Renters in the District’s affordable housing units are making a clear statement by not paying their rents: the cost is too high. During a press conference held at City Hall earlier this month, Mayor Muriel Bowser, alongside a panel of housing leaders and affordable housing providers stated that rent collection in Washington, D.C., is at an all-time low.
Pointing to the global coronavirus pandemic when renters–and homeowners alike–around the nation were unable to make housing payments, one housing provider said “the impacts [of COVID] continue to be felt very deeply here [in D.C.], more so than anywhere else.”
In an effort to “rebalance” expectations for tenants and “protect” the existing affordable housing marketplace, the mayor introduced new, emergency legislation that will restore rent and eviction notices to the pre-pandemic timeline of six months, compared to the current 24 months.
“The purpose is not to increase evictions,” said Deputy Mayor Nina Albert during the press conference. “The purpose is to bring the tenant and the landlord to the table earlier and faster. This allows workouts to occur and this allows for a real dialogue and to address the tenants’ issues as to why they are not able to pay. We also want to make sure that we can strengthen the ability of landlords for the protection of the tenants in their building, that if there is a single tenant that has been arrested or convicted of a violent crime that there is an expedited process for eviction.”
Legislation Doubling as a Golden Parachute
While the effort aims to protect renters and developers, the legislation which may seem prohibitive or invasive could, in fact, inspire residents to consider transitioning into homeownership. Becoming master of one’s own domain traditionally helps former renters appreciate the benefits of ownership and feel empowered to care for a home with the understanding that no one can intervene in decision making or creep in with rules.
“I think it’s a wonderful opportunity and there have been opportunities before but the average renter doesn’t have the credit rating,” said Phyllis Cureton, a real estate agent for Samson Properties and Brookland landlord. “Even when they come to me as a landlord, their credit isn’t stellar. I tell people all the time, go to HPAP, NACA, Manna. All of them have programs that will help you get ready and in shape for buying a house and getting your credit ready. Here are all these free systems you can use to learn more and prepare yourself for a mortgage and that will help you with interest rates, down payment assistance. They’re wonderful programs.”
Fort DuPont resident and luxury real estate agent Julian Reynolds Williams agrees. She, too, referred to the District’s home buying initiatives including the Home Purchasers Assistance Program (HPAP), Neighborhood Assistance of Corporate American (NACA) and Manna Homes, in addition to the Employer-Assisted Housing Program for District employees that renters and return homebuyers can take advantage of if they choose to use this moment to transition from renting.
“Homeownership is always a good idea,” said Williams, who is licensed to sell homes in D.C. and Florida. “The fact that the District has these resources in place to actually help people become homeowners, I’m surprised most people aren’t taking advantage of it. Not everyone has that nest egg. This generation is not nest egging and they don’t have up front cash. Other than credit, that’s usually the challenge is to have that chunk of change to put down. ”
Financial Strain, Impact for Developers
In Maryland, Pennsylvania and Virginia, rent collections are $.96 to the dollar for every $1 owed, which is consistent across the nation. However, Janine Lind, president of the Community Development Division of Enterprise Community Partners said the District’s collection rate is not sustainable and is causing her not-for-profit company to curb spending on services for residents that are paying their rent.
In addition to rents not being paid, subsidies or vouchers aren’t coming in because residents haven’t reapplied for reinstatement, and court systems have not helped to facilitate payment, said Lind. Furthermore, the loss of income is keeping the company from getting approved bank loans for new affordable housing properties in Washington.
“For Enterprise Community Development in 2021, we were on average running an annual $1.3 million in unpaid rent across our 17 properties in the District, very manageable for us to work through and continue to work with our residents,” said Lind who leads the largest mission-focused affordable housing provider in the region. “In 2024 last year, that was over $7 million. That becomes unsustainable for the projects to really bear. Twenty percent of our residents are not paying rent, and at some properties it’s as high as 50%.”
The lack of rent income impacts property owners’ ability to provide renters the services required to keep up buildings like security, parking lot lighting and basic repairs. The deficit also impacts property owners’ bottom line and track record when seeking financing for additional development projects in the District.
“On the development front, the traditional tax credit housing investors and lenders are staying away from the District,” said Lind. “They won’t provide equity for us anymore, they won’t provide loans anymore. That’s the risk for us … and other developers. We have projects out there that we acquired … that we wanted to redevelop and make affordable in perpetuity that are now on hold and we don’t have the funding to be able to actually develop these communities which actually puts them at risk.”
With planning and dedication, renters may be able to use this moment to investigate home ownership, using resources from the DC Department of Housing and Community Development. Substituting affordable housing rental vouchers with programs that cover down payments and provide tax deferments and interest free loans may be equally as, if not more cost-effective, result in a more long-term stability and a feeling of pride in ownership.
“D.C. has the resources and structures to become homeowners,” said Williams. “At the end of the day, we all know what the economy is like. Not everyone has that nest egg. This generation is not nest egging and they don’t have up front cash. Other than credit, that’s usually the challenge is to have that chunk of change to put down. Coming from South Florida to D.C., I am just so shocked how supportive the District is towards home buying.”
Very informative.