The New Development Wars:

As wave of projects begin to sprout, so do disputes

Cross-posted from the Washington Post Written by Jonathan O’Connell

New apartments and shops are spreading into neighborhoods across the Washington region, with developers looking to capi­tal­ize on a better-than-average economy and a massive influx of young adults.

Apartment hunters have wider options, more residents have grocery stores in their neighborhoods and, with dozens of new restaurants and bars, Washington has begun to change its reputation as a gray-suit government town.

Many residents are celebrating the changes. But others aren’t.

And as this new wave of development rises, a chasm between its champions and its skeptics is beginning to show.

In Northeast D.C., Ivy City residents have sued to try to prevent Mayor Vincent C. Gray (D) from relocating a bus depot for dozens of private buses into their neighborhood to make way for upgrades at Union Station.

In Washington Highlands, one of the poorest parts of the District, public housing residents sued the D.C. Housing Authority out of concern that they would be permanently displaced from their homes when their units at Highland Dwellings were refurbished.

It isn’t just the low income or disenfranchised who are fighting back. In Wheaton, residents turned away a mixed-use proposal pushed by Montgomery County Executive Isiah Leggett (D). Residents in Reston have formed an advocacy group, Rescue Reston, and say they have gathered 650 signatures opposing the possible redevelopment of Reston National Golf Course.

There have always been battles between residents and the developers, planners and city officials proposing alterations to neighborhoods. But with the economy gaining steam and apartment construction booming, disputes that faded during the recession are beginning to boil again.

“I think in many ways it’s the same, but now we have many more examples of how these communities are getting screwed over,” said Parisa Norouzi, director of the community organizing group Empower D.C.

‘No trust’

Empower D.C. battled former mayor Adrian M. Fenty’s attempts to close excess schools and lease the buildings to developers, projects that Norouzi said were driven by “gentrification or private profit.” She says those battles have better prepared residents and organizers for disputes such as the bus relocation, which Empower D.C. and residents are fighting in D.C. Superior Court. “At this point, there is really no trust in the process,” she said.

A hearing on the case is expected Tuesday. A Gray spokesman declined to comment.

In other instances, the opponents to zoning changes or development are the well-heeled. Neighborhoods in wealthier parts of Northwest D.C. are raising concerns about parking shortages under proposed changes to the District’s zoning code, while in Reston the concern is a lack of green space should the golf course’s owner try to build a project to capi­tal­ize on the construction of two Silver Line Metro stations nearby.

Some Wheaton residents rejected plans to create a mixed-use downtown project because it might resemble the redevelopment of Silver Spring — a success to some but not others. “We know how many small businesses struggled and went out of business in Silver Spring,” Bob Schilke, owner of the Little Bitts Shop of cake supplies, told the Montgomery County Council in February.

Sometimes even the terms used to describe development have have taken on widely different meanings. The D.C. Housing Authority became the envy of other cities in winning seven grants under the federal HOPE VI program, which enabled the District to overhaul blighted public housing projects into mixed-income neighborhoods.

The agency’s renovation of Highland Dwellings, east of Bolling Air Force Base, isn’t a HOPE VI program and no market rate units are even being built. But spokeswoman Dena Michaelson said the agency could have done a better job making that clear to avoid the lawsuit it faced (and since settled).

 

Affordable Housing is a Nationwide Struggle

On April 15, 2011 the United States House of Representatives approved a Budget Resolution for 2012 proposed by conservative Wisconsin Representative Paul Ryan. Ryan’s resolution, if passed, will abolish Medicare and mandate budget cuts totaling $5.5 billion to Housing and Urban Development programs starting in October 2011. All of these cuts target low- and moderate-income people and add up to more than double the amount cut in 2010.

The House budget also calls for work requirements, time limits and rent increases for elderly, disabled and low income tenants receiving HUD assistance. Currently, the House Budget Committee plans to cut 14% of HUD programs across the board, leaving 294,000 Voucher families, 150,000 Public Housing families, and 180,000 Project Based Section 8 families without homes beginning in October. If these cuts are applied proportionately to Washington, D.C., 1520 Voucher families, 1100 Public Housing families, and 1540 Project Based Section 8 families will lose their homes.

Earlier this year, the Save Our Homes Coalition—representing tenants who live in Section 8 public housing programs as well as housing voucher recipients from across the country—coordinated a national day of action to protest the proposed cuts to the HUD budget in Fiscal Year 2011. Nineteen cities participated in a series of actions that took place on Valentine’s Day, including Washington, DC. Grassroots Media Project ally, Judith Hawkins of Valencia’s It Is What It Is Mobile Talk Show, along with Project trainees from Different Avenues, Grace Ebiasah and Jasmine Archer, produced the following video.

As a result of the nation-wide “Have a Heart-Save Our Homes” rallies, like the one shown above, as well as other pressure from the Left, deep cuts to HUD rental housing programs were avoided. However, Republicans have again called for deep spending cuts. This time they are tied to the increase in the US debt ceiling, which must be voted on by August 2 to avoid a US government default. To avoid further cuts, tenants are urging support for alternative revenues by taxing the wealthy and closing loopholes for giant corporations that paid no federal taxes in 2010.

According to US Uncut, a self-described grassroots movement taking direct action against corporate tax cheats and unnecessary and unfair public service cuts across the United States, Bank of America paid no federal income taxes in 2010. In fact, BOA received a tax refund of $666 million—despite record profits and lavish taxpayer bailouts. US Uncut and others estimate that making large corporations pay their fair share would generate as much as $100 billion per year. If BOA paid their fair share at the supposed “corporate income tax rate” of 35%, $4.2 billion in cuts could be avoided—enough to prevent the deep cuts to HUD rental programs proposed by the House Budget Committee for FY 2012.

To that end, low income tenant leaders and organizations from across the nation will come together June 21, to urge the US Treasury to “Tax the Cheats and Save Our Homes.” The National Alliance of HUD Tenants and local organizations Empower DC, ONE DC and the Community for Creative Non-Violence urge everyone suffering under DC’s affordable housing crisis to join them at the following rally at the Bank of America and the US Treasury.

Tax the Cheats, Save Our Homes Rally Tuesday, June 21, 2011 10:30 – 11:30 am 730 15th Street NW (Bank of America) Washington, DC 20005

Tuesday’s demonstration will feature tenant leaders from across the nation gathered in Washington, D.C. for the annual conference of the National Alliance of HUD Tenants (NAHT), the nation’s only national tenants union. They will be joined by tenants and homeless people from DC, including Empower DC, ONE DC, and the Community for Creative Non-Violence. For more information, contact Empower DC, affordable housing organizer Linda Leaks at 202-234-9119.

 

Tenants of HUD Subsidized Apartments Demand Information

Tenants Protest Outside of NLHA Headquarters

We all know that the supply of quality affordable housing in the District of Columbia is dwindling and has been for decades. This is not a problem unique to the District of Columbia, nor is it only a problem during bad economic times. Finding affordable housing during the relatively lucrative 90s, for instance, was not much easier than it is now.

Fortunately, there are federal programs that subsidize the cost of housing that local governments can use to help low- and moderate-income residents. The amount of affordable housing available dependents in part on regulations that determine things like how many units of an apartment building must be designated affordable and how low the rent must be before it fits into that category.

Landlords are often able to purchase buildings for relatively little money if they make a contract with a city or other jurisdiction to provide affordable housing. These property owners are aware of the regulations they must follow to remain in compliance with the subsidy program, but the tenants who make their homes in their buildings are often left in the dark.

The National Alliance of Hud Tenants is working to change that fact. Empower DC intern Chantal Taylor caught them in action as they took their case to the National Leased Housing Association on K Street.

Maturing Mortgages. Sounds Like A Good Thing, Right?

For the homeowner who’s been beholden to the bank for 30 years, finally paying off that mortgage is definitely a good thing. But when a landlord who has a contract with HUD to provide affordable apartments, pays off his or her debt to the bank, not everybody wins.

Everybody knows that DC has an affordable housing crisis. One source of housing for moderate and low-income residents of Washington, DC has been apartments regulated by the department of Housing and Urban Development. DC residents whose income is less than the median of $57,936 have turned to HUD for rent subsidized apartments. Property owners, looking for a good deal on a multifamily unit have bought these buildings at reduced rates. In exchange, they made the apartments available to residents receiving rental assistance. That arrangement stands for as long as the mortgage on the property is still in service, but once the building belongs to the landlord outright, he or she can do whatever they want with it. So, where does that leave the residents who live in the property?

Empower DC’s Linda Leaks is educating tenants who live in HUD properties whose mortgages are on the verge of expiration about their rights, and lobbying Congress to implement legislation that would safeguard low- and moderate-income tenants. WPFW reporter Peter Tucker interviewed her on the steps of the U.S. Capitol. It’s another story that you won’t hear on the nightly news or even read about in the Washington Post, but we have it here. A Massive Maturing of Mortgages [audio:http://www.grassrootsdc.org/wp-content/uploads/2010/06/Linda-Leaks-6-13-101.mp3]