In the Media
HUD Awards $4M Loan to Development Firm for Affordable Housing Renovations
September 1, 2006 Multi-Housing News
By Kelly Sheehan
KSI Services Inc., a development company, has received a $4 million loan from the U.S. Department of Housing and Community Development (HUD) to complete the renovation of Fairmont Apartments, an affordable apartment community in Columbia Heights. Renovations are slated for completion in November of 2006.
In 2003, KSI purchased the two-building, 205-unit complex, which was built in the 1920s and renovated in the 1970s. As part of the purchase contract, KSI agreed to maintain the community’s Section 8 status and continue to provide low-income housing. The company renovated the complex’s first building in 2005. The new HUD loan will be used to complete upgrades to Fairmont’s second building.
“We have always been very interested in providing affordable housing,” John Poyer, senior development associate at KSI, told MHN. “Columbia Heights is a rapidly gentrifying area and there is very little affordable housing. These units will make a tremendous difference for a lot of people.”
Poyer said that Fairmont’s studio, one-, two- and three-bedroom units were in “very bad need of updating.” Now, he said, visitors would have trouble finding differences between KSI’s luxury apartment complexes and Fairmont Apartments.
Renovations to the six-story complex will include upgraded electrical and mechanical systems, controlled access entry and fire sprinklers. Units will feature new drywall, cabinets, flooring, windows and air conditioning and heating units. Kitchens and bathrooms will be renovated as well. KSI will also convert six of the units into handicap-accessible residences. Residents will have access to a community center and computer center.
“Residents are thrilled that they are living in a place of such quality and paying so little in rent,” Poyer said.