Public Roundtable on Hill East Phase 2 Bundle 2 Disposition Term Sheet Amendments – June 16, 2026
Public Roundtable on Hill East Phase 2 Bundle 2 Disposition Term Sheet Amendments – June 16, 2026
The Committee on Human Services, chaired by Councilmember Matt Freeman (Ward 3), held a public roundtable on Tuesday, June 16, 2026, at 1:07 PM in Room 500 of the John A. Wilson Building to discuss PR26-0736, the Hill East Phase 2 Bundle 2 Disposition Term Sheet Amendment Approval Resolution of 2026. The resolution authorizes three amendments to the 2022 term sheet for the development of approximately 6.3 acres (parcels C, E, H) at 1900 Massachusetts Avenue SE. Testimony was heard from Evans Charles, principal of R13 Community Partners (the developer), and Latrina Owens, Director of Real Estate at the Office of the Deputy Mayor for Planning and Economic Development (DMPED).
Public Comments & Testimony
- Evans Charles (R13 Community Partners, Ward 7 native) testified in support of the resolution. He stated the project is 51% CBE-owned and led by DC natives. He outlined three requested amendments: (1) the District will construct public streets and sidewalks on the street parcels (previously developer’s scope); (2) the District will construct the public park on Parcel E, which will be leased to the developer for 25 years with the developer maintaining it at no cost to the District; (3) the substantial completion period for each parcel will be extended from 30 to 32 months after construction start—clarified as correcting a typo. He noted the project will deliver approximately 1,089 residential units (332 affordable, 30%), a 243-key hotel, 38,000 square feet of retail, and a public park, projecting over $200 million in tax revenue, 2,000 construction jobs, and 500 permanent jobs over 30 years. He attributed delays to a tight lending climate, elevated construction costs, and a larger-than-anticipated funding gap. Affordability was reduced from a planned 40-50% to 30% to ensure feasibility. Of the affordable units, 166 will be at or below 30% MFI, 146 at or below 50% MFI, and 20 at or below 60% MFI. The project includes 125 for-sale units and 964 rentals; family-sized unit counts (2- and 3-bedroom) were not provided. He expects closing on Parcel C by December 2027 and on other parcels by March 2028, with 24-month construction timelines targeting a spring 2030 completion.
- Latrina Owens (DMPED) testified in support, confirming the District has sufficient capital budget to construct the infrastructure and park (approximately $30 million for streets and $35 million for sewer relocation, though exact totals were not finalized). Sewer relocation is underway and expected to complete in the next few months (Q4 2026 or Q1 2027). She noted that the District previously built infrastructure on other campus projects (e.g., St. Elizabeth’s East, RFK Stadium) and that the amendments were necessary to bridge the funding gap.
Discussion Items
- Infrastructure and Sewer: Councilmember Freeman asked about sewer pipe and utility issues. Evans Charles stated DMPED (via DGS) is now handling infrastructure, which previously was developer’s responsibility. Latrina Owens confirmed sewer relocation is underway with completion anticipated in the next few months.
- Financing and Feasibility: Freeman questioned the viability given current market conditions. Charles cited the unique attractiveness of the site—proximity to the RFK Stadium redevelopment, waterfront, and over $3 billion in adjacent development—as reasons for confidence. Owens added that Hill East is an opportunity zone, offering tax benefits to investors.
- Affordability and Unit Mix: Charles confirmed the 30% affordable requirement under the Anacostia Watershed Development Zone (AWDZ) is maintained, though previously higher ambitions were curtailed. He provided MFI breakdowns but did not have 2- and 3-bedroom counts; he committed to providing those later. He also stated the developer will seek project-based vouchers.
- Park and Public Space: The park (roughly one acre) will be designed in coordination with DPR, with features such as an amphitheater, playground, and open green space. The developer will maintain it for 25 years at no cost to the city, after which it will transfer to DPR. Charles confirmed maintenance costs are built into the pro forma.
- Timeline: The target for closing on Parcel C is December 2027, with other parcels closing by March 2028. Construction would take 24 months per parcel, aiming for a full completion by spring 2030.
- School Capacity: Freeman raised concerns about school capacity given 3,000 total planned units across Hill East. Owens noted that DMPED informs DCPS of upcoming units but has not yet had formal conversations; school choice makes enrollment projections uncertain.
- Grocery Store: Freeman asked whether a grocery store was still planned. Owens stated it is not confirmed for this bundle; the project includes 38,000 square feet of leasable retail, but no tenant has been finalized.
- Cost to the District: Owens confirmed that infrastructure costs (streets, sidewalks, park) are already in the Hill East capital budget (since 2022) and are sufficient. The $30 million for roads and $35 million for sewers were mentioned, but a precise total was not provided; a follow-up response was requested.
- Disposition Authority: Owens explained that the disposition authority for the land expires in March 2028, but closing before that date (December 2027) allows construction to proceed under covenants and performance schedules.
Key Outcomes
- The committee heard testimony in support of PR26-0736. No formal vote was taken during the roundtable. Councilmember Freeman requested written follow-up on: exact numbers of 2- and 3-bedroom units, costs built into the pro forma for park maintenance and resident services (especially voucher tenants), and the precise capital budget totals for Hill East infrastructure.
- Written testimony must be uploaded to the council’s electronic hearing management system by close of business on Tuesday, June 23, 2026.
- The developer’s next steps include completing design review, securing financing (likely equity and bank loans, not HPTF or LITACO), and closing on Parcel C by December 2027. DMPED will continue oversight through construction and use covenants.
Meeting Transcript
Recording in progress. Good afternoon. I am Matt Freeman Ward 3, Councilmember and Chairperson of the Committee on Human Services. Today is Tuesday, June sixteenth, 2026. We are meeting in person in room five hundred of the John A. Wilson building and virtually via Zoom. The time is now one oh seven p.m. Today we are conducting a public round table to discuss PR twenty six-07 three six, the Hill East phase two bundle two disposition term sheet amendment approval resolution of twenty twenty-six. Hill East, formerly known as Reservation 13, is comprised of sixty-seven acres located between the eastern edge of the Capitol Hill neighborhood and the western shore of the Anacostia River. Located at 1900 Massachusetts Avenue Southeast, phase two, bundle two consists of approximately six point three acres and includes parcels C, E, and H, and the streets parcel all within lot seven in Square E-112. Development of these parcels will include multifamily residential buildings, town homes, mixed-use buildings with multifamily residential units over commercial and or retail space, a hotel, a public park, and public streets and sidewalks. The park would be leased to the developer for up to 25 years. A change from the prior ninety-nine year ground lease, and the developer would be responsible for maintenance of the public park throughout the period of the ground lease. Lastly, the period for substantial completion of each parcel would be extended from 30 months to two 32 months following the start of construction. Uh Mr. Charles, you will have five minutes for your testimony. Before you speak, please make sure to turn on the microphone in front of you. Perfect. Um, and when you are ready, you may begin. Great. Okay. Um good afternoon, Chairman Freuman, members and staff of the Committee on Human Services. I am Evans Charles, a DC native and a principal of R13 Community Partners, the designated developer for Hill East Phase 2 Bundle 2 project and Ward 7. Our team is comprised of 51% CBE, is 51% CBE owned, and it's led by all DC natives. Thank you for this opportunity to testify in support of PR26-0736, the Hill East phase two bundle two disposition term sheet amendment approval resolution of 2026. The committee and the council already approved this project and this disposition in 2022. We are here to request three amendments to the term sheet that would allow the project previously supported to move forward. The bundle two project is transformative, mixed use, mixed income development on roughly 275,000 square feet of district land along Massachusetts Avenue Southeast. As currently planned, it will deliver approximately 1,089 new residential units, including 332 affordable units or about 30% of the project, alongside a 243 key hotel, nearly 38,000 square feet of neighborhood serving retail and a new public park on Parcel E. Over 30 years, the project is projected to generate more than 200 million in tax revenue, creating over 2,000 construction jobs and more than 500 permanent jobs and advance the council approved Hill East Master Plan vision of reconnecting Capitol Hill to the Anacosia River. Like every other large-scale development in today's market, Bundle 2 faces difficult a difficult financing environment. A tight lending climate combined with elevated construction costs has created a larger than anticipated funding gap. To keep this project moving forward and financially feasible, we have worked closely with the deputy mayor for planning and economic development on a narrow set of amendments to the term sheet the council approved in 2022. There are only three changes before you today. First, the district will construct the public infrastructure, the streets, and the sidewalks on the street parcels, which the district is already building for the broader phase two road network serving both bundles one and bundle two. Second, the district will construct the public park on parcel E. The parcel would be leased to developer for a period of 25 years to support the ongoing maintenance and operations of the publicly accessible park with no financial obligation to the district. Third, the substantial completion of each parcel will be extended modestly from 30 to 32 months after construction begins. We are actively advancing design development and identifying funding partners. Concurrently, the district through DGS anticipates beginning construction on phase two public infrastructure in early 2027. We anticipate closing on the first phase at Parcel C by December of 2027. Over the years, this project, we have engaged consistently with the Hill East community, including ANC 7F, ANC 7D, and the neighborhood residents, and we are committed to continuing that engagement as the project moves forward. In closing, I want to thank the Deputy Mayor's Office and its team who have worked tirelessly on this project and these amendments. We respectfully ask the committee to approve PR 26-0736 so we can complete design, secure financing, and deliver housing, jobs, and public space that ward seven in the district has long been promised as this council endorsed in 2022. Thank you, and I welcome any questions. Thank you very much. Um all very exciting. Um I understand there were issues with the sewage pipe and utilities that had affected the project and design. Where do we stand on those issues? Are you familiar with what I'm talking about referring to?
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