Bowen Flats – 2620 Bowen Road, SE, Washington, DC
Neighborhood Development Company LLC
Total Development Cost – $13,500,000
Construction and Permanent Financing Closed December 2015

 

Audubon Enterprises was engaged by Neighborhood Development Company LLC (NDC) to serve as the exclusive financial advisor to its ground-up 4% LIHTC development at 2620 Bowen Road SE. This development will bring 41 mixed income units to a previously unused parcel of land in the Anacostia neighborhood of Southeast Washington, DC. The project was awarded Department of Housing and Community Development (DHCD) funding in the 2013 Notice of Funding Availability (NOFA) Application round. Audubon lead the financing effort for the transaction by procuring competitive bids for LIHTC equity and debt financing, interfacing with DHCD and the DC Housing Finance Authority (DC HFA), and by coordinating all parties to a smooth closing in December 2015.

In addition to sourcing advantageous terms from the transaction’s equity investor (Boston Financial Investment Management) and bond purchaser (Citi Community Capital), Audubon also improved the transaction by the following metrics during the engagement:

  • $1.5MM increase in DHCD gap funding (HOME Investment Partnership Program)
  • $400,000 increase in other subordinate “gap” funding from Citi’s Catalyst Loan Program
  • 24% increase in total developer fee to NDC
  • 30% decrease in deferred developer fee to NDC (this portion was instead paid at closing)

The unit mix includes one, two, and three bedroom units all constrained at 45% or 55% of the Area Median Income (AMI) for at least fifty years pursuant to a DHCD Land Use Restriction Agreement (LURA) which was recorded at closing. Other development team members included Hamel Builders Inc., EDG Architects LLC, and Residential One LLC (previously Equity Management), and Montage Development Group. Project amenities include a sub-grade parking garage, in-unit washer/dryers, a community room, a management office, and an outdoor garden area