Portner Flats currently comprises 48 townhome apartments built in 1980 and subsidized by a Section 8 HAP. These units are located on 1.1 acres of indefensible space at the corner of 14th and U Street, NW, Washington, DC, one of the hotest and most rapidly gentrifying residential submarkets in Washington. NCP has partnered with Somerset Development Company and the Jonathan Rose Companies to redevelop the site with double the amount of affordable housing (96 units) and 270 units of market-rate housing, which will cross-subsidize the affordable housing. Acquired in September, 2013 in cooperation with the Portner Place Tenants’ Association through the TOPA (Tenant Opportunity to Purchase) process, the up-zoning of the site is complete, all tenants have been relocated and construction of the new affordable housing is scheduled to begin in the first quarter of 2016. All former tenants of Portner Place who wish to return to the new Portner Flats are entitled to. The tenants wishing to return have had their Section 8 subsidy preserved through the approval of a special “pass-through” Section 8 contract by HUD. hese tenants will return to their newly-constructed homes in the Spring of 2018.
The new affordable 96-unit building, Portner Flats, will be financed with cash collateralized bonds issued by the District of Columbia Housing Finance Agency, a 22d)(4) first mortgage loan arranged by Prudential, LIHTC equity and acquisition financing provided by the DC Department of Housing and Community Development. The 270 market rate units will be financed with private equity and conventional debt.