In a decade, Washington, D.C. has invested more than $1.5 Billion in affordable housing leading to over 15,000 units completed.
This statistics is according to a report titled “Protecting Affordable Housing” delivered by Mayor Muriel Bowser and DC Council Chairman Phil Mendelson on Monday, September 30.
According to the report, 13.9% of DC residents now living in District-supported affordable housing, a marked increase from 9.8% in 2015 as a result of the investment and new housing units.
This report also shows that average rents in DC have increased at half the national average since 2019, despite these challenges.
Despite these achievements, the nation’s capital faces ongoing challenges in the affordable housing sector, particularly in the wake of the COVID-19 pandemic. Emergency policies implemented during the crisis have inadvertently put some affordable housing at risk, with housing providers grappling with rising costs and tight margins due to unreliable rent collections.
The pandemic’s impact is further evidenced by projections of unpaid rent, expected to reach a staggering $147 million by 2025 for mission-oriented affordable housing providers. The average delinquency rate stands at 20%, significantly higher than pre-pandemic levels.
Another concerning trend is the extension of the eviction process, which has doubled from 6-12 months before COVID-19 to 18 months – 2 years post-pandemic. This prolonged process, coupled with issues in the Emergency Rental Assistance Program (ERAP), has contributed to an “economic vacancy” rate of 15-20% in DC, far exceeding the stable rate of 5%.
In response to these challenges, the District’s Department of Housing and Community Development (DHCD) is now accepting applications for financing to protect affordability, stabilize properties, and ensure the viability of ongoing projects. Additionally, reforms to the ERAP have been proposed by Chairman Mendelson, though details of these reforms were not specified in the report.
