DC mulls new affordable housing rules in public land deals
When the District government bids out city-owned property for development, it asks for affordable housing to be part of the deal, but how much is enough? Councilmember Kenyan McDuffie is proposing that 20-30% of the housing in any such deal be affordable for low-income households.
On properties that DC has offered for development, like Parcel 42 in Shaw or the Hine School on Capitol Hill, the city has a great opportunity to not only create and enrich walkable neighborhoods, but receive additional benefits for residents as part of the deal between the city and the developer.
One of the greatest needs we have right now is to increase the supply of affordable housing. But how do we best maximize affordable housing in public land deals and do so in a way that's the best deal for the city and residents?
One in five DC households spends more than half of their income on housing, a severe housing burden, according to the DC Fiscal Policy Institute. Nearly all renters with this severe housing cost burden earn less than half of the area median income (AMI), or less than $48,300 a year for a family of three.
The purpose of McDuffie's bill is to ensure that DC fully leverages the deals involving city-owned land to address the continuing challenge of housing affordability for low- and moderate-income households. Under the bill, when DC sells or leases public land for private multifamily residential development, at least 30% of the units would be affordable if the project is close to a Metro station or major transit line. Developments elsewhere in the city must include 20% affordable units.
Affordable rental units would be available to households earning between 30% and 50% of AMI, or just under $30,000 and $50,000 per year for a family of 3. Owner-occupied affordable units would be priced for households earning between 50% and 80% AMI, or just under $50,000 and $78,000 per year for a family of 3.
McDuffie's bill would allow the city to subsidize the cost of the affordable units by selling or leasing the land at a discount, allowing the developer to pass on the savings to buyers or renters. If the land value is not sufficient to subsidize the required units, the bill provides for the District's Chief Financial Officer to certify that the alternative proposal nonetheless maximizes affordability, taking into account all available subsidies.
The Coalition for Smarter Growth highlighted the unpredictability of the city's commitment to affordable housing in public land deals last year in a report called Public Land for Public Good: Making the Most of City Land to Meet Affordable Housing Needs. It's encouraging that DC leaders are using another tool to create affordable housing, ensuring that households of all means can have a place in the city as it grows.
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