Outside of the RFK Campus, the Fletcher-Johnson project will constitute one of the largest development efforts in the history of Ward 7.  The project will bring to life the long-vacant 15.26-acre campus on Benning Road, SE with new amenities and services. This includes new housing, new retail, public space, and a new state-of-the-art Freestanding Emergency Department (“FED”).  Planning for the project has been underway since 2019, and now the surplus and disposition legislation that will make these plans for Ward 7 a reality is before the Council of the District of Columbia. [1]

The District selected the development team of Gragg Cardona Souadi (“GCS”) to develop the retail and housing portions of the campus through a competitive RFP process in July 2019. When complete, the campus will include roughly 775 new multifamily apartments and 25 new town homes.  This includes approximately 232 new affordable apartment units and 8 new affordable town homes. In addition, the GCS team will oversee the construction of 45,000 sf of neighborhood retail and public green space.[1] Like all District developments, the Fletcher-Johnson project, including the FED, will adhere to the District’s First Source and Certified Business Enterprise requirements during the construction phase.

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[1] Office of the Deputy Mayor for Planning and Economic Development (DMPED), "Fletcher-Johnson, Our RFP," https://dmped.dc.gov/OurRFP_FletcherJohnson

[1] Council of the District of Columbia, B26-0720, "Fletcher-Johnson Surplus Declaration and Disposition Approval Act of 2026," introduced June 29, 2026, https://lims.dccouncil.gov/downloads/LIMS/62224/Introduction/B26-0720-Introduction.pdf?Id=242027

The “Fletcher-Johnson Surplus Declaration and Disposition Approval Act of 2026” was introduced on June 29, 2026, and sequentially referred to the Committee on Facilities and Committee on Human Services.

The Committee on Facilities, chaired by Councilmember Janeese Lewis George, must first approve the legislation. Then the Committee on Human Services, chaired by Councilmember Matt Frumin, must approve the Committee. Then the legislation must be approved by the full D.C. Council before the end of 2026.

A delay would not simply push the project back a few months. Fletcher-Johnson was underwritten in a capital market that no longer exists. If approval slips into 2027, every element of the deal (debt, equity, construction pricing, affordable-housing subsidy, and the hospital partner’s capital) would have to be secured again on worse terms, and some of it may not be available at all.

The clock resets on January 1. Legislation not approved before Council Period 26 ends on December 31, 2026, lapses and must be reintroduced, reheard, and voted on again by a Council with new members and a new Mayor. GCS and UHS have already invested more than six years of their time and money in this project.  They cannot start over with no assurance that a new administration will honor the terms the District has already negotiated.

Borrowing costs are rising again. The Federal Reserve raised its benchmark rate in September 2026, to a range of 3.75 to 4.00 percent, and markets are pricing in the possibility of another increase. The 10-year Treasury yield, which sets the price of permanent apartment loans, topped 5 percent in mid-October. As a rule of thumb, each one-point increase in the permanent loan rate shrinks the mortgage a completed building can support by roughly 10 percent. On a project of this size, that is a gap of tens of millions of dollars that must be filled with scarce equity or public subsidy.

Capital has already left the District’s multifamily market. Rental housing starts in the District fell 79 percent in 2024, to 932 units from 4,474 in 2023, after running at 5,000 or more units a year from 2015 through 2022. Starts recovered only modestly in 2025, to 1,933 residential units (mostly office conversions), as overall construction hit a 15-year low, and the District permitted just 1,372 new multifamily units all year. Lenders and investors are rationing capital to the District. Fletcher-Johnson’s 800 homes equal about 40 percent of last year’s residential starts. A fully negotiated, Council-approved project can compete for that capital; a project in limbo goes to the back of the line.

Construction costs are climbing at the fastest pace in four years. Prices for inputs to nonresidential construction rose 11.9 percent from September 2025 to September 2026, including increases of 27.6 percent for steel mill products, 30 percent for copper and brass, and 25 percent for aluminum. Steel suppliers report order books full through spring 2027. Every month of delay raises the cost of the same buildings, and the gap can be closed only by cutting affordable units or amenities, or by abandoning the project.

Affordable-housing subsidy is scarce and fiercely contested. The District’s tax-exempt bond capacity has been fully used for years, and Housing Production Trust Fund appropriations are well below their 2021–2022 peaks. If Fletcher-Johnson loses its place in the queue, its 240 affordable homes will compete again, against a backlog of other projects, for a shrinking pool of resources.

Hospital capital is under unprecedented pressure. The 2025 federal budget reconciliation law cuts more than $900 billion from federal Medicaid spending over the next decade, and the District estimates that about 95,000 residents, nearly one in seven, could lose Medicaid coverage. Health systems are delaying or shelving expansion projects in response. UHS made its commitment to the FED in a different environment; if the site is stalled, that capital can be redirected to projects that are ready to proceed.

The FED’s certificate of need is tied to this site and to a schedule.  The FED’s certificate of need is tied to this site and to a schedule.  The FED’s certificate of need (“CON”) for the FED was approved by the District of Columbia’s State Health Planning and Development Agency (“SHPDA”) on December 23, 2024.  Under District law, the CON for this FED will expire on December 23, 2027, unless the authorized health services are established and approved for operation by SHPDA.  The State Health Planning and Development Agency may extend a CON only if the holder shows substantial progress and good faith, which is difficult when the District has not yet authorized conveyance of the land. If the FED must move, UHS would need 18 months to two years to locate and secure a suitable site East of the River, followed by community outreach, zoning and other approvals, and a new CON review before construction could begin. Ward 7 residents would wait years longer for emergency care.

Bottom line: The Council’s choice is not between this project now and this project later. In today’s capital markets, it is between this project now and, quite possibly, no project at all.

Assuming passage of Bill 26-720 before the end of 2026, the Freestanding Emergency Department would open in Q3 or Q4 2028.  The completion of Phase 1 of the larger development would occur in Q4 2032.

Following a competitive solicitation process — which included community engagement to hear the priorities of ANC 7E and the surrounding communities — DMPED selected the development teams of Fletcher-Johnson Community Partners, LLC and District Hospital Partners, LP to transform this site for the benefit of all stakeholders. 

Since 2021, DMPED and the development team have participated in twelve community meetings and events, including Farewell to Fletcher and Fletcher Johnson Day, to share plans for the site and hear directly from local stakeholders. Throughout that engagement, the community’s priorities have remained consistent: a mixed-use development that brings new housing and retail, creates beautiful and accessible public spaces, and honors the site’s rich cultural history. Above all, residents have emphasized the importance of moving the project forward and putting the property back into productive use after sitting vacant since 2011 and being underutilized for many years before that. 

Yes. In an emergency, being located close to a high-quality emergency department can be the difference between a good and bad outcome. Ward 7 has long been underserved from a healthcare perspective, and the proposed FED would be a major step towards rectifying this longstanding inequality. From the Safeway located at 322 40th Street, NE, the current drive time to the nearest hospital-based emergency department ranges from 14 to 55 minutes depending on traffic. The proposed FED on Benning Road, SE would cut that to as little as 7 minutes!

Further, consider that in 2023, 59,889 calls to EMS, or 36.1 percent of the citywide EMS call volume, originated in Wards 7 and 8. Yet, the residents of these two wards, which account for fully a quarter of the District’s overall population, are served by only one emergency department located east of the Anacostia River. Ward 7 alone, where the FED will be located, produced approximately 33,600 total FEMS calls in 2023, which included roughly 27,900 EMS calls for someone in need of medical help. The proposed FED will help fill this longstanding hole in the District’s healthcare infrastructure.

The Fletcher-Johnson FED will help the District's overall EMS system shorten ambulance turnaround times. Currently, the District meets the response-time standard for high-priority calls only 57% of the time, primarily because of extended ambulance turnaround times.[1] EMS meets the standard hospital turnaround time just 11.7% of the time.[2] The District's EMS system is clearly strained which can have real-world consequences for residents and patients needing timely emergency care.  The addition of the Fletcher-Johnson FED will help relieve that strain.

Finally, the Fletcher-Johnson FED will address the District’s worst-in-the-nation emergency room length of stay (“LOS”).  According to the federal Centers for Medicare & Medicaid Services (“CMS”), the average LOS for emergency rooms in the District was 303 minutes – over 5 hours!  The median time nationally was 162 minutes.[3]  By adding additional ER capacity, the Fletcher-Johnson FED will make a significant improvement in LOS outcomes.

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[1] The response time standard consists of an EMT arrival with 5 minutes and two paramedics arriving within 9 minutes.

[2] The ambulance turnaround standard consists of 50% of ambulances returning to service within 30 minutes.

[3] Goldman, Maya. “Americans spend more than 2.5 hours in the ER,” Axios, August 25, 2026

FEDs offer a higher level of care than urgent care centers. They are staffed by emergency medicine physicians, operate 24/7, and have access to advanced diagnostic tools like CT scanners and full laboratory services, along with the capability to stabilize life-threatening conditions such as heart attacks, strokes, severe trauma, or major allergic reactions. Urgent care centers, by contrast, are generally staffed by nurse practitioners, physician assistants, or general practice physicians, keep more limited hours, and are designed for non-life-threatening issues like minor fractures, sprains, colds, flu, minor cuts requiring stitches, and routine infections.

Because of this difference in capability, FEDs are best suited for patients experiencing symptoms that could indicate a serious or life-threatening emergency, such as victims of gun shots or stabbings, chest pain, difficulty breathing, severe bleeding, or signs of stroke, where speed and advanced resources matter most. By contrast, urgent care centers are the better (and far more cost-effective) choice for minor, non-emergency ailments that still need prompt attention but don't warrant an ER-level response.

FEDs offer a higher level of care than urgent care centers. They are staffed by emergency medicine physicians, operate 24/7, and have access to advanced diagnostic tools like CT scanners and full laboratory services, along with the capability to stabilize life-threatening conditions such as heart attacks, strokes, severe trauma, or major allergic reactions. Urgent care centers, by contrast, are generally staffed by nurse practitioners, physician assistants, or general practice physicians, keep more limited hours, and are designed for non-life-threatening issues like minor fractures, sprains, colds, flu, minor cuts requiring stitches, and routine infections.

Because of this difference in capability, FEDs are best suited for patients experiencing symptoms that could indicate a serious or life-threatening emergency, such as victims of gun shots or stabbings, chest pain, difficulty breathing, severe bleeding, or signs of stroke, where speed and advanced resources matter most. By contrast, urgent care centers are the better (and far more cost-effective) choice for minor, non-emergency ailments that still need prompt attention but don't warrant an ER-level response.

UHS holds a right of first refusal to lease space within the retail portion of the Fletcher-Johnson Development and has notified the developer of its intent to exercise that right to establish a primary care clinic on the site.

Assuming passage of Bill 26-720 before the end of 2026, the Freestanding Emergency Department would open in Q3 or Q4 2028. 

Unequivocally yes. The retail requests from the Marshall Heights community have been consistent since the 2017 Fletcher-Johnson Task Force: food, a place to sit down and eat, everyday shops and services, incubator space for local entrepreneurs, and office space for the ANC and Ward 7 organizations. They appear in the Task Force priorities, in the Community Benefits Agreement, and in correspondence from Marshall Heights residents as recently as August 2025. In 2023 we commissioned Streetsense, a Washington-based retail strategy firm, to test whether the trade area could sustain that program. Its Retail Demand Assessment (October 2023) is the basis for the retail plan. 

What the study found:

• Supportable retail 

About 40,500 square feet supportable today, rising to about 46,800 square feet by 2028 and 56,400 square feet by 2033 as the trade area adds households and income. 

• Who the customers are 

87 percent of demand is high-frequency, convenience-based spending: the trade area's roughly 31,600 households plus the households on the campus. Build the local base first; regional visitors follow. 

• Food and beverage leads 

The largest category, about 27,000 square feet by 2033: casual full-service restaurants with outdoor seating opening onto the park, and fast-casual, coffee and lunch concepts. Authentic, local, community-owned operators recommended over national chains. 

• Everyday goods and services 

About 21,000 square feet by 2033 of small-scale neighborhood tenants: a market or general store, pharmacy and personal services, fitness that can program the park. 

• Local entrepreneurs 

A local incubator that showcases Ward 7's women- and Black-owned businesses is "highly recommended" and is the feature that differentiates the site from strip retail nearby. 

• The gap 

Existing retail in the immediate area is limited, low-quality strip centers; the lack of full-service grocery in Wards 7 and 8 contributes to food insecurity; seniors are the fastest-growing segment and value walkable, safe, well-lit gathering places. 

Yes. The developer will seek food retail at the base of the Phase 1 building on Benning Road, designed with dedicated loading and parking so a grocer can operate. The developer is actively seeking a grocer. 

When complete, the campus will include roughly 775 new multifamily apartments and 25 new town homes.  This includes approximately 232 new affordable apartment units and 8 new affordable town homes.

Under the current plan, rental apartments will include affordable units at 50 percent Median Family Income; The townhomes will include homeownership at 50 to 80 percent of of the Median Family Income; and, where feasible, at least four units with more than three bedrooms will be included in each rental building. 

Yes. A Community Benefits Agreement between the developer and ANC 7E was approved on October 8, 2024, and amended and adopted September 9, 2025. In includes:

• Community engagement 

Meet with the ANC and community groups on major program changes; community placemaking exercise with the ANC. 

• Apprenticeships and internships 

DOES-approved apprenticeship program with Ward 7 preference; up to 30 paid summer interns, with preference for Ward 7 students and graduates of UDC and Community College Preparatory Academy. 

• Jobs 

Reserve 25 construction jobs for Ward 7 residents and work toward up to 15 more; first notice to the ANC; at least 3 permanent jobs for six years after each certificate of occupancy. 

• First Source and CBE 

First Source Employment Agreement with DOES; CBE agreement with Ward 7 and Ward 8 businesses making up at least 51 percent of the CBE requirement. 

• Ward 7 partners 

Engage Ward 7 organizations such as Marshall Heights Community Development Organization for workforce development and training. 

• Equity participation 

Equity crowdfunding platform for at least 5 percent of the equity for Building B. 

• Local space 

5,000 square feet of affordable local office and 5,000 square feet of affordable local retail at 80 percent of market for three years; up to 5,000 square feet for an early childhood education facility; a community-based retailer initiative. 

• Charitable contribution 

$25,000 a year for 14 years ($350,000) to a fiduciary agent selected by the ANC, beginning 90 days after construction starts on the first multifamily rental building. 

• Housing 

Homeownership at 50 to 80 percent AMI; rentals at 30 to 50 percent AMI; at minimum the D.C. Code section 10-801 requirements. 

• Heritage and green space 

Memorial garden, acknowledgement of Payne Cemetery, plaques, and commemorative seating; collaborative design of green space. 

• Construction 

Project website, public complaint process with written records available to the ANC, coordination with the ANC. 

• Community access 

ANC office space on site; priority for Ward 7 organizations in event space; no physical barriers between the project's public space and the neighborhood. 

The project is expected to create more than 500 construction jobs and over 100 full-time positions within the next five years, bringing new employment opportunities to the community. The developers have agreed to comply with the District’s First Source requirements and are committed to actively recruiting, training, and awarding contracts to DC Certified Business Enterprises. A Community Benefits Agreement between ANC 7E and Fletcher-Johnson Community Partners provides additional commitments specifically for Ward 7 residents, including opportunities for employment, homeownership, and affordable retail space.