KSI Receives $4 Million Commitment from D.C.'s Department of Housing and Community Development; Loan Will Complete Columbia Heights Affordable Housing Project

Business Wire, Sept 5, 2006

VIENNA, Va. -- KSI Services, Inc., one of greater Washington's largest mixed-use residential and commercial developers, announced today that it has received a $4 million loan from Washington, D.C.'s Department of Housing and Community Development to complete the renovation of an affordable apartment community in Columbia Heights.

KSI purchased the two, six-story buildings known as the Fairmont Apartments in 2003. The buildings were designated Section 8 housing in the 1970's and as part of the purchase agreement, KSI committed to maintain the Section 8 status, offering low-income residents long-term rent subsidies.

"KSI has a strong commitment to providing affordable housing in DC and around the region," said Jamal Green, Executive Director of the Department of Housing and Community Development. "Columbia Heights has become an attractive area and many apartment buildings have been converted to expensive condominiums, which displaces residents and leaves few affordable housing options." Green adds, "we see KSI as a valued partner in providing affordable housing for the community."

KSI completed the renovation of the first building, Fairmont I in June 2005. This new loan will be used to complete the upgrade of the second building. The community overhaul required vacating the units during the renovation, but many original residents have since moved back into their homes. Fairmont II is also expected to bring many original residents back by when it is completed this December.

Renovations at Fairmont include upgraded electrical and mechanical systems, controlled access entry and fire sprinklers. Inside the each home are new flooring in the kitchens and baths. Residents will have access to a computer center and community room when Fairmont II is completed. In addition to seven three-bedroom apartments in Fairmont I, Fairmont II will offer six additional three-bedroom apartments to accommodate larger families.

"We pride ourselves in delivering the same quality of workmanship, service and amenities at our affordable communities such as Fairmont, as we do at our finest market rate communities," said Richard I. Knapp, senior vice president of KSI.

Washington, D.C., Mayor Anthony Williams and elected officials have praised KSI's commitment to affordable housing in the city. In addition to Fairmont, KSI owns and manages Belmont Crossing and Woodmont Crossing, both offering affordable housing in the District of Columbia. Earlier this summer, Virginia Governor Timothy M. Kaine signed affordable housing legislation at KSI's Metropolitan Park in Arlington, Va., which will offer a mix of both market rate and affordable rental units.

About KSI Services, Inc

Based in Northern Virginia, KSI is a leading developer of award-winning, mixed-use residential and commercial properties across the Washington Metropolitan area. In 2006, KSI was named one of the metropolitan area's largest private companies by the Washington Business Journal. KSI has developed more than five million square feet of commercial space and more than 50,000 homes. Current projects include urban and transit-oriented developments, multifamily housing, commercial and mixed-use developments and golf courses. Robert C. Kettler, a third-generation builder and developer, founded KSI in 1977.