Policies for Affordable Housing in the District of Columbia: Lessons from Other Cities

POLICIES FOR AFFORDABLE HOUSING IN THE DISTRICT OF COLUMBIA: LESSONS FROM OTHER CITIES G. Thomas Kingsley and Barika X. Williams THE URBAN INSTITUTE January 2007 Submitted to THE FANNIE MAE FOUNDATION Policies for Affordable Housing in the District of Columbia: Lessons from Other Cities TABLE OF CONTENTS INTRODUCTION AND SUMMARY .................................................................................. 1 Introduction ...................................................................................................................1 Main Findings and Conclusions .................................................................................... 2 The Environment and the Strategy............................................................................ 2 Lessons from Other Cities......................................................................................... 3 PART 1 - THE NEW HOUSING MARKET ENVIRONMENT AND THE STRATEGY.......................................................................................................................6 The Market Environment............................................................................................... 6 A Vigorous Regional Economy and Housing Market ................................................ 6 The Resurgence of the District of Columbia.............................................................. 7 Growing Disparities and the Loss of Affordable Housing .......................................... 8 Themes of the Comprehensive Strategy....................................................................... 9 Strategic Goals........................................................................................................ 10 Policy Framework - Overview.................................................................................. 11 Expand the Housing Supply and Develop Neighborhoods ..................................... 11 Preserve Affordable Housing and Manage Existing Housing/Neighborhoods ........ 14 Provide Housing for Special Needs Populations..................................................... 16 Enhance Funding and Administrative Capacity....................................................... 16 PART 2 - EXPERIENCE IN OTHER CITIES .................................................................. 18 What Other Cities Are Doing: Overview...................................................................... 18 Raising Additional Funds, With Emphasis on Local Sources.................................. 18 Preparing Comprehensive Housing Strategies ....................................................... 19 Lessons and Implications for the District................................................................. 21 Expand the Housing Supply and Develop Neighborhoods ......................................... 23 Regulatory Changes: Modify Zoning to Encourage Production and Strengthen/Streamline Codes and Review Approval Processes ............................ 24 Assembling Land for Development ......................................................................... 26 Transit Oriented Development ................................................................................ 27 Mixed-Income Development ................................................................................... 28 Inclusionary Zoning ................................................................................................. 30 Community Land Trusts .......................................................................................... 32 Preserving Affordable Housing and Managing the Existing Stock .............................. 34 Preservation Strategies ........................................................................................... 34 Preserve and Expand Homeownership: Employer Assisted Housing..................... 35 Maintain Healthy Neighborhoods: Code Enforcement ............................................ 37 Maintain Healthy Neighborhoods: Integrated Neighborhood Initiatives .................. 40 REFERENCES................................................................................................................ 43 ENDNOTES .................................................................................................................... 46 Policies for Affordable Housing in the District of Columbia: Lessons from Other Cities Policies for Affordable Housing in the District of Columbia: Lessons from Other Cities 1 INTRODUCTION AND SUMMARY INTRODUCTION The past decade has been a period of unprecedented change in the District of Columbia’s housing market; in fact, in America’s urban housing markets generally. In planning to address the change, the District has responded more coherently than it probably ever has before. Starting in 2001, the Fannie Mae Foundation has made a major investment in establishing a sound, recurrently updated database on tren