Washington, D.C.’s Department of Housing and Community Development (DHCD) has selected Capital Impact to manage the new Affordable Housing Preservation Fund in the District.
Capital Impact is leveraging funding from DHCD to deploy at least $20 million in low-cost and flexible financing to private nonprofit and mission-driven for-profit developers that have multifamily housing projects in the District.
Capital Impact believes that mixed-use, mixed-income neighborhoods with easy access to employment and critical social services contribute to the vibrancy and economic growth of the city. Capital Impact also believes that it is critical to preserve affordable housing and prevent displacement in neighborhoods that are rapidly gentrifying.
We are thus focusing our efforts on projects east of the Anacostia River as part of a larger strategy to create community stability. Preserving long-term affordability and avoiding displacement of residents and families is key in this area of the city that is increasingly a target for development.
Key features of the D.C. Affordable Housing Preservation Fund:
- Loan amounts between $1 million and $10 million
- Interest rate not to exceed 5%
- Term of up to 4 years
- Up to 125% Loan-To-Value (LTV)
- Min 1.1x Debt Coverage Ratio (DCR)
Advantages of borrowing through Capital Impact Partners:
- Headquartered in Arlington, VA, we have invested more than $66 million in Washington, D.C., including: affordable housing, health care and education facilities.
- We have the ability to offer a variety of financing options from predevelopment through stabilization.
- As a mission-driven organization, we are committed to supporting projects that create social impact.
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