Author: Cheryl Cort

CSG in the News: “Program Helps DC Homeowners Provide Low-Cost Housing — and Build Wealth”

Posted on by Cheryl Cort

by JARED BREY, Next City, FEBRUARY 18, 2020

…With the ADU D.C. program announced last August, UPO [United Planning Organization] is trying to find ways to make ADUs cheaper and easier to build for moderate-income homeowners like [homeowner Lawrence] Foster. The program is starting as a small pilot: just two handpicked homeowners are participating so far, according to Kay Pierson, director of the community reinvestment division at UPO. It was created in partnership with the Coalition for Smarter Growth, and supported with a $180,000 grant from Citi Community Development. (Note: Citi Community Development also provides funding to Next City.) A lot of UPO’s programs are focused on helping people in poverty, with services like emergency rental assistance, Pierson says. But the ADU D.C. program is part of a series of efforts aimed at “asset development” — helping build wealth in lower-income communities — she says. The organization went looking for homeowners who earned up to 80 percent of Area Median Income (AMI is $121,300 for a family of four in Washington), and who had good credit, steady employment history, and equity in their homes. And the partners are hoping that the pilot program demonstrates ways that the city and others can help moderate-income homeowners create more ADUs….

The Coalition for Smarter Growth in Washington had been advocating for those kinds of rule changes for several years. The benefits just pile on top of one another, says Cheryl Cort, the Coalition’s policy director: ADUs can take advantage of partially developed and underused space, provide space for seniors to age in place or for family members with special needs, provide rental income for homeowners, and promote small-scale living, which has a smaller impact on the environment.

“And adding rental housing options can bring new types of housing to established neighborhoods that might have few rental options today, including high-priced neighborhoods close to the Metro or in-demand schools and other amenities,” Cort says. “It’s natural diversification of the housing stock, rather than just being uniform.”

Still, Cort says, it can be expensive to build a new unit, even when taking advantage of existing space. She says she’s talked to a lot of architects who are approached by homeowners to consult about adding an ADU, only to have the homeowners walk away when they hear the cost, which is typically around $150,000, according to Cort. (Other cost estimates for ADUs here.) As part of the ADU D.C. program, the Coalition is producing a manual for homeowners to help navigate the permitting process, and the partners are also working with the Department of Consumer and Regulatory Affairs about ways to make permitting easier and faster for accessory dwelling units. And they’re exploring how financing programs might be scaled up to provide financial help for more moderate-income homeowners.

Last fall, D.C. Mayor Muriel Bowser announced a goal of producing 36,000 new homes in the District by 2025, with at least 12,000 of them being affordable to low-income residents. The city’s Housing Equity Report released at the same time has specific affordable-housing production targets for 11 different areas of the District. Those targets will help focus the city’s efforts, Cort says. And accessory dwelling units can be part of the mix of new housing that helps meet that goal, especially if the city can find ways to help moderate-income homeowners house lower-income tenants. The ADU D.C. program is meant to help show that tailored assistance and financing can produce more units.

“It’s a retail game,” Cort says. “We’ve got to be working individually with homeowners.”

This article is part of Backyard, a newsletter exploring scalable solutions to make housing fairer, more affordable and more environmentally sustainable. Subscribe to our thrice-weekly Backyard newsletter.

View the full story in Next City here.

CSG in the News: Study: DC rent is 3rd highest in the country

Posted on by Cheryl Cort

Study: DC rent is 3rd highest in the country; Here’s how much income you need to afford it

by AMANDA HOROWITZ, ABC 7 WJLA, 

WASHINGTON (ABC7) — The D.C. Council unanimously voted on the first step of the city’s Comprehensive Plan for development last week.

A spokesperson for Mayor Bowser’s office said she will likely unveil the remaining elements of the comprehensive plans as well as area housing targets and maps on October 15.

The comprehensive plan includes proposed solutions to the city’s affordable housing shortage – an issue that elected officials and advocates are coming together to try to fix.

The plan will go through review by the National Capital Planning Commission and Congress before it gets to the mayor’s desk for signing, the mayor’s spokesperson said….

Numbers from the National Low Income Housing Coalition estimate that over 50 percent of residents living in the D.C. metro area are renters.

According to NLIHC, the median family income for both renters and buyers is $121,000. This means families can afford to pay $3,000 a month for rent without being cost-burdened.

HUDs estimate of a fair market rent that recent movers paid for a modest two-bedroom apartment in D.C. was $1665, but 60 percent of rents are currently higher according to the NLIHC.

For those in the fortieth percentile, in order to afford $1665 without being “cost-burdened” an individual would have to earn $66,000 a year, or $5500 monthly, the NLIHC estimates.

Assuming a 40-hour workweek, 52 weeks per year, this level of income translates into $32.02 an hour. Working at the minimum wage of $14.00 an hour in D.C. each week an individual would have to work 90 hours weekly at two jobs to afford a modest apartment.

Cheryl Cort, policy director for Coalition for Smarter Growth, an organization dedicated to bettering the district believes lack of affordable housing is one of the greatest challenges D.C. faces.

“Housing insecurity worsens other conditions in a person’s life. Many DC residents face daunting challenges — lack of access to quality education and training, violent neighborhoods, poor health status, low wage jobs and unstable employment. Lack of access to stable, quality housing compounds all these problems, and is also one of the solutions to a number of these problems,” Cort said.

Cort said the CSG stands behind the mayor’s housing strategy. In May, the mayor signed an order directing District agencies to identify new policies, tools, and initiatives that would start moving toward the goal of creating 36,000 new housing units, 12,000 of them affordable, by 2025….

 Regardless of how the numbers add up, whether you’re renting or buying, one thing is clear – officials and advocates think housing in D.C. is too expensive.“Bold action to address housing affordability requires the entire city’s input and energy,” Cort said.

View the full story by WJLA here.