 Greetings Washingtonians,
Last month, Mayor Bowser released her FY 2019 Fair Shot Budget, which includes an unprecedented level of robust, comprehensive investments that will improve the lives of our most vulnerable citizens.
On Tuesday, I was honored to testify Tuesday before the DC Council Committee on Housing and Neighborhood Revitalization about housing and community development investments in that budget.
I shared how we are building on past achievements to accomplish even more in FY18 and FY19 (you can view my testimony, starting at 1.40). For example:
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For
the fourth consecutive year, Mayor Bowser is investing $100 million into the
Housing Production Trust Fund (HPTF)—double the levels from before 2015. To date this funding has contributed toward producing and preserving 62 projects
representing 3,851 affordable homes for District households.
- Most key, we are making measurable progress in ensuring HPTF
monies help those most in need. In FY17, 96 percent of HPTF funds went to
support families earning less than 60 percent of the Median Family Income (or
MFI) or roughly $66,000 a year. Fifty-six percent of HPTF funds served those
below 50 percent MFI (roughly $55,000 a year) and 28 percent supported units for
households below 30 percent MFI (roughly $33,000 a year).
- For the second year, we plan to contribute $10 million into a
Housing Preservation Fund. Coupled with the FY18 funding and private
investments, this will generate at least $80 million for preservation
acquisition and predevelopment. Along with a new affordable housing
preservation officer and upcoming implementation of the long-awaited District
Opportunity to Purchase Act (DOPA) regulations, this will greatly enhance
effectiveness of our affordable housing preservation efforts.
- The budget provides for a $10 million increase in the Home Purchase Assistance Program (HPAP)—an over 60
percent increase. DHCD served over 300 families in FY17 through its home
purchase assistance programs—much of which went toward new homeowners in Wards 7
and 8—and this additional investment will result in even more families owning their first District homes.
In closing, I told the committee I am
committed to continuing to improve the performance of the HPTF and other DHCD
programs, so that the District can be a welcoming home to more households at
all income levels.
Polly Donaldson, DHCD Director
Follow me on Twitter @maryrandolph
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 Mayor Bowser, District Agencies Celebrate 220 Family Units Coming to Parkway Overlook
Mayor Bowser on March 26 kicked off Roots to Roofs DC Week at a revitalization groundbreaking for 220 affordable housing units at the Parkway Overlook Apartments in the Ward 8 neighborhood of Congress Heights. The complex, which has been vacant since 2007, will have mostly family-sized units and provide workforce development training to residents and energy savings through the installation of solar panels through the Solar for All program.
The $82.2 million rehabilitation of the complex, located at 2841 Robinson Place SE, near the Congress Heights Metro Station and St. Elizabeths East Campus, will be comprised of one-, two-, and three-bedrooms and all will be affordable to households making up to 50 percent MFI. Eleven units will be available for households at or below 30 percent MFI and will be set aside as permanent supportive housing (PSH).
This effort in affordable housing preservation was made possible through the collaboration of DHCD and three other government agencies: the DC Housing Authority (DCHA), the DC Housing Finance Agency (DCHFA) and the Department of Energy and Environment (DOEE).
DHCD provided $20.1 million in HPTF financing. “This is what the HPTF does,” Director Donaldson said in noting how the fund will help provide family-sized units in Ward 8.
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$2 Million Fund Launched to Help Non-Profit Developers Finance Affordable
Housing
On April 18, Mayor
Bowser announced a new $2 million fund to help non-profit developers
overcome an early obstacle when financing affordable housing projects—securing
capital for predevelopment soft costs. The fund, which will loan developers up
to $100,000 per project to partially cover those costs, will be administered by
DHCD and DCHFA. Applications will be accepted beginning June 1.
The
fund will be named after the late Oramenta Newsome, who as an executive
director of LISC-DC was a strong advocate
for affordable housing development by the nonprofit sector.
The
fund was established with $1 million from the HPTF and $1 million from DCHFA’s McKinney Act Fund.
“DHCD’s
goal is to find new and innovative ways to remove any barriers to the
production and preservation of more affordable housing in the District,” said Director
Donaldson. “We recognize that the predevelopment activities required of
developers as part of an RFP application, such as architectural plans and third
party reports, have a substantial cost that can delay forward momentum. This fund
will help defray such costs, taking projects from vision to reality much
faster.”
HPTF Financing Will
Help Homeless Secure Housing in Ward 4
DHCD recently closed a loan agreement that will provide 12 PSH units for chronically homeless families at the
Partner Arms 2 Apartments, 4506 Georgia Avenue NW, in the Petworth neighborhood
of Ward 4. Housing Up (formally known as Transitional Housing Corp.)
received $1,155,369 in financing from the HPTF to rehabilitate Partner Arms 2. Housing Up is a nonprofit
developer that provides affordable housing and supportive services to more than
600 homeless and at-risk families. The PSH units will be
supported through $504,000 in financing from the Department of Behavioral
Health (DBH). Partner Arms 2 will provide 10 two-bedroom and two three-bedroom
units dedicated to households earning no more than 30 percent MFI.
Ending homelessness is a top priority of the Bowser
Administration, and part of that commitment involves providing affordable
housing for homeless individuals and families, Director Donaldson noted when
the announcement was made.
Public Hearings Mark Another Step Forward With Vacant to Vibrant DC
Another
step under the Vacant to Vibrant DC initiative was accomplished
recently as DHCD held public hearings on April 4 and 5 to consider the proposed
sale of properties included in Action 1—Auctioning Off to Gain
Affordability. The public hearings were conducted to ensure that all citizens were
informed about the sales and had the opportunity to publicly present their
views.
The April 4 hearing focused on auction
sites in Wards 7 and 8. In his testimony, Jim Dickerson, founder and
CEO of Manna Inc., congratulated DHCD on the success of the auction and the creation
of workforce housing. Wilise Zephyr explained how her homeownership dream came true once Manna acquired a former
vacant property owned by DHCD (see story below). The
April 5 hearing involved the auction
sites in Wards 1 and 6. Now that the hearings are over, next
steps in the auction properties process include finalizing paperwork, DC
Council review and final closings.
Look
forward to progress this spring on the other four Action points under Vacant
to Vibrant DC.
 Ward 8 Resident Shares the Blessings of Homeownership
Wilise
Zephyr, who owns a unit at The Buxton Condominium in Ward 8, gave a very
emotional testimony of her homeownership journey during the April 4 Vacant to
Vibrant DC hearing.
The
Buxton site used to be vacant property in DHCD’s inventory until it was
developed by Manna Inc., into 24 units of affordable housing for households at
or below 50 percent to 80 percent MFI.
“When
it was time to buy, MANNA helped guide me through the whole process [through
its Homebuyers’ Club],” she explained. “They helped me look over my credit, gave
me all the courage, and coached me each step of the way."
Zephyr
added she was “very motivated to do the work” because she was in living in an
apartment that was “much too expensive.” She also saw many hard working people
in her apartment building who had the dream of homeownership but would never be
able to get there without help.
Thankfully,
through the support of the Homebuyers Club, she saw her dream become a reality.
“It
was important …to keep waiting and hoping until … until [her home] became the beautiful
place that it is today,” Zephyr said tearfully. “When I look around D.C. at the
rising prices of homes,I feel really blessed to be where I am.”
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DHCD Participates in DMPED’s March Madness
Also during Roots to Roofs DC Week, Director Donaldson and other DHCD staff joined the Mayor, Deputy Mayor for Planning and Economic Development (DMPED) Brian Kenner and other District agencies at DMPED’s March Madness, an annual effort to create more quality affordable housing, support small and local businesses, and expand job opportunities for DC residents.
Donaldson noted to the audience DHCD’s winning record in affordable housing and community development, to include successfully managing the Mayor’s unprecedented investment of $100 million each year in the HPTF, quickly moving forward on key Housing Preservation Strike Force recommendations, and giving residents more home purchasing power by increasing down payment assistance. She also noted that she followed through on the commitment made at last year’s event to have all vacant and blighted properties in DHCD’s inventory in the process of transformation into affordable housing and mixed use communities by the end of 2017.
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