Overview

The District of Columbia’s Housing Production Trust Fund was created in 1988 with no dedicated source of funding, but with the hopes that the city would find funding in coming years. In 2001, the fund received a one-time contribution of $25 million from the sale of city-owned property, and in 2002 the city established a dedicated funding source for the fund. As of 2015, the fund receives 15 percent of all deed recording fees and real estate transfer taxes collected within the city. Due to a fluctuating real estate market, these funds have been unreliable throughout the years, and the city has grown accustomed to allocating revenue from the general fund into the trust fund on an annual basis.

In 2013 and 2014 combined, the fund received approximately $193 million from the city, according to a report by the DC Fiscal Policy Institute. For fiscal year 2016, the city has allocated a total of $213 million in funding for affordable housing programs in the city ($100 million of which will go directly into the housing production fund, the remainder to rental assistance and other housing programs). The fund will also receive $50 million from dedicated revenue sources. Upcoming contributions from the city are the highest funding levels that affordable housing programs have received in D.C. The Housing Production Trust Fund allocation is projected to renovate or create up to 1,000 new homes in the city. As of 2012, the trust fund has contributed to the creation of over 8,500 affordable homes, invested $320 million in D.C. neighborhoods and leveraged an additional $794 million from outside sources.