In addition, the administration is trying to fill the gap between companies’ development budgets and the amount of money that is really needed by providing grants or other financial benefits.
The administration has preserved a couple of thousand expiring Section 8 units through a combination of Housing Financing Agency and Community Block Grant funding. Also, through the Housing Act of 2002, apartment owners will receive a tax abatement if they re-up their Section 8 status for at least five years, says Stephen Green, special assistant to the mayor for planning and economic development.
The Housing Act also has expanded the use of the Low-Income Housing Tax Credit program in the city, says Williams. “We’re the first [D.C.] administration to understand the importance of the tax credit,” he says. The Housing Act also dedicates about $10 million per year for affordable housing. Up to 15 percent of the transfer and recordation tax wills to the Trust Fund.
The act provides a tax abatement incentive for new residential developments throughout the city and new homeownership opportunities in Enterprise Zones. Multifamily housing projects will receive a 50 percent abatement on property taxes for 10 years in downtown areas defined as a “housing priority.” Mixed-income housing will receive 75 percent to 100 percent abatement for 10 years depending on how many units are affordable. And, new homeowners will receive a 50 percent abatement for five years.
In addition, the mayor’s housing initiative includes dedicating at least 10 percent of the units in each project to low- and moderate-income families on residential developments that are built on district-owned land, are subsidized with public money or receive zoning relief.
The initiative also calls for modifying the combined lot program to allow commercial developers to escrow money that can be accessed when a building permit is issued for housing development.
“He is definitely someone who cares about making the city run better,” says Nardi Riddle, “but he clearly has a big job and lots of issues to contend with.”
While affordable housing is a top priority for this administration, Williams wants to make sure that housing is not only affordable for the lowest income households, but also for middle-income workers. “Even though [middle-income housing] isn’t popular to talk about, you need that ingredient so government can provide help for people at the lowest end of the spectrum – somebody’s got to pay the taxes,” he says.
Williams has received a lot of slack from very low-income advocates as a result of this philosophy, explains Reid. “When you look at it from his standpoint, his problem is tax revenue. And, the history of Washington reflects a terrible drain on the middle class. He’s now attracting higher income people who are tired of commutes, empty nesters and young professionals to live in the city. You need that mix,” adds Reid.