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In the News

A deal gone bad

The District invested millions of affordable-housing dollars into a plan to renovate three rotting buildings in Southeast Washington, but the project died before a shovel ever hit dirt.

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Construction was underway last summer at this apartment complex on 29th Street SE, after the work had been delayed for two years. The original developer, East of the River Community Development Corp., went bankrupt after struggling with financing and renovation costs. The project received $7.5 million in city and HUD money.

Tracy A. Woodward / THE WASHINGTON POST

Marva Jones looks at the property where she used to live on 29th Street SE. She questions why it took so long for renovations to begin.

Marva Jones looks at the property where she used to live on 29th Street SE. She questions why it took so long for renovations to begin.

Tracy A. Woodward / THE WASHINGTON POST

The East of the River project shown here at 29th Street SE was doomed by high acquisition costs and a lack of private financing, even though the city provided $3.5 million in HUD funds and $4 million of its own money. Another developer, William C. Smith and Co., eventually took over and completed the project.

The East of the River project shown here at 29th Street SE was doomed by high acquisition costs and a lack of private financing, even though the city provided $3.5 million in HUD funds and $4 million of its own money. Another developer, William C. Smith and Co., eventually took over and completed the project.

Tracy A. Woodward / THE WASHINGTON POST

Construction inside the 29th Street SE property.

Construction inside the 29th Street SE property.

Tracy A. Woodward / THE WASHINGTON POST

A view from the 29th Street SE property.

A view from the 29th Street SE property.

Tracy A. Woodward / THE WASHINGTON POST

Andre Wallace sells beer in the upper decks of FedEx Field in Maryland. Wallace and his family once lived in one of the buildings that East of the River later promised to renovate. He has since had trouble finding affordable housing.

Andre Wallace sells beer in the upper decks of FedEx Field in Maryland. Wallace and his family once lived in one of the buildings that East of the River later promised to renovate. He has since had trouble finding affordable housing.

Tracy A. Woodward / THE WASHINGTON POST

Wallace spends the evening with his son Devin at his wife's apartment in D.C.

Wallace spends the evening with his son Devin at his wife's apartment in D.C.

Tracy A. Woodward / THE WASHINGTON POST

Wallace and his son have often been separated while he looks for an affordable place to live.

Wallace and his son have often been separated while he looks for an affordable place to live.

Tracy A. Woodward / THE WASHINGTON POST

Andre and Devin Wallace.

Andre and Devin Wallace.

Tracy A. Woodward / THE WASHINGTON POST

Another East of the River property on T Street SE, before renovations.

Another East of the River property on T Street SE, before renovations.

Courtesy of William C. Smith & Co. / COURTESY OF WILLIAM C. SMITH & CO.

Andre Wallace’s former home, on Jasper Place SE, before renovations.

Andre Wallace’s former home, on Jasper Place SE, before renovations.

Courtesy of William C. Smith & Co. / COURTESY OF WILLIAM C. SMITH & CO.

Workers inside the Jasper Place SE property, which was part of the East of the River project.

Workers inside the Jasper Place SE property, which was part of the East of the River project.

Tracy A. Woodward / THE WASHINGTON POST

Night view of the Jasper Place SE property.

Night view of the Jasper Place SE property.

Tracy A. Woodward / THE WASHINGTON POST

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