District of Columbia Housing Finance Agency
The Resilience Report: Fiscal Year 2021
DC Housing Finance Agency Fiscal Year 2021 Annual Report
Table of Contents
Our Mission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Our Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Message from the Board Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Message from the Executive Director/CEO . . . . . . . . . . . . . . . . . . . . . . . . 6 #LeeLegacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 DCHFA Honors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Community Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 DCHFA in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Multifamily Lending & Neighborhood Investments . . . . . . . . . . . . . . . . . . 20 Projects Financed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Projects Delivered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 HUD Level I 50/50 Risk Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Predevelopment Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Housing Investment Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 #DCHFAInnovates Admidst COVID-19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Portfolio and Asset Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Single Family Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 DC Open Doors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Home Purchase Assistance Program . . . . . . . . . . . . . . . . . . . . . . . . 38 Mortgage Credit Certificate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Reverse Mortgage Insurance & Tax Payment Program . . . . . . . . . . . 41 DC4ME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Auditor’s Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
To advance the District of Columbia’s housing priorities, the Agency invests in affordable housing and neighborhood development, which provides pathways for D.C. residents to transform their lives. We achieve this by delivering the most efficient and effective sources of capital available in the market to finance rental housing and to create homeownership opportunities.
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Our Agency Fiscal Year 2021 (FY 2021) marked the District of Columbia Housing Finance Agency’s (DCHFA) 42nd year serving the housing needs of Washington, D.C. residents. DCHFA was established on March 3, 1979 to stimulate and expand homeownership and rental housing opportunities in the District. DCHFA is an instrumentality of the D.C. government with its own Board of Directors. The Agency’s mission is to advance the District of Columbia’s housing priorities by investing in affordable housing and neighborhood development, which provides pathways for D.C. residents to transform their lives. DCHFA accomplishes its mission by delivering the most efficient and effective sources of capital available in the market to finance rental housing and create homeownership opportunities. The Agency expanded beyond traditional bond and tax credit financing with the Single Family Investment Fund (SFIF). As part of our Housing Investment Platform (HIP), SFIF partners with emerging developers to construct homes priced affordable to workforce families. The Agency continued to help create and increase the number of new D.C. homeowners through DC Open Doors, our flagship homeownership program; the Mortgage Credit Certificate and DC4ME programs; and our co-administration of the Home Purchase Assistance Program (HPAP) continued to help create and increase the number of new D.C. homeowners. Through the Reverse Mortgage Insurance and Tax Payment Program (ReMIT), DCHFA helped senior residents retain their status as homeowners through foreclosure prevention. Since March 2020, DCHFA has sought out opportunities to provide financial assistance to homeowners and renters impacted by the COVID-19 pandemic, when a place to call home is more important than ever. Through the administration of Housing Stabilization Grants in December 2020 and the ongoing efforts of the DC MAP (Mortgage Assistance Program) COVID-19 and the HomeSaver Foreclosure Prevention Program, DCHFA has made an effort to provide both rental and mortgage assistance to residents of the District during these unprecedented times.
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Board of Directors
DCHFA’s staff members contribute to forwarding the Agency’s mission of advancing the District of Columbia’s housing priorities. DCHFA’s Board of Directors provides leadership to the Agency’s staff in all of its endeavors.
Buwa Binitie, Chairman Stephen M. Green, Vice Chairman Stanley Jackson, Member Bryan “Scottie” Irving, Member Heather Howard, Member Christopher E. Donald, Secretary *Stanley Jackson not pictured
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Message from the Board Chairman Buwa Binitie
Over the past six years that I have served as chairman of DCHFA’s Board of Directors, the leadership and staff of the Agency have demonstrated great resilience. As we continue to navigate life during a pandemic, DCHFA remained resilient and focused on its mission to advance the District of Columbia’s housing priorities, by investing in affordable housing and neighborhood development. FY 2021 was one of the best for the Single Family Programs division in the Agency’s history. That means DCHFA helped more people become District homeowners than ever before Todd A. Lee Senior Residences Ribbon Cutting Ceremony | July 2021 through mortgage and down payment assistance programs. DCHFA came to the aid of affordable housing providers by administering the Housing Stabilization Grants program. This was a lifeline to housing providers who were not receiving rents because their tenants had been impacted by the COVID-19 pandemic. And through it all, DCHFA continued to close deals to create and preserve affordable multifamily rental housing. The board continues to meet remotely while the Agency’s staff has returned to the office on a hybrid schedule. Thank you to all of the industry stakeholders and financial partners who make what the Agency does possible. On behalf of the board, we are grateful for your perseverance and resilience that results in making the District a place to call home for residents at all income levels.
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Message from the Executive Director/CEO Christopher E. Donald
Elasticity. An ability to recover quickly from adversity. Toughness. These are all synonyms for resilience, and over the past 24 months the team at DCHFA exhibited each of these characteristics at the highest level. In Fiscal Year 2021, the team had seminal performances in its single-family business programming, producing almost four times the budgeted revenues to secure more affordable mortgages and homeowners than originally projected. Our team has focused on ensuring that more people can live and own houses in the District than ever before and has continued to finance the production of beautiful, healthy, and affordable housing. In December 2020, the Agency was asked to support an effort to deploy $10 million over 30 days to assist renters and housing providers impacted by COVID. The team assisted over 4,000 households to eliminate rent delinquency caused by the pandemic. Mayor Muriel Bowser’s charge to decrease our expenditures left the Agency in a strong financial position, which will allow us to provide more efficiently priced capital now and into the future. Mayor’s Bowser’s $400 million commitment to the Housing Production Trust Fund and the city’s goal of 36,000 units by 2025 requires the Agency to stand ready. We will continue our work to facilitate this goal. Our team is driven by the Agency’s values of Leadership, Excellence, Community Focus, Integrity, Collaboration, and Innovation. As we continue to live in a world still impacted by the coronavirus, the Agency’s staff has exhibited these values more than ever. #DCisOpen is more than a slogan; it is a testament of the leadership provided by Mayor Bowser and the spirit of resilience throughout the District. This year the staff returned to the office. People still believe in our city, and desire to live in and buy homes in the District. #WeAreDCHFA
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Livingston Place at Southern Avenue Ribbon Cutting Ceremony | June 2021
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Todd A. Lee was DCHFA’s executive director/CEO from 2016 to 2020. During his lifetime, he focused on innovation, infrastructure/process, and financing in real estate. He came to DCHFA because he wanted to have a positive impact in the District through the preservation and construction of affordable and workforce housing in the District of Columbia. DCHFA carries on the Lee Legacy throughout the District, as the first of many projects bearing Todd’s name delivered during FY 2021.
Todd A. Lee Senior Residences at Kennedy Street
The Douglass: A Todd A. Lee Townhome Community
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Todd A. Lee Scholarship The Todd A. Lee Scholarship commemorates Todd’s legacy and honors his commitment to both affordable housing and education. The scholarship benefits students who aspire to be future contributors to the field of affordable housing. During FY 2021, DCHFA amended the application guidelines to include undergraduate students and graduate students.
2021 Todd A. Lee Scholars
Antoine Hudson, Jr.
Howard University School of Law, Juris Doctor Candidate
Jason A. Harris
Georgetown University, Master’s degree, Real Estate
University of Kentucky, B.S., Business Management
Georgetown University, Master’s degree, Real Estate
Howard University, B.S., Finance
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In FY 2021, the business and housing community recognized DCHFA-financed developments, as well as the Agency and its staff members for their outstanding work.
2020 National Association of Black Journalists Salute to Excellence PR & Marketing CampaignsGovernment Award
Housing Association of Nonprofit Developers Best Small Affordable Housing Project
Yolanda McCutchen, The Reverse Mortgage Insurance & Tax Payment Program (ReMIT)
Ainger Place, The Michaels Organization & Ainger Place Development Corp.
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2020 National Association of Local Housing Finance Agencies Redevelopment Excellence
2021 National Association of Local Housing Finance Agencies Single Family Excellence
HELP USA Walter Reed, HELP Development Corp.
Cynthia Townhomes, H2 DesignBuild
Washington Business Journal Best Real Estate Deals of 2021 Best Multifamily Development Finalist Best Financing Deal Finalist
Capitol Vista, Dantes Partners, Housing on Merit, Menkiti Group, Spectrum Management & Bailey Holdings
The Residences at Kenilworth Park, National Foundation for Affordable Housing Solutions, Inc., Gragg Cardona Partners, The Carding Group & HallBridge Partners THE RESILIENCE REPORT | DCHFA FY 2021 ANNUAL REPORT | 11
Community Focus DCHFA seeks opportunities to impact the community beyond its traditional role as a financier of affordable housing. The Agency shares its resources and employees share their time beyond the Agency’s mission through supporting activities for seniors, educational enrichment opportunities for youth, and the arts.
During Fiscal Year 2021, DCHFA supported, sponsored and/or partnered with 30 community organizations and individuals.
Will “Gym” Jonez Gym Class Heroes Run Hope Work 5K
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Pinke’s Eats Community Free Hot Food Distribution in Ward 7
Craig Blac’s Community Cuts for Kids
#FITDC HerStory Virtual 5K
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DCHFA in the News
In FY 2021, DCHFA was featured in 70 published articles in local, national, and international media outlets. Stories included profiles of DCHFA staff and programs, Agency-financed developments, and private and public financing partners.
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DCHFA Staff Office of the Executive Director
Christopher E. Donald, Executive Director/CEO Nikol Nabors-Jackson, Chief of Staff W. David Watts, Chief of Staff* Risha K. Williams, Sr. Director, Community and Partnership Development* Yolanda McCutchen, Director, Public Relations Heather A. Hart, PHR, Director, Human Resources Keami Estep, Senior Manager, Procurement and Corporate Resources Susan Ortiz, Public Relations Associate Marcus Thompson, Facilities Manager Karen Harris, Executive Assistant
Office of Business Operations
Monte J. Stanford, Chief Operating Officer* Jeff Cooper, Vice President, Portfolio and Asset Management (PAM) Clarence Watson, Senior Asset Manager, PAM Sidney Vass, Asset Manager, PAM Fredericka Earle, Compliance Manager, PAM Birol Yilmaz, Senior Construction Engineer/Monitor, PAM Sue Ghazi, Construction Engineer/Monitor, PAM Seyoum Gizaw, CPA, Project Budget Analyst, PAM Kelley Brown, Construction Coordinator, PAM James-Curtis Bowers, Director, Technology Charles Matiella, 365 System Administrator Thurston Ramey, Business Process Manager
Office of the General Counsel
Michael L. Hentrel, General Counsel Tracy G. Parker, Senior Assistant General Counsel Brittney Jordan, Assistant General Counsel Jasmine Jackson, Assistant General Counsel Lillian Johnson, Records Administrator
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Multifamily Lending & Neighborhood Investments Christopher Miller, Interim Vice President* Ikeogu “IK” Imo, Director, Housing Investments Scott Hutter, Deputy Director of Multifamily Lending John Lawrence, Senior Multifamily Underwriter* Linda Hartman, Multifamily Underwriter James Holley-Grisham, Senior Multifamily Loan Analyst Rodney Dew, Senior Loan Analyst*
Office of the Chief Financial Officer
Steve Clinton, Chief Financial Officer Essi Egbeto, Vice President Accounting/Controller* Henry Jones, Vice President, Treasury Operations Rong Liu, Accounting Manager Matthew Pleasant, Debt Financial Analyst Jackie Langeluttig, Loan Servicing Specialist Brooks Harrison, Senior Multifamily Project Accountant* Adriana Dixon, Accounting Assistant
Single Family Programs
Lisa G. Hensley, Senior Vice President* Bill Milko, Business Development Manager Zein B. Shukri, Senior Underwriter Tracy Wright, Single Family Underwriter Connie Smiley, Senior Loan Processor Naila Chaudhary, Loan Processor* Tanisha Darden, Loan Processor Lisa Davis, Loan Closer/Post Closer An asterisk (*) indicates someone who is no longer employed by the Agency, but who was employed during FY 2021.
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Multifamily Lending & Neighborhood Investments
In Fiscal Year 2021, DCHFA issued $248.5 million in bond financing for the development or redevelopment of 985 affordable housing units in Wards 2, 4, 6, 7 and 8. In addition to the tax exempt financing, DCHFA underwrote $160.3 million in Low Income Housing Tax Credits (LIHTC) to finance these projects.
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Projects Financed in FY 2021
Savannah Apartmen n Ward 8 - Rehabilitatio
17 Mississippi Avenue ction
Ward 8 - New Constru
Clara on MLK
Ward 6 - New Constru
Ward 6 - Rehabilitatio
Ward 2 - Rehabilitatio
Ward 8 - New Constru
Ward 8 - New Constru
Ward 6 - New Constru
218 Vine Street
Ward 4 - New Constru
Ward 7 - New Constru
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Projects Delivered in FY 2021
Fortitude at Delta Towers Ward 5 - Rehabilitation
In FY 2018, DCHFA financed the preservation of Fortitude at Delta Towers, a 179 affordable apartment complex for seniors. This was the second project financed through the U.S. Department of Housing and Urban Development’s (HUD) Level I 50/50 Risk Share Program by DCHFA, and it included the construction of 30 additional units along Ward 5’s H Street Corridor. Thirty of the apartments receive Local Rent Supplement Program (LRSP) subsidies and 18 are designated Permanent Supportive Housing (PSH); all of the units are reserved for residents earning 30 percent or less of the area median income (AMI). The Delta Housing Corporation of the District of Columbia, Dantes Partners and Gilbane Development Company are the developers of the $96 million project.
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Mills Place Apartments Ward 5 - New Construction
Mills Place Apartments consists of 61 affordable apartment homes in Washington, D.C.’s Brookland neighborhood. The four-story building is home to one-, two- and three-bedroom apartments, 13 of which are PSH units receiving LRSP subsidies and are reserved for residents earning 30 percent or less AMI. The remaining 48 apartments are reserved for residents earning 50 percent or less AMI. The development features a green roof and complies with Enterprise Green Communities’ standards. Lock7 Development is the developer on this project, which welcomed residents home in February 2021.
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Projects Delivered in FY 2021
Livingston Place at Southern Avenue Ward 8 - New Construction
The Agency cut the ribbon on Ward 8’s first assisted living community in June 2021. All 152 apartments are reserved for seniors age 60 and above who require assistance with two or more activities of daily living, and who earn 60 percent or less AMI. Residents receive meals, personal care services and transportation services and have access to medical, dental, rehabilitative and counseling services. Dantes Partners, H Street Community Development Corporation and Gilbane Development are the developers.
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Todd A. Lee Senior Residences at Kennedy Street Ward 4 - New Construction
The Todd A. Lee Senior Residences at Kennedy Street was the first project to bear the name of DCHFA’s late former executive director/CEO Todd A. Lee. Affordable housing for seniors was one of Todd’s top priorities, therefore having this project named after him made it that much more special. All 38 apartments are reserved for seniors age 55 or older and earning 50 percent or less AMI. This Ward 4 community includes 1,000 square feet of retail space and 1,700 square feet of common area space, including a lobby, cyber cafe, management office, fitness center, and bike storage. Dantes Partners, H Street Community Development Corporation and Gilbane Development are the developers.
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Projects Delivered in FY 2021
Ward 4 - Rehabilitation
During FY 2019, DCHFA secured bond financing through HUD-insured mortgage loans made under DCHFA’s Risk Share Program. Members of the 930, 940, 960 Randolph Street Tenant Association exercised its rights as part of the District’s Tenant Opportunity to Purchase Act (TOPA) and selected WC Smith and Company, Inc. as the developer for the rehabilitation of 78 apartments and the construction of 10 new units. All apartments in this Ward 4 community are reserved for residents earning 60 percent or less AMI. The building includes efficiencies, one- and two-bedroom apartments.
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Randle Hill Apartments Ward 8 - Rehabilitation
The Randle Hill Apartments’ bond financing was secured by HUD-insured mortgage loans under DCHFA’s Risk Share program. Originally built in 1967, this development in Congress Heights needed modernization and upgrades, such as new floors, kitchen appliances, roofing, plumbing, and HVAC systems. Twenty apartments are reserved for residents earning 80 percent or less AMI, 165 for those earning 60 percent or less AMI, and the remaining 10 are non-restricted. Enterprise Community Development and Randle Hill LLC are the developers of this $50.9 million project.
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HUD Level I 50/50 Risk Share DCHFA is the only housing agency in D.C and one of 35 housing agencies nationwide designated as a Risk Share lender. The designation makes DCHFA one of HUD’s top-tier housing finance agencies. Through the Risk Share program, the Agency receives higher ratings that result in lower borrowing costs and savings that benefit borrowers and residents. The Risk Share Program is focused solely on affordable production and preservation. All projects must qualify as defined in the Low Income Housing Tax Credit (LIHTC) program. Fiscal Year 2021 was the Agency’s fourth year as a 50/50 Risk Share lender and the Agency was able to celebrate the completion of Petworth Station in Ward 4 and Randle Hill Apartments in Ward 8.
Petworth Station Apartments: • $12.5 million tax exempt bond financing (DCHFA) • $7 million 4% Low Income Housing Tax Credits (DCHFA) • $7.9 million Housing Production Trust Fund (DHCD) • 930, 940, 960 Randolph Street Tenant Association utilized the Tenant Opportunity to Purchase Act (TOPA) Randle Hill Apartments: • $25 million tax exempt bond financing (DCHFA) • $15.3 million Low Income Housing Tax Credits (DCHFA) • $13 million Housing Production Trust Fund (DHCD)
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Predevelopment Loans In April 2018, DCHFA contributed $1 million from its McKinney Act Fund to establish the Oramenta Newsome Predevelopment Loan Assistance Fund for Nonprofit Developers, or the Newsome Fund. Newsome was a D.C. community development leader and long-time advocate for affordable housing in the District. The Newsome Fund helps qualified nonprofit organizations and limited equity cooperatives (LECs) meet the Department of Housing and Community Development’s (DHCD) application requirements for affordable housing projects requests for proposals (RFP). During FY 2021, DCHFA was honored to attend the ribbon cutting ceremony at Oramenta Gardens, a 12-townhome community in Ward 8 and the first project completed under the Newsome Fund.
Lesley Edmond, one of the new homeowners at Oramenta Gardens, secured her home by combining DC Open Doors and the Employer Assisted Housing Program (EAHP), a DHCDadministered program designed to assist D.C. government employees.
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Housing Investment Platform DCHFA established the Housing Investment Platform (HIP) for innovative investments that will increase the Agency’s support of the District of Columbia’s housing market outside of traditional bond and tax credit financing. The HIP’s Single Family Investment Fund (SFIF) provides joint venture capital to emerging developers for the creation of for-sale workforce housing in the District. The program’s goal is to foster neighborhood stabilization, increase the tax base, and support projects that create employment opportunities through the construction of new homes. An investment from HIP significantly reduces the amount of capital the developer needs to contribute to the project. In return, the developer agrees to restrict sales to households making workforce incomes, up to 120% of Washington D.C. Median Family Income.
• New homeowners moved into Cynthia Townhomes Phase III • The Douglass: A Todd A. Lee Townhome Community delivered in Anacostia • Kuvera Condominums Phase I completed Kuvera Condominiums
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Cynthia Townhomes Phase III
The Douglass: A Todd A. Lee Townhome Community
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#DCHFAInnovates amidst COVID-19 One of the Agency’s key values is innovation and in the wake of the ongoing public health emergency, DCHFA employees tapped into their innovativeness more than ever. As D.C. residents lost their jobs or had hours cut, the Agency realized just how significant having a safe and healthy home to take refuge in would be for everyone. DCHFA administered Housing Stabilization Grants (HSG), relaunched the HomeSaver Foreclosure Prevention Program, and continues to operate the DC MAP (Mortgage Assistance Program) COVID-19 program. All of these programs, in tandem with other local and federal assistance, have allowed residents to catch up on delinquent mortgage payments and avoid foreclosure. Also, they have helped landlords collect missed rent payments that are crucial in helping them maintain their buildings for their tenants.
In late November 2020, DCHFA’s Portfolio and Asset Management (PAM) group was tasked with distributing $10.4 million in federal funds to the housing providers of Washington, D.C. Through the Agency, HSG provided rent relief directly to District housing providers. The District contributed 80 percent of the relief, as long as the housing provider forgave the other 20 percent of rent. The Agency’s team worked around the clock to distribute the funds before they expired on December 31, 2020.
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DCHFA faced another challenge to beat the clock when it relaunched the HomeSaver Foreclosure Prevention Program. All applicants needed to submit their applications by 5 p.m. on May 14, 2021. The Agency’s Public Relations team developed a marketing strategy to get the word out to as many residents as possible who might be in need.
DC MAP COVID-19 is an ongoing program that provides mortgage assistance to D.C. homeowners whose incomes have been impacted by the pandemic. Qualified homeowners can receive up to $5,000 a month for up to six months. This program is an adaptation of the original DC MAP program, which was created in 2019 to provide assistance to furloughed federal government employees during the partial government shutdown.
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Portfolio and Asset Management The Portfolio and Asset Management (PAM) division is responsible for monitoring all multifamily developments financed by DCHFA. As of the end of September 2021, DCHFA’s multifamily portfolio consisted of 137 multifamily properties, totaling 18,356 affordable rental units. DCHFA’s portfolio includes all active and inactive multifamily loans and LIHTC developments for which the Agency provides compliance monitoring and support.
FY 2021 Compliance Data*: • Developments: 180 • Units: 24,583
*This data includes both active and inactive units in the Agency’s portfolio
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Single Family Programs DCHFA’s Single Family Programs division creates homeownership opportunities in the District by providing low-cost single family mortgages and down payment assistance, made possible through the issuance of mortgage-backed securities. The Agency offers a variety of programs for current and potential homeowners with the goal of expanding and retaining homeownership opportunities.
FY 2021 Program Highlights: • Quadrupled production, resulting in approximately $130 million in home loans • Completed transition to Lakeview as new loan servicer • Relaunched the HomeSaver Foreclosure Prevention Program to assist homeowners affected by the COVID-19 pandemic.
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DC Open Doors: Your Key to Homeownership Through DC Open Doors, DCHFA funded 277 mortgage loans in an amount of $100.7 million, along with $3 million in down payment assistance loans for a total of $103.7 million in financing.
• • • • • • •
Number of Total Closed Loans: 277 Average Purchase Price: $401,672 Average 1st Trust Loan Amount: $372,488 Average DPA Loan Amount: $11,832 Average Age of Prospective Homebuyer: 34 Average Number in Household: 1.5 Average Borrower Income: $85,048
DC Open Doors Loans by Ward
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Realizing the dream of homeownership with DC Open Doors Natasha Dulin and Walter Scott celebrated Natasha’s birthday a few days early when they purchased their Ward 8 home in September 2021. After learning about DC Open Doors during a homebuying webinar, the two submitted their information to see if they qualified for the program. “Our experience with DC Open Doors was very seamless, we did not have any delays,” said Dulin. Scott, a native Washingtonian, said they “wanted to buy in D.C. because we knew the property value and what a great investment it would be in a wonderful place to have our family legacy.” Though Dulin didn’t move to the District until 2014, she said she knew since college that she wanted to call Washington, D.C. home. The couple also took advantage of DCHFA’s Housing Investment Platform (HIP) program, which provides first-time homebuyers with financial assistance grants. They are now homeowners at The Douglass: A Todd A. Lee Townhome Community. When asked what advice they would give to other aspiring homeowners, the two said: “Be patient and trust the process. Look at all your options; research and patience are key!”
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Home Purchase Assistance Program
DCHFA is a co-administrator of the District of Columbia Department of Housing and Community Development’s (DHCD) DC Home Purchase Assistance Program (HPAP). DCHFA’s service as a co-administrator of HPAP allows the Agency to serve more first-time homebuyers and make a greater contribution to homeownership in Washington, D.C. In FY 2021, DCHFA closed 165 loans for first-time homebuyers, totaling $8.4 million.
• Number of Notice of Eligibility (NOE) Applications Received: 518 • Number of NOEs Issued: 355 • Number of Total Closed Loans: 165 • Average Purchase Price: $354,384 • Average Loan Amount: $51,050 • Average Age of Homebuyer: 35 • Average Household Size: 1.6 • Average Household Income: $66,293
HPAP Loans by Ward
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Becoming homeowners through HPAP
Harry Christian and his husband Anthony “Tony” Keith, Jr. closed on their Ward 7 home in September 2021. Keith is a native Washingtonian and Christian moved to the District in 2013. “I wanted to purchase a home in D.C. because after eight years, I have come to love the city,” said Christian. “D.C. has a rich and diverse culture where Black and Brown people are living and thriving.” With the help of the HPAP, Christian and Keith were able to make their dreams of homeownership a reality. “Though the process was tedious, I stayed on top of things because I knew that I had a goal to reach,” said Christian. “My experience with the program was great. Zein (Shukri, DCHFA Senior Underwriter) went above and beyond to make sure that I closed on time,” he said. “With everyone working from home due to the pandemic, good customer service has been hard to find, but Zein and her team were absolutely amazing.” Christian and Keith were able to combine HPAP with birdSEED, a housing justice program which offers down payment assistance to Black and Brown residents of D.C. who are first-time homebuyers When asked what advice they’d give to persons beginning the homebuying process in Washington, D.C., Christian and Keith shared this: “Don’t get too disappointed in the process. What’s for you is for you, so if your first offer isn’t accepted, pick up the pieces and continue with your search. Also, celebrate all of the small victories. This process is overwhelming and each small victory deserves to be celebrated. Last but not least, when you feel like you want to give up, keep going, because your dream of homeownership will surely come true!”
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Mortgage Credit Certificate The MCC allows qualified first-time homebuyers to claim a Federal Tax Credit of 20 percent of the mortgage interest paid during each calendar year. The remaining 80 percent of mortgage interest paid for that year may still be claimed as a tax deduction. A tax credit has the potential to put more money in the homeowner’s pocket than a tax deduction alone. During FY 2021, DCHFA issued 107 Mortgage Credit Certificates. The MCC program went on hiatus in February 2021, and the Single Family Programs division hopes to allocate more funding and reopen the program in FY 2022.
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Reverse Mortgage Insurance & Tax Payment Program (ReMIT) The Reverse Mortgage Insurance & Tax Payment Program (ReMIT) was originally established in 2019 by the Council of the District of Columbia as a one-year pilot program to be administered by DCHFA. ReMIT allows qualified homeowners 62 and older to receive financial assistance for delinquent property taxes, homeowner’s insurance, condominium and HOA fees, and certain property-related expenses that have put the homeowner at risk of foreclosure. Qualified homeowners can receive up to $25,000 in assistance in the form of a zero-interest, non-recourse loan.
• • • •
Number of applicants received: 7 Number of applicants closed: 6 Total amount of assistance: $58,180 Average amount of assistance: $9,696
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DCHFA launched the DC4ME program during Fiscal Year 2019 to provide D.C. government employees mortgage assistance in the form of a zero percent deferred subordinate loan. Qualified employees can receive a reduced interest rate first trust mortgage, with optional down payment assistance. DC4ME is offered to full-time District government employees, including employees of District Government-based instrumentalities, Independent Agencies, District of Columbia Public Charter Schools, and related organizations, provided the borrower’s employer falls under the oversight of the Council of the District of Columbia. Borrowers can combine DC4ME with other District home purchase assistance programs, including: the District of Columbia Employer Assisted Housing Program (EAHP) and the District of Columbia Home Purchase Assistance Program (HPAP). During FY 2021, DCHFA provided mortgage assistance through DC4ME in Wards 1, 3, 4, 5, 7 and 8.
• Number of loans closed: 11 • Total amount of assistance: $3,970,614 • Total amount of down payment assistance: $72,450
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Work and live in the District
William Burdick, an employee of the D.C. Office of Unified Communications, took advantage of the DC4ME program. Burdick was born in Washington, D.C. and moved back to the area ten years ago. He closed on his Ward 4 home in May 2021. “I wanted to purchase a home in D.C. because I was already renting here and wanted to stay close to work,” said Burdick. The DC4ME program can be combined with other District resources, and Burdick was able to pair DC4ME with the HPAP and EAHP, both administered through D.C. DHCD. “Have all your documentation in order!” he said when asked what advice he’d give to someone preparing to purchase a home in the District. “It is imperative to be meticulously organized when going through this process and doing so will make things so much easier for all parties involved.” Learning from others’ experiences is also a good place to start. “Asking others who’ve gone through the homebuying process about their experiences is a great way to get some insight about your own homeownership goals and dreams,” added Burdick.
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Independent Auditor’s Report To the Board of Directors District of Columbia Housing Finance Agency Report on the Financial Statements We have audited the accompanying financial statements of the District of Columbia Housing Finance Agency (the “Agency”), a component unit of the Government of the District of Columbia, as of and for the years ended September 30, 2021 and 2020, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
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Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Agency, as of September 30, 2021 and 2020, and the changes in its financial position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 6 through 12 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audits were conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Agency’s basic financial statements. The supplemental information on pages 51 through 81 is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 29, 2021, on our consideration of the District of Columbia Housing Finance Agency’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District of Columbia Housing Finance Agency’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District of Columbia Housing Finance Agency’s internal control over financial reporting and compliance.
Baltimore, Maryland December 29, 2021
46 | THE RESILIENCE REPORT | DCHFA FY 2021 ANNUAL REPORT
DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY STATEMENTS OF NET POSITION SEPTEMBER 30, 2021 AND 2020
CURRENT ASSETS Unrestricted current assets: Cash and cash equivalents Investments Other receivables Accrued interest receivable Prepaid fees Total unrestricted current assets Restricted current assets: Cash and cash equivalents Investments Accounts receivable - HPAP program Mortgage-backed securities at fair value McKinney Act loans receivable, net Accrued interest receivable Total restricted current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Unrestricted non-current assets: Investments Mortgage and construction loans receivable, net Total unrestricted non-current assets Restricted non-current assets: Investments held in trust Investments in joint ventures Mortgage-backed securities at fair value Mortgage and construction loans receivable, net Loans receivable McKinney Act loans receivable, net Total restricted non-current assets Capital assets: Land Property and equipment Less accumulated depreciation and amortization Total capital assets, net TOTAL NON-CURRENT ASSETS TOTAL ASSETS
32,358,729 15,782,837 3,513,564 669,159 302,966 52,627,255
31,509,181 24,222,789 2,263,789 478,693 115,753 58,590,205
38,688,266 74,415,000 1,518,107 10,262 3,779,076 548,139 118,958,850 171,586,105
43,084,584 1,643,650 2,296 2,622,709 1,066,436 48,419,675 107,009,880
46,234,552 4,949,448 51,184,000
24,177,302 3,176,451 27,353,753
141,547,990 981,668 17,555,564 202,632,697 1,822,769 364,540,688
123,173,397 885,532 16,624,994 170,001,119 1,922,810 2,775,719 315,383,571
573,000 6,909,120 (5,284,052) 2,198,068 417,922,756 589,508,861
573,000 6,885,237 (4,901,571) 2,556,666 345,293,990 452,303,870
(Continued) THE RESILIENCE REPORT | DCHFA FY 2021 ANNUAL REPORT | 47
DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY STATEMENTS OF NET POSITION (CONTINUED) SEPTEMBER 30, 2021 AND 2020
LIABILITIES AND NET POSITION CURRENT LIABILITIES Current liabilities payable from unrestricted assets: Accounts payable and accrued liabilities Accrued salary and vacation payable Prepaid fees Total current liabilities payable from unrestricted assets Current liabilities payable from restricted assets: Accounts payable and accrued liabilities Project funds held for borrower and other liabilities Interest payable Current portion of loan payable Current portion of bonds payable Total current liabilities payable from restricted assets TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Non-current liabilities payable from restricted assets: Bonds payable - less current portion Total non-current liabilities payable from restricted assets TOTAL LIABILITIES
NET POSITION Net investment in capital assets Restricted for: Bond Fund, collateral and Risk Share Program McKinney Act Fund Total restricted net position Unrestricted net position TOTAL NET POSITION TOTAL LIABILITIES AND NET POSITION
1,817,683 608,591 3,336,106 5,762,380
183,325 144,513,454 628,655 2,582,887 1,489,325 149,397,646 155,160,026
183,325 104,584,990 916,614 2,047,815 1,300,665 109,033,409 113,951,935
278,794,370 278,794,370 433,954,396
195,997,098 195,997,098 309,949,033
28,730,761 9,156,761 37,887,522
29,954,219 8,868,951 38,823,170
The accompanying notes are an integral part of these financial statements. 48 | THE RESILIENCE REPORT | DCHFA FY 2021 ANNUAL REPORT
409,984 711,418 3,797,124 4,918,526
DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY STATEMENTS OF REVENUES, EXPENSES AND CHANGE IN NET POSITION YEARS ENDED SEPTEMBER 30, 2021 AND 2020
2021 OPERATING REVENUES Investment interest income Mortgage-backed security interest income Interest on mortgage and construction loans Construction and development admin fees Financing fee income Bond administration fee income McKinney Act interest revenue Application and commitment fees Other Total operating revenues
2,518,369 708,774 5,135,051 3,103,655 4,721,625 6,357,252 308,979 136,797 10,421,010 33,411,512
3,588,311 733,306 7,434,541 2,780,369 6,409,195 4,012,843 288,898 374,964 4,353,369 29,975,796
OPERATING EXPENSES General and administrative Personnel and related costs Interest expense Depreciation and amortization Trustee fees and other expenses Total operating expenses
6,095,806 5,970,199 6,519,759 382,481 90,668 19,058,913
4,183,650 6,770,659 7,562,164 386,627 212,601 19,115,701
NON-OPERATING REVENUES/(EXPENSES) Federal and city programs: Program revenue Program expenses (Decrease) increase in fair value of mortgage-backed securities and investments Total non-operating (expenses)/revenues
CHANGE IN NET POSITION Net position, beginning of year Net position, end of year
The accompanying notes are an integral part of these financial statements. THE RESILIENCE REPORT | DCHFA FY 2021 ANNUAL REPORT | 49
DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY STATEMENTS OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2021 AND 2020
2021 Cash Flows from Operating Activities Interest received on loans Administrative and financing cash receipts Other cash receipts Payments to vendors Payments to employees Net mortgage and construction loans disbursements Principal and interest received on mortgage-backed securities Payment for the purchase of mortgage-backed securities Other cash payments Net cash provided by operating activities
Cash Flows from Capital and Related Financing Activities Acquisition of capital assets Net cash used in capital and related financing activities Cash Flows from Non-Capital Financing Activities Interest paid on bonds and loans Proceeds from bond issuances and loans Principal payments on issued debt and loans Net cash provided by/(used in) non-capital financing activities Cash Flows From Investing Activities Investment in joint ventures Interest received on investments Maturities and sales of investments Purchase of investments Net cash used in investing activities NET DECREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year
6,013,630 14,182,532 58,731,459 (14,705,758) (6,073,026) (33,540,847) 29,214,764 (30,819,770) (90,668) 22,912,316
7,451,690 13,202,407 68,074,151 (12,501,983) (6,705,275) (50,754,742) 5,251,344 (212,601) 23,804,991
(6,760,307) 99,662,617 (16,377,521) 76,524,789
(7,227,969) 656,000 (6,998,743) (13,570,712)
(96,136) 2,518,369 22,623,379 (128,005,604) (102,959,992)
196,007 3,588,311 33,797,958 (54,365,068) (16,782,792)
(3,546,770) 74,593,765 71,046,995
(6,916,770) 81,510,535 74,593,765
Cash, cash equivalents and restricted cash Cash and cash equivalents Restricted cash and cash equivalents
Total cash, cash equivalents and restricted cash
The accompanying notes are an integral part of these financial statements. 50 | THE RESILIENCE REPORT | DCHFA FY 2021 ANNUAL REPORT
DISTRICT OF COLUMBIA HOUSING FINANCE AGENCY STATEMENTS OF CASH FLOWS YEARS ENDED SEPTEMBER 30, 2021 AND 2020
2021 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income Depreciation and amortization Amortization of prepaid items, premiums and discounts on debt Interest on bonds/loans Provision for uncollectible interest revenue Increase in mortgage and construction loans Decrease in mortgage-backed securities Purchases of mortgage-backed securities Interest received on investments Asset/(liability) adjustment Decrease (increase) in assets: Accrued interest receivable Other current assets Other receivables Increase (decrease) in liabilities: Accounts payable and accrued liabilities Prepaid items Project funds held for borrower and other liabilities Accrued interest payable Net cash provided by operating activities
14,352,599 382,481 235,908 6,571,810 31,339 (33,540,847) 28,747,759 (30,819,770) (2,518,369)
10,860,095 386,627 7,227,969 31,853 (50,754,742) 4,468,171 (3,588,311)
296,492 (187,213) (1,124,232)
1,304,872 (461,018) 39,928,464 (287,959) 22,912,316
(253,735) 85,017 4,123,102
205,697 943,008 49,736,045 334,195 23,804,991
The accompanying notes are an integral part of these financial statements. THE RESILIENCE REPORT | DCHFA FY 2021 ANNUAL REPORT | 51
Written and designed by Susan Ortiz, Public Relations Associate, DCHFA Edited by Yolanda McCutchen, Vice President of Public Relations, DCHFA Copyedited by Brandire Photography by Chris Spielmann, Spielmann Studio Printed by Global Print Masters
Mills Place Apartments