• The next meeting will be on Thursday, July 2, 2015 7:00 PM at the Community Room of the Ballston Firehouse Station (located at Wilson Blvd and N. George Mason Drive).

June 20, 2015

Green cochair Marie Pellegrino asks for delay in adopting the Arlington County affordable housing draft plan, June 12

Affordable Housing — @ 12:11 pm

Arlington Greens co-chair Marie Pellegrino spoke at the Arlington County Board public hearing on June 12 to consider whether to proceed to public consideration of a draft report and recommendations for affordable housing in Arlington.

Good morning Arlington County Board Members:

My name is Marie Pellegrino. I am Co-Chair of the Arlington Green Party, a long time resident of South Arlington and former Columbia Pike small business owner.

Thank you very much for addressing the lack of affordability in Arlington. I plead w you, however, to delay your vote on the Implementation Framework and Affordable Housing Plan for the following reasons:

1.Too many of your consultants are developers and it appears a conflict of interest as these individuals stand to make a great deal of money on new housing development; there has been insufficient community input on this document

2. Arlington has about 3,000 market rate affordable units left; they will not be be preserved under the current plan. These units currently provide affordability to families earning less than 60 thousand dollars a year

3. By adding a disproportionate amount of affordable housing density surrounding Columbia Pike, the county will NOT share in full social and ethnic diversity, and neither will Public schools

4. Lastly, the proposed document makes it too easy for investors to gobble up single family rental homes and permanently displace people who are a vibrant part of Arlington’s diversity

Thank you for listening; please hold off on voting on item 436, the draft affordable housing master plan and the affordable housing implementation framework.

Marie Pellegrino (left) and Sandra Hernandez, co chairs Arlington Greens

Marie Pellegrino (above, left) with Sandra Herndez, AGP co-chairs

Tagged:

March 23, 2015

Arlington Greens recommend changes to Arlington housing assistance programs

Affordable Housing — @ 3:12 pm

Arlington Greens at their March meeting adopted the following recommendations to the County Board on ways to improve Arlington’s housing assistance program that spends many millions of dollars in local revenues annually:
solar-power-house1

Arlington Greens urge the Arlington County Board in its deliberations over the 2016 budget to make significant changes to the nearly $36 million in local revenues spent for housing assistance to Arlington residences, as follows:

1. Fund more families and individuals earning less than 40% of the area median income (those earning less than $30,000 (single) to $43,000 (family of four) per year):
-significant housing assistance funds should be shifted to direct housing grants that could help another 2,000 families a year; and
-seek additional HUD dollars to fund subsidies to the poor/struggling/disabled/mentally ill in Arlington.

2. Increase Transparency/Advocacy:
-Authorize an independent auditor of all subsidized housing programs to verify that these subsidies actually reach intended persons in a cost effective way and are not misdirected

-Establish a single phone number, website, and housing division staffer to monitor rents charged, conditions and maintenance in the about 6,300 subsidized affordable apartments, and to allocate vacancies to eligible tenants as these units become available in a fair and open manner

-Begin a competitive bidding process in the housing division to allocate AHIF funds to selected and low-cost housing providers to increase competition among providers and reduce the per unit costs of all new subsidized apartments (so-called CAF units), and to provide more apartments for the same cost.

3. What the County does well and could expand:
-The housing grants program is an exemplary county assistance program that is efficient, transparent and goes directly to help the neediest persons in Arlington: recent recipients include those who earned less than $26,000 a year; 1,200 households of seniors over the age of 65, disabled persons and working families with children

-Like the Federal food stamps program (SNAP), the housing grants program allows tenants to rent anywhere in the county; the housing grants program could help another roughly 2,000 households with a monthly grant of close to $500 per month.

4. What the County Could Do Better:
-provide housing incentives and assistance to County employees, including first responders
-allow more families earning less than 40% to receive AHIF/-re-evaluate what income levels receive AHIF if at all/More broadly utilize Housing Grants in lieu of AHIF
-more evenly distribute the number of affordable housing projects all over the county

Tagged:

March 12, 2015

County housing assistance funds—mostly subsidies for the affluent, and little for lower income

Affordable Housing — @ 1:38 pm

Much of Arlington County’s housing assistance is wasted or directed to high income persons, doing relatively little for the low income and those particularly in need of Arlington.

Arlington County resident can be proud that our county government spends over $36 million annually from its local tax revenues for housing assistance, but unfortunately a high amount is wasted or used to subsidize either developers or high income persons, and relatively little goes to help persons earning less than $40,000 a year. Arlington is the second most expensive rental area in the Washington, D.C. region, and the housing cost burden is greatest for persons earning under $40,000 a year. Housing assistance should go to help the lowest income persons before helping those making over $60,000.

The largest county housing assistance segment is called “AHIF” (Arlington Housing Investment Fund), and it mainly benefits persons earning generally between 60-percent and 80-percent of area median income (roughly $60,000 to $85,000 for a family of four). Most of the $13 million housing subsidies for AHIF actually go to developers and operators of these apartments rather to tenants in the form of dramatically lower rents.

According to data of the Virginia Tech Center for Housing Research, there were 21,800 rental households in 2012 in Arlington who faced a housing cost burden (spending more than 30 percent of their incomes for rent and housing expenses), about 20 percent of all Arlington households. About 70 percent of these households earn less than $50,000 a year. Meanwhile a high proportion of Arlington’s housing assistance goes to the 25 percent earning above $50,000 a year. www.housingvirginia.org

One Arlington housing assistance program is well targeted, administered, and benefits lower income tenants–the housing grants program or direct rental subsidy. Under this program about $8 million is spent annually to directly help about 1,200 low income households with a monthly housing grant of $400-500. Only persons earning less than about $32,000 a year for a single person and up to $46,000 for a family of our can benefit and in addition must be disabled, a senior citizen or a working family with a child.

Thus, AHIF, the largest county assistance program, does little to help lower income persons and mostly provides funds to developers and little for tenants in the form of sharply lower rents. However, the second largest program–housing grants program is well targeted and efficient.

Tagged:

March 4, 2015

Columbia Hills Apts: affordable housing for the well to do

solar panels commercialComments of John Reeder, treasurer of Arlington Greens, speaking at the county board hearing on Feb. 24, 2015 (these comments do not necessarily reflect the position of the Arlington Green Party):

Dear County Board members:

I oppose the approval of the zoning request and the $20 million in county AHIF funds to build these two apartment buildings in west Columbia Pike area located at 1010 S. Frederick Street, off Columbia Pike. APAH a nonprofit developer has requested about $20 million in county loans from the Arlington Housing Investment Fund (AHIF).

I have spoken several times against excessively costly affordable housing projects that are simply not affordable to low income people in Arlington. This is yet another such wasteful project. Please reject this proposal and send APAH back to the drawing board to come up with lower priced units for low income persons, namely those earning below 40-percent of the area median income (AMI) which is roughly $30,000 to $43,000 a year income).
Please read over details in the staff report presented to you:

l. 80 percent of the 229 units in the two new buildings are only affordable to persons earning above 60-percent AMI ($45,000 for a single person and $64,400 for a family of four).

2. Only 4 percent of the units are affordable to low income persons making less than 40-percent AMI. You have set your housing goal that at least 25% of new CAF units be affordable to 40-percent AMI renters: NONE of the AHIF projects for new CAFs have come close to your 25% goal.

3. Each new unit will cost about $$394,000 each–nearly four hundred thousand bucks. The $90 million total cost is very high–$7 million in developers fee, $6 million in “soft costs,” and $10 million in land/acquisition costs. The hard construction costs are $67 million or $227,000 per apartment which are well above Washington, DC regional costs. Are they building the Taj Mahal or affordable basic housing?

4. The land is quite expensive at $10 million or $44,000 per apartment. APAH claimed publicly that it owns the parking lot land and that the land is free. In fact, it does not own the land at all and it will cost taxpayers $10 million to buy a parking lot in western Columbia Pike. There are entire commercial buildings for sale in that area for less than $10 million.

Approving AHIF projects to build very expensive new CAFs which ipso facto cannot be rented to low income people in Arlington is a terrible waste of our public local dollars that could be used better t provide other forms of housing assistance to the needy rather than subsidies for developers and contractors like APAH.

Tagged:

February 4, 2015

Battle for Brooklyn community continues in 2015 with Arlington very similar

We Greens showed the documentary Battle for Brooklyn last week at Central Library despite snow and bitter cold and we had a good turnout. The documentary highlighted the fight of community activists in Brooklyn to prevent the demolition and displacement of many moderate income renters and home owners to allow the building of a billion dollar project for a NBA basketball arena (now called the Barclays Center) and new luxury and so-called “affordable housing.”

The New York Times article in their February 4 edition, , Vivian Yee and Mirreya Navarro, “Some see risk in de Blasio bid to add housing,” http://www.nytimes.com/2015/02/04/nyregion/an-obstacle-to-mayor-de-blasios-affordable-housing-plan-neighborhood-resistance.html provides an interesting historical follow up to what happened to Brooklyn later and now that a progressive de Blasio replaced billionaire Michael Bloomburg as mayor. Bloomburg was an advocate for the sports arena and openly said he wanted more millionaires in New York, as the article describes:

“….But many New Yorkers feel that projects from the era of Mayor Michael R. Bloomberg like Pacific Park, a multi-building complex around the Barclays Center formerly called Atlantic Yards, did not deliver on their promises of affordable housing quickly or comprehensively enough.”

NYC new mayor De Blasio says he wants to build more affordable housing, but like Arlington, this affordable housing is not affordable for most low income and even middle income renters. Now Brooklyn community activists are calling for no development at all if the only alternative is high rise buildings that mainly house high income person–80 percent luxury housing and 20 percent “affordable.”

The article indicates,
“Another common concern is that the financing deals to build affordable units do not serve those who need them most: extremely low-income residents making 30 percent or less of the area’s median income, or less than $26,000 a year for a family of four in the city’s five boroughs and Westchester County. Most new affordable units are now open to households in the range of 60 percent of the area’s median income.”

This is the rule for Arlington’s affordable housing–60% AMI is the minimum income needed to get into Arlington’s subsidized units.

Same development patterns here–promise affordable housing in the middle of a luxury project.

Tagged:

November 15, 2014

Providing public land and public funds to Arlington housing providers does not help tenants

Arlington Greens chair John Reeder spoke to the Arlington County Board on November 14, 2014
(his testimony was his own responsibility)

Good morning members of the board.
I am here to talk about affordable housing assistance and to caution you against just naively giving away public land to developers who fail to actually produce affordable rental apartments under the AHIF program.

AHIF is so ineffectual that it should be abolished, and its funding instead go to the housing grants program which directly and transparently helps mainly lower income people in Arlington. No public land and no more public funds should go to these developers.

The $12 million spent for the AHIF program in 2014 is really welfare for crony developers and delivers few benefits (in the form of lower rents and significantly more apartments) to tenants in Arlington.

In FY 2014, Arlington County spends $37 million from its local revenues for housing assistance, the largest category being the affordable housing investment fund (AHIF) with $12 million, and the second category being direct housing grants ($8 million).

The $12 million spent for AHIF may add at most 125 new CAF units this year (last year only 55 were added), and probably rent for $100 or so per month less than at market rate complexes, yielding a total benefit to low income renters of $150,000 a year. Even over 30 years, AHIF provides far fewer benefits even than its costs.

The new apartments added under the AHIF are very expensive; their rents charged are close to or at market rate rents; and the households served earning generally 60-percent of the area median income ($65,000 for a family of four).

On the other hand, the $8 million spent for housing grants directly and transparently helps about 1,200 households with about $500 per month each in lower rents paid. Its cost equals its benefits.

Households getting a housing grant earn no more than $46,000 (for a family of four), and must be 65 years or older, disabled, clients of county DHS programs (such as formerly homeless) or a working family with a child. Housing grants go to Arlington residents who are the most needy in our community.

The $12 million used today for AHIF could alternatively provide 2,000 households with a monthly rental grant of $500 versus 125 households receiving a $100 a month rent reduction in a new AHIF unit.

What is the better use of scarce local tax revenues to help low income Arlington residents?

Tagged:

July 26, 2014

County finances housing scam at William Waters Apartments–

william waters apt rosslyn va (William Waters Apartments from Wesley Housing Development Corporation)

On July 24, the county board approved a nearly $1 million loan to Wesley Housing Development Corporation to renovate 21 already subsidized apartments at the William Waters Apartments located on Adams Street off Lee Highway. These units were substantially renovated about 9 years ago, but Wesley Corporation will spend another $400,000 per unit to upgrade them. It will then raise the rents on the units, and then the county government will have to pay for the higher rent levels because the tenants cannot afford them! The new rents charged will not cheap–$1,130 for a one-bedroom and $1,330 for a two bedroom, but the tenants today cannot afford these new higher rents, so the county has to provide over $100,000 to pay part of the higher rents that go up because of the lavish renovation.

The county board’s decision to finance renovation of the William Waters Apartments, a garden apartment building off Lee Highway with 21 CAF units, and to finance tenant displacement costs is an example of Arlington’s wasteful approach to spend $400,000 per unit to renovate perfectly good apartments at William Waters.

There was no proven need to renovate the building; according to Wesley Housing Corporation’s webpage, these apartments were substantially renovated in 2005 with new kitchens, wall repairs, windows, smoke detection system, roof, rehabilitated electrical system, wall plaster and convectors.

And even if there is a need to renovate, a NEW apartment can be built for about $130,000 in the Washington DC region according RS Means, a construction expert firm. So how can $400,000 be spent in just renovation? Better to tear it down and build new apartments at one-quarter of this renovation cost of 50 year old modest units.

Today 9 years after the 2005 renovation, Wesley proposes to spend $8.2 million to again renovate 21 apartments at a unit cost of about $400,000 per unit. The hard construction cost is $100,000 per unit—about what a totally new unit would cost; the remaining $300,000 are soft costs, the developer’s fee, and repayment of past loans and financial costs. Spending $400,000 per unit to renovate apartments that are otherwise okay is wasteful.

Crony capitalism is the game being played with Arlington County housing program dollars. Tenants are made worse off and scarce taxpayer dollars given to insiders and their corporate friends.

There was $151,000 given to Wesley for a tenants assistance fund that would pay for their moving expenses and to pay the higher rents after they move back into the renovated units. Wesley bears responsibility for assisting and relocating their tenants, and not the county. Wesley in 1990 entered a contract with the county to supply 21 CAF apartments for 30 years, and has a contractual obligation to these tenants as well. Moreover, why does Wesley have to charge higher rents that its current tenants cannot afford to pay? This is not affordable housing but UNAFFORDABLE housing!

Tagged:

Million dollar subsidized apartments in Arlington, and crony capitalism and a gross waste of money

pierce queen apts (Photo from Wesely Housing Development Corporation)

The Arlington County Board on July 23, 2014 approved a nearly $7 million loan from the county’s affordable housing investment fund to Wesley Housing Corporation and its corporate partner Bozzuto to build a new apartment building with mostly luxury rental units at Pierce Queen Apartments in Rosslyn. The project is really not about affordable housing at all, but about a developer Bozzuto building a 12 story new commercial apartment building in Rosslyn with the county government and federal government financing it. It is really an stark example of the county’s failed housing program and another example of the county’s unaffordable housing program.

In brief, the project will cost about $36 million and will net the county government about 26 more subsidized units which is about $1.3 million per new unit! The county’s $7 million loan to the developer works out to about $250,000 per CAF unit. The kicker is that all the tenants living in the 78 subsidized units will then have to pay higher rent–and the county will have to pay part of the higher rents because the tenants do not earn enough money! So the county actually made things WORSE for tenants by allowing unneeded renovation.

The current Pierce Queen Apartments have 50 subsidized apartments, and 28 additional units (CAFs) will be added. Unfortunately the cost per new unit added is extraordinary high, and in addition rents will be raised in order to pay for these expensive new units.

The proposed project will have 78 CAFs, an addition of 28 CAFs. The total cost of the project is $35.6 million so the marginal cost of adding 28 new CAFs is $1,271,000 each. The unit cost for all 78 CAFs is $456,000. Either way, it is ridiculous to be paying either sum for a modest apartment.

In terms of the use of the county’s AHIF, the cost per new CAF is $250,000; the cost for the new CAFs and the current CAFs is lower $89,000 per unit. However, the 50 CAFs already at the complex were paid for years ago with federal and county financing and should not be counted.
The county government’s housing target is to add 400 new CAFs per year; last year the county added 55.

The 78 CAFs at Pierce Queen will be rented to higher income persons: 40 units to renters earning up to 50% AMI and 38 units for renters earning 60% AMI. This project will not meet the county’s housing target that at least 25% of new CAFs be affordable to people earning 40% AMI.

Is this the best deal the county government can get to add new CAFs in Arlington, and is this the best use of the limited AHIF funds? The county housing target is to add 400 new CAFs a year, and it cannot done at at a cost of a million bucks per unit nor even at $250,000 of AHIF funds per new unit. Four hundreds new CAF units at this rate would cost $100 million dollars in capital spending annually.

Wesley already received substantial county and federal funds to purchase and renovate Pierce Queen, and is contractually required to keep these 50 apartments for many years more. Why did the county government let Wesley out of its contractual agreement to provide 50 low cost CAFs?

The county Board needs to ask hard questions of your housing staff as to why these un-affordable housing projects are so expensive, and how it can find developers who can truly build affordable low cost apartments.

Tagged:

July 21, 2014

Affordable housing: county wastes dollars and accomplishes little

Arlington Green John Reeder spoke at the Arlington County Board meeting on July 19 about affordable housing.

Good morning members of the Board.

I am here today to discuss affordable housing and why giving away free public land to high cost government contractors is a bad idea, and failing to address high cost housing is a mistake.

In 2013, the county added only 55 CAFs or 14% of the 400 goal to the current 6,500 CAFs. The CAFs added were very expensive per unit, and land costs were often small or irrelevant to the high costs.

Look at two recent projects: The Carlyn Springs Apartments and the Arlington Mills Apartments.

In January 2014, you (the county board) gave an $8 million loan to APAH to build 71 new CAF apartments at the current Carlyn Springs Apts complex which APAH already owns. The average cost of the 71 CAFs was $538,000 each. APAH already owned the land so the cost of this land was free.

Then about 4 years ago, you gave APAH free public land at Arlington Mills site and loans to build 122 CAF apartments. The cost was $250,000 per unit. Most renters accepted earned over 60% of area median income ($67,000).

Nearly all of the for-profit and non-profit developers of CAFs in Arlington are very high cost and highly inefficient.

Free land does not mean low cost apartments.

The CAFs are so expensive that only higher income people can afford to rent, and, of course, then the county can only add 50 CAFs a year too few to meet our need.

The county board government needs to hire low cost builders; the Fairfax Housing Authority builds its CAFs in Fairfax County for $100,000 each which it then rents mainly to families earning under $40,000 a year.

Tagged:

May 13, 2014

A Green’s perspective on Arlington’s affordable housing progam–complete failure

Affordable Housing — @ 10:26 am

house_sketchPublic testimony from Arlington Green member and former AGP chairman Steve Davis before the Arlington County Board on May 10, 2014

Good morning members of the County Board.

Today I am here to speak about our affordable housing program In 2013, the county added only 55 new committed affordable housing apartments (CAFs). The county board years ago set a target of adding 400 new CAF units annually. So last year the county government met only 14% of your target.

Last year in Arlington, the number of private affordable market rate apartments fell by 1,613—so the county housing program added 55 units, and then market forces took away 1,613. Only 3,437 affordable private rental apartments exist today (down from 20,000 in the Year 2000). The Va. Tech Center for Housing Research says Arlington needs 14,000 more affordable rental apartments for people making less than 60-percent of area median income.

$250,000– is the unit cost in AHIF (Arlington Housing Investment Fund) funds for each of the 66 affordable apartments CAFs at the Serrano Apartments on Columbia Pike for renters earning 60-percent or less AMI; the actual total cost of each these apartments was $250,000 as well. The total AHIF loan you approved last month was $16.5 million for the Serrano.

In January, you approved a separate $7.8 million loan for APAH for 71 new CAFs ($110,000 per unit in AHIF funds) at the Carlin Springs Apartments. These new units actually cost $538,000 each ($38.2 million total cost) even though APAH already owned the land. Free land does not mean low cost apartments.

$100 million—is what it would cost annually in AHIF funds to add 400 CAFs annually at the average cost of $250,000 each.

Given the need for 14,000 more apartments, and the exorbitant cost of new CAFs, our program will never succeed.

I suggest once again you look to the model of the Fairfax County Housing Authority that today adds CAFs for $100,000 per unit, and mainly houses people in Fairfax who make under $40,000 a year.

house_sketchSteve Davis

Tagged:
Next Page »