With help from an $8.5 million LISC predevelopment and construction loan, Cycle House in northwest Washington D.C. will be a first-of-its-kind green affordable housing development. The mixed-use, net-zero building with bike-friendly amenities is geared for residents at 30% to 80% of area median income and sets a high standard for eco-friendly construction in the area and beyond.
Banner photo courtesy of Matt Telzerow
The Truxton Circle neighborhood of northwest Washington D.C. is feeling the looming threat of high housing costs and displacement spilling over from luxury real estate developments and investments in nearby neighborhoods.
But a new affordable housing project in one of the most competitive housing markets in the country aims to help keep low- and middle-income families in the area and introduce green building and living innovations at the same time.
Cycle House will be a four-story, mixed-use, net-zero building with 18 apartments for people at 30% to 80% of area median income, with ground floor retail space hosting a local D.C. business, plus room for bike storage. It will go up on a formerly vacant lot owned by the District and will open its doors by January 2025. Among D.C.’s first certified net-zero energy affordable housing projects, the building is setting a high standard for eco-friendly construction in the area.
Heleos, a D.C.-based affordable housing firm, recently closed on construction financing for the development of Cycle House with support from LISC and D.C. Green Bank. LISC is funding the energy-efficient property with nearly $8.5 million in predevelopment and construction financing in addition to $11.2 million in Low Income Housing Tax Credits through the National Equity Fund (NEF), a LISC affiliate.
“This is a project that has been in the works for years,” said Melanie Stern, a LISC D.C. senior program officer who closed the loan. “It's a labor of love for all partners involved, with particular steadfastness from Heleos principals Mark James and Chris VanArsdale. We are excited to see Cycle House come to fruition, and pave the way for future sustainable, affordable development in the District.”
Each Cycle House unit will feature high-efficiency HVAC systems, Energy Star appliances, and EPA WaterSense fixtures, helping reduce utility costs for residents. The construction designed by Emotive Architecture will use a modular construction model and Blueprint Robotics will prefabricate the building offsite. The certified LEED Platinum project, utilizing the Passive House building standard, has the ability to generate as much energy as it uses and to demonstrate that energy efficiency is absolutely possible with affordable housing developments.
Cycle House will generate 100% of its energy onsite through rooftop solar panels and fuel cells. Because it is located within three blocks of Metro stations and will offer convenient free bike storage and a bike-friendly elevator, its developers hope Cycle House will encourage more residents to use sustainable transportation. Pre-development financing and a recoverable grant from LISC helped get the project off the ground, and later stage construction financing rounded out LISC’s commitment.
“With many of the projects we work on, there's interest in investing later down the line, when the projects have been awarded tax credit financing or Housing Production Trust Fund financing through the District,” Stern said. “But before any of that happens, a lot of times it's LISC or other CDFIs that see the vision and see the mission of these projects. And our early-stage capital allows the project to progress to a certain point to receive later stage commitments. It’s really helps to propel the project forward.”
Since LISC’s early-stage investment, the project has come together as a result of partnerships between the city agencies, HUD, PNC Bank, NEF, and D.C. Green Bank.
James, for his part, is thrilled to be pioneering the first wave of certified net-zero affordable housing. “Our development company is proud to have achieved our aspirational goal of making next-generation concepts such as low-carbon, high-performance, transit-oriented and affordable all within the DNA of this project," he said. “LISC D.C. has been phenomenal from our early concept phase up through closing. Their steadfast support, encouragement and innovative financing strategies have played a key role in achieving our goals.”
After working with James and Heleos on previous developments, LISC was eager to continue supporting the D.C. native’s mission to create energy-efficient affordable housing that helps residents save on utility bills and contributes to community sustainability at the same time.
“We’ve reached an inflection point—we must decide whether the green economy is going to include low-income residents or bypass them. Or worse, push them out of D.C. altogether,” Ramon Jacobson, LISC D.C. executive director said. “The many public and private partners on this project demonstrate that affordability and sustainability can go hand in hand.”
Cycle House also aligns with D.C. Mayor Bowser’s goals to deliver 36,000 new housing units – including at least 12,000 affordable housing units by 2025 and achieve carbon neutrality for the District by 2045. A land disposition award made it possible for Cycle House to develop the vacant lot.
For over 40 years, LISC D.C. has partnered with residents and communities across the city to address the structural and historic impacts of racism and build more resilient communities of opportunity. The city is becoming one of the most expensive U.S. cities to live, but LISC wants to help ensure that low-income residents can stay.
“One of our key missions, through investing in projects such as Cycle House, is to ensure residents who have lived in the District for decades have the opportunity to remain, and ensure D.C. is accessible for incoming residents to live and prosper here as well,” Stern said.