MARYLAND, (April 25, 2024) – Today, Enterprise Community Partners (Enterprise) released the study, Investing in Communities Along the Purple Line: 2024 Capital Needs Analysis, outlining the capital, complementary policies, and capacity needed to meet the 17,000 affordable home goal for the Purple Line corridor. With the Purple line expected to open in 2027 and rents already rising along the corridor, the study estimates a $740 million investment is needed to preserve affordability and ensure housing stability for communities along the Purple Line now and into the future.
Place-based resources like a $5 million investment from JPMorgan Chase in 2019 have helped add and preserve more homes along the corridor. To date, 10,100 affordable homes have been committed or are in the development pipeline. The study also charts a course for creating and preserving an additional 6,900 homes affordable to households with incomes at or below $72,000 in order to meet the housing goal set by the Purple Line Corridor Coalition, a public-private-community collaboration focused on equitable transit-oriented development.
“We’ve seen examples in our region and across the country of large-scale transit investments harming low-income residents and locally owned businesses. If we don’t continue to work proactively and intentionally as the Purple Line nears completion, we put long standing communities, especially communities of color, at risk of displacement by the same project they stand to benefit from,” said David Bowers, vice president for the Mid-Atlantic Market, Enterprise Community Partners. “Enterprise has been deeply engaged with the work of the Purple Line Corridor Coalition since its inception, and we’re calling on public, private, and philanthropic stakeholders to think big and invest boldly to ensure this historic transit investment works for everyone.”
“The Purple Line Corridor Coalition is committed to finding new ways of making major public investments work for everyone, especially BIPOC and immigrant communities at greatest risk of displacement,” said Sheila Somashekhar, Director of the Purple Line Corridor Coalition. “The capital needs analysis helps us understand where we are and where we collectively need to be, so that we can mobilize to make sure the Purple Line transit project brings equitable change.”
“At JPMorgan Chase we understand the importance and the need for a rail transport line to link Prince George’s and Montgomery counties, but as a 20+ year resident of the new Purple Line Corridor I have seen the challenges construction has brought to our local businesses and home owners,” said Nadine Duplessy Kearns, Vice President of Mid-Atlantic Corporate Responsibility, JPMorgan Chase. “I’m proud to work for a firm that stepped up to provide the necessary support during the early days of this project, but the work is not done. It’s imperative we continue to prevent small business and home displacement.”
There are approximately 173,000 people living along the 16-mile corridor from Bethesda in Montgomery County to New Carrollton in Prince George’s County. Nearly 70% of residents are people of color, and nearly 60% earn below 60% of area median income. Research and prior examples in the region indicate the correlation between new transit and increases real estate values and speculative practices, which contribute to displacement of long-time residents.
Focusing on preventing displacement and supporting homeownership for these residents, the study breaks down the types of resources a $740 million investment should go towards. To mobilize funds to spur development, it also makes recommendations for policy changes at the state and county level and opportunities build capacity for non-profit and mission-driven developers.
Close the capital gap with key investments:
- $95 million in private, and philanthropic dollars for a place-based funding pool that provides below-market, must-pay loans that significantly narrow the funding gap for affordable homes, attract more development to the Purple Line, and stretch public dollars further.
- $610 million in flexible, soft funding in government investment to leverage the funding pool’s low-interest loans and close the gap for the production or preservation of affordable rental homes in the corridor.
- $35 million in increased investment for homeownership programs from public and private partners.
Reform policies to spur development:
- Prioritize equitable transit-oriented development (eTOD) with changes to Maryland’s Qualified Allocation Plan.
- Reduce the typical approval time for affordable housing projects by improving processes and staffing levels at the state level.
- Remove development barriers by reforming the approval process and land use regulations in both counties.
- Expand existing county programs that support affordable housing and first-time homeownership.
Increase capacity for non-profits and other mission-driven developers:
- Provide technical assistance on topics like affordable housing finance, resources, and policies, like both counties’ right of first refusal.
- Increase grants for operations and predevelopment costs for equitable transit-oriented development.
- Expand joint development matchmaking services, especially for small, nonprofit, and BIPOC developers.
Read the Investing in Communities Along the Purple Line: 2024 Capital Needs Analysis.
Contact:
Diane Cho
dcho@enterprisecommunity.org