Maryland Town Ponders the Price of Progress
John Small has lived in a two-bedroom apartment in Gaithersburg, Md., for more than half of his life.
But the 81-year-old, who lives on a fixed income of about $4,000 a month and pays $774 in monthly rent, could be losing his home… in the name of progress.
The 41-year-old rental complex where he lives is slated for redevelopment, meaning his home and those of 350 other families could be demolished to make way for townhouses, condos and a new apartment building.
He lives in one of five multi-family home complexes around the city of Gaithersburg — up to 800 units — that could be demolished for higher-end, luxury living over the next few years as revitalization takes hold.
Many low- to moderate-income renters could be pushed out at a time when options for affordable housing are scarce.
According to The Gazette, officials have adopted new laws aimed at curbing the devastating impact of redevelopments for existing renters and requiring a percentage of affordable units be built, but city staff and housing advocates say there will still be a gap.
The situation is the same in a segment of the Maryland housing market where wait lists for public housing exceed 4,800 names, and units set aside for moderate- and middle-income households are dwindling, especially as policy makers support slower growth.
In 2000, about 23 percent of the county’s population sought some form of housing assistance, and the number is likely higher today, with Maryland mortgage costs through the roof.
A shortage could lead to an increase in overcrowding and people living in substandard housing. In many cases, it will also result in tenants scraping together money to pay for housing that they can’t quite afford.
Gaithersburg’s new law, adopted last month, requires a real estate developer of homes and condominiums to set aside 15 percent of new or redeveloped property as affordable units.
Half of that percentage is reserved for moderately priced dwelling units (MPDUs) that can be purchased by those earning 60 percent to 80 percent of the area’s $90,300 median income. For a family of two, that means an annual income of $43,344 to $57,792.
The other 7.5 percent of those set-aside would be deemed workforce housing, aimed at public service employees who earn 80 percent to 120 percent of the median income, or $57,792 to $86,688 for a family of two. The goal is to make home mortgage payments more affordable - but can it be done?
Housing advocates say Gaithersburg’s law is flawed. At the very least, it does not require enough for those with moderate incomes, they say.
The small mandate of city law is especially concerning when the stock of affordable housing in Gaithersburg is expected to decrease significantly over the next 10-50 years, observers say.
City Council members and some residents maintain that it’s time to bolster home ownership opportunities in Olde Towne and lure viable retail and office to Gaithersburg’s aging core.
“We are allowing Olde Towne to become a pocket of poverty, and what we’re becoming in Gaithersburg is a city of haves and have nots,” said Councilman Henry F. Marraffa Jr. “We need to get Olde Towne back up to par. One thing you learn is, you must keep the vitality of your city intact.”