FSFSC HEADQUARTERS

TAX EXEMPT DC PACE FINANCING FOR A NONPROFIT

THE CHALLENGE

The Far Southeast Family Strengthening Collaborative, Inc. (FSFSC) was established in April 1996 through a Neighborhood Collaborative Capacity. Its mission is to develop and sustain partnerships of residents, agencies, and institutions in the Southeast community and to create a healthy socioeconomic environment for children and families. FSFSC needed to close a financing gap for construction of its new office and retail space.

THE SOLUTION

FSFSC worked with the DC PACE program to finance a suite of energy and water efficiency measures. DC PACE financing will serve as a layer in the capital stack which is allowed FSFSC to conduct a gut rehab of a vacant building to serve as their new headquarters, just a few blocks away from their current rented office space in Anacostia. In addition to office space for FSFSC and related organizations, the building will include first floor retail space, anchored by a Busboys and Poets (their first location east of the Anacostia). In addition to PACE, the project includes about $8m in Industrial Revenue Bond financing and a $3m grant from the District. Both the PACE financing and IRB financing include a taxable and tax-exempt component. The PACE financing will, therefore, be issued across two notes, and secured by two memorandums of assessment recorded in the land records. The project is expected to annually save 230,000 kWy of electricity, 6500 therms of natural gas, 1,187,000 gallons of water.

PROPERTY TYPE

Nonprofit Office/Retail

BUILDING MEASURES

HVAC, envelope improvements, green roof, low flow fixtures, LED lighting, high efficiency commercial kitchen equipment

$2,200,000

Approved PACE Financing

20 YEARS

Term

UNITED BANK

Lender