As a result, The Bozzuto Group is moving from a company that has only managed residential units in Washington, D.C., to a company that will start construction in about six months on a new condominium project. “This is our first development project in the city because we believe in the government and the future direction of the city,” says Bozzuto.
Williams’ fan base within the multifamily housing industry is growing. The District of Columbia Housing Authority has $1 billion worth of development taking place right now. Its most recent success story is the Ellen Wilson Project, developed by Telesis Corp. And, the Frederick Douglas/Stanton Dwellings is being revitalized and converted to townhomes and semi-detached homes for sale and for rent.
Archstone-Smith, which has completed two high-end multifamily projects in the district in the past two years, is actively looking at sites and in the summer proposed a new class A development project, says Al Neely, chief investment officer and executive vice president for the high-rise division of Archstone-Smith. “In our business, we need a stable, predictable environment to do business,” says Neely. “The mayor has provided more stability and predictability in the process.” For instance, one of the things the city is doing is creating increased density in projects, says Williams. “We’re trying to create some higher densities with a mix of incomes.”
For example, the Arthur Capper/Carrolsburg HOPE VI project currently has 707 units of public housing which will be replaced with close to 1,600 units. The project will replace the original 707 units and add almost 909 units of moderate and market-rate housing.
This $425 million project also includes 600,000 square feet of commercial office and 50,000 square feet of retail space.
More Work to Do While the administration has a plan to provide additional housing, many developers feel that the administration can still do more to make the process more financially feasible and easier. For instance, Reid, from NHC, believes that tax abatements and zoning waivers also will help bring more affordable housing developers to the area. “There are a lot of intelligent things the mayor can do to encourage developers,” says Reid.
“The mayor is trying very hard to encourage development and is trying to reduce regulatory barriers, but he is not finding it easy,” says Clarine Nardi Riddle, senior vice president and general counsel at the National Multi Housing Council. “The city needs to more deliberately address the regulatory barriers to affordable housing development.”
Baum, from The Bozzuto Group, agrees that there is still work that needs to be done. “The government has not done enough to foster more affordable or even middle-income projects,” he says.
Since 1999, the district has completed more than 3,900 units, 7,400 are under construction and 12,000 are in predevelopment. In addition, 1,500 units are being produced on district-owned land. This amounts to about 25,000 units completed or in the pipeline with more than 12,000 of those being affordable.