Housing Complex

At Long Last, D.C. Sells Its First Inclusionary Zoning Unit

The developer of the first two for-sale IZ units, at 2910 Georgia Ave. NW, recently sued the city.

Four years after the initiative took effect, D.C. has finally sold its first housing unit under the inclusionary zoning program.

The IZ program requires that new residential buildings of 10 or more dwelling units set aside 8 to 10 percent of the units for low- to moderate-income households at below-market rates. The city's latest report on the program found that as of the end of 2012, zero IZ units had been rented or sold.

But today, the Department of Housing and Community Development was finally able to announce the first sale of an IZ unit, at the Standard Eleven condo building at 1109 M Street NW.

“This closing is a huge step for the District’s implementation of the Inclusionary Zoning Program," says DHCD spokesman Marcus Williams in a statement. "This sends a clear message that the District of Columbia government is committed to ensuring that the growth and development of the nation’s capital includes housing opportunities for residents of all income levels, who are seeking to become homeowners and/or renters.”

The IZ program got off to a slow start due to the recession, which led developers to hold off on residential construction. It took another hit in December when the developer of the city's first two for-sale IZ units sued the city for depriving the developer of its property rights.

But now, finally, the program appears to be picking up. According to Williams, 14 IZ units have now been rented, and more than 1,000 new IZ units are expected to be built in the coming years.

Image via Google Maps

  • Art L

    The first two IZ units remain unsold. They remain unsold not because the developer sued but because the program is poorly envisioned, poorly structured, and poorly executed. It should also be noted that 2013 Maximum Purchase Prices (set by DHCD) are 15% lower than 2012 Maximum Sale Price. The First IZ buyer is now 15% poorer (on paper) than they were a month ago. This IZ Buyer, who qualified at 80% of median income (presumably), paid over $200,000, I believe, for a studio apartment.... Yikes!

  • Pingback: No elected attorney general for you

  • Barrie Daneker

    Art L I'm not getting your math one bit. It makes no sense whatsoever!

  • art L

    Barrie - what part of the math makes no sense.
    A new Studio built this year will be offered at 15% less than last years and will always be 15% cheaper than last years because maximum resale price is dictated by DHCD and the IZ Formula. In a rising interest rate environment and a rising utility cost environment new units will always be cheaper than older units (in the IZ program). This is because new unit pricing is dictated by interest rate, utility costs, taxes and other housing costs. Look at the DHCD website and learn about how the calculate Maximum Sale Prices. This new IZ buyer, when they go to sell their unit, will, presumably, be competing against newer units at lower prices. DHCD and the IZ Program designers don't get the math either.

  • Pingback: nurkmmdmcjooa dsyg dahnwk iz | Scribls