Dear Ward 5 neighbors,
As you may remember from a newsletter I sent back in August, the District is facing a crushing combination of pressures threatening affordable housing. These pressures are not merely “bringing construction of low-income housing to a virtual halt,”they are also jeopardizing existing affordable housing buildings, their current tenants, and the investments that the District has made in affordable housing units.
The reasons for the crisis are complex, but the pressures facing landlords big and small are simple: not enough rent is coming in to pay mortgages and for the upkeep of buildings. When a building goes underwater and there is no prospect for recovery, the likelihood that a creditor will cut its losses and seek foreclosure goes up. When a building is foreclosed, tenants do not immediately lose their right to live in the building; however the affordability covenants that limit the cost of their rent are likely to be swept away permanently, which means that many tenants—including those who have been paying rent—would be unable to afford their units. It also means that the District would lose millions of dollars that we invested to keep those units affordable.
