Wednesday, December 23, 2009

Foreclosure Issued on Site of $4 Million District Investment

The fate of a Ward 8 development project promising 31 affordable rowhouses - thanks to a little help from the District - is now in question. In July of 2008 the District Department of Housing and Community Development (DHCD) provided $4 million in funds for the project from the Housing Production Trust Fund. However, earlier this month, lender KBank issued a notice of foreclosure to Stanton View Development for the property at Stanton and Elvans Roads, SE. In the mere year and a half since the District's infusion of cash, the developer has had its registration with Department of Consumer and Regulatory Affairs (DCRA) revoked and most recently was issued a foreclosure notice on December 11th.

Stanton View Development, LLC a subsidiary of Capitol Homes and Communities, LLC received the District loan in return for promised affordable ownership units at 80% AMI, which would be reserved as affordable for low to moderate income residents for 40 years. The DHCD funds made up almost 1/3 of the estimated $11.6 million project costs. The developer originally purchased the 4.5 acre site at 3000-3028 Stanton RD SE in 2007 for $3.2 million.

The developer could not be reached for comment, and the number listed on the developer's project website was disconnected. Capitol Homes and Communities has also had its registration revoked by DCRA.

UPDATE: DHCD spokesperson, Angelita Colon-Francia, responded to DCMud's request for information on the $4million investment in Stanton View's townhome project, saying "DHCD is committed to protecting the city's investment and we're monitoring the actions of Stanton View Development." Colon-Francia added that DHCD is monitoring the steps the developer is taking to prevent foreclosure and that the developer provided the agency with a copy of a "commitment of funds from Capital Bank to settle the outstanding loan with KBank." According to Colon-Francia, Stanton View is set to close the loan with Capital Bank and settle the loan with KBank by January 5th. Should the developer fail to settle the foreclosure with KBank by the 5th, DHCD is "prepared to take actions to protect the City's investment no later than January 11th," said Colon-Francia.

Washington DC real estate development news


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