Local Rent Supplement Program (LRSP) Contract Number 2025-LRSP-02A with Flats at South Capitol, LLC LRSP Funding Increase Approval Resolution of 2026

26th Council Period (2025-2026) Introduced by Phil Mendelson

The bill increases the LRSP subsidy to 845,490.67 annually for 22 units at Flats at South Capitol, locking in a 20-year commitment for extremely low-income residents (≤30% AMI).

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Summary of PR 26-0734: LRSP Funding Increase Approval Resolution of 2026

Purpose and Intent

The bill seeks to approve an increase in the Local Rent Supplement Program (LRSP) operating subsidy for Flats at South Capitol, LLC, to support twenty-two affordable housing units at Flats at South Capitol Apartments (3838 or 3848 South Capitol Street, SE) in Washington, DC.

It builds on a previously approved agreement (ALTSC) between the District of Columbia Housing Authority (DCHA) and Flats at South Capitol LLC, initially approved by the Council on March 4, 2025 (Resolution 26-47).

Key Provisions and Changes

Increase Amount: The initial annual LRSP subsidy for the Flats at South Capitol was $486,960. The bill proposes increasing this amount to $845,490.67 per year.

Term: The funding increase is provided for a multi-year term of twenty (20) years, under the Long-Term Subsidy Contract (ALTSC).

Unit Coverage: The increased funding covers twenty-two (22) affordable housing units at the Flats at South Capitol Apartments.

Target Population: The units are intended for extremely low-income households, specifically those at or below 30% of the Area Median Income (AMI).

Legal Authority and History:

The LRSP program originated from the FY2007 Budget Support Act (BSA) to support affordable housing and supportive services for extremely low-income District residents.
The Council previously approved entering into the ALTSC with Flats at South Capitol LLC (Resolution 26-47, May 4, 2025) at the lower subsidy level.

Authorization: The Council approves the increase in the LRSP operating subsidy amount for the Flats, under the ALTSC, to a new annual amount not to exceed $845,490.67.

Affected Parties and Impacts

Primary Beneficiary: Flats at South Capitol, LLC (the property owner/developer) and its 22 LRSP units.

Beneficiaries: Extremely low-income District residents (≤30% AMI) occupying the 22 affordable units, who will receive long-term housing subsidies and housing stability.

Governing Bodies/Authorities: District of Columbia Council, DCHA (District of Columbia Housing Authority), and the Mayor (receives the transmittal).

Fiscal Authority: The Chief Financial Officer’s fiscal impact statement applies; the funding will be disbursed as part of LRSP under the ALTSC arrangement.

Procedural and Timeline Aspects

Legislative Action: Introduced by Council Chairman Phil Mendelson on May 26, 2026; co-sponsored by Mendelson.

Status: The bill was retained by the Council with comments from the Committee on Housing on June 2, 2026, after initial introduction.

Effective Date: The resolution states it takes effect immediately upon adoption.

Transmittal: If adopted, a copy of the resolution will be transmitted to the DCHA and the Mayor.

Fiscal Impact

The resolution relies on the CFO’s fiscal impact statement. It specifies an initial annual LRSP subsidy amount of $845,490.67, representing an increase from the prior $486,960 baseline, for 22 units over a 20-year term. The exact long-term budget implications would be determined as part of the ALTSC and related funding arrangements.

Overall Significance

This bill formalizes a substantial increase in subsidies to maintain and support 22 extremely low-income housing units under the LRSP, aligning long-term funding with the goal of preserving affordable housing for residents at 30% AMI or below.

It emphasizes stability and continuity of housing for a vulnerable population through a 20-year subsidy commitment.