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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 10. PLANNING AND DEVELOPMENT |
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SubTilte 10-A. COMPREHENSIVE PLAN |
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Chapter 10-A5. HOUSING ELEMENT |
Section 10-A504. H-1.2 ENSURING HOUSING AFFORDABILITY
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504.1The District of Columbia faces numerous affordable housing challenges. It has both a disproportionate share of the region’s poorest residents and the region’s most rapid decline in the availability of housing to serve these residents. In 2005, the median income for a family of four for the region was $89,300, but it was just $55,750 in the District. In fact, about three-quarters of the city’s households earn below the regional median income, while at the same time housing prices in the city are increasing at a faster rate than almost any jurisdiction in the metropolitan area. The share of District renters who paid more than 30 percent of their incomes for housing jumped from 39 percent in 2000 to 46 percent in 2004. The share paying more than 50 percent of their incomes climbed from 18 percent to 23 percent. 504.1
504.2Prices have risen everywhere, but have gone up most rapidly in the older neighborhoods to the north and east of downtown. Parts of Capitol Hill, Shaw, Columbia Heights, and Eckington experienced annualized sales price increases of over 20 percent a year between 1999 and 2004. Even neighborhoods east of the Anacostia River experienced double digit inflation during this time period. Price increases in the affluent neighborhoods west of Rock Creek were less dramatic but were already out of reach for most District residents even before 2000. 504.2
504.3Economic forecasts suggest that many of the jobs that will be created in the District during the next 20 years will not provide the compensation needed to pay for housing in the city. For example, the District’s fast-growing office support, sales, and service sector pays an average annual wage of $36,000. For a single wage-earner, this provides barely enough income to rent a one bedroom apartment, much less to purchase a condominium or single family home. Even a two-income household with such salaries would be unable to afford market-rate home ownership. As the gap widens, there may be a number of consequences. Residents may work unreasonably long hours or multiple jobs; they may double up in overcrowded apartments and houses; live in unsafe or substandard housing; or give up living in the District altogether, choosing instead to endure long commutes into the city each day. 504.3
504.4The District has been working to protect the affordability of existing housing opportunities for lower income residents and to ensure that a substantial share of the housing built in the next 20 years is affordable to District residents. Between 1999 and 2005, the District’s housing agencies expended over $1 billion in gross public subsidies on construction and renovation. An array of financial and regulatory tools and programs already are in place, some linked to federal housing programs, some created by District government, and others originating through partnerships with the private and non-profit sectors (see Table 5.4 for a list of the major housing programs in the District). 504.4
504.5The District also has been pursuing regulatory measures that require affordable housing in new development. For many years, the city has had a policy requiring developers seeking commercial density bonuses to provide affordable housing or pay into the Housing Production Trust Fund. In addition, a pending inclusionary zoning ordinance would require affordable units within future market-rate residential development of 10 units or greater. The foundation for these actions was created by the previous Comprehensive Plan and is carried forward in this Element. 504.5
504.6Policy H-1.2.1: Affordable Housing Production as a Civic Priority
Establish the production of housing for low and moderate income households as a major civic priority, to be supported through public programs that stimulate affordable housing production and rehabilitation throughout the city. 504.6
504.7Policy H-1.2.2: Production Targets
Consistent with the Comprehensive Housing Strategy, work toward a goal that one-third of the new housing built in the city over the next 20 years should be affordable to persons earning 80 percent or less of the area wide median income (AMI). Newly produced affordable units should be targeted towards low-income households in proportions roughly equivalent to the proportions shown in Figure 5.2. 504.7
504.8Policy H-1.2.3: Mixed Income Housing
Focus investment strategies and affordable housing programs to distribute mixed income housing more equitably across the entire city, taking steps to avoid further concentration of poverty within areas of the city that already have substantial affordable housing. 504.8
504.9Table 5.4: Major Housing Programs in the District 504.9
504.10What is Affordable Housing? 504.10
One of the most common requests made during Comprehensive Plan public meetings was to provide a clear definition of “affordable” housing. Affordable housing is defined as housing in which occupancy is limited to households meeting special income guidelines. The price of this housing is maintained at a level below what the free market would demand using restrictive deeds, covenants, mortgage subsidies, vouchers, or other means tied to public financing or tax credits. Generally, the cost of affordable housing is limited to 30% of a household’s income (which varies according to the number of people in the household); different affordable housing programs are “benchmarked”, or targeted, to specific income groups as defined by the US Department of Housing and Urban Development. The benchmarked incomes for the Washington Metropolitan Area in 2005 are shown in the table below. The list includes the major housing assistance programs that serve households in each group. In 2005, the areawide median income (AMI)* for a family of four was $89,300. The terms “extremely low”, “very low”, “low”, and “moderate” income correspond to up to 30%, 50%, 80%, and 120% of that amount, respectively.
Example: If a single mother earned $7 per hour, her annual income would be $14,560 and fall within the “extremely low income” category. If she spends 30% of her income on housing, she could afford to pay only $364 per month on housing. Finding decent housing or any housing at this price range is a challenge in Washington.
Table 504.10:Target Income Family of 4 Income HUD Income Group “Affordable” Monthly Housing Cost Programs
By contrast, “market rate” housing is defined as housing with rents or sales prices that are allowed to change with market conditions, including increased demand. Some market rate housing may be affordable to moderate and some low income households. Rent-controlled apartments are counted as “market rate” units because there are no occupancy restrictions. The District’s rent control law stipulates that rents on market rate apartments built prior to 1975 may rise only as fast as the Consumer Price Index (CPI).
** Regional Areawide Median Income (AMI) is used rather than DC’s median income because it is the federal government benchmark commonly used to qualify for funding subsidies.
504.11Policy H-1.2.4: Housing Affordability on Publicly Owned Sites
Require that a substantial percentage of the housing units built on publicly owned sites, including sites being transferred from federal to District jurisdiction, are reserved for low and moderate income households. 504.11
504.12Policy H-1.2.5: Workforce Housing
In addition to programs targeting persons of very low and extremely low incomes, develop and implement programs that meet the housing needs of teachers, fire fighters, police officers, nurses, city workers, and others in the public service professions with wages insufficient to afford market-rate housing in the city. 504.12
504.13Policy H-1.2.6: Non-Profit Involvement
Actively involve and coordinate with the nonprofit development sector, increasing their capacity to produce affordable housing. Enter into partnerships with the non-profit sector so that public funding can be used to leverage the creation of affordable units. 504.13
504.14Policy H-1.2.7: Density Bonuses for Affordable Housing
Provide zoning incentives to developers proposing to build low- and moderate-income housing. Affordable housing shall be considered a public benefit for the purposes of granting density bonuses when new development is proposed. Density bonuses should be granted in historic districts only when the effect of such increased density does not significantly undermine the character of the neighborhood. 504.14
504.15Policy H-1.2.8: DC Housing Finance Agency
Support the activities of the District’s Housing Finance Agency to finance new construction and rehabilitation of affordable rental and owner units, including vacant and abandoned units. 504.15
504.16Figure 5.2: Targeted Distribution of New Affordable Units by Income Group 504.16
The 2006 Comprehensive Housing Strategy recommended that one-third of the units produced in the city in the next 15 years be targeted to persons earning 80% of the AMI or below. The lower pie chart shows the proposed allocation of these units to low, very low, and extremely low income groups.
504.17The District’s Commercial Linkage Requirement 504.17
In 1994, the District of Columbia adopted zoning provisions that linked the granting of bonus density in commercial development projects to requirements for affordable housing. The “linkage” recognized that the demand for housing in the city was driven in part by new commercial development and rising land values. The linkage provisions are currently triggered by:
•The approval of a "discretionary and otherwise appropriate street or alley closing which results in the provision of additional commercial office space" by the Council; or
•The approval of a "discretionary and otherwise appropriate zoning density increase which results in the provision of additional office space" by the Zoning Commission.
In such cases, applicants are required to construct or rehabilitate housing that remains affordable to low and moderate income households for at least 20 years, or to pay into the District’s Housing Production Trust Fund. If the applicant agrees to construct or rehabilitate affordable housing, the square footage of housing that must be built varies from 25 to 50 percent of the density “bonus” being granted, depending on if the housing is provided on-site or off-site. Applicants can use any of a number of tools to build the housing, such as partnerships and joint ventures. If the applicant agrees to pay into the Housing Production Trust Fund, the payment must equal at least half of the assessed value of the square footage of the density “bonus” being granted. Additional provisions relating to the timing of the improvements apply.
The linkage requirements include a number of exemptions, such as projects that are already subject to housing, retail, arts, or historic preservation requirements, projects approved prior to 1994, and projects receiving density bonuses through variances. The Zoning Commission also has the authority to grant exemptions from this requirement based on certain findings relating to Comprehensive Plan consistency.
504.18Action H-1.2.A: Inclusionary Zoning
Adopt an Inclusionary Zoning requirement which would require the inclusion of affordable units for low income households in new residential developments of 10 units or greater, with accompanying provisions for density bonuses and long-term affordability. Apply this requirement as fairly and uniformly as possible, providing flexibility as necessary for sites where density bonuses cannot feasibly be provided. 504.18
504.19Action H-1.2.B: Commercial Linkage Assessment
Prepare an assessment of the District’s existing commercial linkage requirements to determine the effectiveness of this program and assess its impacts, advantages, and disadvantages. Based on findings, adjust the linkage requirements as needed. 504.19
504.20Action H-1.2.C: New Revenue Sources
Identify and tap new sources of revenue for the Housing Production Trust Fund (HPTF) to produce affordable housing and keep rental and owned housing affordable. These new sources could include increases in the portion of the deed recordation tax dedicated to the HPTF, increases in the recordation tax, or earmarking of a portion of residential property tax revenue increases to the Fund. 504.20
504.21Action H-1.2.D: Land Banking
Develop a strategic land acquisition program to purchase land in the District to achieve specific housing and neighborhood goals, particularly for the District’s three major development entities: the National Capital Revitalization Corporation, the Anacostia Waterfront Corporation, and the DC Housing Authority. 504.21
*The District’s commercial linkage requirements are codified in D.C. Official Code §§ 1-306.31 and 1-306.45. See also Comprehensive Plan Table 25.2
504.22Action H-1.2.E: LAHDO Program
Continue the District’s Land Acquisition for Housing Development Opportunities (LAHDO) program, which acquires property (using primarily District capital budget funds) and provides for long-term lease-back or low cost terms to private developers that produce low- and moderate-income rental housing. 504.22
504.23Action H-1.2.F: Low Income Housing Tax Credits
Expand for-profit builders’ use of Low Income Housing Tax Credits as one tool to provide new or rehabilitated affordable housing in the city. 504.23
504.24Action H-1.2.G: Land Trusts
Support the formation of one or more community land trusts run by public, non-profit, or other community-based entities. The mission of the trust would be to acquire land while providing long-term leases to developers of rental and for-sale units. This approach helps ensure that the units remain affordable indefinitely. 504.24
504.25Action H-1.2.H: Hotel Conversions
Evaluate the feasibility of requiring an affordable housing set-aside in the event that transient hotels are converted to permanent housing units. 504.25
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