On December 17, 2020, over 100 real estate professionals and local university students attended ULI’s panel on Closing the Equity Gap: Developing Affordable Housing in High Income Neighborhoods. The discussion focused on developing affordable housing across the DMV, highlighting recent success stories and addressing ongoing challenges. Panelists included moderator Samia Byrd, Chief Race & Equity Officer, Arlington County, Chris Agorsor, Managing Director, New World Development, Scott Copeland Principal, RST Development, Angela Kelcher, Senior Director – Multifamily Customer and Partner Management, Fannie Mae, and Sharif Mitchell, Principal, Dantes Community Partners. The panelists brought a diverse set of experiences and vantage points on tackling the issues we face today in the DMV.

Samia Byrd kicked off the discussion by asking the panelists to talk about specific projects that highlight the important role that affordable housing plays in communities, as well as the difficulties in getting these projects financed and built. Scott Copeland discussed his firm’s Main Street project, a 70-unit multifamily building in Rockville, MD. With 25% of the units reserved for people with disabilities, the project aims to create an integrated environment where individuals will live and thrive together. 

This led to a group discussion about the importance of public-private partnerships and community building as essential ingredients to successful affordable housing developments. Chris Agorsor emphasized the importance of establishing a track record of positive returns to generate strong investor interest, and Sharif Mitchell highlighted the value of building trust with residents early on in the acquisition process, especially given the role that the Tenant Opportunity to Purchase Act (TOPA) plays in the District. 

Angela Kelcher talked about the role that Fannie Mae plays in financing affordable housing. With a constrained supply of affordable housing, it’s become an asset class that succeeds in any real estate cycle. Angela emphasized the value these projects bring to communities and the critical need for reasonably priced housing options. Following a discussion of the typical capital stack for affordable housing projects, Sharif Mitchell weighed in on what he feels doesn’t get talked about nearly enough – predevelopment equity. Given that this capital is at risk, it’s important to find the right deal structure to finance these projects.

With the strong support from Mayor Muriel Bower, the panelists were confident that affordable housing will continue to be a priority in the District, despite short term budget constraints caused by the pandemic. Scott noted the passion among local developers to help close the affordability gap, and the importance of continuing to dialogue with local leaders and residents to push the mission forward.