Economic Development

Goal
The goal of the economic development program at CARECEN is wealth creation and achievement of self-sufficiency and economic stability for low and moderate income families, together with protection of the diverse social and cultural fabric of our neighborhoods. CARECEN achieves this goal by integrating financial education and technical assistance with advocacy on behalf of the preservation of affordable housing.


Background
Over the past fifteen years, concerted policies of development in Washington, DC have resulted in rapid gentrification in a number of areas, particularly in Northwest. This trend has fueled rapid displacement of low and moderate income residents from neighborhoods including those north and east of Dupont Circle extending to Brightwood and Brookland. The result has been a dramatic depletion in the stock of affordable housing in what were historically the city's most racially and economically diverse neighborhoods, including Adams Morgan, Shaw and Columbia Heights, Petworth, and Brightwood.


Contributing to the Solution
CARECEN serves as development consultant for the rehabilitation of affordable housing in Wards 1 and 4 in the District, where by law low-income tenants can exercise their first right of refusal and make an offer to purchase the building through their tenant association. CARECEN assists tenants in their development plan from pre-development, financing of acquisition and rehabilitation of the property, while ensuring that unit prices remain affordable. This model is designed to prevent displacement and preserve the social fabric of neighborhoods in the city.


Affordable Housing Development Projects

CARECEN's Development Team:

Development Coordinator: Saul Solorzano, CARECEN

Architect: Max Borges, Bucher/Borges Group

Financial Consultant: Charles Rinker, Rinker and Associates

Legal Counsel: Jonathan Tycko, Tycko & Zavareei, LLP

Housing Counselor: Raul Rodriguez, CARECEN


Featured Project: Randolph Towers Development Project

Members of the Randolph Towers Tenants Association CARECEN assisted the Randolph Towers Tenant Association in obtaining a $9.3 million loan in public (DHCD), private (Adams Bank), and gap funding (Unitarian Universalist Affordable Housing Corporation) for the purchase of their 146-unit building, located at 3900-3902 14th St NW in Washington, DC. The project included a full renovation, to be followed by conversion from rental property into condominium. The property is located on the border between the Columbia Heights and Petworth neighborhoods, only blocks from redevelopment in the area, and is currently fully occupied by families of diverse ethnic backgrounds - predominantly Latino (85%) - who are preparing to become first-time homeowners.

CARECEN's Development Team has provided the following forms of technical assistance:

  • Converted the Randolph Towers Association into a Cooperative and established its new bylaws.
  • Drafted, analyzed, and signed the management agreement with a new property management company.
  • Assisted in securing necessary documentation to certify that the majority of residents earn below 80% of median income, so they can purchase and hold the building without an undue tax burden.
  • Helped residents of Randolph Towers initiate the saving process in order to secure a reservation for their individual units.
  • Assisted in pre-construction phase activities: environmental, mechanical and electrical studies, permitting, defining the scope of work, finalizing drawings and architectural plans, condominium conversion, budgeting, and applying for construction loans.

For a preview of the project, click here.