DC HOUSING LEGISLATION Revised July 13, 2001 Bills # 14-167, the Mayor's bill; # 14-183, Councilmember Catania's bill; # 14-177, Councilmember Chavous' bill; #14-263, Councilmember Graham's bill; and #14-260, Councilmember Cropp's bill CHECK LIST FOR COUNCIL MEMBERS We are providing an easy check list for Council Members and their constituents when considering the complex housing legislation now being reworked in committees. Provisions are listed in order of their ability to meet our goals: (1) to produce housing, especially rental, for low- and moderate-income families, that is, only for households earning less than the DC median income for a family of four, or $46,800; (2) to save as much as possible of the existing supply of low-income housing; (3) to increase the proportion of benefits going to the most stressed among us; (4) to build stable, diverse communities by helping people stay in their neighborhoods; and (5) to do it all without breaking the budget! These bills are very important first steps in addressing the city's crisis in affordable housing and deserve the Council's close attention. We want to remind the Mayor and Council, however, that these measures are only the beginning of what must become a sustained effort over the coming years. N.B.,All of the bills express income levels in terms of "% of AMI." In our discussion below, we have translated that into the equivalent of real DC median income levels for a family of four. I. Top Priority The Housing Production Trust Fund - Mayor's Bill 14-167, Title V. This single most important provision before the Council and deserves the full support of every Council Member, especially for full funding through a dedicated source of revenue. To achieve wide support for the fund, the legislation should also specify: a priority for low-income rental housing -- below 50% of the DC median income, or $23,400; a policy of transparency in all operations, requiring full annual reporting of income and expenditures; an advisory board representative of all interested parties and authorized to exercise public scrutiny, including hearings; and intent to gradually increase the financial resources each year until all working families are assured quality homes in DC. We all need to emphasize the importance of the Trust Fund and insist on its full funding. We cannot have diversity in DC unless we invest in it! Affordable and Diverse Housing - Councilmember Graham's Bill, #14-263. This also is a very important piece of legislation because it introduces the concept of "inclusionary zoning," requiring developers of projects having more than 20 units to offer 10% of the units to low- and moderate-income households. Graham's definitions of "low" and "moderate" are realistic (below $24,840 and $49,680, respectively). Application is severely limited, however, to only those projects receiving some kind of public subsidy. This restriction needs to be changed, but the principle is worth enacting even in this limited form. II. Also deserving of strong Council support: Councilmember Chavous' Bill #14-177, providing DC residents with financial incentives to purchase and repair abandoned houses should be approved - with a longer time (18 months) to rehabilitate the properties and a longer period of owner residence (5 yrs.) required. Mayor's Title I, Due Process Demolition, should be approved, providing the public also is fully informed in the process. Mayor's Title IV, Low-income, Long-term Homeowners' Protection. Mayor's Title VII, Modification of Homestead Program. III. There are many good provisions in these bills that nevertheless need income restrictions on eligibility lest they encourage displacement through gentrification and/or add up to too high a price: Mayor's Title III, the Historic Housing Tax Credit should be available only to homeowners making less that the DC median income, should limit the total tax credit to $15,000 over five years, and should require the owners to live in the house for at least 5 years. And priority should be given to owners who have lived in their homes for the previous five years. Mayor's Title VI (1st part), Tax Abatement for New Residential Developments, should require that more units (15%) should be set aside for truly low-(50% of DC median, $23,400) and moderate- ( DC median, $49,680) before builders can claim the tax cut. Mayor's Title VI (2nd part) offering tax-credits to homeowners to rehab or build homes for themselves in enterprise zones, should be amended to limit eligibility to families below the DC median income. Councilmember Catania's Bill #14-183, Sec.301, a DC income Tax credit for first time homebuyers should be capped at $2000, otherwise it could be very costly to the city and only high-income buyers could take full advantage of it. Catania's Bill #14-183, Sec.201, property tax reductions for improvements in revitalization zones, should have income levels on eligibility to avoid displacement. Catania's Bill #14-183, Sec.302, offering incentives to employers to assist to employees who are first-time homeowners to purchase homes near where they work, should be limited to low- and moderate income employees and designed as a pilot program to demonstrate the program's benefit to employers. Mayor's Title II, Government Support Housing Accommodations Conversion, should be amended to increase the notice period to a year and should reflect the enforcement mechanisms in the federal law. IV. Three provisions of the proposed legislation should not be included at this time: Catania's Sec.202, Affordable Multifamily Housing Property Tax Abatements, has the right intentions but is the wrong mechanism. It applies to a wide range of federally assisted housing, it does not provide enough incentive to owners of buildings in hot real estate markets to stay in the program, and it could cause a windfall for HUD and/or owners who would stay in the program anyway. Catania's Bill, Title IV, creating a new homeowners' counseling service, has no particular advantage over the existing system, which, admittedly needs improvement. Councilmember Cropp's Bill, #14-260, Downtown Housing ...Incentives, is an amendment to the Mayor's Title VI. It would apply retroactively to permits applied for since 3/31/01 (extending the benefits to developers who have already decided to build), would extend the program and benefits throughout the downtown area, and increase the cap by another $625,000. This proposal should not be entertained as it just multiples the problems inherent in Title VI. offering more large subsidies to the owners of market rate housing, without helping the most needy families. Thank you for your attention. We look forward to working with you on this legislation. Note: This check list is a collaborative effort of the Washington Regional Network for Livable Communities, the DC League of Women Voters, and WISH. Questions should be addressed to Janet Brown 332-0789, Liz Martin 537-3043, and Linda Leaks 332-8800, respectively.