The District needs to employ a range of strategies to keep DC residents from being displaced in the midst of widespread gentrification. That was a key conclusion of a lively forum held last week by the Coalition for Smarter Growth, where DCFPI Executive Director Ed Lazere spoke. The group discussed changes in zoning, more focus on development near transportation hubs, and the need to devote a portion of the increased revenue collections brought by gentrification into making housing affordable.
The District has another tool in its back pocket that can keep residents living in DC. It can strengthen a tax credit for residents facing property taxes or rents that are high relative to their income, known as Schedule H. Legislation adopted last fall would allow households with incomes up to $50,000 to claim a tax credit of up to $1,000. But the changes have not been funded yet.
Schedule H targets relief at those with the least ability to pay, and those most burdened by housing costs. Under the changes approved by the DC Council, a family with an income of $25,000 and rent of $750 would get $1,000 from Schedule H, while a family earning $40,000 and paying $1,000 in rent would get an $800 tax credit.
This is just the kind of targeted relief that we need to help low- and moderate-income residents stay in the District and benefit from the positive changes brought by gentrification. We need Mayor Gray to fully fund Schedule H in the FY2014 budget, to make this anti-displacement tool as strong as possible.
