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District of Columbia Official Code 2001 Edition. |
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Division I. Government of District. |
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Title 6. Housing and Building Restrictions and Regulations. |
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Chapter 10. Community Development. |
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Subchapter III-A. Workforce Housing Production Program. |
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Part A. Workforce Housing Land Trust Design and Implementation Plan Approved.
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(a) The District of Columbia faces a severe shortage of affordable housing. Recent increases in housing prices have far outpaced the growth in wages and salaries of many workers. District government employees have not been immune from these pressures. Only 37% of the District government workforce earning more than $40,000 resides in the District.
(b) The Washington region's growth in housing prices has outpaced most other metropolitan areas in the country. It ranks 2nd in house price increases for the 3-year period between 2002 and 2005. In July 2005, the District of Columbia had the highest average sales price in the region at about $543,700, which was higher than the richer surrounding jurisdictions of northern Virginia and suburban Maryland.
(c) The Mayor and the Council established the Comprehensive Housing Strategy Task Force in 2003 to help the city respond to the critical housing problems created by the housing boom.
(d) The Comprehensive Housing Strategy Task Force report of 2006 recommended a specific tool for solving the growing workforce housing problem. The report recommended the formation of one or more community land trusts run by public, nonprofit, or other community-based entities whose mission would be to acquire land and hold it long-term while providing long-term leases to developers of housing for both rental and for-sale units. This approach advances the important objective of creating 'permanent affordability' or guaranteeing that units remain affordable indefinitely.
(e) The Deed Transfer and Recordation Emergency Amendment Act of 2006, effective August 8, 2006 (D.C. Act 16-477; 53 DCR 7068) ("emergency act") established the Mayor's Comprehensive Housing Task Force Fund. For fiscal year 2007 only, an amount of $5 million was allocated for the production of workforce housing; provided, that eligibility for purchase or rental of workforce housing shall be limited to households with incomes not exceeding 120% of the area median income as defined in § 42-2801(1) ("AMI"); and, provided further, that all housing units developed with funds from the Fund shall be leased or sold on to eligible households for the life of the unit. The emergency act required the Mayor to submit to the Council, for review, a workforce housing development plan.
(f) The Office of the Deputy Mayor for Planning and Economic Development ("ODMPED") initiated work on the development plan beginning in July 2006.
(g) The District of Columbia Workforce Housing Land Trust Design and Implementation Plan ("Plan") is the product of a collaborative effort between the District government, private lenders, nonprofit housing advocates, and for-profit and nonprofit developers. The Plan was submitted by the Mayor to the Council for approval as required by the emergency act.
(h) The Plan recommends the formation of a nonprofit community land trust that will provide high leverage for subsidy dollars and create permanent affordability in 10,000 housing units in Washington, D.C., beginning with a 1,000-unit pilot program financed in part with New Markets Tax Credits.
(i) The land trust is designed to maximize unit production; leverage public and private resources; provide permanent affordability; ensure flexibility and portability; promote wealth building; and ensure efficient administration.
(j) Once approved, the Plan will efficiently support the New Communities and Great Streets Initiatives as well as instrumentalities such as the Anacostia Waterfront Corporation and the National Capital Revitalization Corporation in achieving affordable housing development objectives.
(Mar. 14, 2007, D.C. Law 16-278, § 101, 54 DCR 895.)
HISTORICAL AND STATUTORY NOTES
Emergency Act Amendments
For temporary (90 day) provisions, see § 2142 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).
Legislative History of Laws
Law 16-278, the "Workforce Housing Production Program Approval Act of 2006", was introduced in Council and assigned Bill No. 16-812, which was referred to Committee on Consumer and Regulatory Affairs. The Bill was adopted on first and second readings on December 5, 2006, and December 19, 2006, respectively. Signed by the Mayor on December 28, 2006, it was assigned Act No. 16-635 and transmitted to both Houses of Congress for its review. D.C. Law 16-278 became effective on March 14, 2007.
Delegation of Authority
Delegation of authority to Title I of the Workforce Housing Production Program Approval Act of 2006, see Mayor's Order 2007-180, August 3, 2007 (54 DCR 11614).
Delegation of Authority to the Director of the Department of Housing and Community Development under Title I of the Workforce Housing Production Program Approval Act of 2006, see Mayor's Order 2009-168, September 30, 2009 (56 DCR 8101).
Miscellaneous Notes
Short title: Section 2141 of D.C. Law 17-20 provided that subtitle N of title II of the act may be cited as the "Workforce Development Plan Conceptual Submission Act of 2007".
Section 2142 of D.C. Law 17-20 provides: "No later than November 1, 2007, the Deputy Mayor for Planning and Economic Development shall submit to the Council conceptual development plans for the redevelopment of 2 surplus District properties as affordable workforce housing targeting District of Columbia public school and public charter school teachers. The plans for the sites shall not include the fee simple sale of the land to non-governmental entities."
(a) A nonprofit community land trust shall be formed pursuant to the Plan recommendation.
(b) The Office of the Deputy Mayor for Planning and Economic Development shall issue a request for proposal inviting organizations which are tax-exempt pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, approved August 6, 1954 (68A Stat. 163; 26 U.S.C. § 501(c)(3)), to submit proposals for development and administration of the nonprofit community land trust consistent with this part and rules promulgated pursuant to this part.
(c) The land trust shall develop a pilot program to develop 1,000 units of workforce housing within 3 years of March 14, 2007.
(d)(1) The land trust shall develop units affordable to households not to exceed 120% of AMI.
(2) The land trust's portfolio shall have an average not to exceed 80% of AMI.
(3) The 80% portfolio average requirement shall be evaluated for compliance on an annual basis, beginning 12 months after March 14, 2007.
(e) The land trust shall offer the qualified housing units for sale to prospective buyers pursuant to procedures developed by the land trust and based upon the following priority list in the following order:
(1) Employees of the District of Columbia and its instrumentalities;
(2) District residents who are first-time homebuyers;
(3) Other District residents; and
(4) The general public.
(f)(1) The Mayor may take any action reasonably necessary or appropriate in accordance with this part in connection with the preparation, execution, and issuance of a trust instrument to be entered into by the District and a trustee to be selected by the Mayor pursuant to the process as established in subsection (a) of this section.
(2) The trust instrument shall govern the expenditure of funds authorized under this part and shall set forth the terms and conditions precedent to such expenditure, including evidence of firm funding commitments of private equity and debt.
(g)(1) The Office of the Deputy Mayor for Planning and Economic Development shall aggressively market the pilot program to employees of the District government and shall be responsible for:
(A) Maintaining a wait list of prospective District employee and District instrumentality employee buyers of workforce housing units being developed with District government funds, or on District government land;
(B) Providing the Council with quarterly reports that detail:
(i) The number of people on the wait list by household income and whether a person is employed at a district government department, independent agency, or instrumentality; and
(ii) The location, price, and expected delivery date of workforce housing units currently being developed with District government funds or on District land; and
(C) Notifying persons on the wait list of when units are available for purchase or rent.
(2) The wait list may include non-District government employees; and
(3) The Mayor may utilize his discretion in the prioritization of persons on the wait list.
(g-1) The Deputy Mayor for Planning and Economic Development shall conduct a survey of employees of the District government and its instrumentalities to assess the demand for workforce housing, rental and ownership, in the District of Columbia among these employees. The Deputy Mayor for Planning and Economic Development shall submit the results of the survey to the Council no later than December 31, 2007.
(h) The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this part.
(i) Within 60 days after the close of each fiscal year, as established by the land trust, the land trust shall submit a report to the Mayor and the Council on the status of the workforce housing pilot program and the Housing Production Trust Fund, established pursuant to § 42-2802. At the conclusion of the pilot program, or within 3 years after March 14, 2007, whichever is sooner, the Mayor shall submit a final report of the pilot program, which report shall include recommendations for a permanent workforce housing program.
(j) For the purposes of this section, the term "household" means all the persons who occupy a housing unit, whose occupants may be a single family, one person living alone, 2 or more families living together, or any other group of related or unrelated persons who share living arrangements.
(k)(1) The land trust shall require that all units developed under the program remain perpetually affordable.
(2) To guarantee permanent affordability, the land trust may:
(A) Utilize the long-term affordability approach outlined in the Plan,
(B) Base future price increases and return to sellers on an annual inflator index; or
(C) Any other method designed to assure permanent affordability consistent with this part.
(3) District funds provided to the land trust shall be redistributed as loans payable to the land trust in a manner determined by the land trust.
(l) Funds authorized for fiscal year 2007 shall be committed prior to October 1, 2007.
(m) Notwithstanding any other provision of law, City First Bank is authorized to release up to $1,800,000 located in an escrow account for City First Enterprises ("CFE") to CFE.
(1) Within 30 days of September 20, 2012, the land trust shall submit a report to the Mayor and to the Council detailing:
(A) The number of units that will be developed using the funds released from escrow pursuant to this subsection;
(B) The total number of units that will be developed, using funds received by CFE pursuant to this subsection and subsection (c) of this section, and the total cost per unit; and
(C) Continued compliance with subsection (d) of this section.
(2) The land trust shall utilize all the funds released from escrow pursuant to this subsection within 18 months of September 20, 2012.
(3) By November 29, 2012, the land trust shall submit a report to the Mayor and the Council on the status of the funds released from escrow pursuant to this subsection and the number of units that have been developed to date.
(4) After CFE fully expends the funds released from escrow pursuant to this subsection, or within one year after September 20, 2012, whichever is earlier, the Mayor shall submit a final report to the Council that shall include recommendations for a permanent workforce housing program.
(5) Within 60 days of CFE expending the funds released from escrow pursuant to this subsection, the land trust shall file annual reports detailing continued compliance with subsection (d) of this section.
(Mar. 14, 2007, D.C. Law 16-278, § 102, 54 DCR 895; Sept. 18, 2007, D.C. Law 17-20, § 2112, 54 DCR 7052; Dec. 24, 2008, D.C. Law 17-285, § 2(a), 55 DCR 11986; Mar. 25, 2009, D.C. Law 17-353, § 163, 56 DCR 1117; Sept. 20, 2012, D.C. Law 19-168, § 2182, 59 DCR 8025.)
HISTORICAL AND STATUTORY NOTES
Effect of Amendments
D.C. Law 17-20 rewrote subsec. (f) and added subsec. (f-1). Prior to amendment, subsec. (f) read as follows:
"(f)(1) The Office of the Deputy Mayor for Planning and Economic Development shall aggressively market the pilot program to employees of the District government and shall be responsible for:
"(A) Maintaining a wait list of prospective District employee and District instrumentality employee buyers of workforce housing units being developed with District government funds, or on District government land;
"(B) Providing the Council with quarterly reports that detail:
"(i) The number of people on the wait list by household income and whether a person is employed at a District government department, independent agency, or instrumentality; and
"(ii) The location, price, and expected delivery date of workforce housing units currently being developed with District government funds or on District land; and
"(C) Notifying persons on the wait list of when units are available for purchase or rent.
"(2) The wait list may include non-District government employees; and
"(3) The Mayor may utilize his discretion in the prioritization of persons on the wait list."
D.C. Law 17-285 rewrote subsec. (g); and ,in subsec. (i), substituted "Within 60 days after the close of each fiscal year, as established by the land trust, the land trust shall submit a report to the Mayor and the Council on the status of the workforce housing pilot program and the Housing Production Trust Fund, established pursuant to § 42-2802." for "Within one year after March 14, 2007, the Mayor shall submit a report to the Council on the status of the workforce housing pilot program." Prior to amendment, subsec. (g) read as follows:
"(g) The Office of the Deputy Mayor for Planning and Economic Development shall aggressively market the pilot program to employees of the District government."
D.C. Law 17-353 validated previously made technical corrections that redesignated the former second subsec. (b) as subsec. (c) and redesignated former subsecs. (c) to (k) as subsecs. (d) to (l).
D.C. Law 19-168 added subsec. (m).
Temporary Amendments of Section
For temporary (225 day) amendment of section, see § 2(a) of Workforce Housing Production Program Temporary Amendment Act of 2007 (D.C. Law 17-44, November 24, 2007, law notification 55 DCR 3).
Section 2(a) of D.C. Law 17-244 amended subsec. (g) to read as follows:
"(g) The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; D.C. Official Code § 2-501 et seq.), may issue rules to implement the provisions of this title.".
; and, in subsec. (h), substituted "Within 60 days after the close of each fiscal year, as such fiscal year is established by the land trust, the land trust shall submit a report to the Mayor and the Council on the status of the workforce housing pilot program and the use of funds from the Housing Production Trust Fund, established pursuant to section 3 of the Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C. Law 7-202; D.C. Official Code § 42-2802)." for "Within one year after the effective date of this title, the Mayor shall submit a report to the Council on the status of the workforce housing pilot program."
Section 5(b) of D.C. Law 17-244 provides that the act shall expire after 225 days of its having taken effect.
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 2112 of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).
For temporary (90 day) amendment of section, see § 2(a) of Workforce Housing Production Program Emergency Amendment Act of 2007 (D.C. Act 17-104, July 27, 2007, 54 DCR 8212.
For temporary (90 day) amendment of section, see § 2(a) of Workforce Housing Production Program Congressional Review Emergency Amendment Act of 2007 (D.C. Act 17-201, November 26, 2007, 54 DCR 11903).
For temporary (90 day) amendment of section, see § 2(a) of Workforce Housing Production Program Emergency Amendment Act of 2008 (D.C. Act 17-440, July 16, 2008, 55 DCR 8290).
Legislative History of Laws
For Law 16-278, see notes following § 6-1061.01.
Law 17-20, the "Fiscal Year 2008 Budget Support Act of 2007", was introduced in Council and assigned Bill No. 17-148 which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on May 15, 2007, and June 5, 2007, respectively. Signed by the Mayor on June 28, 2007, it was assigned Act No. 17-63 and transmitted to both Houses of Congress for its review. D.C. Law 17-20 became effective on September 18, 2007.
Law 17-285, the "Workforce Housing Production Program Amendment Act of 2008", was introduced in Council and assigned Bill No. 17-279 which was referred to the Committee on Housing and Urban Affairs. The Bill was adopted on first and second readings on July 1, 2008, and October 7, 2008, respectively. Signed by the Mayor on October 27, 2008, it was assigned Act No. 17-551 and transmitted to both Houses of Congress for its review. D.C. Law 17-285 became effective on December 24, 2008.
For Law 17-353, see notes following § 6-201.
For history of Law 19-168, see notes under § 6-227.
Miscellaneous Notes
Short title: Section 2111 of D.C. Law 17-20 provided that subtitle L of title II of the act may be cited as the "Centralized Affordable Workforce Housing Unit Amendment Act of 2007".
Short title: Section 2181 of D.C. Law 19-168 provided that subtitle S of title II of the act may be cited as "Workforce Housing Production Program Amendment Act of 2012".
The Plan, as amended by this part, is approved.
(Mar. 14, 2007, D.C. Law 16-278, § 103, 54 DCR 895.)
HISTORICAL AND STATUTORY NOTES
Temporary Addition of Section
For temporary (225 day) addition, see § 2(b) of Workforce Housing Production Program Temporary Amendment Act of 2007 (D.C. Law 17-44, November 24, 2007, law notification 55 DCR 3).
Section 2(b) of D.C. Law 17-244 added a section to read as follows:
"Sec. 104. Authority to transfer moneys to the workforce housing pilot program from the Housing Production Trust Fund and the Industrial Revenue Bond special account.
"(a) The Mayor may transfer $4 million from the Housing Production Trust Fund to such accounts or sub-accounts as may be established pursuant to the trust agreement to be entered into pursuant to section 102(e).
"(b)(1) The Mayor may transfer $1 million from the Industrial Revenue Bond special account established under D.C. Official Code § 47-131(c)(4) to such accounts or sub-accounts as may be established pursuant to the trust agreement to be entered into pursuant to section 102(e).
"(2) The funds transferred pursuant to this subsection may be used to assist households whose annual incomes do not exceed 120% of the area median income; provided, that the annual incomes of the households assisted through an allocation or proceeds from the Housing Production Trust Fund, established pursuant to section 3 of the Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C. Law 7-202; D.C. Official Code § 42-2802), shall not exceed 80% of the area median income.
"(3) For the purposes of this subsection, the term "area median income" shall have the same meaning as provided in section 2(1) of the Housing Production Trust Fund Act of 1988, effective March 16, 1989 (D.C. Law 7-202; D.C. Official Code § 42-2801(1)).".
Section 5(b) of D.C. Law 17-244 provides that the act shall expire after 225 days of its having taken effect.
Emergency Act Amendments
For temporary (90 day) addition, see § 2(b) of Workforce Housing Production Program Emergency Amendment Act of 2007 (D.C. Act 17-104, July 27, 2007, 54 DCR 8212).
For temporary (90 day) addition, see § 2(b) of Workforce Housing Production Program Congressional Review Emergency Amendment Act of 2007 (D.C. Act 17-201, November 26, 2007, 54 DCR 11903).
For temporary (90 day) addition, see § 2(b) of Workforce Housing Production Program Emergency Amendment Act of 2008 (D.C. Act 17-440, July 16, 2008, 55 DCR 8290).
Legislative History of Laws
For Law 16-278, see notes following § 6-1061.01.
(a) The Mayor may make a one-time transfer of $4 million from the Housing Production Trust Fund to such accounts or sub-accounts as may be established pursuant to the trust agreement to be entered into pursuant to 6-1061.02(e).
(b)(1) The Mayor may make a one-time transfer of $1 million from the industrial revenue bond special account established under § 47-131(c)(4) to such accounts or sub-accounts as may be established pursuant to the trust agreement to be entered into pursuant to 6-1061.02(e). The funds transferred pursuant to this subsection may be used to assist eligible households whose annual incomes do not exceed 120% of the area median income.
(2) For the purposes of this subsection, the terms "area median income" and "eligible households" shall have the same meanings as provided in § 42-2801.
(Mar. 14, 2007, D.C. Law 16-278, § 104, as added Dec. 24, 2008, D.C. Law 17-285, § 2(b), 55 DCR 11986.)
HISTORICAL AND STATUTORY NOTES
Legislative History of Laws
For Law 17-285, see notes following § 6-1061.02.
