Partnership Is Chosen for Redevelopment

"The goal of the plan is to have everyone who currently has a unit there able to return to a brand-new unit at the same rate," he added.

Affordable-housing rates are set for families earning 30 percent to 60 percent of the median income, about $56,000 for a family of four in the District. Three-hundred sixty units will be set at the 30 percent level, about $16,800. The remaining units will be for families earning up to 60 percent of the median, about $33,600.

Residents greeted yesterday's announcement with measured optimism.

"I'm glad that Sursum Corda is going to be in the early phases of the project," said Alverta Munlyn, a resident of the neighborhood for 65 years. "But some of the residents still don't know what's going on."

Munlyn said some question whether they will ever return. "My hope is that Sursum Corda's residents will be rehoused," she said. "But we still have not been able to see final plans."

Residents of Temple Court, who rent, are equally concerned, officials said.

The city plans to spend $45 million to rebuild Walker-Jones Elementary School, adjacent to the development. The new building will house a community recreation center and a library.

The tentative goal is to complete the development by 2014.

"We worked hand-in-hand to help shape that proposal, and we think it's a terrific, terrific team," said Rick Hausler, Kettler's president. "The strong support it's getting from the city is going to make this undertaking a success. We think it's going to be a showcase."