anthony A. Williams were among those joining Steen and Goldman at a press conference in front of Wardman Court. Norton stressed the importance of the federal government's role in preserving affordable housing and revitalizing communities.
"Now is not the time to walk away from these types of developments. The federal government can and should do more, such as with Hope VI and CDBG money," said Norton.
Also attending were HUD Assistant Secretary John Weicher, and William Couper, president Bank of America Greater Washington. Weicher explained that Wardman Court is the model for how federally subsidized housing should work. "You've created a model for others to follow-you brought everyone together and got the job done. It's hard to imagine that Clifton Terrace once stood here."
Mayor Williams thanked the financial partners and community members involved in the renovation of Clifton Terrace. "These are great times for our city's housing efforts," said Mayor Williams. "All around Columbia Heights, you can see evidence of the District's commitment to preserving affordable housing as we convert vacant, blighted properties into livable, affordable homes. Today, we've added more than 200 units to the more than 12,000 units of affordable housing that are transforming neighborhoods and providing more housing options for DC residents."
"Bank of America is committed to building stronger and healthier neighborhoods here in Washington, DC," Couper agreed. "We have a dedicated community development banking team that is unmatched in the industry. But we also know we cannot do it alone-it takes strong partnerships like the one demonstrated here today to bring about this kind of revitalization."
When CPDC and MDC purchased Clifton Terrace in 1999, only 23 out of 289 apartments chose to stay through the development process. Resident annual incomes at that time ranged between $2,000 and $9,000. Today, 285 residents, including 83 children, 13 seniors, and 53 families, occupy the 156 apartments, with the remaining 76 of the reconfigured 228 units now converted to condominiums. Rental incomes now vary from $2,000 and $56,000, with 39 families living in these units receiving Section 8 housing vouchers. (See press packet for additional background information on the complex.)
Eugene Ford, Chair of CPDC, reassured the crowd of residents at the press conference that "while the name and the image have changed, Clifton Terrace's mission is the same as it was in the 1960s - to provide affordable housing for low and moderate income families, the elderly and disabled."
In 1916, Clifton Terrace opened in a prime location as a luxury apartment building. Middle class flight from the neighborhood, the 1968 riots and years of mismanagement caused the deterioration of the building. In 1978, the US Department of Housing and Urban Development foreclosed on a loan to a local developer after it discovered mismanagement and misappropriated public funds. HUD then turned to a North Carolina developer, but by 1988 the property remained in poor condition and earned the lowest possible rating in HUD's evaluation. In 1996, HUD took over the development and began a search for the right interests to restore the property to its historic roots of safe and attractive living. In 2001, HUD sold the property to non-profit developer CPDC and its for-profit partner MDC to renovate the property, relying on CPDC's model of incorporating the needs and wishes of the residents into the development process and establishing youth and adult programs to support and empower the residents in order to effect lasting change in their lives.
A summary of the contributions of the financial partners appears below:
US Department of Housing and Urban Development: $9.1 million loan for renovation of apartments and condominiums.
DC Housing Finance Agency: $10.7 million in tax exempt bonds.
Bank of America: Purchase of the tax exempt bonds issued by the DC Housing Finance Agency, providing $10.7 million in construction financing and $5.5 million in permanent financing for the rental component of the project. The bank made $9.4 million in construction financing available for the condominiums. In addition, the bank provided interest rate protection over the term of the loans.
Fannie Mae and Richman Group: Syndication of $10.7 million in tax credit equity. |
### |
| CPDC's mission is to develop vibrant communities through innovation and partnerships. To accomplish this, CPDC creates and preserves financially sound, socially responsible affordable housing for low- and moderate-income individuals and families and, in cooperation with community residents, develops community programs that strengthen communities and increase opportunities for growth. |
|
|
|
