A new affordable housing development is planned for the site of a dilapidated Southeast D.C. apartment complex previously owned by notorious landlord Sanford Capital.

WC Smith acquired the 61-unit Terrance Manor apartments in bankruptcy proceedings from Sanford in September and has now applied to demolish it and build a new 128-unit affordable housing project, Urban Turf reports.

D.C. Attorney General Karl Racine sued Sanford Capital in early 2017 over the conditions of Terrance Manor, aiming to force the landlord to repair the property that had received a series of housing code violations. Sanford reached a $325K settlement with the District, some of which was paid to former tenants. The landlord filed for Chapter 11 bankruptcy on the property and agreed to sell it to WC Smith for $6M.

Sanford has recently begun to sell off its D.C. apartment portfolio following the investigations and lawsuits that have damaged its reputation.

Just 13 tenants remained in the apartments at the time of its acquisition, WC Smith said in its application, and the developer has relocated them to nearby properties it owns. WC Smith also owns and manages the Village of Parklands apartment complex two blocks west of Terrance Manor.

The developer hopes to demolish the 11 buildings that made up Terrance Manor and construct an L-shaped structure with 128 affordable units on the 2.3-acre site. The building would consist of 78 one-bedrooms, 39 two-bedrooms and 11 three-bedrooms, set aside for families earning up to 60% of area median income.

The building would also include a fitness center, a clubroom, a package room and a 24-hour front desk. WC Smith said it plans to seek funding from the Department of Housing and Community Development and low-income housing tax credits from the D.C. Housing Finance Agency.