On Thursday, November 5th, the City First Foundation will convene its second Community Development Finance Summit entitled, “Equitable Economic Development East of the River.” The day-long Summit will bring together the District’s key community development stakeholders and thought leaders to discuss the primary challenges and opportunities impacting Washington, DC’s neighborhoods east of the Anacostia River. Topics of discussion are related to housing, commercial corridor revitalization, and small business development. This will be a forum to share industry best practices, trends in public
policy, and incubate new and innovative ideas in order to provide tangible solutions and a roadmap to deliver inclusive and visionary commercial revitalization and housing opportunities for all.
The Urban Institute has released their new paper, Housing Policy Levers to Promote Economic Mobility, the latest piece from their Housing Assistance Matters Initiative.
Where you live often determines school quality, available transportation systems, proximity to jobs, and access to other important institutions and community assets. This report is rooted in this increasingly clear fact: that opportunity is tied to place. Knowing this, we should design and implement housing policies with economic mobility firmly in mind.
The authors, Pamela Blumenthal and John McGinty, describe five policy areas—tax policy, block grants, rental assistance, fair housing, and homeownership programs—and point to promising practices in each.
There is abundant evidence about federal, state, and local mechanisms to combat stagnant mobility. This paper highlights the portfolio of housing policy strategies that can help.
By Lisa A. Sturtevant, PhD
Vice President for Research, National Housing Conference
When you look around the country for innovative local affordable housing policies, you’ll often find your way back to local jurisdictions in the Washington DC region. From Montgomery County’s pioneering inclusionary zoning program to Arlington County’s efforts to preserve affordable housing through its Columbia Pike Neighborhoods Form Based Code to Fairfax County’s initiatives to link housing and services as a Moving to Work agency, there are a multitude of successful and inventive affordable housing programs right in our own back yards. However, there are a lot of exciting initiatives being introduced in communities around the country that may serve as models for new or expanded local affordable housing policies in our region. The energy around affordable housing policy is growing across the country as cities and regions increasingly recognize the role housing affordability plays in regional economic competitiveness and local fiscal health. In addition, HUD’s affirmatively furthering fair housing regulation and the Supreme County’s disparate impact ruling have created greater urgency for localities to expand affordable housing opportunities.
What are cities and counties across the country doing right now to meet affordable housing needs? Who is leading at the edge in terms of innovative affordable housing policy?
1. Inclusionary Housing
In San Francisco, as part of a comprehensive affordable housing strategy, Mayor Ed Lee has proposed to relax current inclusionary housing requirements to allow housing developers to meet affordability requirements by providing housing for a broader range of incomes. The proposed changes are targeted at creating more rental housing affordable to households earning up to 90 percent of area median income ($91,700 for a family of four) and more ownership housing for households earnings up to 120 percent of area median income ($122,300 for a family of four). The Mayor’s proposal also includes initiatives to preserve public housing and to reduce tenant displacement.
2. Commercial Linkage Fee
Seattle’s mayor Ed Murray has also rolled out a new proposed affordable housing strategy, and one element of his plan is the
so-called Affordable Housing Impact Mitigation Program (AHIMP)—a commercial linkage fee program—that requires developers to pay a fee of between $5 and $17 per square foot of commercial development into an affordable housing fund. In exchange for the fee, developers will be able to build at higher densities. The Boulder City Council also recently approved a fee on commercial developments which will be used to fund affordable housing production and preservation. Fees vary based on the type of development but range from between nine cents a square foot for warehouse development to $9.53 per square foot for hospitals.
3. Rezoning Single Family Neighborhoods
In Seattle, there was also a proposal—very much a draft proposal—to do away with single-family zoning in the city to allow for higher-density development. The change would allow for townhouses, duplexes and other small multi-family buildings to be built as-of-right in existing single-family neighborhoods. While ultimately this change did not make it into the mayor’s proposed affordable housing strategy, the proposal generated quite a bit of discussion about the future of zoning during the local election cycle.
4. Notification and Right of First Refusal
In an effort to stem the loss of affordable rental units in Denver (where rents have increased faster than anywhere else around the country over the past year), the City Council is poised to pass legislation that would require property owners to give residents and the city a year’s notice that they intend to opt out of affordability covenants when they expire. The city would then have the right of first refusal to match any offer to buy the property using funds from a fee- and tax-funded affordable housing fund.
5. Payment in Lieu of Taxes (PILOT)
Jersey City, New Jersey has drafted a new tax incentives policy to encourage housing development in the city’s underdeveloped neighborhoods. The new policy builds on the city’s Payment in Lieu of Taxes (PILOT) policy, which was enacted in 2013, and provides builders with property tax abatements of different lengths depending on the type of neighborhood in which they build. In addition, developers can extend those property tax abatements when they include affordable housing in their projects. Because New Jersey has some of the highest property taxes in the country, officials are hopeful that this policy will provide the necessary incentives to spur development.
These policy approaches are not necessarily appropriate for consideration in every jurisdiction in the region. However, the varied options that have been approved by local elected officials across the country, or are being proposed as part of a broad affordable housing strategy suggests that options for affordable housing solutions could be expanded. To uphold the role of “leader” in local affordable housing policy, local jurisdictions in the region should not be afraid to have conversations about innovative—potentially controversial—policy ideas. There are examples both locally and nationally about how progressive political will can help build support for impactful affordable housing policies that were once thought to be impossible.
Next month: Fair Housing in the Greater Washington DC Region
The Redevelopment Authority of Prince George’s County (RDA) is playing a leadership role in the County’s efforts to create and promote sustainable development and solutions to 21st century global environmental challenges. This past summer, the RDA completed extensive renovation on the first Net Zero Energy House in the County, and is excited about showcasing this home as a testament to what homebuyers in Prince George’s County can expect in the future: superior energy savings, water-efficiency and a healthy living environment.
A quasi-governmental agency, the RDA is part of the triumvirate of the County’s Department of Housing and Community Development (PG DHCD) – which also encompasses the Housing Authority – and provides services in areas of development, redevelopment, revitalization and preservation in targeted communities. Notably, RDA offers down payment and closing cost assistance for first-time homebuyers, infill redevelopment of existing properties, neighborhood stabilization/blight eradication as well as grant support for capital improvements by County based non-profit organizations.
The RDA is helping to reduce the County’s carbon footprint by producing green and sustainable models for new construction and substantial rehabs of aged housing, through its Neighborhood Stabilization Initiative and partnerships with local affordability housing developers. Located at 3413 Glenn Drive in Suitland, the first net zero house in this program is a three-bedroom, two full bath home originally constructed 100 years ago. Situated within the Suitland/Coral Hills Transforming Neighborhood Initiative area, the home produces as much energy annually as it consumes, effectively minimizing the utility bill to virtually zero.
“We are very pleased with the results of this renovation,” said Howard Ways, executive director, RDA. “In addition to its efficiency, the house is located within walking distance to the Suitland Metro Center and the Suitland Federal Center.”
The Net Zero Energy House is priced to sell at $316,800 with creative homeownership assistance offered by the RDA to increase affordability among moderate income buyers. During the 12-month renovation, the home was retrofitted with solar panels, which provide its renewable energy source, a solar hot water heater, an HVAC mini-split system and energy-efficient windows, doors, fixtures and appliances. Additionally, it features environmentally friendly landscaping, rain barrel water catchments and permeable pavers, and sustainable building materials such as bamboo flooring in the living room and dining room areas. Aesthetically, the house offers 42-inch kitchen cabinets with granite counter tops, cultured marble double sinks, tub and separate shower, his and her closets, patio doors that lead to a backyard deck and much more.
Energy Star and LEED Platinum compliant, this house will be featured as a Greenbuild Offsite Educational Tour Site in the upcoming Greenbuild International Conference and Expo this November. Greenbuild is the largest sustainable building event in the U.S. and HAND is proud to be a 2015 Greenbuild Regional Partner for this premier event.
For the RDA and PG DHCD, it is through connections like this that underscore the value of a HAND membership. Membership allows the agency to engage with other organizations in the region that are pursuing the same goal – to build affordable housing in the Washington, D.C. metropolitan area – and to celebrate collective accomplishments. HAND helps the RDA too develop new partnerships and re-connect with organizations it has worked with in the past. Its membership also provides the agency an opportunity to explore new ideas and learn about the latest trends.
HAND is pleased to spotlight Prince George’s County’s Redevelopment Authority which certainly contributes to our organization’s COLLABORATION, INNOVATION and TRANSFORMATION within the metropolitan area!
Interested in seeing the Net Zero House first-hand now? Take a peak.
Arlington County will be implementing a Notice of Funding Availability (NOFA) process for Affordable Housing Investment Funds (AHIF) in FY 2017 (July 2016 – June 2017) for competitive Low-Income Housing Tax Credit projects. There will be an AHIF NOFA Forum on October 7th from 10:30 a.m. – Noon at the Arlington County Central Library to introduce this new process and invite public feedback. The information to be presented is intended especially for organizations considering applying for AHIF loans. Register today!
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Guest List & Dietary Preference: If your registration includes a luncheon table or multiple guests, please submit guest names and menu choices by May 1, 2020. Submit guest names here.
Housing Expo: Plan to exhibit? Download the Housing Expo FAQs here.
Omni Shoreham Hotel Room Block: For attendees looking to secure overnight accommodations on May 25th, HAND has secured a rate starting at $189 for conference attendees. There are a limited amount of rooms available, so visit this link today to reserve your room. May 10th is the last day to secure a room at the discounted rate.
Ad Submission: The artwork for advertisements should be submitted to annualmeeting@handhousing.org. You can download the ad spec sheet here. Deadline for ad submission is April 13, 2020.
Cancellations & Changes: If you wish to cancel or change your registration for the Annual Meeting & Housing Expo, please send a request in writing to annualmeeting@handhousing.org. All cancellation requests made prior to April 27th will receive a 50% refund. For cancellation requests made after April 27th, no refund will be provided.
Door Prizes: Are you interested in donating a door prize to this year’s Annual Meeting? Email annualmeeting@handhousing.org to coordinate with our team.
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