The work that provided the basis for this publication was supported by funding under an award with the U.S. Department of Housing and Urban Development. The substance and findings of the work are dedicated to the public. The author and publisher are solely responsible for the accuracy of the statements and interpretations contained in this publication. Such interpretations do not necessarily reflect the views of HUD.
Pictured:Rich Devaney and Dara Koller
The HAND network is hard at work to address the growing housing affordability challenge across the Capital Region. Five Minutes With is a series highlighting these members and other stakeholders. This informal conversation delves into their recent projects, the affordable housing industry, and more. In the latest edition, we have a conversation with EagleBank‘s Rich Devaney, Senior Vice President and Dara Koller, SVP & Deputy Director. They chatted with us about their extensive experience in the affordable housing and community development industry and how they landed in this space. Rich highlights past challenges, lessons learned, and his advice to emerging leaders seeking to make an impact. Dara shares key takeaways from her experience, what she is bringing into her new role, and other her interest outside of affordable housing. Check out our dialogue below:
HAND: Both of you have extensive experience in the affordable housing and community development industry – Can you tell us about your professional journey and how you landed in this space?
DK: I have 20 years of industry experience, working in leadership roles at Freddie Mac and agency lenders supporting Fannie Mae and Freddie Mac multifamily executions, primarily focused on affordable rental housing executions for both agencies, including new construction and preservation of affordable rental housing properties. While at Freddie Mac, I was also involved in the development and roll-out of a few new products supporting the affordable rental housing industry as well. When I first began working on affordable rental housing transactions, it was not the most well understood or popular asset type in the industry compared to market rate rental housing, but I always believed it was extremely important and I was excited to be part of an industry focused on solving the growing need for affordable rental housing in the U.S.
RD: I began my career just after the passing of the CRA legislation and immediately prior to LIHTC legislation being rolled out, working with and for some of the most respected and innovative industry icons in the DC market. It was an exciting time, fusing the tension between regulatory pressure in the banking industry and innovation and expansion of and in the community development and non-profit sector intent on increasing its impact in significantly underserved neighborhoods. My focus and vision was grounded in building high-impact community development and affordable housing businesses within and with large institutions (Bank of America, Fannie Mae, top 5 Life Companies) under the rubric of profitability, sustainability and scalability. My experiences took me through the capital stack and from neighborhoods to national presence. Throughout, my greatest experience to date was setting up this FHA business within EagleBank, coupling the best of financial strength, innovation and flexibility in its ability to deliver capital within the community it serves.
HAND: Rich, you launched EagleBank’s FHA Multifamily Lending Division in 2015, in addition to several other investment initiatives for the bank. Can you tell us about one of your largest challenges over the past six years and what you have learned?
RD: Our FHA Multifamily business is a product line that falls squarely within the Bank’s commercial real estate span of lending. As such, our task was to integrate this business in a collaborative way, not competitive, with the balance sheet lending activity, getting the buy-in from the line lenders and alignment in goals and objectives…..”Enlightened self-interest”. Having set up multiple businesses over my 35- year career, this one presented unique challenges, including how to integrate. It took a solid 3 years of repetition, “proving the thesis” and trust building to get to the point where the value chain is clear and tangible. Presently, every single transaction within the FHA pipeline will touch the Commercial Real Estate balance sheet. Lesson learned was that you can get buy-in strategically at the highest level, but you must get buy-in tactically where the rubber hits the road with the people who make the business happen.
HAND: Dara, you are fairly new to the bank – what key takeaway(s) from your experience thus far are you bringing into your new role?
DK:
HAND: Rich, do you believe there is a “secret sauce” to addressing housing affordability and creating more equitable communities in our region? If so, what do you think that is? What do you think is the largest obstacle?
RD: I believe the private financing vehicles and resources are readily accessible and in sufficient amounts to have great impact. There needs to be, and always has been, focus on equity in the delivery and availability of affordable housing. One of my greatest mentors emblazoned in my mind “you are what you measure”, so to solve issues related to equity, we need goals, transparency and accountability….period! My perspective is that the largest obstacles in the production of affordable housing are the public entitlement process, zoning, planning, and permitting. Some municipalities have processes that take up to 3-5 years which infuses risk, uncertainty and viability to the process.
HAND: Rich, what advice would you give to emerging leaders who are seeking to make an impact in this space?
RD: Be flexible – issues are rarely binary choices, every situation is a learning experience – accept set-backs as a gift and surround yourself with diversity – holistically.
HAND: Rich and Dara, what are you most looking forward to over the coming months at EagleBank? Are there any projects or programs that you are particularly excited about?
RD & DK: Furthering the synergies within the Bank, our investment in the Washington Housing Initiative and further coupling our balance sheet and FHA business.
The FHA Multifamily Group is an emerging contributor to the strategic goals and objectives of the CRE Group and EagleBank.
EagleBank financed a handful of key affordable housing projects in the Washington D.C market including:
HAND: Rich and Dara, if you weren’t working in this space, what might you be doing?
DK: I have always been interested in architecture and design, focused on creating and transforming spaces to meet the needs of a building’s occupants and looking for solutions to present and future issues, such as climate change. Incorporating sustainable and green building design in construction projects is increasingly important to reduce the carbon footprint and use our energy and water resources more efficiently.
RD: I have been consistent in responding to this question when asked over the past 30 years. I would be dedicating 100% of my time working in programs that focus on disadvantaged youth, focusing on education and financial literacy. To me, one of the biggest gaps we have racially and socio-economically is knowledge of and access to financial tools, products and services.
This blog post was originally posted by American Public Health Association.
Author: Tia Taylor Williams, Director of APHA’s Center for Public Health Policy
The COVID-19 pandemic has brought more attention to the field of public health. Every day, people are seeing and hearing from epidemiologists, clinicians, laboratory scientists, researchers and more. While the spotlight is on the field, we should seize this moment to bring national attention to our greatest imperative: reducing health disparities and advancing health equity.
The public health field has an opportunity to shape the discourse about COVID-19 inequities to ensure that the root causes of the problem are acknowledged and addressed within, and well beyond, the pandemic.
As calls for race and ethnicity data in COVID-19 morbidity and mortality are heeded, we’re learning more about the communities and populations being disproportionately impacted. The prevalence of preexisting conditions — such as hypertension, diabetes, obesity and cardiovascular disease — among people who are dying from COVID-19 is also being emphasized.
As public health professionals, we know these same chronic conditions plagued low-income and communities of color at alarmingly high rates for decades before the current pandemic. We also know that these health disparities are the result of years of intentional disinvestment in communities. Lack of access to basic services, living wage jobs and affordable quality housing, education and health care are all veiled by a system that assigns value and structures opportunity based on how a person looks, i.e., racism.
At the same time, we know that as a country we are reluctant to understand, acknowledge and address how America’s legacy of racism, discrimination and exploitation has created present-day conditions of racially segregated and under-resourced neighborhoods.
If history is a predictor, as the pandemic persists and more data are collected, our suspicions about who is being hit hardest will be further substantiated. We can also expect that there will be many different arguments used to downplay or detract from the real issues.
As health equity champions, we have to be ready to redirect those diversions. By applying an equity lens, we can shift the narrative to focus on the root causes of COVID-19 disparities:
At a time when family resources are dwindling and being spread even thinner, we must avoid finger-pointing and placing the blame on the behaviors of individuals in marginalized communities. We know racism is a driving force for the social, economic and environmental conditions, i.e., social determinants that influence health. For example, black and Hispanic communities have higher rates of exposure to air pollution, which has recently been associated with increased risk of COVID-19 death.
We are public health. Social justice is in our roots. We look upstream to identify the causes of the causes. It is critical, during the pandemic and after, that we bring attention and action to addressing systemic and structural factors that shape who has power, where and how people live and, ultimately, what access and opportunities they have for good health.
For more on health equity and COVID-19, visit APHA’s COVID-19 and Equity page.
Photo by William Iven on Unsplash
Listen to this Areaprobe podcast which details financing affordable housing using grant funding from the Federal Home Loan Bank.
You can also listen to it in segments here:
About the Speaker
Megan Krider started working at the Federal Home Loan Bank of Pittsburgh in 2013 in the Community Investment Department and now serves as Manager, Affordable Housing and Community Development. In this position, Megan has the responsibility of managing the Affordable Housing Program which has supplied more than $263 million in efforts to support affordable housing development. Additionally, by managing the Bank’s Blueprint Communities® initiative, Megan has been able to support community development and the capacity building for communities. Megan received her Bachelor of Arts in Communications from John Carroll University as well as a Master of Public Management from Carnegie Mellon University.
(left to right) Gustavo Velasquez of Urban Institute, Ernst Valery of SAA | EVI and Nicky Goren of Meyer Foundation discuss the causes and consequences of redlining at HAND’s Annual Meeting & Housing Expo.
On the heels of HAND’s Annual Meeting & Housing Expo, the team under the How Housing Matters Initiative at Urban Institute was inspired to author a piece reflecting on some of the policy changes that would be needed to address issues of housing discrimination and equity. An excerpt from the piece titled, “Rethink Housing and Community Development to Advance Racial Equity and Inclusion” is as follows:
In the US, descriptions of housing affordability challenges and differences in wealth, health, and education need to include a racial equity lens, or the picture is incomplete. Legally authorized and mandated housing discrimination through federal lending and investment policies laid the cornerstone of complex socio-spatial issues that historically segregated communities continue to face. Many of the inequities within and between neighborhoods, particularly in large metropolitan areas, trace their roots to redlining.
Such discriminatory lending practices have left a legacy of disinvestment predominately in black and brown communities. Although the Community Reinvestment Act of 1977 sought to undo forced inequalities within neighborhoods by creating strong incentives for positive investment activity, the ramifications of housing segregation and economic exclusion will take additional policy attention to address…
…Meaningful and inclusive community revitalization can break down some of the barriers instituted through disinvestment and discrimination. This can be done through equitable development, but it requires intentional engagement and community input. Community development corporations (CDCs) and community land trusts (CLTs) have facilitated this engagement. While CDCs and CLTs usually have residents on their boards, CDC leadership often does not represent those they serve, which can leave residents feeling disengaged.
At the annual meeting of HAND, a membership organization for housing providers in Maryland, Virginia, and Washington, DC, Ernst Valery, founder and president of EVI Equity, addressed this challenge. He said, “We think so much about renovating the building, we need to also renovate the people.” EVI purchased Essex Village, an apartment complex in Henrico County, Virginia, that was far from providing its residents with a platform for success in life; according to Valery, it has been deemed the county’s worst apartment complex. EVI and the property manager CAPREIT quickly formed a tenants’ association to ensure that Essex Village residents were involved early in the planning process. Residents expressed excitement that the new owners wanted to hear their voices and to collaborate on creating lasting change in the housing development. When tenants are offered a seat at the table, they are eager to get involved, but developers need to provide the space to be heard.
You can read the article in full here.
Photo courtesy of Scott Lewis
By Lisa A. Sturtevant, PhD
In the aftermath of the recession and housing market downturn, residential construction activity has been increasingly fairly steadily. However, the pace of new housing construction remains below long-term levels and the types and prices/rents of new housing being produced does not sufficiently meet demand. As demand for home ownership increases, the population of younger renters grows more slowly, and the number of lower-wage workers expands in the region, there is a great need for lower-priced home ownership opportunities and apartments and other rental homes with lower rents.
Some key findings from the residential permit data released from the U.S. Census Bureau:
Residential construction activities to grow steadily but still remains below long term levels regionwide. Over January through November of last year, there were about 22,000 permits issued for the construction of new residential housing units. The 2016 residential permitting activity included 4,321 building permits in the District of Columbia, 5,806 building permits in Suburban Maryland, and 11,739 building permits in Northern Virginia. Residential permitting activity in the region has been increasing steadily since 2009, but remains below the 2000-2016 annual average (~25,000), suggesting that new home construction has not been sufficient to meet the demands associated with population growth.
[Figure 1]
One-fifth of the residential construction activity in the region was in the District of Columbia in 2016. While residential construction activity has increased throughout the region, the District of Columbia still accounts for one-fifth of new permits. About a quarter of the permits were for housing in Suburban Maryland and a little over half were in Northern Virginia. By contrast, before the recession, only about five percent of permits for new residential units in the Washington DC region were in the District of Columbia. The District’s share of new permits has slipped slightly, to 20 percent in 2016 from 23 percent in 2015.
[Figure 2]
Multi-family construction remains strong though new single-family construction is on the rise. In 2016, 44 percent of permits for new residential construction in the Washington DC region were for multi-family units, including nearly all (93 percent) of the permits in DC, 35 percent in Northern Virginia and 28 percent in Suburban Maryland. Historically, over the past 16 years, about 38 percent of permits in the region were for multi-family units so the current share remains higher than average. However, over the past two years, the share of multi-family units has declined somewhat, generally because of a slight decline in the share of permits issued in DC.
[Figure 3]
Home prices and rents in the Washington DC region continue to climb. Recent data from MRIS have shown that home prices in the metropolitan area have now matched the record high set during the housing market boom. The median sales price in December 2016 was $410,100, slightly higher than the previous record high price of $408,000 in 2014. As typical, there is wide variation in home prices throughout the region that reflects location as well as home types. For example, in the District of Columbia, the median sales price was $550,000. In Fairfax County the median home price was $470,000 and in Prince George’s County was $265,000.
Rents have also been on the rise, and new multi-family construction has skewed substantially towards luxury, higher-rent apartments. Even as concessions at new apartment buildings have increased, rents in buildings, particularly in DC and in the closer-in suburbs, are often only affordable to very high-income renters. According the 2015 American Community Survey data, the median rent in DC was $1,417 in 2015; however, the median rent for units built in 2014 and 2015 was $2,334. A household would need an income of more than $93,000 in order to afford the median rent in a new apartment building in the city.
Homelessness remains an intractable problem in the District of Columbia. Even as new residential construction increases, there remains insufficient housing affordable to all residents in the region. A recent survey by the U.S. Conference of Mayors found that Washington DC has the highest rate of homelessness among the nation’s 32 largest cities. The ability for the region to expand the housing supply will depend not only on land use and zoning changes that encourage more housing, but also policies that promote the development of housing for our region’s most vulnerable residents.
