NHPF & TOPA: A Mutually Advantageous Partnership

Woodmont Crossing Apartments

The result of TOPA: new kitchens for Woodmont residents

Case Study: Woodmont Crossing Woodmont Crossing Apartments, a 176-unit garden-style apartment complex in Southeast Washington, DC, was approaching the end of its initial Low Income Housing Tax Credit (“LIHTC”) compliance period at the beginning of 2017. Woodmont Crossing’s LIHTC status made the community an attractive property for redevelopment, ensuring the preservation of affordable housing in the area. The Woodmont Crossing United Tenants Association asserted their rights under TOPA and began a competitive selection process to determine which developer would best suit the needs of the community. Four initial bids were narrowed down to two, with NHPF eventually selected in May 2017 to become the new owner of the property and to begin a comprehensive renovation. TOPA regulations required the Woodmont Crossing United Tenants Association to post a $1.2 million deposit to preserve their right of first purchase, which NHPF provided as a show of commitment to the Tenants Association. Woodmont Crossing was officially acquired for approximately $25 million in February 2018 and construction started on an $18 million rehabilitation of the property shortly thereafter. Rehabilitation of the property was substantially completed by December 31, 2018 and included: • A 1,500 square foot addition to the club house • Replacement of water heaters • Replacement of HVAC units with state-of-the-art systems • Replacement of all lighting with LED fixtures • Increase in the size of the “tot lot” and addition of new equipment

• Replacement of balcony decks on 15 apartments • Replacement of kitchen cabinets and countertops • Replacement of kitchen appliances with Energy Star models • Installation of over-the-range fire extinguishers • Replacement of interior doors, balcony doors, and main entry doors

• Upgrades to bring the property into compliance with the Americans with Disabilities Act What would the alternative have been for the residents of Woodmont Crossing without TOPA? In other circumstances, the residents would have had no say in the selection of a new owner of their homes, and no influence over the scope of renovation to the property. “TOPA offers the chance to preserve and upgrade affordable housing that otherwise would have gone to a conventional buyer who planned on putting perhaps $5,000 or so per unit into rehabilitation,” opined Neal Drobenare, Senior Vice President, NHPF, who continued, “We, on the other hand, put approximately $30,000 per unit into the renovation of the property while achieving a $2 million developer fee for ourselves. Woodmont Crossing is the definition of a win-win partnership.”

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