When big condo buildings and luxury developments are built up in gentrifying neighborhoods, a common fear arises: low and moderate-income residents won’t be able to afford to stick around. Reserving affordable housing in gentrified neighborhoods seems like an obvious solution to such displacement.
That was the thinking behind the District’s Affordable Dwelling Unit program, in which developers set aside some condo units at below-market rate for people with lower incomes. The program is intended to make it possible for people with moderate incomes to remain in gentrifying neighborhoods such as Columbia Heights.
An issue the program doesn’t address is condo fees. While the program has kept mortgages down, it doesn’t have any restrictions on condo fees. Some affordable unit owners have seen their condo fees double to $400 or $750 and fear foreclosure could be imminent.
“It identifies a real problem… despite our best efforts to do the right thing,” Councilman Jim Graham said. He represents Ward 1, which is where many of these buildings are located, such as Kenyon Square. Since 2008, condo fees there have doubled to more than $400.