Rising Costs Stall 434-Unit Takoma Metro Project, Developer Seeks More Time

• July 27th

by UrbanTurf Staff

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The developers behind a major mixed-use project planned for the Takoma Metro station are seeking more time to get it off the ground.

EYA and the Washington Metropolitan Area Transit Authority have requested a two-year extension of the consolidated PUD and zoning map amendment approved for the roughly 434-unit development, which would replace a surface parking lot immediately adjacent to the Takoma Metro station with a mix of housing, retail, and public open space. The Moya Design Partners-designed project has been in the works for the 6.7-acre site at Eastern Avenue and Cedar Street NW (map) since 2022, and calls for roughly 17,000 square feet of retail alongside two acres of open space split between a park along Eastern Avenue and a retail plaza. DC's Historic Preservation Review Board signed off on the design in 2023, and WMATA's board authorized an amended joint development agreement for the site last year, with groundbreaking previously anticipated for this winter.

Per the filing with DC's Zoning Commission, the development team has been unable to secure financing, citing higher interest rates, construction costs, insurance premiums, and operating expenses. The development's affordable housing component — 15% of units, including some geared toward households earning 30% and 60% of the area median income, plus six three-bedroom affordable units — has been part of the financing challenge.

EYA noted it has evaluated pairing the approved affordability program with enhanced options under the District's HANTA program, but says neither scenario currently pencils out. The filing states that the applicant has been meeting with the Office of the Deputy Mayor for Planning and Economic Development, the Department of Housing and Community Development, and DC Council members to explore legislative and financial tools that could help the project move forward while preserving — and potentially expanding — its affordable housing commitment.

This article originally published at https://dc.urbanturf.com/articles/blog/rising_costs_stall_434-unit_takoma_metro_project_developer_seeks_more_time/24855.