DCHFA Offers Crucial Resources to Distressed Affordable Housing Providers

Affordable housing providers facing financial challenges now have a lifeline, thanks to the District of Columbia Housing Finance Agency (DCHFA). In a bid to support distressed affordable housing providers, DCHFA has launched the Portfolio Stabilization Grant (PSG) program. This initiative is designed to alleviate financial stress caused by rental delinquencies, ensuring these providers can continue serving their communities effectively.

Distressed Affordable Housing Providers Given Relief by DCHFA

The Portfolio Stabilization Grant Program

The PSG program, announced on December 10, 2024, is a one-time recoverable grant aimed at stabilizing operations and addressing critical capital expenditures for affordable housing providers. As Christopher E. Donald, Executive Director and CEO of DCHFA, explained, “DCHFA consistently monitors the health of its portfolio, and we are aware that a number of affordable housing communities are facing financial distress.” This program reflects DCHFA’s commitment to safeguarding the stability of affordable housing in Washington, D.C.

The grant is specifically available to properties financed through programs such as the Housing Production Trust Fund (HPTF), Low-Income Housing Tax Credit (LIHTC), HOME Investment Partnerships Program, or Community Development Block Grant (CDBG). Priority will be given to vulnerable properties and those with 4 percent LIHTC financing. However, properties with unresolved housing code violations, in bankruptcy, receivership, or foreclosure are ineligible for the program.

Application Process and Compliance Requirements

Eligible housing providers can submit applications until December 27, 2024, through the DCHFA website. The process requires submitting comprehensive financial and legal documentation. Grant recipients must comply with stringent reporting and inspection requirements, maintain detailed records for five years, and actively pursue rent collections. Additionally, they are required to enforce leases and initiate eviction proceedings when necessary.

The funds from PSG must be utilized exclusively for stabilizing operations and addressing capital expenditures. This ensures that resources are directed where they are most needed to maintain the functionality and sustainability of affordable housing units.

Supporting Affordable Housing in Washington, D.C.

DCHFA has been a cornerstone of Washington, D.C.’s housing priorities for over 45 years. The Agency’s mission is to provide efficient capital solutions to finance rental housing and create homeownership opportunities for residents. By offering resources such as the PSG program, DCHFA reaffirms its dedication to the principles of leadership, excellence, and community focus.

DC Affordable Housing Bottleneck — Washington, DC | Canva

For distressed affordable housing providers, the Portfolio Stabilization Grant offers a much-needed opportunity to recover from financial strains and ensure long-term viability. By addressing rental delinquencies and operational challenges, DCHFA continues to play a vital role in preserving affordable housing in Washington, D.C. Providers are encouraged to take advantage of this initiative before the application deadline.

For further details, visit DCHFA’s website or refer to the original announcement on Yahoo Finance.