Developers Break Ground on Ambitious Mixed-Income Community in Washington, D.C.

Financing for Waterfront Station II includes both 9% and 4% housing tax credits.

*When Waterfront Station II opens in winter 2023, the development will bring 449 units of market-rate and affordable apartments to Washington, D.C. The development is designed by Torti Gallas Urban.*

Courtesy Merchants Capital

An ambitious mixed-income and mixed-use development that will bring 449 apartments to the Southwest neighborhood of Washington, D.C., is under construction.

Waterfront Station II is a joint venture between the for-profit Hoffman & Associates, nonprofit affordable housing developer AHC, as well as City Partners and Paramount Development.

One of the key financing partners is Merchants Capital, which recently announced that it has secured more than $141 million for the development.

Waterfront Station II will feature 313 market-rate apartments and 136 affordable homes, including 68 units available to households earning no more than 30% of the area median income (AMI) and 68 units for households earning up to 50% of the AMI.

Made possible through an innovative financing model, the affordable housing units are being financed using both 4% and 9% low-income housing tax credits (LIHTCs). Ninety-four of the total affordable units are being financed with 4% LIHTCs, while 42 units are being financed with the 9% LIHTCs.