1. Presentation by the Government of the District of Columbia:
APPROACH TO AFFORDABLE AND MIXED-INCOME HOUSING
April 30, 2014
MayorVincentC.Gray
DeputyMayorVictorL.Hoskins

2. I. What is "affordable
housing“?
II. Population Growth in DC
III. Housing Development Tools
Agenda
2
IV. Innovative Programs and Resources
V. Housing Unit Production
VI. Challenges for DC Housing Programs
VII. Moving Forward

3. What is “Affordable Housing”?
U.S. Department of Housing and Urban Development Definition:
In general, housing for which the occupant(s) is/are paying no
more than 30 percent of his or her income for gross housing
costs, including utilities.
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Area Median Income (AMI) in DC Metropolitan Area is $107,000.
Affordable Housing
Workforce Housing /
Moderate-Income Housing
Extremely
Low Income
Very Low
Income
Low Income
Median
Income
Household
Size
30% AMI
50% AMI
60% AMI
80% AMI
100% AMI
120% AMI
1 person
22,470
37,450
44,940
59,920
74,900
89,880
2 person
25,680
42,800
51,360
68,480
85,600
102,720
3 person
28,890
48,150
57,780
77,040
96,300
115,560
4 person
32,100
53,500
64,200
85,600
107,000
128,400

4. Affordable Housing versus Public Housing
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Public Housing (“social housing”):
The U.S. Department of Housing and Urban
Development (HUD) administers Federal aid to local
housing agencies that manage housing (also known as
“subsidized housing”) for low-income residents at rents
they can afford.
Sheridan Station Phase 1, Matthews Memorial Terrace and Sheridan Station Phase 3 in Southeast DC

5. Population Growth in DC
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540,000
560,000
580,000
600,000
620,000
640,000
2000 2002 2004 2006 2008 2010 2012
12% growth since 2010
2% increase per year

6. Affordable Housing Financing Tools
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Office of the Deputy Mayor for Planning and Economic Development (DMPED)
• Charged with executing the Mayor's economic development strategy which encourages
growth and investments across the District.
• Three (3) major priorities: Business Attraction and Retention, Neighborhood Revitalization,
and Job Creation and Government Coordination
Department of Housing and Community Development (DHCD)
• Administers the District’s affordable housing programs
• Coordinates with other District agencies to issues annual Notice of Funding Availability
(HPTF, federal funds, low-income housing, permanent supportive housing, special needs)
• Provides first-time homebuyer assistance
DC Housing Finance Agency (DCHFA)
• Manages the Multifamily Mortgage Revenue Bond Program (MMRB) and 4% Low Income
Housing Tax Credit Program (LIHTC) financing program
• Used to facilitate affordable multifamily rental housing projects
• Able to fully finance 100% affordable projects
DC Housing Authority (DCHA)
Managed HUD-subsidized housing (public housing)
District Government Housing Agencies

7. Affordable Housing Financing Tools
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Local Funding - Housing Production Trust Fund (HPTF)
• Provides loans and grants for new construction and preservation of affordable
housing
• For housing that serves households at 0-80% of Area Median Income (AMI)
• Helps to keep residents from being displaced from DC’s changing neighborhoods.
• Funded primarily by a dedicated revenue stream of 15% of the DC Deed Transfer
and Recordation Tax
Production and Preservation
Federal Resources:
• Community Development Block Grants
• HOME Investment Partnership Program
• Low Income Housing Tax Credits (LIHTC)
Federal-Local Program:
• LIHTC paired with local tax-exempt bond financing
Developers able to apply for financing on an
annual basis through DHCD’s consolidated Notice
of Funding Availability

8. Affordable Housing Financing Tools (continued)
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Assistance for Homebuyers
Home Purchase Assistance Program (HPAP)
• Helps low- and moderate-income District residents purchase their first homes
through downpayment and closing cost assistance
• Can receive up to $44,000 to purchase a single-family house, condominium or
cooperative apartment
• For residents with incomes between 30%-80% AMI
• Must successfully complete housing counseling program provided by one of the
District’s non-profit partners
Employer Assisted Housing Program (EAHP)
• Assists DC government employees who are first-time homebuyers in the District
• Provides down payment funds up to $1,500 and a deferred loan of up to
$10,000
• Annual tax credit of $2,000 against income tax liability for five years
• Real property tax credit for five years based on a sliding scale

9. Mixed-Income Housing Development Tools
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Inclusionary Zoning
• Adopted in 2009
• Requires 10% of the units in new
residential developments must be set
aside at prices that are affordable to low
and moderate income households
Planned Unit Developments
Public-Private Partnerships
• Development Agreement may require or
encourage a % of affordable units as
part of the project
• Discounted land value
• Cross-subsidization (mix of market &
affordable)
• Tax abatement or Payment-in-lieu-of-
taxes (PILOT)
• Tax Increment Financing (TIF)

10. Tools to Encourage Mixed-Use and Compact
Development
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Comprehensive Plan and Mixed-Use
Zoning
Density bonuses through Planned Unit
Developments (PUD)
Transferable Development Rights:
• Ability to purchase additional floor
area ratio and to build higher density
in “receiving zones”
• Enables owners to achieve PUD densities
without having to spend time and money
on PUD approval
Live Near Your Work Pilot Program
• District matches up to $8,000
contribution made by employer for
employee to purchase of a home close
to transit or their place of employment
• Open to households of all income levels

11. Innovative Programs and Resources
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North of Massachusetts Avenue (NoMa) District
Managing Growth and Change
• Fastest growing district in DC
• Transformed from a primarily industrial area into a thriving mixed-use community
• Development catalyzed by three primary factors:
1. Favorable real estate market dynamics
2. Prioritization by both the District and Federal governments
3. Addition of an infill Metrorail station
• Tax abatements for residential developments
Between 2010 and 2012: <1,250 housing units and 1.3 million square feet of office space were built

12. Innovative Programs and Resources (continued) 12
New Communities Initiative
• Comprehensive public private partnership designed to revitalize 4 neighborhoods
with physically deteriorating subsidized housing and transform them into vibrant
mixed-income communities
• Provide quality affordable housing options, employment opportunities and access to
appropriate human services.
• Market rate and workforce housing units included in each project to cross-subsidize
the affordable units

13. Innovative Programs and Resources (continued)
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Tenant Opportunity to Purchase Act (TOPA)
• Tenants in DC have the first right to buy their building when the owner decides to sell
• Low-income tenants are eligible to receive funds through the Housing Production Trust Fund
to make sure that they can afford to purchase and renovate their buildings
• Tool to preserve affordability and complete repairs through an agreement with a third
party developer
District Opportunity to Purchase Act
Housing search website
Centralized searchable database of units
(in development)

14. Housing Unit Production
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Affordable Units Market-Rate Units Total Units
2011-2013 2,751 1,223 3,974
2014-2016 5,103 6,539 11,642
Post 2016 1,756 5,805 7,561
9,610 13,567 23,177
55,000 additional units of housing needed by 2020 to reduce upward pressure on
housing prices and rents, and to accommodate a growing population

15. Challenges for DC Housing Programs
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Market Dynamics
• Slow start to delivery of IZ units due to the economy
• In some neighborhoods, what would be considered “market rate” is 60% AMI
• New Communities Initiative
o Market conditions different in each of the 4 neighborhoods, so some are moving while others
are not
o Some do not have a natural market:
lack metro access and anchor tenants,
environmental contamination issues
o Due to the economic downturn, banks
were not financing mixed-income
developments, so cross-subsidization
from market units not possible
o Projects have stalled due to lack of
financial resources
o Distrust of government by local
residents

16. Challenges for DC Housing Programs (continued)
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Program Administration
Affordability Covenant Compliance
• District funds disbursed at time of construction and Affordability Covenant gets
executed
• Lack of staff to monitor both Inclusionary Zoning and Affordability Covenants
• Difficulty in ensuring that developers conduct proper marketing and sales process
Affordable Homeownership Program Deficiencies
• Covenant is for the life of the building, so homeowners cannot build wealth
• Inability to regulate condo fees has resulted in some units becoming unaffordable
• If a home has a federally-insured loan and goes into foreclosure, HUD requires
that the affordability covenant by the local municipality is terminated

17. Moving Forward
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Additional Funding Commitment for Affordable Housing by Mayor Gray
• Made $100 million commitment in 2012 with goal to produce 10,000 new
affordable housing units by the year 2020
• Additional $87 million commitment in 2013
• Additional $100 million in 2014
2012 Comprehensive
Housing Strategy
• Policy, administration
and financial
strategies to improve
success in developing
affordable housing
• 24 action items

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For more information:
Reyna Alorro
Supervisory Project Manager
DC Office of the Deputy Mayor for Planning and
Economic Development
reyna.alorro@dc.gov
http://dmped.dc.gov/