D.C. Mun. Regs. tit. 10-A, § 504
504.1 Washington, DC faces numerous affordable housing challenges. It has both a greater share of the region’s low-income residents and the region’s most rapid decline in the availability of housing to serve these residents. In 2005, the median income for a family of four for the region was $89,300, but it was just $55,750 in the District. Census data indicates that by 2017 the gap had narrowed by almost half. In fact, between 2005 and 2017, the share of the District’s households earning below the regional median income declined from about 75 percent to 52 percent of households. Due to a growing number of higher-income households being attracted to Washington, DC, housing prices in the District are increasing at a faster rate than almost any jurisdiction in the metropolitan area. The share of District renters who paid more than 30 percent of their incomes for housing jumped from 39 percent in 2000 to 46 percent in 2004. In 2017, the estimated share of households paying more than 30 percent of their income for housing had fallen to 36 percent of all households. Similarly, the share paying more than 50 percent of their incomes declined from 23 percent in 2004 to 20 percent by 2017. Data suggests this is not due to improving affordability but rather the in-migration of higher-income households and the out-migration of lower-income households. Further, outcomes must be reviewed by race, considering the previously noted lower incomes and higher rent burdens faced by Black and Hispanic households.
504.2 In Washington, DC and across the nation, home prices have fluctuated dramatically since 2006. Prices in the District peaked in April 2007, soon after the adoption of the 2006 Comprehensive Plan. While the collapse of the national mortgage markets did not affect Washington, DC as badly as some parts of the country, many neighborhoods did suffer from high foreclosure rates and severe decline in values, and these neighborhoods are in areas with predominantly Black and Hispanic populations. Among the hardest hit neighborhoods were those along Eastern and Southern Avenues in the Upper Northeast, Far Northeast and Southeast, and the Far Southeast and Southwest Planning Areas, such as Washington Highlands, North Michigan Park, Bellevue, and Capitol View. In addition to the national mortgage collapse, the problems were exacerbated by limited access to competitive mortgages, and predatory subprime lending, which was disproportionately directed at low income and Black and Hispanic households. By 2017, single-family home values in some of these neighborhoods, especially those in Wards 7 and 8, were finally exceeding their previous peaks achieved in 2007. However, condominiums are still experiencing declining values in some neighborhoods, stemming from failing homeowner associations, maintenance, and other problems.
504.3 Single-family home values elsewhere in the District have more than just recovered. Values have gone up most rapidly in the moderately priced neighborhoods to the north and east of downtown. Neighborhoods such as
Trinidad, LeDroit Park and Bloomingdale recovered rapidly and experienced annualized sales price increases of from eight to almost 11 percent a year between 2009 and 2017. Price increases in high-cost neighborhoods west of Rock Creek Park were less dramatic, but they also experienced the least decline as a result of the mortgage crisis. As a result, they continue to be out of reach for most District residents.
504.4 Economic forecasts suggest that many of the jobs that will be created in the District during the next 10 years will not provide the compensation needed to pay for housing in Washington, DC. Occupations that pay the lowest third of wages are expected to represent 45 percent of the job growth. For example, some of the District's fastest growing occupations are expected to be home health and personal care aides, which pay an annual wage of $ 29,000. For a single wage earner, this would qualify them for the deepest level of subsidy to rent a one-bedroom apartment, with almost no chance to purchase a condominium or single-family home. Even a two-income household with such salaries would be unable to afford market-rate homeownership. As the gap widens, there may be several consequences. Residents may work unreasonably long hours or multiple jobs, double up in overcrowded apartments and houses, live in unsafe or substandard housing, or give up living in the District altogether, enduring long commutes into Washington, DC each day. Black and Hispanic residents are more heavily represented in these job categories and earn lower incomes, as noted earlier. This points to worsening racial inequality in housing access and affordability, displacing residents who would otherwise choose to remain in the District.
504.5 The District has been working to preserve the affordability of existing housing opportunities for lower-income residents and to ensure that a substantial share of the housing built in the next 20 years is affordable for them. The District's HPTF is now the largest per capita source of locally dedicated funding for affordable housing of any city in the country. An array of financial and regulatory tools and programs already are in place, some linked to federal housing programs, some created by District government, and others originating through partnerships with the private and nonprofit sectors (see Figure 5.7 for a list of the major housing programs in the District).
504.6 The District also has been pursuing legislative and regulatory measures that require affordable housing in new development. In addition to IZ, a 2013 District law requires District properties sold for residential development to provide 20 to 30 percent of the units as affordable depending on proximity to transit. The law targets a range of extremely low-income to moderate-income households, and long-term commitments to maintain affordability which depend on the tenure of the project. For many years, Washington, DC has also had a policy requiring developers seeking commercial density bonuses to provide affordable housing or pay into the HPTF. The previous Comprehensive Plans created the foundation for
these actions, which is carried forward in this Element.
504.7 More deeply affordable housing production and preservation is needed to advance racial equity in housing because of the racial income gap. As shown in Figure 5.8, the proposed allocation of new affordable units should be 40 percent available to extremely low-income households, and 30 percent allocated each for low- and very low-income households. These targets would prioritize production and preservation of housing affordable to more of the District’s residents of color. Achieving these targets requires actions from the public, non-profit, and private sector. Statutory and regulatory measures, including zoning, are necessary but not sufficient to produce very-low- and extremely-low-income rental housing and ownership opportunities for a range of households. Budgetary decisions at the federal and District levels are also essential to enable the continued operation of quality housing for these income levels. Resource choices also must be made between new housing production and preserving or restoring affordable housing stock. And, while the District has set ambitious goals to increase both market rate and affordable housing production, affordable housing production is lagging, requiring renewed assessment of how to effectively allocate and use limited resources. To advance racial equity in housing, an effective allocation of resources is needed for housing preservation and production targeted to very-low and extremely-low-income households.
The production and preservation of affordable housing for low- and moderate-income households is a major civic priority, to be supported through public programs that stimulate affordable housing production and rehabilitation throughout all District neighborhoods.
Consistent with the Comprehensive Housing Strategy, work toward a goal that one-third of the new housing built in Washington, DC from 2018 to 2030, or approximately 20,000 units, should be affordable to persons earning 80 percent or less of the area-wide MFI. In aggregate, the supply of affordable units shall serve low-income households in proportions roughly equivalent to the proportions shown in Figure 5.8: 30 percent at 60 to 80 percent MFI, 30 percent at 30 to 60 percent MFI, and 40 percent at below 30 percent MFI. Set future housing production targets for market rate and affordable housing based on where gaps in supply by income occur and to reflect District goals. These targets shall acknowledge and address racial income disparities, including racially adjusted MFIs, in the District, use racially disaggregated data, and evaluate actual production of market rate and affordable housing at moderate, low, very-low, and extremely-low income levels.
504.10
Focus investment strategies and affordable housing programs to distribute mixed-income housing more equitably across the entire District by developing goals and tools for affordable housing and establishing a minimum percent affordable by Planning Area to create housing options in high-cost areas, avoid further concentrations of affordable housing, and meet fair housing requirements.
504.11
Figure 5.7 Major Housing Programs in the District
| Department of Housing and Community Development (DHCD) | Apartment Improvement |
|---|---|
| Construction Assistance | |
| Site Acquisition Funding Initiative | |
| Distressed Properties Improvement | |
| Housing Finance for Elderly, Dependent, and Disabled | |
| Housing Production Trust Fund | |
| Affordable Housing Preservation Fund | |
| Inclusionary Zoning | |
| Low Income Housing Tax Credits | |
| Property Acquisition and Disposition | |
| District Opportunity to Purchase | |
| Tenant Opportunity to Purchase Assistance | |
| District of Columbia Housing Finance Agency (DCHFA) | Multifamily Housing Development |
| DC Open Doors Homeownership | |
| District of Columbia Housing Authority (DCHA) | Housing Choice Voucher Program (Section 8) |
| Local Rent Supplement Program (LRSP) | |
| Choice Neighborhoods (HOPE VI Program) | |
| Public Housing | |
| Deputy Mayor for Planning and Economic Development (DMPED) | New Communities |
| Public Land Disposition Affordability Requirements | |
| District of Columbia Office of Planning | Affordable Housing through Planned Unit Development Cases |
| Historic Homeowner Grant Program | |
| DC Council | Rent Control |
| Tax Abatement for Seniors and Low Income Housing |
Source: 2019 DC Office of Planning
504.12
Require that 20 to 30 percent of the housing units built on publicly owned sites disposed of for housing, co-located with local public facilities, or sites being transferred from federal to District jurisdiction, are reserved for a range of affordable housing with long-term commitments to maintain affordability, seeking to maximize production of extremely low- and very low-income for rental units, and very low- and low-income households for ownership units and family-sized units. Prioritize the provision of affordable housing in areas of high housing costs.
Explore strategies at these redeveloping sites to enable seniors in the surrounding community to have opportunities to age in place, and to provide housing opportunities for residents at risk of displacement in the surrounding community. Consider Universal Design and visitability.
504.13
In addition to programs targeting persons of very low and extremely low incomes, develop and implement programs that meet the housing needs of those earning moderate incomes with wages insufficient to afford market rate housing in the District.
504.14
Actively involve and coordinate with the nonprofit sector, including faith-based institutions, to meet affordable housing needs, including housing construction and housing service delivery. Partner with the nonprofit sector so that public funding can be used to leverage the creation of affordable units and to expand access to housing through counseling, education, tenant rights services, and increased awareness of funding opportunities. Faith-based institutions represent a significant opportunity for the development of affordable housing and community facilities in Washington, DC and the provision of affordable housing and care of those in need is within their charitable missions. Faith-based institutions own nearly 6 million square feet of vacant land in the District and an estimated 4 million square feet of land with improvements. Much of the land owned by these institutions is in residential neighborhoods, adjacent to commercial corridors and have some type of residential zoning that limits them to low density development. These institutions may need technical support but have expressed their interest and commitment and can be willing partners in providing space for affordable housing.
504.15
Provide zoning incentives, such as through the PUD process, to developers proposing to build affordable housing substantially beyond any underlying requirement. Exceeding targets for affordable housing can refer to exceeding the quantity or depth of affordability otherwise required. The affordable housing proffered shall be considered a high priority public benefit for the purposes of granting density bonuses, especially when the proposal expands the inclusiveness of high-cost areas by adding affordable housing. When density bonuses are granted, flexibility in development standards should be considered to minimize impacts on contributing features and the design character of the neighborhood.
504.16
Support the DCHFA’s activities to finance new construction and rehabilitation of affordable rental and owner units, including vacant and abandoned units.
504.17
Proactively plan and facilitate affordable housing opportunities and make targeted investments that increase demographic diversity and equity across Washington, DC. Achieve a minimum of 15 percent affordable units within each Planning Area by 2050. Provide protected classes (see H-3.2 Housing Access) with a fair opportunity to live in a choice of homes and neighborhoods, including their current homes and neighborhoods.
504.18
Prioritize, encourage, and incentivize build-first, one-for-one, on-site, and in-kind replacement of affordable units, including larger family-sized units. In addition, encourage and incentivize relocation and right of return plans when projects redeveloping affordable housing seek additional density beyond that permitted by existing zoning. Work to identify and coordinate financial assistance to ensure long-term affordability, preferably permanent or for the life of the project, when projects meet these criteria.
504.19
Support mixed-income housing by encouraging affordable housing in high-cost areas and market rate housing in low-income areas. Identify and implement measures that build in long-term affordability, preferably permanent or for the life of the project, to minimize displacement and achieve a balance of housing opportunities across the District.
504.20
Figure 5.8: Targeted Distribution of New Affordable Units by Income Group
504.21 The 2006 Comprehensive Housing Strategy recommended that one-third of the units produced in the District in the next 15 years be targeted to persons earning 80 percent of the MFI or below. Figure 5.8 shows the proposed allocation of these units to low-, very low-, and extremely low-income groups. 504.21
504.21a Text Box: The District's Commercial Linkage Requirement
In 1998, the District adopted zoning provisions that linked the granting of bonus density in commercial development projects to requirements for affordable housing. The linkage recognized that the demand for housing in Washington, DC was driven in part by new commercial development and rising land values. The linkage provisions are currently triggered by:
504.21b In such cases, applicants are required to construct or rehabilitate housing that remains affordable to low-income households for at least 40 years, or pay into the District's HPTF. If the applicant agrees to construct or rehabilitate affordable housing, the square footage of housing that must be built varies from 25 to 50 percent of the density increase being granted, depending on if the housing is provided on-site, off-site, or in a high housing cost area. Applicants can use any of a number of tools to build the housing, such as partnerships and joint ventures. If the applicant agrees to pay into the HPTF, the payment must equal at least half of the assessed value of the square footage of the density increase being granted, plus the square footage of any preexisting housing demolished as a result of the non-residential development. Additional provisions relating to the timing and valuation of the improvements apply.
504.21c The linkage requirements include several exemptions, such as projects that are already subject to housing, retail, arts, or historic preservation requirements; projects approved prior to 1994; and projects located in enhanced/new neighborhood or enhanced/new multi-neighborhood centers. The Zoning Commission also has the authority to grant exemptions from this requirement based on certain findings relating to Comprehensive Plan consistency.
504.22 Action H-1.2.A: Commercial Linkage Assessment
Review the District's existing commercial linkage requirements to improve the effectiveness of this program and assess its impacts, advantages, and disadvantages, such as how and when linkage fees are paid. Based on findings, adjust the linkage requirements as needed.504.23 Action H-1.2.B: New Revenue Sources
Continue to identify and tap new sources of revenue for programs such as the HPTF to produce affordable housing and keep rental and owned housing affordable. These new sources should add to the portion of the deed and recordation taxes dedicated to the HPTF, such as the feasibility of earmarking a portion of residential property tax revenue increases for the fund.504.24 Action H-1.2.C: Property Acquisition and Disposition Division Program
Continue the District's Property Acquisition and Disposition Division (PADD) Program, which acquires property and provides for long-term leaseback or low-cost terms to private developers that produce affordable homeownership and rental housing.504.25 Action H-1.2.D: Low-Income Housing Tax Credits
Expand for-profit builders' use of Low-Income Housing Tax Credits as one tool to provide new or rehabilitated affordable housing in the District.504.26 Action H-1.2.E: Leveraging Inclusionary Zoning
Review and consider expansion of the Inclusionary Zoning program as needed to encourage additional affordable housing production throughout the District. Examine and propose greater IZ requirements when zoning actions permit greater density or change in use. Factors supporting a greater requirement may include high-cost areas, proximity to transit stations or high-capacity surface transit corridors, and when increases in density or use changes from production, distribution, and repair (PDR) to residential or mixed-use. Consider requirements that potentially leverage financial subsidies, such as tax-exempt bonds.504.27 Action H-1.2.F: Establish Affordability Goals by Area Element
Establish measurable housing production goals by Planning Area through an analysis of best practices, housing conditions, impediments, unit and building typology, and forecasts of need. Include a minimum share of 15 percent affordable housing by 2050, along with recommendations for incentives and financing tools to create affordable housing opportunities to meet fair housing requirements, particularly in high housing cost areas.504.28 Action H-1.2.G: Continuum of Housing
Conduct a periodic review, at least every four years, of private development and
federal and local housing programs in conjunction with a needs assessment to ensure that programs target the applicable gaps in the supply of housing by unit and building type, location, and affordability and include racial equity evaluations.
504.29
To advance racial equity in housing, prioritize public investment toward housing production and preservation serving very-low and extremely-low income households. Prioritize public investment in the new construction of, or conversion to, affordable housing in Planning Areas with high housing costs and few affordable housing options. Consider land use, zoning, and financial incentives where the supply of affordable units is below a minimum of 15 percent of all units within each area.
504.30
Support community land trusts (CLTs) in their ongoing efforts to produce, secure, and steward rental and ownership housing and commercial spaces that would remain affordable in perpetuity. Preventing the displacement of current and future low- and moderate-income District residents and businesses should be the focus of CLTs.
504.31
District agencies should work collaboratively with nonprofits and the faith community to investigate zoning options to reduce procedural burdens and facilitate the development of affordable housing and community services on properties under their control, particularly sites in lower density neighborhoods.
SOURCE: District of Columbia Comprehensive Plan Act of 1984, effective April 10, 1984 (D.C. Law 5-76; 31 DCR 1049 (March 9, 1984)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Element Amendment Act of 1984, effective March 16, 1985 (D.C. Law 5-187; 32 DCR 873 (February 15, 1985)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989, effective May 23, 1990 (D.C. Law 8-129; 37 DCR 55 (January 5, 1990)); as amended by District of Columbia Comprehensive Plan Amendments Act of 1989 NCPC-Recommended Amendments, and Closing of Public Alleys in Square 669, S.O. 88-452, Act of 1990, effective May 23, 1990 (D.C. Law 8-132; 37 DCR 2213 (April 6, 1990)); as amended by District Government Land Use Temporary Amendment Act of 1994, effective October 1, 1994 (D.C. Law 10-190; 41 DCR 5360 (August 12, 1994)); as amended by Comprehensive Plan Amendments Act of 1994, effective October 6, 1994 (D.C. Law 10-193; 41 DCR 5536 (August 19, 1994)); as amended by District of Columbia Comprehensive Plan Act of 1984 Land Use Amendment Act of 1994, effective March 21, 1995 (D.C. Law 10-235; 42 DCR 30 (January 6, 1995)); as amended by Technical Amendments Act of 1996 effective April 18, 1996 (D.C. Law 11-110; 43 DCR 530 (February 9, 1996)); as amended by Second Technical Amendments Act of 1996 effective April 9, 1997 (D.C. Law 11-255; 44 DCR 1271 (March 7, 1997)); as amended by Comprehensive Plan Amendment Act of 1998, effective April 27, 1999 (D.C. Law 12-275; 46 DCR 1441 (February 19, 1999)); as amended by Technical Amendments Act of 1999, effective April 12, 2000 (D.C. Law 13-91; 47 DCR 520 (January 28, 2000)); as amended by Comprehensive Plan Amendment Act of 2006, effective March 8, 2007 (D.C. Law 16-300; 54 DCR 924 (February 2, 2007)); as amended by Technical Amendments Act of 2008, effective March 25, 2009 (D.C. Law 17-353; 56 DCR 1117 (February 6, 2009)); as amended by Comprehensive Plan Amendment Act of 2010, effective April 8, 2011 (D.C. Law 18-361; 58
DCR 908 (February 4, 2011); as amended by Comprehensive Plan Amendment Act of 2021, effective August 21, 2021 (D.C. Law 24-20; 68 DCR 006918 (July 16, 2021)).