By Mafara L. Spurlock

Coalition for Nonprofit Housing & Economic Development

DC NORTH

Affordability vs. Luxury

Can Full Funding of the Housing Production Trust Fund Settle the Imbalance?

ach year, the District’s Housing Production Trust Fund (HPTF) is threatened by financial restraints and budget cuts. The Trust Fund was put in place to provide financial assistance to nonprofit and for-profit developers to produce and preserve low and moderate-income housing.

The need for the Trust Fund is definitely increasing, and DC residents feel that full funding is absolutely paramount given the amount of new luxury development that’s underway in the District.

According to Northwest resident Clara Hargrove, “There is new development all around DC.  Luxury apartments, condos and lofts are popping up on every corner of the City . . . but, what about affordable housing? Where are people who can’t afford to pay $2,500 a month for rent supposed to live?”

Hargrove’s question is one that many residents and nonprofit developers have pondered for some time now. By law, the Trust Fund should receive 15 percent of the City’s annual real estate transfer and recordation taxes. And since the City is obviously in the middle of a real estate boom, the need for affordable housing is at an all-time high. In fact, the thriving market is suppose to generate more taxes, which in turn should create a steady flow of funding to the Trust Fund. But instead, each year, District residents, activists and local nonprofits are forced to band together to advocate for full funding.

Nonprofits, like Jubilee Housing, Inc., a member of the Coalition for Nonprofit Housing & Economic Development (CNHED) are working hard to produce and preserve affordable housing for thousands of Washingtonians, who in many cases, are being priced out of their neighborhoods.

Jubilee Housing owns the building where the Hargrove family resides. The Mozart building, located at 1613 Fuller, St., NW has been affordable to her and her family for about 13 years. “I’m so grateful to Jubilee,” said Hargrove. “I don’t know where we’d be if it weren’t for the affordability of our home.”

Unfortunately, affordability comes at price. Often times the low rent that affordable housing offers isn’t enough to maintain the building. “Our building is old,” admits Hargrove. “And there are plenty of things that need to be repaired.” The building is in need of structural repair and general maintenance.

The Mozart building is a perfect example of how the District’s HPTF can directly preserve affordable housing. Last year, this Jubilee Housing project was selected to receive Trust Fund funding by the Department of Housing and Community Development (DHCD).

According to Jubilee Housing’s Director of Community Relations Tom Howarth, “The Housing Production Trust Fund is one of the City’s best investments.  But in order to get maximum benefit from it, the District needs to fully fund the Trust Fund each year.”

And Hargrove agrees. “With all of the luxury units available in the City, there needs to be an offset of affordability for longtime residents who’ve been here through the ups and downs of the District,” she said.

Currently Jubilee Housing is negotiating the terms of its potential Trust Fund funding with DHCD. Once the deal is complete, renovations will promptly begin on the Mozart building.

“I, along with the other residents, can’t wait!’” exclaimed Hargrove. “We take pride in our building, and want to see it in tip-top shape.”

The Housing Production Trust Fund belongs to the residents of Washington, DC. As a resident you can get involved in advocating for full funding of the Trust Fund by becoming a Friend of the Fund (FOF). As an FOF you can join other concerned citizens and organizations in the fight to preserve affordable housing in the District by: participating in advocacy events, distributing HPTF materials, etc. Your name could also appear on correspondence sent to elected officials, and be used in publicity events and outreach to media. To sign up to become a Friend of the Fund, call Mafara Spurlock at 202.745.0902

Mafara Spurlock is the communications officer for the Coalition for Nonprofit Housing & Economic Development.