Maximizing DC’s Public Lands for Affordable Housing
A DC Council committee voted this week to bolster a novel tool to get more affordable housing throughout the city. The bill would require developers to include affordable housing any time they buy land from the city for residential development. We urge the full Council to pass the legislation when it meets on Monday.
The Disposition of District Land for Affordable Housing Act of 2013, considered by the Committee on Economic Development, would allow DC land to be sold below market value to subsidize the costs of the affordable housing. This is a smart approach because it would use land value – rather than needing to use tax dollars – and because it would create mixed-income communities throughout DC.
...A recent disposal of land at 5th and I Streets NW, in the bustling Mt. Vernon neighborhood, highlights why this bill is so critical. When DC put the property on the market, the land was valued at over $19 million—enough to create a substantial number of affordable housing units. The District did not require bidders to commit to affordable housing.
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Would this legislation potentially impact the McMillan development project?
The McMillan project is already obligated to honor the District's Inclusionary Zoning (IZ) regulations.
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2 comments:
It probably would not have any effect on McMillan because the developer isn't buying the land. I think it will be more like a transfer, after the city has prepared the site for development. I think the city has budgeted 50 million to destroy the underground caverns. Once that has been done the land will be transferred to the developer.
To be clear, Vision McMillan Partners, LLC will be buying parcels of McMillan from the District (this is not a 'transfer' as indicated above). The land is to be appraised and purchased accordingly (with various deductions for items stipulated in the term sheet). The District has budgeted around $76 million towards prepping the land parcels for sale to VMP. The District will retain whatever parcels contain public spaces (e.g. community center and park area).
It's unclear whether the bill will in fact impact the McMillan development. One would think it should, were it to pass, but that does not mean that it will. Adherence to this bill would require significant increases in the level of affordable housing currently being proffered by the developer (e.g. no affordable housing targeting those making 30% AMI at the moment). If they are tasked with increasing the levels I'd suspect they will request significant compensation from the District in return.
Mathew Bader
BCA MAG Representative
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