Deeper Dive, NO THANKS IZ! Re: Re: PRESS RELEASE AND NEW REPORT FROM AUDITOR’S OFFICE ON INCLUSIONARY ZONING

min read

Debby, and all,

In a deeper dive, I've noticed something dreadful that we ought to get to the bottom of if possible.

It begins with this startling conclusion from the Auditor's report on how broken IZ really is, and how harmful it has been to real people's lives:

IZREPORT_50percent_onhousingcosts.png
The Auditor's findings reveal a critical issue: among the less than 2,000 IZ (Inclusionary Zoning) units produced to date, residents in the program may be spending approximately 50% of their income on rent. This is not only shocking but also highlights the absolute unaffordability of these IZ  units, effectively undermining the very purpose of the program. Moreover, such high rent burdens are likely unlawful in the eyes of the DC Code on IZ: https://code.dccouncil.gov/us/dc/council/code/sections/6-1041.03

§ 6–1041.03. Establishment of maximum rent and purchase price; publication requirement.

(a) The Mayor shall establish the maximum rent or purchase price for the first sale of an inclusionary unit based upon either the actual income of the household selected by the Mayor to lease or purchase the unit or based upon a rental and price schedule as follows:

(1) Rents based upon the actual income of a household shall be established so that the household will not expend more than approximately 30% of its annual income on rent and utilities.

(2) Purchase prices based upon the actual income of a household shall be established so that the household will not expend more than approximately 30% of its annual income on mortgage payments, including principal, interest, and property insurance and taxes, home owner association or condominium fees, and utilities.


IZREPORT_50percent_onhousingcostsbullet.png

The above finding by the Auditor, in context of the IZ law, underscores a serious failure with IZ: 

The Executive, namely the Mayor, through the DC Dept of Housing and Community Development (DHCD), and lackadaisical Council oversight has let real estate developers and their mgmt companies get away with charging rents for Inclusionary Zoning (IZ) units that exceed lawful limits by up to 20%.

RECALL, THE GUISE TO BUILD ALL THIS LUXURY HOUSING IS FOR THE HANDFUL OF IZ UNITS AS THE SAVIOR FOR OUR AFFORDABILITY CRISIS!

This deviation from affordability standards not only compromises whatever integrity the IZ program feigned to possess, but also raises questions about the legality and overall efficacy of this program to ensure housing remains genuinely affordable for DC residents.

Here's what that all this means in real terms i.e. housing costs to real DC families:

IZHousing_LOW_50percentaff.png
IZHousing_Moderate_50percentaff.png


WE NEED AN ALTERNATIVE!
GREEN NEW DEAL FOR HOUSING!!



INCOME_as_AMI_increases.png





On Fri, Nov 22, 2024 at 8:46 PM Chris R. Otten <crotten2@gmail.com> wrote:
This November 20, 2024, report by the Office of the Auditor on DC's Inclusionary Zoning program is an indictment of the Smart Growth urbanists who say that building more luxury housing with a required handful of IZ units would be an answer to our unaffordable housing crisis.  The numbers in the official report below show quite the opposite.

WE NEED AN ALTERNATIVE THAT DECOMODIFIES HOUSING AND AFFIRMS THAT HOUSING IS A HUMAN RIGHT!

biznassman_profiting_from_luxury_housing_on_public_land1.jpg
Part of the IZ failure is because the so-called YIMBY urbanist originators of this groundbreaking aff housing policy chose to never highlight the lack of accountability and enforcement of their developer real estate friends in any of their testimony to the Zoning Commission and to the Council over the years.

For more than a decade now, IZ has been used as the soapbox for YIMBYs to cheer on upzoning such as at 1617 U Street.  IZ has been the guise for luxury overdevelopment since 2009 and destroyed affordability in the District by setting the definition of “affordable housing” so high as to be out of reach of most working people and families in our city.

Resources/Background:
Below find my highlights from the Auditor's Report including the two big takeaways showing the dire and acute need for an alternative like social housing:
  • 18,000 people on the waitlist for 2000 IZ units!
  • Of the 2000 IZ units, 1300 of them are for single individuals (65%).

The Auditor's press release was rosy compared to the actual underlying data, see screenshots
of major findings directly from the report:

Screenshot_2024-11-22_20-02-24.jpg

Screenshot_2024-11-22_20-05-02.jpg

Screenshot_2024-11-22_20-06-01.jpg
Screenshot_2024-11-22_20-06-38.jpg

Screenshot_2024-11-22_20-07-15.jpg

Screenshot_2024-11-22_20-07-49.jpg

Screenshot_2024-11-22_20-111.jpg

On Fri, Nov 22, 2024 at 7:48 PM Debby Hanrahan <debbyhanrahan@yahoo.com> wrote:
Hello all,
The only thing I can say after a quick read of this City Auditor's new report is that the inclusionary zoning (IZ) program is as bad as we have suspected and have witnessed on an anecdotal and individual project basis. The financial abuses of the program were not highlighted, but I hope that will come soon. After you have a chance to read this, I hope you will feel free to walk into your nearest IZ-participating project and ask about subsidized units.
Best,
Debby

—– Forwarded Message —–
From: Patterson, Kathy (ODCA) <kathy.patterson@dc.gov>
To: Debby Hanrahan <debbyhanrahan@yahoo.com>
Sent: Wednesday, November 20, 2024 at 12:56:46 PM EST
Subject: FW: New report: Stronger Oversight Needed for Inclusionary Zoning Program to Reach Housing Goals

Just posted; thanks for your interest!

 

Kathleen Patterson  |  D.C. Auditor

she/her/hers

Office of the D.C. Auditor

1331 Pennsylvania Avenue NW 8th Floor

Washington D.C. 20004

Direct: (202) 727-8982  | Office: (202) 727-3600

Email: kathy.patterson@dc.gov

Website: www.dcauditor.org

 

From: Shinn, Diane (ODCA) <diane.shinn@dc.gov>
Sent: Wednesday, November 20, 2024 12:48 PM
To: Shinn, Diane (ODCA) <diane.shinn@dc.gov>
Subject: New report: Stronger Oversight Needed for Inclusionary Zoning Program to Reach Housing Goals

 

Good morning. Attached please find our newest press release and report entitled Stronger DHCD Oversight Needed for Inclusionary Zoning Program to Reach Housing Goals.

 

Despite a lack of enforcement that has enabled a culture of non-compliance at some of its properties, the District’s Inclusionary Zoning program—

one of the many pathways toward the city’s affordable housing goals—has already implemented or is implementing many recommendations of a new audit published today by the Office of the D.C. Auditor (ODCA).

 

The IZ program’s purpose is to use market-rate development to increase affordable unit production and ultimately create a full range of long-term housing choices for each District household regardless of size and income. Mayor Muriel Bowser is aiming to achieve the affordable housing goal of producing 12,000 new affordable units for D.C. residents by 2025.

 

Actions taken by the Department of Housing and Community Development (DHCD) included enforcement action against an IZ provider following a Management Alert issued by ODCA in June.

 

“We were pleased at the immediate action the agency took earlier this year,” said D.C. Auditor Kathy Patterson. “We are pleased with DHCD’s concurrence with nearly all 17 of ODCA’s recommendations aimed at improving the IZ program’s efficacy, including efforts to meet the 102-day target to fill IZ units from what an ODCA sample found was an average of more than 13 months.”

 

Findings in the report include that during the audit’s scope DHCD did not:

 

•            Ensure that annual reporting requirements were enforced, which meant they were not able to track which units were vacant or who was living in occupied units.

•            Ensure that IZ tenants’ incomes were recertified annually which potentially allowed participants to remain in IZ units for which they were no longer eligible because their income exceeded their units’ income requirement.

•            Ensure that properties submitted renewal leases annually. Of the IZ properties in the report’s sample, only one of 16 properties was found to have completed lease renewals in a timely manner. At six of the properties, some renewed leases were found and those, on average, were dated 147 days (five months) after the previous lease’s expiration date. The remaining properties had not renewed any leases at the time of ODCA’s site visits, putting the tenants into a month-to-month status on an expired lease.

•            Initiate enforcement action against property owners who violated IZ development covenant requirements and DCMR.

 

Please let me know if you’d like to speak to the Auditor about this report. Thanks for your interest in ODCA’s work.

 

 

 

Diane Shinn | Director of Communications

Office of the D.C. Auditor

1331 14th Street N.W., Suite 800 South

Washington, DC  20004

Direct: (202) 727-8991 | Office: (202) 727-3600 | Cell: 202-255-6717

she/her/hers

diane.shinn@dc.gov

dcauditor.org

Auditude

@ODCA_DC

 

 

 


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