Wesley Housing Completes $62M Fort Totten Project: The D.C. Deal Sheet

Why It Matters

The initiative demonstrates how coordinated public‑private financing and resident ownership can rapidly increase affordable housing supply in high‑cost markets, offering a replicable template for other cities facing housing shortages.

Key Takeaways

• Wesley Housing expanded One Hawaii to 70 affordable units.
• Project cost $61.5 M, funded by tax credits and bonds.
• Units serve households earning 30‑80% of area median income.
• Former tenants have right of first return; 10 families will return.
• Mixed public‑private financing showcases scalable affordable‑housing model.

Pulse Analysis

The One Hawaii project illustrates the growing power of the Tenant Opportunity to Purchase Act (TOPA) as a tool for community‑driven development. By allowing residents to organize and purchase their building, TOPA aligns tenant interests with investors, reducing displacement risk while unlocking capital for renovation. Wesley Housing’s acquisition in 2018 set the stage for a strategic partnership with city agencies, turning a modest 34‑unit structure into a 70‑unit asset that directly addresses D.C.’s acute affordability gap.

Financing the $61.5 million expansion required a sophisticated mosaic of public incentives and private capital. Federal low‑income housing tax credits, D.C. solar tax credits, and tax‑exempt bonds lowered the equity burden, while a Freddie Mac permanent loan provided long‑term debt stability. The District’s Housing Production Trust Fund and the DC Housing Authority’s Local Rent Supplement Program added crucial cash flow support, ensuring rents remain affordable for households earning 30‑80 % of the area median income. This layered approach demonstrates how municipalities can leverage existing programs to de‑risk projects and attract private partners.

Beyond the headline, the One Hawaii success signals a broader shift in the capital‑intensive D.C. real‑estate market. With rising construction costs and limited land, developers are increasingly turning to adaptive reuse and resident‑led models to meet policy goals. The project’s right‑of‑first‑return clause protects existing tenants, fostering community stability while freeing up additional units for new low‑ and moderate‑income families. As other jurisdictions grapple with similar affordability pressures, the blend of TOPA mechanisms, diversified financing, and strong public‑sector coordination may become a blueprint for scaling affordable housing nationwide.