In a city where nearly 60% of residents rent and half of renters pay more than 50% of their income in rent and utilities, the 5610 Colorado Co-op is proving how effective limited equity cooperatives (LECs) are at reducing cost burdens and why LECs are a viable means of preserving affordable housing in the District (“America’s Rental Housing 2020.” Joint Center for Housing Studies of Harvard University). The 5610 Colorado LEC is located in 16th Street Heights, a large neighborhood in Northwest DC situated next to Brightwood Park. In a proactive decision to improve their living conditions and protect the affordability of their homes, the tenants formed a cooperative in 2006 to acquire their building.

Mi Casa has been working with the 5610 Colorado Co-op to create a sound development plan and to secure renovation funding from the DC Department of Housing and Community Development and a private lender. Recently the Co-op signed a loan commitment letter with PNC Bank, a critical milestone they needed to proceed with building renovations. The LEC’s success in securing funding for renovation is key as the improvements–such as plumbing, and electrical, and HVAC upgrades; installing a water-proofing system; lead-paint remediation; and unit improvements–will ensure residents have high-quality units to live in for years to come.

Getting to where they are today has required knowledge and diligence on the part of Co-op members and the board, supported by technical assistance provided by Mi Casa. In order to qualify for financing, the cooperative had to demonstrate that it could successfully run itself, maintain a high level of occupancy, and efficiently manage the financial and physical responsibilities of building ownership. During the pandemic, they have continued to work together remotely through weekly conference calls and virtual meetings. “The members are very diligent about their responsibilities, they are actively involved, asking questions, going the extra mile to make sure they are getting the best deals,” says Robert Koehnke, the project manager from Mi Casa Inc who has been working with the cooperative since 2019. Robert is currently guiding the cooperative through an application process to secure a HUD-backed mortgage which will provide 5610 Colorado with additional funding it needs to proceed with renovations.

Because of their dedication and commitment, 5610 Colorado Co-op has succeeded in preserving 36 units of affordable housing in the increasingly expensive Brightwood neighborhood of NW DC. We are so proud of the accomplishments of this LEC and to support them in their efforts to work toward achieving this latest milestone!