Affordable Housing Fund Proposed In D.C.

Major Shakeup For Housing Finance

According to Bisnow, D.C. council members have proposed a sweeping overhaul of the city’s affordable housing system. They introduced legislation to replace the long-standing Housing Production Trust Fund.

Four council members support the measure. The bill would establish a Housing Opportunity Fund with a minimum annual budget of $150M. Lawmakers say the new fund would streamline processes and spur more affordable housing development across the District.

Spearheaded by Councilmembers Robert White and Brianne Nadeau, the proposed system divides the new Affordable Housing fund into specialized accounts: production, subsidies, preservation, tenant purchase, and city land acquisition. At least 60% of funding would support new construction and low-income subsidies, directly targeting D.C.’s persistent housing shortage.

Comprehensive Structure And Flexibility

The Affordable Housing Opportunity Fund would not limit support to income-restricted developments. Developers of market-rate projects would be eligible, provided units are affordable to voucher holders, with future options for deeper affordability. Policymakers hope this approach will attract national investors and unstick D.C.’s stalled pipeline—rental housing construction plunged by 79% year-over-year. The slowdown reflects trends in other major metros. Cities like Chicago are deploying nine-figure public incentives to convert underused downtown office buildings into housing to revive development activity.

The bill would also empower the District to acquire land directly, giving the city more leverage to spur housing production and influence affordability on key sites. Additional reforms introduce dedicated funding for tenant group building purchases and allow District retirement funds to invest in local housing projects, further broadening available capital for Affordable Housing.

Policy Safeguards And Next Steps

Anti-displacement measures are central to the proposal: any project requiring tenant relocation must submit formal plans, and a public database would track all fund allocations and awards. Projects funded for income-restricted housing would carry 40-year affordability guarantees, strengthening long-term value for low-income residents.

The bill needs a council majority to pass. While four members are on board, more votes are needed. Housing advocates and industry groups are still reviewing the details but indicate willingness to work with lawmakers as the proposal advances. The next step is a scheduled committee hearing, where the proposal will be debated.