unfulfilled promises: affordable housing in metropolitan washington presentation to the metropolitan...

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

www.hoganlovells.com

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.

2


Jurisdictions Studied

• District of Columbia• Alexandria• Fairfax County• Arlington County• Prince George’s County• Montgomery County

3


Recommended Affordable Housing Tools

• 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

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

5


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

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

7


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 – Adequate control periods– Local government purchase rights– Low trigger thresholds– Limit exemptions

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

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

10


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 long-term affordability

• Problem is most severe at the lowest income levels

11


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