The Opportunity DC News Letter: Saving DC’s Affordable Housing Ecosystem

In this edition:

DC Council Passes Emergency ERAP Reform
The Looming Collapse of DC’s Affordable Housing Market
What Needs to Happen Next: Policy Recommendations
Voting starts in DC

Council Takes Action, Passing Emergency ERAP Reform

On Tuesday, October 1st, the DC Council unanimously passed legislation reforming the Emergency Rental Assistance Program (ERAP). Councilmembers made two key changes to the program, recognizing that policies implemented during the pandemic to protect financially strapped renters were now putting DC’s affordable housing ecosystem at risk. First, ERAP applicants once again need to properly certify their income and need for emergency assistance. Self-attestation is no longer permitted, except in rare circumstances where documenting a specific type of emergency is impossible. Second, while judges must still consider issuing a stay on eviction proceedings when an ERAP application is filed, they are no longer required to issue one.

This legislation, passed on an emergency basis, will expire in three months unless reauthorized by the Council or made permanent. It is an important first step, but much more needs to be done to address a looming crisis in DC’s housing market.

How Did We Get Here? Understanding the Challenges Facing DC’s Housing Ecosystem

Several interrelated factors are converging to endanger DC’s progress in affordable housing. While the District has a strong track record of constructing new affordable units, maintaining existing housing has become increasingly difficult.

Nonpayment of Rent: The economic fallout of the COVID-19 pandemic continues to cast a long shadow. Affordable housing providers report they are not collecting enough rent to cover their costs for mortgage payments and maintenance. The total exceeds $100 million, Mayor Bowser has said. Rampant nonpayment has led to deferred maintenance, rising rents for those who do pay, and eventually, foreclosure or repossession of properties — all of which diminish the availability of affordable housing.
Restrictive Regulations: Regulatory barriers, including DC’s Tenant Opportunity to Purchase Act (TOPA), are hindering new investment in the housing market. While TOPA serves an important purpose, housing providers suggest that exempting new buildings from TOPA requirements or modernizing the law could incentivize investment and expedite transactions, leading to more housing options and tax revenue for the District.
Financing Challenges: The confluence of these challenges has made lenders wary of financing new housing projects in DC. This reluctance, coupled with interest rates higher than pre-pandemic, has brought new construction to a standstill.

A Call to Action: Charting a Path Forward

These challenges, if left unaddressed, will have a devastating impact on DC’s housing market, leading to higher costs for renters and fewer options for everyone. To avert this looming crisis, Opportunity DC urges DC lawmakers to:

Make ERAP changes permanent: Making ERAP reforms permanent will provide certainty for affordable housing providers and tenants moving forward.
Prioritize a Housing Omnibus Bill: A comprehensive legislative package is needed to address the systemic issues plaguing the housing market.
Streamline the Permitting Process: Reducing bureaucratic red tape will make it easier and faster to build new housing.
Reevaluate Housing Limits: Exploring adjustments to height limits and other zoning regulations could unlock new development opportunities.

Learn More About DC’s Housing Crisis:

Two affordable housing developers in DC have produced helpful primers this year:

For Greater Greater Washington, Patrick McAnaney of Somerset Development Company explained the costs of building and maintaining affordable housing, why it’s so expensive, and why it can’t pay for itself.
In the Washington Business Journal, Jim Knight, president and CEO of the nonprofit Jubilee Housing, proposed some solutions to get DC’s housing ecosystem out of its current predicament.

Reminder: VOTE!

With Election Day fast approaching, it is more important than ever for DC residents to make our voices heard – for president, DC Council, State Board of Education, and Advisory Neighborhood Commissions. Vote by mail or in person before or on Tuesday, Nov. 5.

The lone referendum on the ballot, Initiative 83, would make two changes to DC’s election system, if passed:

Open party primary elections to independent voters unaffiliated with a political party.
Establish ranked-choice voting for District offices.

You can learn more about Initiative 83 here and how ranked-choice voting works here.

Visit the DC Board of Elections’s website for polling locations, sample ballots, and other voting information.