DC housing crisis looms as rent payments fall behind: 'People could be put on the street’
WASHINGTON - Experts are warning that some affordable housing developers in the District are on the verge of collapse. Now, lawmakers say it’s time to crack down on one of the key factors at the root of the problem: tenants not paying their rent.
According to insiders, affordable housing properties in Washington, D.C., could face closures in the coming months, potentially leaving thousands of residents without a home. This looming crisis has largely flown under the radar.
D.C. Councilmember Robert White, chairman of the Council's Housing Committee, expressed concern.
"One fear is that people could be put on the street if housing projects close down," White said.
White highlighted that for-profit developers of affordable housing in D.C. are nearing collapse.
"We are really reaching a crisis that most of us in D.C. have not seen in a long time. We're experiencing a significant slowdown in producing more housing, which will impact everyday people and make housing more expensive," he added.
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Industry analysts predict that more than 20,000 affordable housing units in D.C. are at risk of foreclosure. For instance, Meadow Green Courts in Southeast D.C. is facing severe issues.
According to Bisnow, a digital media company covering commercial real estate, of the 435 units at Meadow Green Courts, 336 are occupied, with 125 behind on rent.
Shirley Thompson Wright, a resident of Meadow Green Courts for over 25 years, voiced her concerns.
"We have issues with mold, mice, rats, roaches, and the owners becoming slumlords," Wright said. "We live here with no security. The owners say they can't pay for security. The buildings are falling apart, and they cannot invest in anything."
The company managing this property oversees 1,700 affordable housing units across 11 D.C. properties, with significant financial challenges exacerbated by the pandemic.
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Business articles indicate that this landlord group has never faced more than $1 million in unpaid rent.
Nina Albert, Deputy Mayor for Economic Development, acknowledged the situation, telling FOX 5, "We're working on a number of different solutions. We’re aware of the post-pandemic lag effect. There were policies in place to stabilize both tenants and landlords during the pandemic, and now we're seeing that lag continue. We’re trying to address it."
Additional factors, including rising interest rates, inflation, and increasing energy and maintenance costs, are also contributing to the difficulties developers face in managing their mortgages.