Originally delivered May 12, 2026
Good morning, Chairperson White and members of the Committee. Thank you for the opportunity to speak today. My name is Mychal Cohen, and I am a senior policy analyst at the DC Fiscal Policy Institute (DCFPI). DCFPI is a non-profit organization that shapes racially-just tax, budget, and policy decisions by centering Black and brown communities in our research and analysis, community partnerships, and advocacy efforts to advance an antiracist, equitable future.
DC is experiencing an affordable housing crisis.[1] Most renters with low incomes are cost burdened, evictions are at their highest number in the last decade, and some affordable housing buildings are in financial risk.[2], [3], [4] A crisis of this scale requires a comprehensive approach, informed by data and an understanding of housing conditions.
Unfortunately, the District currently has a dearth of information about our rental housing stock, tenant experiences and conditions, and landlord finances. This information gap has resulted in a patchwork response, one that has relied almost entirely on punitive measures. The “Rebalancing Expectations for Neighbors, Tenants, and Landlords (RENTAL) Amendment Act of 2025” reduced tenant rights and protections, limited Tenant Opportunity to Purchase Act (TOPA) rights, and sped up eviction timelines and processes.[5], [6] The “Emergency Rental Assistance Reform Amendment Act of 2024” narrowed qualification criteria for the Emergency Rental Assistance Program (ERAP), making it more difficult for many households to access these funds.[7] During the same period, housing funding has either stagnated (as in the Permanent Supportive Housing (PSH) and Local Rent Supplement Program tenant vouchers) or been reduced (ERAP and the Housing Production Trust Fund (HPTF)) in the proposed fiscal year (FY) 2027 budget. These changes rely on anecdotal evidence and narrative about the causes of the housing crisis, putting the responsibility on tenants and often ignoring contradictory evidence.[8]
While the Department of Housing and Community Development (DHCD) cannot single-handedly fix the housing market, the agency can lead the charge to find comprehensive solutions to the affordable housing crisis. On a number of occasions when asked about the affordable housing system, the rental arrears crisis, or the difficulty in financing affordable housing, Director Colleen Green has referenced the breakdown of the “social compact” between landlords and renters, with renters breaking the compact by willfully not paying rent. This explanation is not good enough. The agency should be leading the charge to proactively understand and offer solutions to the housing crisis in the city.
Today, I will focus my testimony on the various elements of the housing crisis, offer data where available to help contextualize the issue, and offer potential solutions through the DHCD budget.
DC Needs a Real Understanding of Rental Arrears
By far, the most prominent narrative in DC’s affordable housing system is that rental arrears are damaging the housing market. Much of the legislation introduced by Mayor Bowser related to housing has attempted to address the rental arrears issue through measures targeting tenants. The administration has, at different times in the past three years, claimed that limiting TOPA rights, speeding up eviction timelines, or restricting ERAP qualifications would improve rental arrears and repair the ‘broken social compact.’ DC’s ongoing crisis is evidence that these were poorly targeted solutions based on little information. The broken social compact narrative oversimplifies the situation and obscures a much more complex picture.
We do not know, for instance, if and how non-payment rates differ at different affordability levels. If non-payment improves in units that are more affordable, this would suggest that the core issue is one of affordability and housing burden, with many renters simply not having enough income to cover rent. Another critical question is whether non-payment rates differ across different programs. For instance, CohnReznick, a firm that evaluates Low-Income Housing Tax Credit (LIHTC) Risk, provided data that indicated LIHTC non-payment rates are higher in DC relative to surrounding counties (but closer to non-payment rates in other high-cost areas such as the New York City Metro Area).[9] Are these non-payment rates different in programs that offer deeper affordability, such as the Local Rent Supplement Program? Are the households with rental arrears paying a large amount of their income in rent? Are they living in slum conditions and possibly legally withholding rent until these conditions are addressed? Answering these questions could verify or refute the oft-repeated claim that households not paying rent are doing so willfully and could actually afford to pay
While these questions may seem either in the weeds or obvious, understanding the scale, scope, and location of this problem will better inform real, targeted solutions. The Council should fund a comprehensive, tenant-centered study of the rental arrears issue and respond to findings with actual solutions.
Housing is Unaffordable and That Impacts Rental Arrears
The issue of housing unaffordability is often discussed as a separate issue to the rental arrears problem, but they are inextricably linked. DC is cited as an outlier in terms of rental arrears without acknowledging that it is also an outlier in terms of cost and disparity between rents and wages. DC’s housing wage, or the wage you would need to afford a two-bedroom rental with a full time job, is $44.50, and is the fifth highest in the nation, when compared with other states.[10]
DC’s extreme levels of unaffordability are likely a significant contributor to the issue of rental arrears but have received no attention in this or last year’s budget. The proposed FY 2027 budget includes no new housing vouchers for families or individuals, no new PSH vouchers, and no additional DC Flex, a program that provides more limited rent subsidy, slots.[11] Council inaction on housing supports for households with low incomes will have dire consequences for housing stability and resident wellbeing in the District.
These choices fly in the face of consistent evidence that this housing crisis is one of unaffordable rents and incomes that are not keeping pace with costs. Renters in DC, much like renters across the country, are increasingly burdened by the high cost of living.[12] Households living at lower income levels feel this burden deeply: 69 percent of renters making less than 30 percent of the area median income (in DC, this is $56,920 or less for a family of four), are paying more than 50 percent of their income in rent (this is considered extreme rent burden).[13] Many of these renters are paying significantly more than 50 percent of their income just to afford a place to stay. This leaves households making impossible choices between rent and feeding their family or rent and needed health expenses.[14]
Rather than punish households who cannot afford rent, the Council should invest in deeply affordable housing, which is housing that is affordable to households making less than 30 percent of area median income. These households face the most significant housing gaps and are the most likely to be rent burdened.[15]
The Council Should Prioritize Affordable Housing Preservation
The Council took positive steps in the FY 2026 budget to dedicate HPTF funds for affordable housing preservation.[16] This ensures more preservation projects move forward and that those projects are financially viable while increasing housing stability for residents in buildings in need of repair. The District should continue to set aside preservation funds or create a preservation subaccount as outlined in the proposed “Housing Production Omnibus Amendment Act of 2026.”[17] DHCD should prioritize projects that have received financing from the District’s Housing Preservation Fund (HPF) for HPTF preservation funds. Ensuring these projects receive longer-term financing ensures the HPF remains a viable pipeline for preservation projects, keeps these projects out of untenable financial situations, and helps improve living conditions throughout the District.
DHCD’s use of the 2024 Consolidated Request for Proposals to provide financial support to 69 affordable housing buildings at financial risk, representing 7,700 units, was a necessary step to support affordable housing in the District. The proposed “Housing Production Omnibus Amendment Act of 2026” codifies legislative guidance for how HPTF might be used for stabilization in future years.[18] The legislation also formally distinguishes between preservation and stabilization, a critical distinction that can ensure long-term financing for preservation remains distinct from short-term financial stabilization of properties. DHCD may need to consider additional stabilization of affordable projects in the future. Any use of these funds to stabilize properties should also stabilize the residents who live there. Stabilization funds should require elimination or reduction of tenants’ rental arrears and tenants should be allowed to retain their units
The Housing Production Trust Fund Needs More Accountability and Transparency
The Council must push for continued progress in transparency within the HPTF. The HPTF’s current funding level is unclear. At a Council breakfast meeting, Councilmember Robert White indicated that the HPTF might have substantial unallocated funds between the current fund balance and funds being reclaimed from previously awarded projects.[19] This aligns with DHCD notice received by some affordable housing providers that funds would be reclaimed if their projects do not close by June 30, 2026. However, Director Green’s testimony at the Housing Committee Budget Hearing indicated that the HPTF actually has more projects in its pipeline than funding currently within the fund.
The lack of clarity about the current status of the HPTF undermines decision-making about the proposed FY 2027 budget. In a year when the funding allotted to the HPTF has been cut in half, the lack of clarity about whether the HPTF is currently well resourced or needs additional funding to fund projects currently in the pipeline is essential for decision-making. Without clear, complete, and frequently updated reporting, it is impossible to track DHCD’s usage of funds. The agency should start with accurate, complete and on-time reporting, and build towards a public database of HPTF awards and applications, as described in the recently introduced “Housing Production Omnibus Amendment Act of 2026.”[20]
Thank you for the opportunity to testify. I look forward to discussing these recommendations with you further.
