By Mafara L. Spurlock

Coalition for Nonprofit Housing & Economic Development

Tenants Buy Back Affordability in Adams Morgan
Mi Casa, Inc. assists tenants with purchase and development  

In 1994 she was looking for an affordable apartment to rent. Her mother-in-law recommended the Covington at 1846 Columbia Rd., NW in Adams Morgan, which offered affordable units through project based Section 8 contracts. But little did she know her decision to relocate to this building would take her on a taxing but ultimately rewarding journey toward tenant purchase.

Fortunately Cynthia Torruella and the other Covington tenants were able to whisk through the purchase process with the help of Mi Casa Inc., a member of the Coalition for Nonprofit Housing & Economic Development, which helped tenants devise a unique approach to save their building.

“Our building has always been affordable to us,” said Torruella. “But for this apartment building, none of us could afford this Adam’s Morgan neighborhood.”

 However, a few years ago, the building’s affordability was threatened as the expiration of the tenants’ project based Section 8 contract was drawing near. And without a Section 8 contract, in an area of escalating rents, almost all of the residents would face displacement.

“This was simply something we just could not allow,” explained Torruella. “All of us have lived here for many years, the thought of leaving was never an option,” she said.

And sure enough, with the upcoming expiration of the section 8 contract, the owner of the Covington decided to sell the property. After learning this information, the tenants quickly pulled together as a tenant association and made an offer to purchase their homes. Many of the longtime residents have lived in the Covington for as long as 30 years, so purchasing was top priority.

With no previous experience or knowledge of tenant conversion, the Covington Family Association Cooperative turned to Mi Casa, Inc. for development counseling and assistance.

“Mi Casa has really made the difference in our process,” said Torruella, who is also president of the association.

Under Mi Casa’s guidance, the tenants renewed their Section 8 contract with HUD, adding a mark up to market provision, which raises the allowable subsidy without raising their rents. With a blanket subsidy, all 21 units will remain affordable for 20 years.  The nonprofit also helped the tenants secure construction financing from BB&T bank and acquisition financing through DHCD, and to assemble the development team and begin construction.

“The Covington is a perfect example of the kind of work we are doing at Mi Casa,” said Project Manager Elin Zurbrigg. Though the organization once worked primarily in developing single-family homes for individuals families, now according to Zurbrigg, “We’re focusing heavily on multi-family projects, in addition to our single-family developments. Multi-family developments allow us to reach more people in need of affordable housing in the city.”

The Covington’s building renovations began April of this year and will be completed by early summer 2005. “And that is when we will really begin to enjoy living in our newly purchased building,” said Cynthia Torruella.

For more information about Mi Casa Inc., you can reach them at 202.232.1975 or on the web, www.micasa-inc.org.

Mafara Spurlock is the communications officer for the Coalition for Nonprofit Housing and Economic Development.

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The Coalition for Nonprofit Housing and Economic Development’s Neighborhood Building Blocks series focuses on the unique work District nonprofits do to revitalize neighborhoods and produce affordable housing.  The contributions these nonprofits make – such as Counseling and Assisting Tenants – are the building blocks that form the foundation for thriving neighborhoods and a healthy city.