DC Auditor Independent Report on IZ: Key Highlights & Citations

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Review of key highlights from the DC Auditor Report on the 15-year IZ program showing the failure of this touted “affordability” program for the people of DC while serving as a luxury density boon for DC's real estate speculator class.

Report, “Stronger DHCD Oversight Needed for Inclusionary Zoning Program to Reach Housing Goals” published by Kathleen Patterson, District of Columbia Auditor, on November 20, 2024, https://dcauditor.wpenginepowered.com/wp-content/uploads/2024/11/Inclusionary.Zoning.Audit_.11.20.24.pdf



Auditor Report on IZ (“ARIZ”) highlights:

ARIZ at top of Page 3:
As of September 30, 2022, about 2,000 IZ units had been built. And, about 18,000 households were registered and waiting for an IZ unit.

ARIZ, Figure 2, at Page 3:
Shows that as of Sep. 2022, 65% of the IZ units were built for single-person and some two-person households (1,300 studio & 1-bedroom units had been built).

Looking at Figure 2 at Page 3 of ARIZ and looking at the Mayor's FY2022 IZ Annual Report also at Figure 2:

It appears that more than 4,600 IZ registrants are 3+ person households (families) vying for just one hundred and twenty-three (123) three+ bedroom IZ units built.

ARIZ, Page 5, 4th bullet-point:
Some of the current IZ participating households may be spending 50% of their income on housing costs (this is unlawfully not affordable).

ARIZ at page 10:
IZ units sit vacant for an average of about 400 days, some units have sat vacant for 1000 days.

ARIZ at pages 14 – 16:
Since DHCD is not enforcing IZ annual reporting it's hard to track how many IZ units have been vacant or remain vacant since they were built. “Without annual reports, DHCD is unaware of the number of vacant (IZ) units” (at page 16).

ARIZ, pp 17-18:
DHCD did not initiate enforcement action against property owners who violated IZ development covenant requirements. “Despite properties’ non compliance with income recertification, lease renewal, and annual report requirements, DHCD did not initiate enforcement actions against any property owners” (p18).


ARIZ at page 5:
IZ units serve households making “no more than 50%, 60%, or 80% of the MFI.” MFI stands for Median Family Income and is interchangable with AMI or the Area Median Income. And, according to the Mayor's Inclusionary Zoning Program 2022-2023 Maximum Income, Rent and Purchase Price Schedule, Effective July 1, 2022, figure at page 2, Single-household IZ registrants making $79,000 annually could qualify and live in an “affordable” IZ unit, and, a family of four making $113,850/yr could qualify for a 3-bedroom IZ unit.

ARIZ at page 5, footnote #8:
The AMI/MFI is increasing annually: “On April 1, 2021, the MFI in Washington, D.C., was $129,000 for a household of four. On April 18, 2022, the MFI rose to $142,300.” And, according to the Mayor's FY2022 IZ Annual Report, at Figure 4, more than half of IZ units have been built to serve the 80% AMI/MFI bracket of IZ-registered households (~1,050 / ~2,000 IZ units set at 80% MFI).
Side note: It's been reported that in Washington, DC, a family of four needs to make $275,000/yr to live “comfortably”. https://www.cnbc.com/2024/03/27/how-much-money-family-of-4-needs-to-live-comfortably-in-us-cities.html

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