Adams Morgan Gets $148M Boost for 188 Affordable Homes

WASHINGTON, D.C. – April 30, 2026 – The District of Columbia Housing Finance Agency (DCHFA) has secured the future of 188 affordable homes in the high-cost Adams Morgan neighborhood, deploying a complex, multi-layered financing package totaling $148 million for their substantial rehabilitation. The deal, finalized on April 27, 2026, ensures that residents across six different buildings will continue to have stable, high-quality housing in a community facing intense gentrification pressures.

The financing includes $65 million in tax-exempt bonds and the underwriting of $64.1 million in combined federal and D.C. Low Income Housing Tax Credit (LIHTC) equity. This significant investment will preserve a mix of apartments ranging from studios to three-bedroom units for families and individuals earning 30%, 50%, and 80% of the Area Median Income (AMI).

“DCHFA prioritizes community development and affordable housing across the District. This project allows us to impact not only multiple parts of the city, but also deep dive into the heart of Adams Morgan, street by street, through the development’s scattered site,” stated Christopher E. Donald, Executive Director/CEO of DCHFA. He noted the agency's ongoing commitment to the neighborhood, adding, “DCHFA recently participated in the ribbon cutting ceremony of Ontario Place, another affordable community in Adams Morgan, and we’re proud to finance additional homes here with Jubilee through DCHFA’s risk-share program.”

A Critical Anchor in a Shifting Neighborhood

The preservation of these 188 units provides a crucial anchor of affordability in a neighborhood where housing costs have soared. Adams Morgan, like many desirable D.C. neighborhoods, has seen a dramatic rise in property values and rents. The median home price in the surrounding 20009 ZIP code surged by over 25% in the past year, reaching $690,000, while neighborhood rents have climbed nearly 10% year-over-year. This economic pressure has made it increasingly difficult for low and moderate-income households to remain in the community.

This project directly confronts that challenge. By restricting the units to households earning well below the neighborhood's median income, it safeguards housing for some of the city's most vulnerable residents. Across Washington, D.C., nearly half of all renters are considered “rent-burdened,” spending over 30% of their income on housing, with over 44,000 households facing severe cost burdens. This initiative offers a tangible solution, providing not just shelter, but stability for families who might otherwise be displaced.

The development’s scattered-site nature, with six buildings located less than a half-mile from one another, integrates affordable housing seamlessly into the existing fabric of the neighborhood. The properties are also strategically located less than a mile from two Metro stations—Columbia Heights and Woodley Park/Adams Morgan—connecting residents to jobs, education, and services across the city.

The Financial Architecture of Preservation

Executing a $148 million rehabilitation project requires a sophisticated financial strategy, and DCHFA has leveraged some of its most effective tools. The agency’s issuance of tax-exempt bonds provides low-cost capital, a foundational element that makes affordable housing development financially viable. This is complemented by the powerful incentive of Low Income Housing Tax Credits, which attract private equity investment into affordable housing in exchange for tax benefits.

A key component of the deal is the use of DCHFA's Risk-Share Program. Under this agreement with the U.S. Department of Housing and Urban Development (HUD), DCHFA assumes a portion of the financial risk on the loan. This credit enhancement helps the agency secure higher bond ratings—DCHFA is an S&P AA- rated issuer—which translates into lower borrowing costs for the developers. These savings are ultimately passed down, allowing for deeper affordability and more extensive renovations than would be possible through conventional financing alone.

This model showcases the critical role of public finance agencies in bridging the gap between the high cost of development and the need for affordable rents. With a 45-year history and a multifamily portfolio of over 25,000 units, DCHFA has established itself as a pivotal force in executing the District's housing priorities.

More Than Walls: A Holistic and Sustainable Approach

The project is being co-developed by Jubilee Housing and Bread of Life Church, with Jubilee bringing over five decades of experience in the Adams Morgan community. Founded in 1973, Jubilee Housing operates under a “Justice Housing®” framework, a model that goes beyond providing shelter to create communities with robust supportive services. The organization integrates deeply affordable homes with programs for early childhood education, financial literacy, and reentry support for returning citizens.

This holistic approach is reflected in the scope of the rehabilitation. Residents will see their homes transformed with new flooring, modern kitchens and bathrooms, and new interior doors. Critically, the units will also be equipped with new 125-amp electric panels and Energy Star appliances, which will lower utility bills and improve energy efficiency.

Building-wide upgrades are equally comprehensive, focusing on long-term quality of life, safety, and sustainability. The plans include modernized building entrances, new security camera systems, upgraded HVAC and elevator systems, and significant landscaping improvements. A key feature is the installation of solar panels on the buildings, a move that will reduce the properties' carbon footprint and operational costs, furthering the project's long-term financial and environmental sustainability.

This focus on comprehensive, green-focused rehabilitation ensures the buildings will not just be preserved, but will provide high-quality, healthy, and dignified living environments for decades to come. It reflects a commitment to investing in people and communities, not just in brick-and-mortar structures.

A Blueprint for Urban Housing Solutions

The Adams Morgan project serves as a compelling blueprint for how cities can tackle the affordable housing crisis. It successfully combines several key strategies: innovative public financing, deep affordability targeting, a partnership with a trusted community-based developer, and a commitment to high-quality, sustainable rehabilitation in a transit-rich location.

By preserving existing housing stock, this model avoids the higher costs and displacement often associated with new construction. The scattered-site approach demonstrates how affordability can be integrated into a neighborhood without creating large, isolated concentrations of low-income housing. The partnership between a government agency like DCHFA and a mission-driven non-profit like Jubilee Housing highlights a powerful collaborative formula for success.

As cities across the nation grapple with gentrification and housing shortages, this comprehensive initiative in the heart of Washington, D.C., offers a replicable and effective strategy for safeguarding communities and ensuring that residents of all income levels have a place to call home.