D.C.’s Commitment to Affordable Housing
FY 2025 Approved Expenditures
Every year, the District’s budget makes substantial investments in creating and maintaining affordable housing. These investments increased significantly in Fiscal Years (FY) 2021 through 2023. This is due in large part to the influx of federal pandemic relief funds provided over this period.
The FY 2025 approved budget invests $1.1 billion of local funding in affordable housing. Of this total, the majority, $967.9 million, is for actual services to residents, and $111.6 million is allocated for overhead expenses of the government agencies, such as staff salaries, rent, etc.
There are 12 District funded agencies that oversee at least one aspect of affordable housing in the District. Of these there are two principal agencies responsible for creating and maintaining affordable housing: the Department of Housing and Community Development (DHCD) and the Department of Human Services (DHS).
Homeless Services
Homeless services local fund investments total $536.8 million in the FY 2025 approved budget. Housing supports includes permanent supportive housing vouchers and rapid rehousing.
Housing Finance and Development
Housing finance and development local fund investments, which are used to build and maintain affordable housing, total $187.4 million.
Rental Assistance
Rental assistance, which helps households pay rent with vouchers or provide them representation in landlord-tenant court, totals $141.5 million in local funds in the FY 2025 approved budget.
Please note that the total for Access to Justice is an estimate as the grants allocation process is currently ongoing.
Housing Tax Expenditures
The District government provides resident homeowners, renters, and housing developers with tax deductions, credits, or tax abatements to increase the affordability of existing housing and to encourage the development of new affordable housing.
Capital Investments in Affordable Housing
Over the past five years, the District has invested almost $620 million through the capital budget to combat homelessness and increase the supply of affordable housing.