Category: Affordable Housing

Testimony supporting Maryland Housing Impact Fairness Act

November 21, 2019

Montgomery County Council

Council Office Building

100 Maryland Ave.

Rockville, MD 20850

Bill 34-19, Taxation – Development Impact Taxes – Affordable Housing – Housing Impact Fairness Act (Support)

Testimony for December 3, 2019

Kimberly Golden Brandt, Director, Smart Growth Maryland

Jane Lyons, Maryland Advocacy Manager, Coalition for Smarter Growth

President Navarro and Councilmembers, thank you for the opportunity to speak today. My name is Kim Golden Brandt, Director of Smart Growth Maryland, which advocates for a more environmentally and economically sustainable future that creates opportunities for all Marylanders through better development patterns. I am also speaking on behalf of the Coalition for Smarter Growth, the leading organization in the D.C. region advocating for walkable, inclusive, transit-oriented communities. 

First, thank you to the Council for your support of affordable housing, shown through your continued investment in the Housing Initiative Fund and recent adoption of the Council of Government’s housing targets. In addition to the legislation before us this evening, we welcome additional proposals that will help get the HIF to the $100 million per year goal and help double housing production to meet the COG targets.

We support the Housing Impact Fairness Act, given the existing and growing need for both affordable housing and school construction funding. This legislation ensures that all new construction contributes for its impact. 

For example, there was a $575,000 home from 1953 on Dickens Avenue in Bethesda. It was torn down and replaced with a 4,891 square foot, $1.425 million home. When this happens again and again in a neighborhood, middle-class households are replaced by wealthier households. Teardowns can lead to neighborhoods becoming more exclusionary over time, especially when “middle” housing types are missing.

On average, the additional impact fees would result in a newly rebuilt home costing $1.8 million instead of $1.75 million. As with all taxes, this is a statement of values. The HIF portion of the impact tax from just this one teardown would go a long way to helping provide affordable housing, for example, more than covering the rent of two very low-income families for over a year. Or it would meaningfully contribute to more room in our schools for students. For homes built after 1986, we’ve already made that value judgement to support these goals.

In addition to our support of the bill, we also offer the following amendments and considerations. First, to ensure that this proposal will be a net gain in revenue over time, we welcome additional economic analysis. The recordation tax and increased property taxes that come from teardowns also go towards affordable housing, school construction, and other investments.

Next, we recognize that some neighborhoods, especially those with older structures, need investment including improved housing stock, and that teardowns can offer that needed investment. Therefore, we welcome an amendment that exempts blighted or condemned properties.

Finally, we ask the PHED committee to strongly consider exempting properties if an additional living unit is provided. This policy could be modeled after Portland’s residential infill project. Replacing one home with another does nothing to address the county’s housing shortage. If we do not build enough homes to address demand, then older homes will just continue to become more and more unaffordable.

Thank you for your time.

CSG in the News: Study: DC rent is 3rd highest in the country

Study: DC rent is 3rd highest in the country; Here’s how much income you need to afford it

by AMANDA HOROWITZ, ABC 7 WJLA

The D.C. Council unanimously voted on the first step of the city’s Comprehensive Plan for development last week.

A spokesperson for Mayor Bowser’s office said she will likely unveil the remaining elements of the comprehensive plans as well as area housing targets and maps on October 15.

The comprehensive plan includes proposed solutions to the city’s affordable housing shortage – an issue that elected officials and advocates are coming together to try to fix.

The plan will go through review by the National Capital Planning Commission and Congress before it gets to the mayor’s desk for signing, the mayor’s spokesperson said….

Numbers from the National Low Income Housing Coalition estimate that over 50 percent of residents living in the D.C. metro area are renters.

According to NLIHC, the median family income for both renters and buyers is $121,000. This means families can afford to pay $3,000 a month for rent without being cost-burdened.

HUDs estimate of a fair market rent that recent movers paid for a modest two-bedroom apartment in D.C. was $1665, but 60 percent of rents are currently higher according to the NLIHC.

For those in the fortieth percentile, in order to afford $1665 without being “cost-burdened” an individual would have to earn $66,000 a year, or $5500 monthly, the NLIHC estimates.

Assuming a 40-hour workweek, 52 weeks per year, this level of income translates into $32.02 an hour. Working at the minimum wage of $14.00 an hour in D.C. each week an individual would have to work 90 hours weekly at two jobs to afford a modest apartment.

Cheryl Cort, policy director for Coalition for Smarter Growth, an organization dedicated to bettering the district believes lack of affordable housing is one of the greatest challenges D.C. faces.

“Housing insecurity worsens other conditions in a person’s life. Many DC residents face daunting challenges — lack of access to quality education and training, violent neighborhoods, poor health status, low wage jobs and unstable employment. Lack of access to stable, quality housing compounds all these problems, and is also one of the solutions to a number of these problems,” Cort said.

Cort said the CSG stands behind the mayor’s housing strategy. In May, the mayor signed an order directing District agencies to identify new policies, tools, and initiatives that would start moving toward the goal of creating 36,000 new housing units, 12,000 of them affordable, by 2025….

 Regardless of how the numbers add up, whether you’re renting or buying, one thing is clear – officials and advocates think housing in D.C. is too expensive.“Bold action to address housing affordability requires the entire city’s input and energy,” Cort said.

View the full story by WJLA here.

ALERT: We won! Yesterday, the DC Council voted for a more inclusive city!

ALERT: We won! DC Comprehensive Plan will help build a more inclusive city!

https://www.flickr.com/photos/beyonddc/48850753367/
Photo credit: BeyondDC on Flickr

Yesterday, Oct. 9, 2019, after many delays, the DC Council voted on the Framework Element of the Comprehensive Plan, the guiding document that will shape our city for years to come.

With your help, we fought for and won two key amendments. The first prioritizes preserving and building more affordable housing, and preventing the displacement of residents. The second fixes the broken review process for Planned Unit Developments (PUDs) so it can be predictable, while also prioritizing affordable housing and preventing displacement.

These changes go a long way towards making the District more inclusive!

Take a moment to thank the DC Council!

What happened? Over the last few months we partnered with other housing advocacy groups, sent alerts to you at key points, met with Councilmembers and staff, and explained the issues to the media. With your help we were able to win two critical amendments:

  1. Councilmember Brianne Nadeau’s amendment which helps address racial and social equity in DC by explicitly prioritizing affordable housing and prevention of displacement.
  2. An amendment removing exclusionary language which made preserving “physical and visual character” a dominating requirement in development review. This language was too similar to the type of planning language that has historically perpetuated housing segregation. The Council replaced it with language suggested by the DC Office of Planning, which we supported.

We thank Chairman Mendelson and the Council, who heard us and made the revisions we knew were critical to a better plan. Thanks to these changes, well-designed affordable housing and mixed-income housing proposals will be able to move forward again.

Please be sure to thank the DC Council!

We’re excited to get to work reviewing and supporting good projects. Meanwhile, the rest of the Comp Plan chapters will be coming forward soon. Look for more updates from the CSG team!

We hope you will stay involved, helping to shape land use and housing policies and decisions to ensure our city is a place where longtime residents can stay and thrive, and newcomers can find new opportunities.

Background to the critical Comprehensive Plan amendments 

The 2006 Comprehensive Plan focused too much on preserving the status quo rather than planning for a growing population and the need for more housing that is affordable to middle and lower-income residents. Opponents of new housing have used the 2006 Comprehensive Plan to delay thousands of new homes, and hundreds of new affordable homes — increasing rather than reducing displacement of longtime residents.

That’s why we developed dozens of amendments, and also partnered with other organizations to craft and submit numerous amendments to the Comprehensive Plan, provided testimony at the March 2018 hearing, and why you sent in hundreds of emails to the Council last year.

On July 10, 2019, the DC Council took a preliminary vote on the Framework Element of Comprehensive Plan bill proposed by Chairman Phil Mendelson. While the Chairman’s bill included a significant number of our amendments, as well as the Office of Planning’s amendments, the Chairman’s revised bill still fell short in addressing the need for more affordable housing.

As a result of strong advocacy to the Chairman and the Council by the Coalition for Smarter Growth, our active supporters, and our partners in the DC Housing Priorities Coalition, the DC Council voted for an amended Bill 23-1 on October 8, 2019. Amendments we won:

  • Specific guidance to prioritize affordable housing and preventing displacement in the Planned Unit Development (PUD) approval process (section 224.9).
  • Removal of exclusionary language about “physical and visual character” in the Planned Unit Development approval process, which would have made this “character” more important than any of our other values like preventing displacement and building more affordable housing. The Council supported alternative language recommended by DC Office of Planning, which we supported (section 227.2).

Learn more about the amendments in the CSG blog post: DC Office of Planning and advocates seek to change troubling provision in DC Comprehensive Plan bill

CSG in the News: Phil Mendelson added important affordable housing language to the Comp Plan, but some are trying to undo it

Phil Mendelson added important affordable housing language to the Comp Plan, but some are trying to undo it

 

…On October 2, Chairman Phil Mendelson’s latest draft of the plan’s Framework Element added language similar to those principles, especially around building and preserving affordable housing and protecting tenants in affordable housing when their properties undergo redevelopment. The chairman’s draft also centers the importance of, as DC grows, building in racial and economic equity, a credit to interventions by Councilmember Kenyan McDuffie (Ward 5) and Councilmember Trayon White (Ward 8).

The final vote on the Framework bill is on Tuesday, October 8, and last week, some opponents emerged to fight this language. We’re pushing for it to remain….

The Comp Plan Framework now borrows much of this language

Chairman Phil Mendelson’s latest draft of the Framework has…a lot of what the Housing Priorities Coalition proposed! (The final version will be released on Monday.)

Notably, it reflects an amendment introduced by Councilmember Brianne Nadeau (Ward 1) at the bill’s first reading. Advocacy by many of affordable housing groups who were part of the original coalition, like, DC Fiscal Policy Center, Housing Association of Nonprofit Developers, Enterprise Community Partners, Coalition for Nonprofit Housing and Economic Development, and Coalition for Smarter Growth emphasized the necessity of this sort of language, so it’s a win that Mendelson added more beyond what he had included in the version voted on at first reading.

Not everyone is happy with the new community benefits language. Attorney David Goldblatt of Goldblatt Martin Pozen LLP, which does lobbying and real estate transactions for large companies, wrote a letter on behalf of the DC Building Industry Association (DCBIA) asking to water down this language. Goldblatt said the changes were in the interests of the DC Housing Authority, though his letter says he’s not speaking for DCHA, just DCBIA.

It’s worth repeating that this language is only about benefits given in exchange for zoning flexibility as part of a PUD, like more density. It doesn’t impose any kind of unfunded requirement on property owners. What it does is say is that in exchange for more affordable housing or anti-displacement measures, you can build taller or bigger in proportion.

Affordable housing is really necessary. It’s also expensive. With more floors or larger buildings, it can become economically feasible to offer one-for-one replacement, “build first,” and other features that the city’s residents deserve when their homes are redeveloped.

Not all developers are supportive of this concept, but a lot are. Many think it’s a great idea to build more affordable housing and avoid displacing anyone, as long as they can design a project which does so and actually works economically. Sure, if people could build higher and didn’t have to build affordable units, that would be even more profitable, but public policy can ensure we get affordable housing, while projects still “pencil out.”

Right now, DC’s acute limits on new buildings directly prevent developers from paying for more affordable housing to avoid displacement. Some people from the development community, at least, would like to be part of the solution, and the proposed rule would let them.

The proposed Framework language takes a big step toward achieving what the Housing Priorities Coalition recommended. It’s not everything, because this language just applies to PUD benefits. There will be other opportunities to enact these and the rest of the coalition’s 10 principles in the rest of the Comp Plan. The Office of Planning will release its amendments to the rest of the document October 15, along with housing targets and map changes.

Read the full post here.

RELEASE: Affordable Housing Groups Praise Council Chairman’s Comprehensive Plan Bill

Press Release

DC HOUSING PRIORITIES COALITION

CONTACT
Cheryl Cort, Coalition for Smarter Growth: 202-251-7516; cheryl@smartergrowth.net
Courtney Battle, HAND: 202-384-3764; cbattle@handhousing.org 

Affordable Housing Groups Praise Council Chairman’s Comprehensive Plan Bill

Washington, D.C. – October 3, 2019 –  Today a coalition of affordable housing stakeholders applaud critical revisions to the draft Comprehensive Plan released by DC Council Chairman Phil Mendelson. This transformative update incorporates three of the coalition’s priorities: ensuring the creation of affordable housing, preventing displacement, and addressing racial equity. The bill will get its final votes by the full Council next Tuesday, October 8

“We are gratified that the Comprehensive Plan bill offers the guidance our city needs to make affordable housing and preventing displacement top priorities. The bill also provides clarity to the development approval process, clearing the way for increasing affordable housing and other public benefits, along with community input as part of the negotiated process,” said Cheryl Cort, Coalition for Smarter Growth, a member of the DC Housing Priorities Coalition. 

The group pressed for the DC Council to amend its bill after the first vote on July 10, urging the body to adopt stronger language on how affordable housing would be prioritized in land use decisions. It appealed to zoning experts and the DC Office of Planning to work with the DC Council to ensure the development approval process (i.e. Planned Unit Developments), would achieve greater levels of housing affordability, tenant protections, and increased certainty. The group’s goal was to achieve more affordable housing and prevent displacement of existing residents, while reestablishing a more fruitful development review process. 

“We talk about the Framework elements as a “bill of rights” for District residents and communities,” said Melissa Bondi, Mid-Atlantic State & Local Policy Director for Enterprise Community Partners. “It is important that the current language reflects our values, including prioritizing resident protections, emphasizing greater housing affordability, and evolving our approaches to achieve a truly inclusive, equitable city.” 

“We thank Chairman Mendelson for amending the Comprehensive Plan bill to prioritize the creation of affordable housing and prevention of displacement, while also providing needed clarity to the development review process.  We particularly appreciate that the administration, the Council, and advocates were able to find common ground to facilitate a more equitable development process for the District,” said Steve Glaude, President and CEO of the Coalition for Nonprofit Housing and Economic Development (CNHED).

“The revised language provided by Chairman Mendelson will accomplish the goals we set – to elevate affordable housing and racial equity, and fix the broken project review process, said Heather Raspberry, Executive Director of the Housing Association of Nonprofit Developers (HAND). “Creating and preserving more affordable housing throughout the District is the cornerstone to building an inclusive city where all of our neighbors have an opportunity to thrive. We appreciate the Chairman and Council’s thoughtful review of the Plan which will serve the city and surrounding region well.”

“Prioritizing affordable housing and the prevention of displacement in the Comprehensive Plan are two necessary steps our city must take in charting a path toward a more equitable future,” said Adam Kent, Senior Program Officer at the Local Initiatives Support Corporation (LISC). “We look forward to working with the DC Council on the remaining elements of the Comprehensive Plan to ensure these priorities are maintained throughout.”

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DC Housing Priorities Coalition

Who We Are

The DC Housing Priorities Coalition includes: Enterprise Community Partners, DC Fiscal Policy Institute, Coalition for Nonprofit Housing and Economic Development (CNHED), Somerset Development Company, Coalition for Smarter Growth, Greater Greater Washington, United Planning Organization (UPO), Local Initiatives Support Corporation (LISC) and the Housing Association of Nonprofit Developers (HAND).

Why We Formed

The Housing Priorities Coalition formed three years ago to help update the DC Comprehensive Plan, the land use policy that guides development decisions in the District. (Learn more from DC Office of Planning on the DC Comprehensive Plan amendment process here). See the full Housing Priorities Coalition amendment package here. The Housing Priorities Coalition’s guiding principles for amending the DC Comprehensive Plan are: 

    • Meet the housing demand
    • Equitably distribute housing
    • Best utilize areas near transit
    • Include families: ensure homes for people of all income levels and of all household sizes, including families. 
    • Prioritize affordable housing as a community benefit
    • Preserve existing affordable housing
    • Protect tenants
    • Support neighborhood commercial corridors
    • Clarify zoning authority
    • Improve data collection and transparency

Why These Priorities:

Lack of affordable housing and risk of displacement are among the greatest challenges DC faces to achieving racial equity, quality of life for residents, and economic sustainability for all.

Low-income District residents, particularly residents of color, do not currently enjoy equal access to affordable housing connected to communities of opportunity, perpetuating a gaping racial equity gap.

The Planned Unit Development (PUD) process, which is an important way to produce new housing with substantial affordability, is now held up in constant court challenges resulting in thousands of stalled homes, including hundreds of affordable homes. Court challenges and rulings have relied heavily on narrow interpretations of the Comp Plan, so the proposed amendments help to clarify how the Zoning Commission should judge and prioritize PUDs. Such clarification is critical, because even the risk of lawsuits has dramatically reduced the use of PUDs for affordable and market-rate housing (ex: Park Morton public housing blocked due to Bruce Monroe PUD lawsuit). View the list of stalled projects published by Washington Business Journal here.

 

CSG in the News: D.C. Council advances key comp plan changes in bid to ease activists’ concerns

By   – Staff Reporter, Washington Business Journal, 10/3/2019

Final changes to the first section of the D.C. comprehensive plan are taking shape, and it seems District lawmakers have acquiesced to the demands of activists and some city leaders who worried a previous draft was seriously flawed.

D.C. Council Chairman Phil Mendelson is circulating a draft of amendments to the plan’s “framework element.” Crucially, Mendelson and his staffers have rewritten a section of the bill that a coalition of housing advocates and developers feared would open the door to a flood of new legal challenges to large new developments.

The chairman had hoped to pass this legislation by now, as changes to this section of the comp plan are broadly seen by the development community as being essential to beating back future lawsuits seeking to hold up planned-unit developments. But he chose to delay consideration while this debate over the language played out.

With issue seemingly resolved, it should set the table for the council to, at last, finalize the amendments to the framework element by Oct. 8.

“We think the language in the revised bill addresses our concerns about fixing the broken PUD process and elevating affordable housing,” said Cheryl Cort, policy director for the Coalition for Smarter Growth and a lead organizer of a campaign to raise awareness about potential problems with the old language. “The chairman really listened carefully and considered all the issues here.”

Cort and many of her colleagues in the housing advocacy world worried that changes to one section of the framework could “generate a tremendous amount of uncertainty in the PUD approval process or would open up PUD approvals to litigation in a brand new way.” A member of the D.C. Zoning Commission voiced similar concerns, as did Planning Director Andrew Trueblood.

View the full story in the Washington Business Journal here.

CSG in the News: Guest Commentary: A Tour of West Falls Church & the Railroad Cottages

 LOCAL COMMENTARY

Guest Commentary: A Tour of West Falls Church & the Railroad Cottages

September 27, 2019, by FCNP.com, the Falls Church News-Press

By Stewart Schwartz & Sonya Breehey

The best way to understand how to make our communities more sustainable and livable, is to get out and walk. That’s why the Coalition for Smarter Growth led one of our signature walking tours, this time in West Falls Church, from George Mason High School to the Railroad Cottages, along the W&OD Trail, and back along Broad Street (Route 7). We were joined by 40 people for the tour, meeting up at the Capital Bikeshare station next to Haycock Road. A number of our attendees arrived by bike and Metro.

We were welcomed by Mayor David Tarter and Councilmembers Letty Hardi, Phil Duncan and Ross Litkenhous from the City of Falls Church, Councilmember Pasha Majdi from the Town of Vienna, Delegate Marcus Simon, city planning commission and transportation commission members, staff, residents, and volunteer advocates from across Northern Virginia. Mayor Tarter provided an update on plans for the entire West Falls Church Metro area including Falls Church’s new high school and redevelopment area, the Virginia Tech campus, and the Metro station parking lots.

Walkable, mixed-use, mixed-income development next to our Metro stations is essential if we are to grow without making traffic worse and essential for cutting the transportation emissions that are now the leading source of greenhouse gas emissions in our region. Transit-oriented development will also expand the city’s tax base, providing funding for schools and other services.

Councilmember Hardi discussed safety issues facing people crossing Broad Street. Delegate Simon and others talked about safety issues along Shreve Road where a person was tragically killed by a vehicle as she walked on the sidewalk. The region is experiencing a big uptick in pedestrians and cyclists killed or injured by vehicles, and redesigning our streets to be safer for all users is imperative. Fortunately, a project is in the works to make the Route 7/Haycock Road intersection safer, and additional safe crossings are planned as part of the city’s redevelopment project. Meanwhile, Delegate Simon and other officials are pursuing safety improvements for Shreve Road.

We then walked a short distance along the W&OD to the Railroad Cottages — a highlight of the tour. When proposed, these 10 cottage style homes on 1.25 acres were the subject of significant concern from neighbors. The triangular site next to the W&OD trail originally allowed for four building sites. But in view of the significant housing needs in our region, and a desire to create environmentally sustainable homes with a sense of community, the project’s visionary development team proposed 10 cottages and a shared common house. The cottages are arranged along a central pathway, with cars parked away from the homes.

The homes were built to “Earthcraft Gold” energy-efficiency and sustainability standards and use Universal Design to allow for mobility when aging in place. It’s an 18-minute walk from the cottages to the West Falls Church Metro, 14 minutes by bike to the East Falls Church Metro on the W&OD trail, and a five-to-10-minute walk to a range of shopping and services along Broad Street. The stormwater management is cutting edge — controlling stormwater runoff to the same level as a healthy forest.

The residents of the Railroad Cottages graciously opened their doors to us, showing us their homes and describing what it’s like to live in the community. Project visionary Theresa Sullivan Twiford, architect Jack Wilbern of Butz Wilbern Architects, and developer Joe Wetzel of the Young Group, told us about the approval process and its many challenges.

Our planning and zoning rules in the region do not make it easy to build clustered homes, and the time and cost for special approvals adds to the cost of each new home. It is easier to build “by-right” very large, nearly full-lot occupying houses, which on this site would have cost $1.5 million or more, than to build these smaller 1340 to 1380 square foot homes.

Given our region’s housing needs, 10 homes within walking and bicycling distance to Metro are better than four. Still, at about $800,000 apiece, these homes remain out of reach for most families. They point the way, however, to the potential for smaller homes, and especially duplexes, triplexes, and fourplexes, to provide more options with greater affordability.

We need to identify the best places for these homes in terms of access to transit, jobs and services, and make the design, zoning and approval process easier. Otherwise, our grown children and many sectors of our workforce will simply not be able to afford to live in our community. Creating more walkable, transit-oriented communities is how we can grow sustainably, provide the homes we need, and fight climate change. Fortunately, as the tour showed, the City of Falls Church is emerging as a leader in this effort.


Stewart Schwartz is the executive director of the Coalition for Smarter Growth, and Sonya Breehey is their Northern Virginia advocacy manager.

View the guest commentary in the Falls Church News-Press here.

CSG in the News: Editorial: A Falls Church Example Of ‘Smart Growth’

Editorial: An F.C. Example Of ‘Smart Growth’

 

Stewart Schwartz, executive director of the prestigious Coalition for Smarter Growth, last weekend chose to conduct one of his organization’s famous walking tours in the City of Falls Church, focusing in the recently-completed cottages project developed by City developer Bob Young, chair of the City’s Economic Development Authority, and his team. The cottages were identified by Schwartz’s group as important in the wider conversation about “sustainable growth” because they represent a departure from the prevailing notion of what single detached homes should look like and offer to the demographic trends of tomorrow….

The cottages project, he added, “Point the way to the potential for smaller homes, and especially duplexes, triplexes and fourplexes, to provide more options with greater affordability…Creating more walkable, transit-oriented communities is how we can grow sustainability, provide the homes we need and fight climate change.”

So, clearly, where the City can “lead by example” would be in the area of instituting the kinds of planning and zoning rules changes that will have the effect of incentivizing shifting development priorities in just that direction.

View the full commentary in the Falls Church News-Press here.