The Washington D.C. 2020 - 2025 Housing Initiative : reviewing the incentives and barriers to real estate developers' creation of affordable housing

Abstract

The government of the District of Columbia in 2019, unveiled a 2020 - 2050 Housing Production Goal popularly tagged "#36000by2025". The Initiative details Washington DC's goal to develop 36,000 new housing units in partnership with developers in the city, including 12,000 affordable housing units between the years 2020 and 2025. The Initiative seeks to reduce homelessness, alleviate the constrained local housing market, and preempt an anticipated housing shortage in relation to the forecasted economic and population growth in Washington DC. This thesis focuses on identifying and analyzing the types of incentives or barriers for developers to add additional affordable housing. This thesis first explores the details of this Initiative, reviewing its history and the factors that led to its creation. The thesis will also review its specific goals and proposed methods towards achieving them.

Through a literature and policy review, the thesis defines the framework within which the city and developers define affordability for housing development projects. The thesis then looks to real estate developers operating in the city who have or intend to proceed with market-rate, mixed-income, and affordable housing projects. Through interviews, an analysis of housing development trends, and a review of upcoming housing projects, the thesis seeks to understand what challenges developers face with the housing affordability requirements and how Washington DC's Initiative and Comprehensive Plan affects their developmental goals. The thesis will also review what barriers real estate developers face and explore how they can be overcome. This thesis will also pivot to Washington DC Government's planning process to review what incentives are being proposed which encourage both new affordable housing development and the preservation of endangered affordable units.

Via interviews and literature review, the thesis explores possible areas of improvement on the initiative that meet the city's goals and support real estate developers' ambitions. Keywords: Real Estate Development, Multifamily Housing, Affordable Housing, Washington DC, #36000By2025, Community Benefits.