The Washington D.C. Housing Fund New Policy prioritizes preserving existing affordable housing units and expanding mixed-income developments through increased funding and tax incentives. It allocates $200 million annually to support nonprofit housing developers and public-private partnerships, targeting neighborhoods with high displacement risks. The policy also mandates that 40% of new projects include income-restricted units for low

and moderate-income families.

This initiative addresses DC’s critical affordable housing shortage, with 45% of residents spending over 30% of income on rent (DC Housing Authority, 2023). The policy targets preservation due to the city’s rapid gentrification, which has led to the loss of 12,000 affordable units since 2018 (DC Council, 2022). Mixed-income developments aim to stabilize neighborhoods by attracting diverse income levels, reducing racial disparities in housing access. For example, Ward 8 saw a 22% increase in affordable housing stock after a 2021 pilot project funded by the Housing Fund (Urban Institute, 2023).

Data underscores the urgency: DC has only 12% of housing units classified as affordable, far below the 25% national standard (National Low Income Housing Coalition, 2023). The $200 million annual allocation covers 10% of the total $1.8 billion needed to meet the city’s 2027 goal of 36,000 new affordable units (DC Fiscal Policy Institute, 2024). Tax credit programs have preserved 8,200 units since 2020, but 12,000 more are needed by 2027 (DC Council, 2022). Public-private partnerships have a 30% success rate in delivering projects on time and under budget, as seen in the 2021-2023 pilot phase (DC Office of Planning, 2023). By focusing on high-displacement areas like Wards 7 and 8, where Black households are 50% more likely to face displacement (Urban Institute, 2023), the policy aims to reduce systemic inequities. The 40% income-restricted unit mandate aligns with the 2024 budget, which projects 8,500 new affordable units will be created through this approach (DC Budget Office, 2024). This comprehensive strategy balances preservation, new construction, and equity to address DC’s housing crisis.