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Acquisition Services - Success Stories
Meridian Manor: The Power of Partnership
It all started when Mr. Washington, a retired U.S. Army sergeant, decided he’d had quite enough of living conditions at Meridian Manor. With no heat or hot water among the more than 10,000 housing code violations, he joined with 25 residents and took the building’s owners to court. In 1994, a judge ruled in the residents’ favor and ordered the owners to pay residents $1 million. The owners declared bankruptcy and residents were awarded the building—which was still in terrible condition—instead. Then in 1996 a fire almost destroyed the building, forcing residents to leave. But Leroy Washington was determined to get everyone back into the building. He and other residents worked with Mi Casa, a bi-lingual development organization working to preserve affordable housing in targeted Washington, D.C. neighborhoods, NHT/Enterprise. This partnership paired Mi Casa’s knowledge of the neighborhood and expertise in local politics with NHT/Enterprise’s ability to put together complex financing packages that include multiple federal funding sources.
Team Combines Expertise to Preserve 51st King Drive
At 51st and King, NHT/Enterprise’s financing expertise helped put together a development package that includes FHA insured mortgage, private activity bonds, Low Income Housing Tax Credits, Interest Reduction Payment decoupling, Federal Home Loan Bank Affordable Housing Program grant, preservation vouchers and a Section 8 Mark up to Market rent increase. The completely renovated building is now home to a community center that provides computer training, information on practical life skills and GED programs. |
Leroy Washington had no background or training in
housing or real estate, but he had more than his share of vision and
determination. It took 12 years, but when he and his partners—including
NHT/Enterprise—were finished, they’d helped put 34 families back in homes that
were at last worth living in.
Today, 34 families call the renovated Meridian
Manor home and enjoy additional resident services and a new playground and
computer center. Mr. Washington was able to enjoy his new/old home for almost
two years before passing away in December 2004. In an interview shortly before
his death, he described his feelings upon moving back home. “I was so happy, I
didn’t sleep. I just walked and marveled at the things in my new home.”
In Chicago, NHT/Enterprise teamed with the
for-profit Chicago Community Development Corporation to help preserve 96
apartments located in 12 contiguous buildings that comprise an entire city
block. The two organizations are co-managing general partners. Dan Burke, Vice
President for Development of Chicago Community Development Corporation, sought
out NHT/Enterprise because of the federal subsidies attached to the building.
“NHT/Enterprise has been a terrific partner to work with on the preservation of
51st and King Drive,” Burke said. “They are excellent underwriters and have
strong HUD program knowledge. In addition, NHT/Enterprise brings a strong focus
on including innovative resident service programs in the development and has
good models for implementing these initiatives.”