Washington, DC
Edgewood Terrace I is a multi-family rental property originally developed in 1971 by a private developer using HUD subsidy programs. Changes in ownership, management, and deferred maintenance created extreme physical deterioration, two-thirds vacancy, vandalism, and crime and drug infestation. Beginning in 1991 through a HUD HOPE II planning grant, Community Preservation and Development Corporation began a partnership with the Edgewood Terrace I Residents' Association, Inc. to develop a plan to address three primary needs of the Edgewood Terrace community:
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the deteriorated housing; |
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Community Services to empower residents and to assist with self-sufficiency; and |
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3)
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the re-creation of an environment that will attract more moderate income working families back to the neighborhood. |
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Property and Community Profile |
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Financing Structure |
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Construction Managment |
Property and Community
Profile
Edgewood Terrace I is a 292-unit property consisting
of one-, two-, three- and four-bedroom units; approximately 40,000 sq.
ft of commercial space that is being converted to community service program
space; and a two-story parking structure. Working with the residents through
the association and with HUD officials, CPDC facilitated a planning process
that determined the overall goal of this redevelopment should be to stabilize
and revitalize the complex and to increase the number of moderate-income
families to recreate a more mixed-income community.
Once the rehabilitation is complete, there will be 114 units that receive project-based Section 8 assistance while the remaining 176 units will be market-rate. The Section 8 units will be available to families earning up to 50% of median income. HUD will continue to support the current very low-income households by extending the term of the 114 Section 8 units for an additional 15 years.
The remaining 176 units will be leased at market-rate rents available for families with incomes up to 80 percent of median income. The market units will not be leased under the HUD occupancy requirements. Therefore, smaller families will have the opportunity to lease larger (three and four bedroom) units. CPDC's goal is to attract non-subsidized renters by offering a safe, newly-renovated complex with many on-site support services. This mixed-income approach will stabilize the community and provide economic integration.
Financing Structure
CPDC structured four sources of funding for the
renovation of Edgewood Terrace I. A first mortgage was provided by First
Union National Bank. Crestar Bank, through the Federal Home Loan Bank's
Affordable Housing Program (AHP) provided a forgiveable loan. The District
of Columbia's Department of Housing and Community Development (DC DHCD)
provided a low-interest loan. Finally, HUD provided a substantial upfront
grant for the rehabilitation of the residential and community service program
space.
Construction Management
Given the seriously deteriorated physical condition
of Edgewood Terrace I, a substantial renovation of the mid-rise and garden
apartments is underway. The renovation costs are approximately $18 million
and include: a) new electrical, mechanical, and plumbing systems;
b) all new units, including new walls, windows, carpeting and other
floor-covering, new kitchen cabinets and appliances, new bathroom fixtures,
tiling and tubs, new doors, hardware and trim; c) new roofs; d)
complete elevator renovation and addition of one elevator; e) new
entry and camera security systems; f) new, expanded laundry facilities;
g) new, expanded lobby area with new offices for management and
the residents' association. Onsite parking is provided by rebuilding the
collapsed parking structure. All facilities include modern safety features
such as building-wide fire sprinkler system, and all facilities are ADA
compliant, including specially equipped units for people with mobility
limitations and visually and hearing impaired people. The commercial and
retail space is being reconfigured to house community
service programs, including day care, after and before care, offices
for support services, and a community computer lab called the Gateway@
Edgewood Terrace.
Prior to beginning the redevelopment, there were approximately 100 occupied units at Edgewood Terrace, making relocation a significant issue. Since CPDC could not conduct the renovation with the residents in their units, the renovation had to be structured in two phases. Residents were relocated, at no cost to them, into separate wings of the buildings to provide a large number of vacant units to the general contractor. A resident construction coordinator worked closely with the residents during this process and CPDC attended to the special needs of residents.
In addition, because of the deteriorated condition of the units, CPDC had to contract with a general contractor to do modest rehabilitation on the interim units before residents could be temporarily relocated. The scheduling and coordination was extensive, but has been quite successful.
CPDC estimates the project will be completed in August of 1998.
