INTERSECT
Newsletter of the Washington Regional Network For Livable
Communities
Volume 7 Number 3
April 23, 2003
Support Intersect, join WRN!
Summary:
* Rock Creek Park Plan Proposes Reclaiming Road for
Weekday Recreation
*Fixing Metro's Budget Woes
*Special Feature --Affordable Housing in the Washington
Metropolitan Region
Part I - Montgomery County
*What It Will Take to Meet Housing Needs in Montgomery
County
*Montgomery County's Housing Programs: How They Are
Financed and Managed
*Not by Bricks Alone: Affordable Housing and Neighborhood
Revitalization in Montgomery County
*The Unitarian Universalist Affordable Housing Corporation:
A Faith-Based
Lending Institution
*New in Print by Alice M. Rivlin
*Upcoming Events
*Support Intersect, Join WRN - Thank You's &
Contribution Form
Rock Creek Park Plan Proposes Reclaiming Road for
Weekday Recreation
Last month the National Park Service, after a seven-year study, unveiled
a draft General Management Plan/EIS for Rock Creek Park that will guide
the park over the next 15 years. Among the proposed improvements is
the heavily favored closure of three segments of Beach Drive to cars
between 9:30am and 3:30pm on weekdays. These are the same three segments
that are currently closed to automobiles on weekends.
The People's Alliance for Rock Creek (PARC), a broad alliance of more
than 40 environmental, recreation, and community organizations, supports
the NPS plan to close Beach Drive on weekdays, calling it "a big
step forward."
The designated car-free zones are an important effort to improve safety
and expand recreational opportunities within the park. Much of the park's
roadways do not have adjacent lanes or trails designated for joggers
and bikers, making them dangerous for recreational uses. Since the early
1980s, when the National Park Service first closed segments of Beach
Drive on weekends, Rock Creek Park has been a mecca for recreation for
D.C., according to PARC.
Since traffic rates are low during the proposed restriction times,
only around 150 cars per hour, the impact to drivers will be slight,
while, potentially being a great benefit for recreators.
The plan also calls for "Improved Management of Established Park
Uses," to improve visitor safety, control traffic volumes and speeds
through the park, enhance interpretation and education opportunities,
and improve the overall use of park resources.
The plan is now under the required 90-day comment period that will
end in late June. Public hearings are scheduled for Tuesday, May 20
and Thursday, May 22 from 6-10 pm, at the UDC auditorium (4200 Connecticut
Ave., Van Ness/UDC Metro). Written comments may be submitted to: Superintendent,
Rock Creek Park Headquarters, 3545 Williamsburg Lane, NW, Washington,
D.C. 20008, or emailed to: rocr_superintendent@nps.gov.
Visit www.rockcreekpark.net or http://www.nps.gov/rocr/pphtml/newseventsdetail6735.html
for more details.
Fixing Metro's Budget Woes
By Shannon Brown
After eight years of no fare increases and strong ridership, a record
of 181 million riders in 2002, the Washington Metro Area Transit Authority
(WMATA), is looking to fare and fee increases to help address Metro's
projected $48 million budget shortfall for next year.
On April 2, WMATA board members Chris Zimmerman (Arlington County Board
member) and Jim Graham (DC Council member, Ward 1) joined the Washington
Regional Network for Livable Community's Executive Director Cheryl Cort
in a discussion addressing Metro's budget troubles at a WRN forum at
the University of the District of Columbia.
While WMATA faces a $48 million budget shortfall for FY 2004, the magnitude
is fairly modest considering the agency's annual budget approaches $1
billion, according to Zimmerman. "The budget issue is not really
as tough as some government's around the region are facing" he
said. WMATA's budget problems are unique, however, in how the agency
is funded. Zimmerman illustrated the complexity Metro's funding sources
by saying, "Metro is not a creature of one government but a creature
of several, it is not a creature of one state, but a creature of three."
Metro's budget is wholly dependent on the governments that fund it,
and each do so differently. In Maryland, the state government foots
the bill while in Virginia, funding obligations are left to local governments.
D.C. pays for its share, acting as a state.
Metro aims to raise half of the budget deficit, $24 million, through
increased passenger revenue. To cover the shortfall, Metro proposes
to increase the base boarding fare by up to 30 cents and raising parking
rates by 25 cents to $1.
Cort presented WRN's proposal of raising $24 million by increasing
parking fees by $2, eliminating the 10 percent bonus on high-value fare
cards, and increasing feeder bus service instead of an across the board
fare hike. "Parking is a major contributor to the peak hour crunch
that currently strains the rail system. Enhancing feeder bus service
spreads out the peak for less costly service, " Cort said.
WRN's proposal of increasing parking fees by $2 would generate an estimated
$17.6 million, ending the current subsidy for park and riders. "Metro
is currently running an $11 million deficit with parking," when
annualized capital rehabilitation costs are included, Cort said. Eliminating
the parking subsidy is an equitable solution for all Metro riders, especially
low-wage riders who do not own cars. Metro's proposal to increase parking
fees by up to $1 will not cover the total costs of operating and rehabilitating
those spaces. Both Zimmerman and Graham agree with WRN's proposal but
say politically, it may be very difficult to implement.
Zimmerman also supports WRN's proposal to eliminate the 10 percent
bonus on $20 or more fare cards. "It is an old policy that doesn't
serve its purpose anymore," he said. The bonus was first implemented
as an act to increase ridership by encouraging long-term commitments
to Metro. As Metro approaches maximum capacity during rush hour, it
is evident that a commitment has been well established. Eliminating
the bonus is unlikely to hurt ridership and could provide a $10 million
savings.
Graham suggested extending Metro's hours as a means to increase ridership
and revenues. "I know a bargain when I see one," Graham said,
"we can increase ridership by 6 percent for only $4 million."
Opening earlier and staying open later on weekends are a high priority
for Graham. Graham said that a large proportion of low-wage workers
depend on transit to get them to their jobs, extending hours would go
a long way in serving this community.
A larger budgeting issue raised at the forum is Environmental Protection
Agency's recent downgrade of the Washington, DC region's air quality
to "severe" and the implications of facing non-compliance
with the Clean Air Act by the 2005 deadline. Non-compliance could "deny
the region of all kinds of federal dollars," Zimmerman said. Loss
of such funds could mean an even worse financial situation in a few
years if transit programs are not officially adopted as air quality
measures.
"We need to create the right incentives, we don't want incentives
for people to get in their cars," Zimmerman said. The looming air
quality problem creates a substantial opportunity for investment in
the region's bus and rail service.
"The more we can do to create an attractive alternative to turning
on the engine, the better off the region will be as a whole," Cort
said. Raising boarding fares for Metrobus and Metrorail, while continuing
to subsidize parking are the wrong measures in terms of addressing air
quality, according to Cort. By raising fares, Metro stands to lose more
riders than by increasing parking fees, riders that may start driving.
WMATA board member, former Maryland state Senator, Decatur Trotter
was unable to present at the forum.
Affordable Housing in the Washington Metropolitan
Region
Part I - Montgomery County
Special Editor: Janet W. Brown
Starting in this issue, Intersect begins a series on affordable housing
in the Washington area. When complete, these articles will provide a
comprehensive view of the region's housing programs, a sense of the
players, and a picture of continuing needs in what is clearly a region-wide
problem. We begin with the Montgomery County story, which makes clear
how many different kinds of institutions are involved in policy choices,
and in the production, preservation, and management of affordable housing.
Even in the description of a single county's efforts, we can see issues
emerging that appear in other area jurisdictions as well: questions
about the length of affordability, the high cost of meeting the housing
needs of really low-income households, and rental needs vs. home ownership.
The picture is constantly changing: on March 25, Montgomery County
passed legislation that permanently earmarks 16.1 million or 2.5 percent
of property tax (which ever is largest) annually for the County's Housing
Initiative Fund, making it the largest financial commitment to affordable
housing by any locality in the country.
Below, Tad Baldwin, longtime affordable housing builder and advocate,
leads off with a provocative proposal for greater concentration of housing
around the county's transportation hubs. Montgomery County's Affordable
Housing Program Manager, Stephanie Killian, offers a detailed analysis
of county programs that shows what a consistent local housing program
with steady annual funding can accomplish over the years. Rob Goldman,
President of the Montgomery Housing Partnership, illustrates that it
takes more than bricks and mortar to build community. And Gladys Clearwaters,
of Unitarian Universalist Affordable Housing Corporation, provides a
profile of a modest faith-based lending institution that is representative
of a host of on-going independent efforts to help meet the region's
housing crisis.
WRN, hoping to stimulate a dialogue on affordable housing practices
and progress, welcomes your comments on any part of this series. Please
respond to the Special Editor at <staff@washingtonregion.net>.
What It Will Take to Meet Housing Needs in Montgomery
County
By Tad Baldwin
Despite all the talk of "Smart Growth" and the wisdom of
mixed-use developments at key locations, housing production is down
in Montgomery County, and new affordable units almost non-existent.
Production of moderately priced dwelling units (MPDUs), those built
under the County's inclusionary-zoning law, is shrinking and road gridlock
increasingly common.
Unless the private sector is able to produce more higher-density units--
and with them a fair share of MPDUs and other long-term affordable units
-- the existing inadequate stock of affordable housing will shrink.
As the demand for housing at all price levels increases, pressure on
remaining open land in Montgomery County will become harder and harder
to resist, and more forest and farm acreage in distant counties will
also become more urbanized. While publicly owned parcels can be useful
resources, their number is limited. Those interested in substantial
and on-going housing programs must find adequate incentives for the
private sector to build many of the needed affordable units, and also
to give opportunities for Housing Opportunities Commission and to access
affordable land via proffers in exchange for higher densities.
Think about where another 75,000 units of housing (5,000 a year) for
the whole income spectrum might be built in the County between 2010
and 2025. Most should be located at Metro or proposed light-rail stations,
and some in secondary-ring locations. Some of the more built-out sites,
such as Friendship Heights and Bethesda, would only receive 1,500 units
over the fifteen-year period, and Forest Glen even fewer. But Glenmont
could easily absorb 6,000 units, and Shady Grove a whole new town center,
including 10,000 housing units - if the planners and politicians think
boldly. At both stations a majority of homes would be within walking
distance of the Metro.
Inner ring locations such as White Oak/FDA could easily absorb 2,000
or more units, providing both jobs and housing at this site. A number
of parking lot locations along Rockville Pike could take 500 or more
units, utilizing shared parking arrangements. Secondary ring locations
such as Olney, Randolph/Briggs Chaney, and Burtonsville could take as
many as a 1,000 units each over fifteen years.
Of course, most of these sites have nowhere near the zoning capacity
to build this many homes (along with commercial space in some cases,
to achieve the benefits of mixed use), so County zoning would have to
be overhauled. This is admittedly a tough proposition, since the political
will seems more intent on pleasing low-growth neighbors, rather than
concerned with the future of the regional housing supply, let alone
affordable housing.
Those who advocate more affordable housing should therefore join forces
with the building community, environmentalists, and smart growth advocates
to promote these larger goals and to raise the pitch of this debate.
Those interested in affordable housing also need to be more creative
if we are to get new units built. This means extending much higher-density
bonuses for affordable units, including land proffers by developers
of a portion of their acreage in return for a higher number of market
units. With garden-apartment ground costing $40,000 a unit and ground
for town homes at $75,000, Montgomery County affordable housing developers
cannot afford to pay market rates for land. The County leaders need
to expend creative energy to solve this dilemma, while the County continues
to rehab existing affordable housing, which enhances and preserves existing
affordable units, even though it does not increase the overall supply.
I expect many to be horrified by the number of proposed new neighbors,
even over 20 years. But before you voice your outrage, think about how
convenient and vibrant these mixed-use hubs could be if properly planned
and designed. How much they could contribute to the tax base, the amenities
that add to the quality of life, and protections of our open lands.
Many of the residents and workers at the Metro locations will be able
to walk to work or take convenient transit, the major alternative (in
addition to telecommuting) to more congested roads. Think of Bethesda
and the Ballston/Rosslyn corridor as positive examples of compact urban
communities.
The housing shortage is a region-wide problem. Other jurisdictions
around the beltway have the same spiraling housing costs, the same desperate
need for affordable housing for working families, the same zoning restrictions,
and same NIMBY attitudes. Wouldn't it be great if Montgomery County
could regain its place as regional leader of smart growth and affordable
housing innovator?
Mr. Baldwin recently retired as president of Montgomery Housing Partnership.
Earlier, he served as the first Director of Development and Mortgage
Financing at the Housing Opportunities Commission in Montgomery County.
He is active in Action in Montgomery and other voluntary housing efforts.
Montgomery County's Housing Programs: How They Are
Financed and Managed
By Stephanie Killian (Summary)
Montgomery County, an urban county of almost 900,000 people, is an
affluent residential community that is also home to several large federal
agencies and corporations. Affordable housing was an issue twenty years
ago, even before the recent escalation in housing costs created problems,
especially for lower income households.
The goal of the County's housing programs is to preserve and enhance
the County's housing stock and to maintain affordable rent levels for
people of all income levels. Its programs to build and preserve affordable
housing are well established and often pointed to as possible models
for other jurisdictions in the region. A variety of programs under the
overall responsibility of the Department of Housing and Community Affairs
(DHCA) serve a range of income groups mostly 40 percent to 60 percent
of Area Median Income (AMI) ($36-52,000 per year for a family of four).
This fiscal year, starting July 1, 2002, DHCA's budget exceeds $32 million.
In the 1960s and 1970s, the County decided not to build large public
housing projects, but to acquire and renovate scattered-site properties
through the Housing Opportunities Commission (HOC, the County's housing
authority and housing finance agency). The County does own a few Section
8 buildings and four high-rise buildings for the elderly, but most affordable
units are found in otherwise privately-owned, mixed-income developments.
In this effort, the Multifamily Housing Development Program is responsible
for the greatest number of affordable units, financed by the Housing
Initiative Fund (HIV), a housing trust fund founded in the early 1970s.
Last year, the Fund made loans exceeding $17 million to acquire land,
construct affordable housing, rehab existing rental units, and to subsidize
affordable units in private mixed income developments. The Fund's loans
(it does not make grants) leverage other investments. Most of the Fund's
money comes from County general revenues, nearly $12 million in FY03.
There is vigorous discussion each year in the Council over the amount,
but the level of support has been pretty steady over the last three
years. Other sources of money are loan repayments, 25 percent of the
proceeds of the sale of any county property, windfall profits from the
sale of a subsidized property, and a variety of development fees.
Key to meeting the goal of housing for people of all incomes is the
County's 1974 Moderate Priced Housing Law, passed over some vociferous
opposition. Sometimes called "inclusionary zoning," the law
requires that 12.5 percent to 15 percent of the houses in new subdivisions
of more than fifty units be moderately priced dwelling units (MPDUs).
Forty percent of the MPDUs must be offered to the HOC and other nonprofit
housing agencies for use by low and moderate income families. Over 11,000
houses and apartments have been sold (70 percent) or rented under the
program.
A variety of County programs help keep all affordable housing, whether
rental or owner-occupied, in good condition. The Department administers
a weatherization program, a fund to rehabilitate group homes, and a
housing replacement program for low and moderate owners living in particularly
dilapidated houses, usually in more rural areas.
As elsewhere in the region, Montgomery County makes maximum use of
Section 8 vouchers, but suitable quarters are hard to find. The County
prohibits discrimination by landlords against voucher recipients, but
violations are hard to prove. The County needs to serve very low-income
households (families of four with incomes less than 40 percent of AMI)
better. The high cost of land, development, and operating means that
building for this group requires much deeper subsidies. So the fact
is, the County does not have ample accommodations for groups at the
lowest end of the income scale.
Additional information is available from Stephanie Killian at the Montgomery
County Department of Housing and Community Affairs, 100 Maryland Ave.,
4th floor, Rockville, MD 20850, 240-777-3693, <stephanie.killian@co.mo.md.usa>,
www.co.mo.md.us/hca.
Not by Bricks Alone: Affordable Housing and Neighborhood
Revitalization in Montgomery County
By Robert Goldman(Summary)
For Diana Noland, conditions in her neighborhood were becoming severe.
There was a major drug market along the street feeding into the neighborhood.
There were 32 vacant houses and generally deteriorating housing conditions.
People from all over were dumping bulk trash in the public median. Many
would be surprised that these were the living conditions in a neighborhood
in Montgomery County, a county known for its fancy neighborhoods and
wealth.
The recovery of the Connecticut Avenue Estates neighborhood in Wheaton,
MD is a come-back story that demonstrates that successful affordable
housing programs require building community as well as housing. In this
case, cooperation of county and state institutions, initiated by a resident
and orchestrated the non-profit Montgomery Housing Partnership (MHP)
made it possible. Diana Noland organized residents in a civic association.
MHP purchased and remodeled abandoned properties and resold them to
eligible buyers. The County's Department of Housing and Community Affairs
rigorously enforced housing codes and provided low-cost loans to make
needed repairs. The Housing Opportunity Commission and State Department
of Housing and Community Development developed special loan products
to encourage home ownership. MHP worked with owners to organize workshops,
a tree-pruning program, and assisted in preparing and translating a
newsletter, advocated with county agencies, researched abandon houses,
and monitored progress. The result was a dramatic decline in abandoned
properties and absentee ownership, an increase in home ownership, obvious
home improvements, increased public safety, and a self-sufficient civic
association. MHP has taken the lessons learned and is developing more
than bricks and mortar in the 850 units of affordable housing a that
it owns and operates in the county.
In the extremely tight market of the 1990s, housing did not keep up
with population growth, despite a well established housing program that
has enjoyed strong support from the political leadership. The County's
experience in maintaining affordability in the face of expiring income
restrictions is perhaps useful to other jurisdictions. County assistance
enabled MHP to buy one such property, a 104 unit town house development,
renovating it while long-term residents stayed on, avoiding displacement
and preserving the community. But another problem persists: the high
cost of land and housing makes it more and more difficult for the county
and cooperating organizations such as MHP to find properties at low
enough prices for them to acquire and renovate for low-income households.
For further information, contact Rob Goldman at the Montgomery County
Housing Partnership, 11160 Viersmill Rd.,#503, Wheaton, MD 20902, 301-946-0882,
RGoldman@MHPartnership.org
The Unitarian Universalist Affordable Housing Corporation:
A Faith-Based Lending Institution
by Gladys Clearwaters (Summary)
In 1989, with volunteer labor and pro-bono legal and accounting services,
Unitarian Universalist activists in the Washington area started a non-profit
lending institution to finance non-profit housing providers building
and rehabbing homes for low-income workers and families. Fourteen years
and fifty-seven projects later, they have created 600 units of housing
for low-income people. The projects have included day care centers and
transitional housing for special needs populations. Their loans have
leveraged over $30 million total investment, 90 percent of it for sale
to eligible owners, the rest for rental. They now have a small professional
staff, but still rely on volunteers.
The UUAHC made its first $225,000 loan with a zero cash balance; now
it has assets of $2.3 million. Investments come from Unitarian Universalist
churches and individuals, commercial banks, several Catholic religious
orders, and foundations. Some are made in the form of gifts, others
as low- or no-cost loans. There are no religious or other restrictions
(except income limitations) on households that benefit from UUAHC's
programs.
Gladys Clearwaters is Director of Investor Relations at the Unitarian
Universalist Affordable Housing Corporation in Silver Spring.
New in Print by Alice M. Rivlin
"Revitalizing Washington's Neighborhoods: A Vision Takes Shape",
by Alice M. Rivlin, director of the Brookings Greater Washington Research
Program, provides a framework for dialogue on how best to enhance the
future of Washington D.C.'s neighborhoods. This report explores policies
that could help attain Mayor Anthony William's goal to increase the
District's population by 100,000 by 2010 and to make D.C. a more vibrant
place to live and work. The report is available online http://www.brook.edu/index/reports.htm
Events
Saturday, April 26 thru Thursday, June 12. DC Bicycle Master Plan:
Bike Rides and Public Workshops. The District Department of Transportation
announces a series of workshops and bike rides in each ward as part
of updating the DC Bicycle Master Plan. During the rides and the subsequent
workshops, the participants will locate and map the best and worst routes
and identify new bike lanes, paths and parking spots. Visit www.bikemap.com/dcbikeplan
for ride and workshop dates and additional details.To sign up for rides,
contact Eric Gilliland gill@waba.org or (202)628-2500.
Tuesday, April 29, 7:00pm. Forum on Housing and Community Development,
hosted by the Urban Studies and Planning Department at the University
of Maryland. Panelists will share their views and insights on providing
and maintaining housing that is adequate, affordable and accessible
as well as designing and implementing community development strategies
that encourage neighborhood health and growth. Panelists include: Elizabeth
Davison, Director DHCA, Montgomery County; Thomas Thompson, Director,
DHCD, Prince George's County; and Walter Webdale, President and CEO,
AHC Inc. in Arlington and former Director, DHCD, Fairfax County. Free.
School of Architecture Auditorium. For more information, call 301-405-6789.
Monday, May 19, 4:30 pm. Fairfax County Board of Supervisors Hearing
on Proposed Affordable Dwelling Unit Amendments. After delay due
to opposition by the building industry, the Fairfax County Board of
Supervisors has rescheduled the public hearing on proposed improvements
to the county's ADU ordinance. The proposed amendment would require
mid-rise multi-family residential buildings to provide 6.25 percent
ADUs in exchange for a 17 percent density bonus. To sign up to testify,
visit http://www.co.fairfax.va.us/gov/bos/speaker_bos.htm. For additional
information on the proposal, visit our website www.washingtonregion.net.
Wednesday, May 7, 7-8:30pm. Show Me the Money: Financing DC's Transportation
System. Area transportation decision makers will gather at this
public meeting to answer questions about transportation needs that should
and can be funded over the next 5 to 10 years given the region's financial
constraints. Speakers include Jim Graham (WMATA) and Dan Tangherlini
(DDOT).Hosted by Citizens Advisory Committee, Committee of 100 on the
Federal City and the D.C. League of Women's Voters. Martin Luther Central
Library (Gallary Place Metro). Free. For more information, contact John
Swanson at jswanson@mwclog.org.
Thursday, June 19-22. Congress for the New Urbanism XI. The
Congress for the New Urbanism's 11th annual conference will combine
the most informative and inspiring speakers with interdisciplinary networking.
Speakers including: Author James H. Kunstler, and Long-time New Urbanism
leaders Peter Calthorpe, Andres Duany, Stefanos Polyzoides, and Daniel
Solomon. There will be a day-long course called New Urbanism 101. More
experienced practitioners will want to enroll in advanced sessions on
marketing, transit integration, or other detailed subjects. Omni Shoreham
Hotel, Washington, DC For registration and more information on CNU XI
at www.cnu.org or by phone at 1-800-788-7077.
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WRN thanks the following individuals for their support for WRN's efforts
to promote livable communities for the Washington region:
Mary K. Ishee and David P. Smole.
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WRN advocates transportation investments, land use
policies, and community designs that enhance existing communities and the
environment of the National Capital Region.
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and articles welcome.
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