Transcript Unfulfilled Promises: Affordable Housing in Metropolitan Washington Presentation to the Metropolitan Washington Council of Governments Mary Anne Sullivan, Partner Deepika Ravi, Associate April 17, 2015

Unfulfilled Promises: Affordable
Housing in Metropolitan Washington
Presentation to the Metropolitan Washington Council of Governments
Mary Anne Sullivan, Partner
Deepika Ravi, Associate
April 17, 2015
Introduction
• Collaboration between Hogan Lovells and the
Washington Lawyers’ Committee for Civil Rights
and Urban Affairs
– Report does not seek to provide a comprehensive
analysis of all affordable housing tools in every jurisdiction
in metropolitan Washington.
• Focus: a handful of tools that
– do not require substantial new funding, and
– can, if used effectively, begin to address the large unmet
need in the region for affordable housing.
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2
Jurisdictions Studied
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•
•
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District of Columbia
Alexandria
Fairfax County
Arlington County
Prince George’s County
Montgomery County
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Recommended Affordable Housing Tools
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•
•
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Housing Production Trust Funds
Public Land for Public Good
Public/Private Partnerships
Inclusionary Zoning
Accessory Dwelling Units
Workforce/Employer Assisted Housing
Rapid Rehousing and Emergency Rental
Assistance
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4
Housing Production Trust Funds
• Many different names; key is dedicated source of
funds for additions to affordable housing
– Often tied to real estate transfer or similar taxes
– Can take funding out of annual budget scrum
– Can be used to meet the needs of the most needy
• Challenges
– Subject to diversion in tight budget times
– Limited funding levels
• Path forward
– Adopt in Prince Georges
– Fully fund in all jurisdictions
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Accessory Dwelling Units
• Independent living quarters on single family lots
– No need for public funds
– Allow elderly to stay in their homes
– Potential to increase affordable housing by 10%
• Challenges
– Sharply restricted by zoning rules
– Generally not suitable for large families
• Path forward
– Ease zoning; tie to affordability
– Build public support
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6
Public Land for Public Good
• Public land holdings can represent an important
asset in the effort to increase affordable housing
– Unused public land and buildings, surplus land adjoining
public facilities, land near or at transit stations
• Challenges
– Mature region, limited unused assets
– Ongoing need to enforce requirements
• Path forward
– Surveys to understand available assets
– Commit to use for affordable housing
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Inclusionary Zoning
• Capitalizes on local development, trading zoning
flexibility for affordable housing units.
• Challenges
– Excessive exemptions/exceptions
– Short control periods
– Lack of land for new development
• Path Forward
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–
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Adequate control periods
Local government purchase rights
Low trigger thresholds
Limit exemptions
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8
Public/Private Partnerships
• Used for construction of new affordable housing and
management of existing developments.
• Challenges
– Execution
– Small Scale
• Path Forward
– Accountability
– Longer Control Periods
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9
Workforce/Employer-Assisted Housing
• Typically provides workers with rental assistance or
forgivable, low- or zero-interest loans or grants to
assist with initial costs of home purchase.
• Challenges
– Lack of understanding/familiarity
– Unfavorable tax laws
• Path Forward
– Advocacy
– Link EAH to regional economic growth
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Conclusions
• The region is losing ground
– Some programs eliminate more affordable housing than
they replace
• Exceptions, exemptions, grandfathering are a
significant impediment to progress
• Focus on rental units offers more promise of longterm affordability
• Problem is most severe at the lowest income levels
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11
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