Sheila Cross Reid can remember when she was a young adult coming into her own in the District of Columbia. She and several of her friends were all buying condominiums that would become their starter homes. They would build equity and move on to bigger and better homes.
Reid hoped the road to homeownership was being paved for the next generation. But today with housing prices at an all-time high in the District of Columbia, the road is crumbling. Houses on the market with the lowest price tags in the city often go for more than $300,000, requiring an income of no less than $100,000.
Reid’s experience as a real estate broker and founder of Avanti Real Estate, qualified her appointment to the Black Homeownership Strike Force, established by Mayor Muriel Bowser in June 2022. The mission of the Strike Force was to provide recommendations to the mayor on how best to use a $10 million Black Homeownership Fund to increase the number of Black homeowners in the District by 2030 and support wealth building through homeownership.
A year after delivering those recommendations, Reid said the team, made up of 13 public representatives and nine government representatives, has not received feedback on their recommendations. However, last April, Bowser announced she added to her 2024 budget $13 million to support 600 families in Career MAP, $8 million to increase available down payment assistance through Home Purchase Assistance Program, $1.5 million enhancement for Heirs Property Services, and $2 million to increase available funds for Single Family Residential Rehab.
Last month, District of Columbia Department of Housing and Community Development (DHCD) announced awards totaling $1 million in grant funding from the Heirs Property Assistance Program to assist low-income individuals or households in the District with obtaining clear legal title of real estate upon the death of their family member, according to a press release
“The selection of these grantees provides a path for low-income families to keep their homes within the family,” DHCD Director Colleen Green said in a statement. “The term ‘generational wealth’ is used quite often, but the work of obtaining clear and legal title to a property through the courts can be challenging for someone who is unfamiliar with the probate process. The service provided by these grantees can help make a complex process a bit easier to navigate.”
District of Columbia Councilmember Robert White (D–At-Large) said in addition to homeownership, other housing needs should also be assessed.
“The Black Homeownership Strike Force put a tremendous amount of thoughtful work into crafting their recommendations, which I believe have the potential to both increase opportunities and prevent the loss of ownership for Black households,” White explained.
The At-Large council member also noted that it was important to carefully track how the District is meeting Black homeownership goals as the Strike Force is creating and implementing recommendations.
“We also must recognize that homeownership is not possible, or the right fit, for everyone, so we need to strike the right balance between homeownership, affordable renting, and vouchers to meet the housing needs and goals of all of our residents.”
Reid said she assists people looking for homes “in the most powerful city in the world,” but the reality is that few can afford to purchase a home in D.C. She sees college professors who can’t afford to live in the community where they teach. She has friends who send their children away to college, and they can’t afford to come back to the District to live.
She points out that affordable homes exist in Wards 7 and 8, but many require lots of work. “Investors come and buy those up,” she said. “You take away the ability for someone to have homeownership. All of that is being erased.”
In April, DHCD and the Department of Human Services (DHS) hosted an open house for a home in Northeast that was to become available on the market for a low-income first-time homebuyer.
“I hope the message is clear: we are creating many pathways to homeownership in D.C.,” Mayor Bowser said in a statement at that time. “We have pathways for people on the low end of the income spectrum, pathways for people in the middle, and pathways for people who never thought that owning a home in D.C. is something that could happen for them – it can. We want our residents to stay in D.C.– and not just stay here, but stay here and build wealth here.”
Tax assessment records show the home sold for $400,000.
Government and public experts in housing and financial counseling, lending/underwriting, real estate development and services made up the strike force. It also included members from the faith-based, senior, immigrant, and LGBTQ+ communities and advocates and representatives that address social and racial equity.
Reid said investors buying affordable housing was a major challenge because they entice sellers with cash offers and quick settlements.
“They have the money to come in and outbid the homeowner who is trying to buy a house,” she said.
The Avanti Real Estate founder said that affordable housing challenges are systemic.
“It’s not just happening here. It’s all over the country,” Reid said. The challenge to us is what do you do to overcome this. You have a steamroller and you have no defenses.”
“…investors buying affordable housing was a major challenge because they entice sellers with cash offers and quick settlements.”
According to Mayor Bowser’s Black Homeownership Final Report, in 2021, institutional investors comprised between 13% – 25% of DC’s total residential sales. If this is anywhere near true, it suggests a staggering problem now and ahead for ordinary DC homebuyers. Investors can often easily out-compete ordinary homebuyers, especially first time homebuyers. Plus, investors often will convert single-family homes into rentals.
I chair a Housing Committee in Ward 5. If anyone’s interested in exploring ways of getting a handle on this problem, contact me at carolinepetti@yahoo.com.