On January 27, HAND convened its Resident Services Discussion Group to discuss strategies to connecting resident services to research based outcomes at Community Preservation Development Corporation’s (CPDC) Crawford Edgewood Terrace Community. In 2011, CPDC transitioned its resident services from direct service delivery to partner provided services within five impact areas: Health & Wellness, Resident Engagement, Environment, Education, and Economic Development. In 2013, the work further evolved to deeper engagement with residents as the stewards of their communities to support the desire to build trust with and among residents and to engage more residents in creating a better quality of life. As a result, the One Edgewood Network was born with the ultimate goals of removing barriers, building trust, and enhancing residents’ quality of life. Khyati Desai-Seltzer, CPDC’s Regional Resident Services Manager shared a wealth of information with HAND members on their journey creating the One Edgewood Network and shared the documents below as tools for members to reference. Thanks Khyati for sharing your expertise!!
Yesterday’s Kojo Nnamdi Show on WAMU FM featured Mary Hunter, HIP’s Director of Housing Counseling, along with Michael Fletcher of the Washington Post, Dorothy Brown of Emory University School of Law and Tom Shapiro of the Institute on Asset and Social Policy to discuss Mr. Fletcher’s recent series, “A Shattered Foundation” which discusses the loss of wealth in the African American community in Prince George’s County due to the foreclosure crisis.
The articles cite example after example of African American buyers who were steered to subprime predatory loans during the height of the housing bubble, only to see their homes decline in value, preventing them from refinancing into more reasonable loans. Egged on by realtors and lenders, many homeowners made one bad decision after another, hoping to work their way out of trouble but only digging their holes deeper.
Mary emphasized the importance of housing counseling for families before they buy a home so that they may truly understand what they can afford and what are good mortgage terms. Only a housing counselor can be truly objective about a buyer’s financial situation; there is no commission or fee to be earned based on the size of a loan.
Here at HIP, we see clients on a daily basis who want to build wealth for their families and find stable housing situations that they can afford for the long term, whether that be homeownership or rental. And we see the victims of the housing meltdown. Helping these families make housing choices that will benefit them for the long term is what drives us to do the work we do day after day.
In a letter to the editor of the Washington Business Journal, WRAG’s president Tamara Copeland applauded Dr. Stephen Fuller and Bob Buchanan’s recent call for a regional summit to address Greater Washington’s long-term economic development (“Time for regional economic summit, head of 2030 Group declares,” WBJ, January 15) and offered the support of the local philanthropic sector.
The letter is re-printed below.
To the editor:
Last week, two longtime leaders in our region, Stephen Fuller and Bob Buchanan, joined forces to call for government and business leaders from across Greater Washington to come together for a regional summit on long-term economic development. We applaud them and offer a third sector — philanthropy — to this powerful call for action.
We know that the regional lens is an absolute necessity. Cross-sector and cross-jurisdictional cooperation is essential. And catalytic leadership is needed.
Seamlessly, and almost daily, most of us travel from one jurisdiction to another. So, too, do the challenges that affect the long-term vitality of our region, from housing affordability to job growth, improving the quality of the Anacostia River to improving educational quality in every jurisdiction for all children.
Years ago, philanthropy was called the “passing gear” when it comes to social change. The local grantmaking community has long seen the region as the core of a much needed conversation, one that is grounded in cooperation and recognizes our shared destiny. Count us in.
Tamara Copeland
President, Washington Regional Association of Grantmakers
Driven by the philosophy “where you live matters,” the NHP Foundation has created 62 multifamily properties with approximately 12,000 affordable apartments. Operating its charitable mission with businesslike financial disciple, the organization has a portfolio of more than 6,000 units in 12 states and the District of Columbia. In addition to preserving and creating communities, NHPF also provides a robust array of placed-based learning and services for its residents, such as after school education, summer camps, health & wellness and financial literacy programs.
One of the shining stars at NHPF is Mansur Abdul-Malik, its Financial Analyst of two years. With a bachelor’s in Business Management from the University of Baltimore and a Master’s in Real Estate Development from the University of Maryland, Mansur is a strong believer in occupational development. He recently passed the Project Management Professional exam and the Housing Finance exam to earn both his PMP and HDFP certifications.
“The one piece of advice I wish I had gotten sooner was expand your skill set as much as possible within the industry you are working in so you can become more effective at your job,” Mansur shares. “I’m a big proponent of always adding more ‘tools to the tool belt’ in order to gain greater insight, provide comprehensive solutions and foresee opportunities and obstacles within a project. This gives me the ability to do my job smarter and make things simpler for the entire team. Real estate development is more than just numbers. If you understand your organization’s needs, the needs of stakeholders, the constraints within a project, timing, opportunities and risk and how to balance all these things, you will increase your odds of success.”
At NHPF, he’s had the opportunity to put both his professional experience and education to work. He has spearheaded a number of initiatives, such as closing recent acquisitions, conversions to permanent loans, creating and managing development and construction schedules, creating HUD packages for assignment of HAP contracts and more!
Mansur believes the biggest challenge facing our industry is the shrinking amount of capital available to develop affordable housing communities. NHPF is addressing this issue by consistently looking at creative ways to finance projects. They’ve either explored or used a number of strategies to raise capital including selling solar tax credits to investors in order to raise equity; using the 45L tax credit as well as energy efficiency/green building loans, grants and tax credit programs; and the list goes on.
Mansur’s participation in HAND has supported NHPF by providing a network of industry professionals from every sector of affordable housing. Each person Mansur has come into contact with has shared valuable insight that has helped to enhance the positive impact of a project for all of NHPF’s stakeholders involved. Additionally, the HAND member events have also given him the opportunity to learn about current issues affecting the industry as well as provide a venue for hearing how his peers are considering tackling pending obstacles.
His final piece of advice?
“A shorter learning curve ultimately leads to a better product and a healthier bottom line…and the better you plan, the better you execute and the easier it will be to do your job successfully.”
HAND is pleased to spotlight Mansur Abdul-Malik, an emerging leader who certainly contributes to our organization’s COLLABORATION, INNOVATION and TRANSFORMATION within the metropolitan area!
“Economic development” and “regional cooperation” are the buzz words in the news these days as business leaders express growing concern about our regional economy. Sequestration dealt the metro area a severe economic blow, and we continue to struggle in the aftermath.
Consider these statistics
Federal spending has dropped, both in jobs and in procurement. As a result, higher wage jobs in the business and professional sectors have declined. The Center for Regional Analysis at George Mason University reports that from 2012-2013, the DC metro area had the lowest job growth among the 15 largest metropolitan regions in the nation. All of these trends point to FY16 as another difficult year for local governments to fashion balanced budgets that can adequately fund growing service needs in an environment of anemic property values, tepid job growth and rising vacancies in commercial office space.
But a few voices are emerging with strategies that would foster innovation, encourage business diversification and job growth and promote healthy, vibrant communities, and localities would do well to take note. In a report released in December titled “New Virginia Economy,” Governor Terry McAuliffe identifies five priorities to leverage and expand the state’s current assets to diversify and grow the economy. These include building critical infrastructure; diversifying and growing strategic industry sectors; promoting an entrepreneurial and competitive business climate; and workforce training to meet the needs of business and industry.
Affordable housing and sustainable growth
It is within the priority of infrastructure, that the report maintains the importance of affordable housing for the workforce, stating “Quality, affordable housing is a core component of sustainable economic growth. Housing is foundational for a high quality workforce, great school performance and health communities.” Key housing recommendations include:
advancing economic and community development strategies that integrate housing initiatives including adaptive reuse, mixed-use development and mixed income housing and the preservation of existing affordable housing, and
creating affordable housing that meets the need of working Virginians in areas where high housing costs impede economic development, productivity and the quality of life.
Where will our region’s jobs sleep at night?
To attract and retain new businesses, our region needs to provide housing opportunities that are affordable for a wide variety of jobs, with locations near transit and job centers. Cost of living that is too high can be a deterrent to new businesses that want to locate in an area or businesses that are considering expansion. Recruiting and retaining employees becomes a bigger challenge, and those businesses may seek other locations or regions that provide an infrastructure conducive to growth and expansion. Think Houston, LA or even Detroit.
The notion of housing as infrastructure is not new, but it is one that not all jurisdictions have embraced. Housing production creates substantial economic activity and jobs, and provides homes for hard working people who spend their paychecks in the local economy. And the outcome is that people who work in our community have an opportunity to live in our community. Now is the time to invest in housing, and we should capitalize upon existing opportunities that present themselves.
What needs to happen?
To meet our region’s unmet housing needs, we need:
adoption of policies that promote both preservation and production of housing that is affordable
land use policies that provide density near transit and job centers; and
financial tools such as local housing trust funds and commercial impact fees to provide the gap financing needed for these developments.
As many suburban jurisdictions watch with concern the growing vacancies in older commercial office space, we need greater flexibility in our local zoning ordinances to be creative with adaptive re-use of these structures for a mix of uses that include mixed-income housing. Vornado’s partnership with WeWork, a national company with co-working offices in major metropolitan areas is one to watch. This project, located in Crystal City, will convert an aging, vacant office building into an innovative live-work space containing shared amenities, a sense of community and opportunities for collaboration in a residential building.
More than ever, we need to incentivize the private sector in this effort, as they will produce the majority our housing. Along with transportation, air quality and disaster preparedness, addressing the region’s housing needs should be an essential component of regional cooperation, and now is the time to come together on this issue.
Congratulations to all our members and colleagues who have been recognized by the Washington Business Journal as innovative and dedicated business leaders in the Washington, D.C. region. This is an amazing accomplishment, and we look forward to your continued good work in our industry!
By Dr. Lisa A. Sturtevant Vice President of Research National Housing Conference
As we begin 2015, what are some of important indicators of the health of the local housing market and the need for affordable housing? Several key economic and demographic trends suggest slower growth in housing sales and price growth, continued rising demand for rental housing, and rising affordability challenges for many.
Job Growth in the Washington DC Region Has Slowed
After fast growth in 2010 and 2011, the pace of job growth in the Washington DC region has slowed considerably (see figure 1) in recent months.
Figure 1:
Over the past 18 months, annual average job growth in the region has totaled about 17,000 jobs; in 2011 and 2012, the region added over 41,000 jobs on an annual basis. The slowdown in job growth has been driven by losses in the Federal government (see figure 2) and professional and business services (see figure 3) sector, the region’s two largest and among the highest-wage sectors.
Figure 2:
Figure 3:
Job growth has been stronger in lower-wage sectors, (see figure 4) including the leisure and hospitality and construction sectors. The region’s employment growth will be tied increasingly to growth in sectors that have traditionally included lower-wage workers.
Figure 4:
Home Prices are Still Increasing Across the Region, Although Both Home Sales and Price Growth Have Slowed
In November 2014, the average sale price in the Washington DC region was up just 1.4 percent (see figure 5) compared to November 2013. Prices were flat in the District of Columbia, down three percent in Suburban Maryland and up four percent in Northern Virginia.
Figure 5:
This slowdown in price growth follows double digit price appreciation in many parts of the region in late 2012 and early 2013. At the same time price growth has moderated, sales activity has slowed and inventories are rising. These trends point to a cooling for-sale market in 2015.
Rents Continue to Rise and Rental Vacancy Rates Remain Historically Low
Between 2000 and 2013, median rents in the Washington DC region have nearly doubled (see figure 6), and in 2013 the median monthly rent for the region was $1,481. Median rents remain much higher in close-in suburban jurisdictions, particularly Arlington County ($1,820 per month), Fairfax County ($1,764 per month), and the city of Alexandria ($1,592).
Figure 6:
Rental vacancy rates edged up very slightly in 2013 although the regional rental vacancy rate remains below historical averages (see figure 7) . Steadily rising rents and low vacancy rates reflect the strong demand for rental housing in the region, which will continue into 2015.
Figure 7:
Housing Affordability Remains a Significant Challenge.
While the median household income in the Washington DC region is high relative to most places across the country, there are thousands of individuals and families with modest incomes and stagnant wages.
Low- and moderate-income households often struggle to find affordable housing in the region. Twenty percent of working households (see figure 8) —or nearly 190,000 households that earn up to 120 percent of the area median income—spend more than half of their income each month on housing.
Figure 8:
In DC and Montgomery County (see figure 9) , more than a quarter of all renters—including many higher-income renters—are severely cost burdened.
Figure 9:
And in our region, the typical elementary school teacher, police officer, or nurse (LPN) cannot afford to buy the typical home (see figure 10).
Figure 10:
Many others cannot afford the typical rent for a one-bedroom apartment (see figure 11) . When households spend a disproportionate share of their income on housing, it leaves less for other necessities, such as food, child care, transportation and health care. It also leaves less for non-discretionary spending—the type of spending that can contribute to local economies.
Demographic and Economic Trends Point to Growing Needs for Affordable Housing
As a result of the changing structure of the Washington DC area economy, along with the aging of the Baby Boom population (see figure 12), the increasing racial and ethnic diversity—particularly in our suburbs (see figure 13), and the projected household growth among Millennials, there will be a growing need throughout the region for smaller homes, more multi-family housing, and more rental housing options.
Figure 12:
Figure 13:
Different parts of the population will be competing for the same types of more affordable housing in accessible locations, which will continue to drive up costs if supply does not keep up with demand.
Affordable housing needs will vary around the region and even with jurisdictions. And while it is important that local counties and cities develop housing strategies that are responsive to their local needs, it is just as important that jurisdictions throughout the region work together to ensure there is a sufficient supply of housing to meet the needs of a changing population.
As We Begin 2015…
The Washington DC region’s economy and housing markets will continue to be in a period of transition. Despite slower job growth and declining prices, housing affordability will remain a key challenge, largely as a result of slow-growing wages and economic restructuring. Access to homeownership will theoretically be opened up as a result of a change to FHFA’s downpayment policy which allow for mortgages with as little as a three percent downpayment.
However, potential homebuyers still face steep prices in many parts of the region. For example, less than 16 percent of percent of homes sold in November 2014 (including single-family, townhouses and condominiums) were priced below $200,000 which is a price that could be affordable to a household earning about $50,000. On the rental side, supply to the higher end of the market has been robust in many neighborhoods, but there remains a significant shortage of housing that is affordable to households with low incomes. It will be important to continue to seek ways to expand supply to meeting needs for more affordable housing.
Want to know what HAND members have to say about this post? Watch!
Next Month: New Construction: Where, What Types and For Whom?
When Transitional Housing Corporation (THC) broke ground on its newest property last October, the Harry and Jeannette Weinberg Commons, the District moved a little closer to creating more environmentally sustainable homes for families in need. The first multi-family Passive House in the area, Weinberg Commons will provide 12 apartments for families in need of permanent supportive housing and 24 apartments for families making between 30 – 60% of AMI all the while helping to minimize the energy footprint of the City.
Passive House design reduces the amount of energy usage in a building, keeping utility costs low and rents affordable. Instead of relying on active energy reduction systems with high-installation costs, Passive House buildings concentrate on energy use reduction and work with natural systems to manage heat gain and loss, resulting in possible utility costs savings of up to 90 percent. Located at 5010 Southern Avenue in southeast, the project will provide a deep energy retrofit on the property and will include super-insulation, an air-tight building shell and balanced energy recovery ventilation. In addition to being an innovative approach to net-zero building, Passive House structures are also considered to adhere to the most stringent energy standards in the world.
THC is not new to meeting the needs of the most vulnerable in different and innovative ways. The organization provides housing and support services to more than 500 formerly homeless and low-income families so they can make their own transformational life changes. THC offers holistic support through employment services, housing counseling, and resident and clinical services. Located in six of the eight wards in D.C., THC properties include award-winning transitional, permanent, supportive, rapid rehousing and affordable rental housing for those looking to end the cycle of homelessness.
Weinberg Commons is yet another example of THC’s transformative methods in providing affordable housing to those who need it most. The community reflects former DC Mayor Vincent Gray’s twin vision of creating more environmentally sustainable buildings while delivering affordable housing more quickly. The project also complements the strategy to consolidate and synchronize the application process between city agencies and developers in order to produce affordable housing in less time. Weinberg Commons will combine state-of-the-art environmental features with affordable rents and a slate of support services for homeless families. This innovative endeavor will be the first of its kind in the District, and it will also model the successful integration of sustainability in affordable housing projects moving forward.
“We are addressing the District’s family homelessness crisis as we contribute to a greener city,” said Frank Demarais, THC’s Interim Executive Director in regards to THC’s commitment to Passive House development.
THC’s HAND membership has proven to be a valuable resource for the organization. As a multi-state/regional affordable housing and community development association, HAND provides a collective voice for affordable housing in the region. By bringing together lead agencies in the area and individuals in housing development, policy and financing, HAND provides THC leadership and staff access to the best thinking available in the industry. Through its trainings and dedication to supporting community housing providers, HAND is a go-to resource to help THC achieve its mission of ending family homelessness by 2020.
HAND is pleased to spotlight Transitional Housing Corporation, which certainly contributes to our organization’s COLLABORATION, INNOVATION and TRANSFORMATION within the metropolitan area!
On December 31, 2014, our dear colleague David Reznick, co-founder and Chairman of the Board of Reznick Group, P.C passed away surrounded by his loving family. The affordable housing industry has lost a trailblazer and visionary in the field and our thoughts are with his family during this difficult time.
Memorial contributions may be made to Yachad or David Reznick Memorial Foundation for Housing and Community Services, Inc., 1400 16th Street, NW, Suite 420, Washington, DC 20036.
HAND was afforded the opportunity in 2013 to present David with our Lifetime Achievement Award honoring his career, leading industry-changing financing strategies that have helped create thriving communities and homes for families with low-incomes nationwide. In addition to his award, HAND surprised David with a tribute video featuring his colleagues, families and friends sharing heartfelt accolades about his impact on the industry. He will be sorely missed.
Exelon Corporation is in the process of acquiring Pepco Holdings, Inc., including Pepco’s Maryland operating companies: Potomac Electric Power Company (Pepco), and Delmarva Power & Light Company (Delmarva Power). Why does the merger of Exelon and Pepco Holdings matter for affordable housing? Tens of millions of dollars are at stake! To show that the merger is in the public interest, Exelon is proposing to create a Customer Investment Fund (CIF) and how these funds are to be used will be up to the MD PSC. HAND has joined the National Housing Trust in an effort to ensure the proposed merger is in the public interest.
Hearings will be held starting today through January 14th in different parts of Maryland. The hearings will provide an opportunity for the MD PSC commissioners to learn about why improving the energy efficiency of multifamily affordable housing is in the public interest. For questions on this effort, please contact Todd Nedwick at tnedwick@nhtinc.org or 202-333-8931 x 128.
For assistance drafting talking points, please use these templates:
4. Tuesday, January 13, 2015 — Beginning at 6:00 PM
Montgomery County Council Office Building Auditorium
100 Maryland Avenue, Rockville, Maryland 20850
5. Wednesday, January 14, 2015 — Beginning at 6:00 PM
Prince George’s County Community College Room 227 – Community Room B
301 Largo Road, Largo, Maryland 20774
Payments: Orders placed on the event registration page are not confirmed until payment is received. A confirmation email will be sent to the email address listed in your registration. If you paid by credit card, a receipt will be sent to the email address listed in your registration. If you mail a check, all payments must be received within seven days of completing your registration form. Checks should be remitted to: HAND, PO Box 48386, Washington, DC 20002
Guest List & Dietary Preference: If your registration includes a luncheon table or multiple guests, please submit guest names and menu choices by May 1, 2020. Submit guest names here.
Omni Shoreham Hotel Room Block: For attendees looking to secure overnight accommodations on May 25th, HAND has secured a rate starting at $189 for conference attendees. There are a limited amount of rooms available, so visit this link todayto reserve your room. May 10th is the last day to secure a room at the discounted rate.
Cancellations & Changes: If you wish to cancel or change your registration for the Annual Meeting & Housing Expo, please send a request in writing to annualmeeting@handhousing.org. All cancellation requests made prior to April 27th will receive a 50% refund. For cancellation requests made after April 27th, no refund will be provided.
Door Prizes: Are you interested in donating a door prize to this year’s Annual Meeting? Email annualmeeting@handhousing.org to coordinate with our team.