Montgomery County Executive Marc Elrich has weighed in again on the latest revival of the Metropolitan Washington Council of Government's zombie housing targets plan, and once again, he is correct in seeing through COG's developer-funded flimflam job. Elrich told The Washington Post that COG's math is "faulty," and that's probably being generous. He criticized COG for trying to gin up "a sense of panic" about housing.
COG's housing targets plan is a bald-faced attempt to juice developer profits by using that false "panic" to loosen zoning restrictions, severely reduce public input on zoning and development proposals, override responsible growth policies, and generate more taxpayer subsidies for development companies that are already profitable private concerns. The people behind the COG curtain count on two things to achieve success with their housing targets scheme: the local media functioning in their role as stenographers more than journalists, in repeating COG's message verbatim with no scrutiny or criticism, and readers and viewers accepting these parroted talking points at face value.
Alas, when one studies the details, the COG scheme immediately falls apart. In a highly-educated area like this, it's not surprising that COG's plan still hasn't caught on, despite five years of relentless propaganda about it.
First of all, COG's math is wildly off-target. In order to meet the COG targets, "87 units per day" would have to be constructed in the region. To put that in real terms, that would mean a garden apartment complex being delivered each day in the DC Metro area. That doesn't even happen in a city like New York. China at the height of its real estate boom might be the only place on earth to approach such construction numbers, and it wound up demolishing many of those buildings, which ultimately stood vacant. In short, the target is not even achievable without overriding most regulations, approval processes and public engagement at a level that would severely compromise local budgets and quality of life, and by ignoring the fact that there is little demand for overpriced luxury apartments. Many of the new apartments in Bethesda, for example, are vacant and are being operated as illegal Airbnb hotel rooms. Whoops!
Second, COG describes "affordable" housing as costing the renter or homeowner $2300 a month. That is preposterous, and not affordable by any real-world measure. The $2300-$5000 apartment rents in the area are the problem, not the solution. And despite building thousands of new housing units every year, rents in Montgomery County only continue to skyrocket, proving that the real estate sector is no longer governed by market forces of supply and demand.
Third, COG itself, and the other entities trying to force its plan onto local jurisdictions, are funded by developers and developer lobbying organizations. Among those funding COG are entities connected to the Cafritz Interest real estate development firm, and Connected DMV, a development lobbying and advocacy firm. The Urban Institute is funded by development interests, big banks who profit from mortgage loans on real estate, and even BlackRock(!!), the massive international investment firm that has actually made housing more costly by snapping up homes.
Nothing makes Wall Street-lapdog fact-checkers' heads explode faster than pointing out the BlackRock connection to inflated home prices. Those "reporters" will claim that it's Blackstone, Inc. that is buying up homes, while trying to downplay the fact that BlackRock is a part owner of Blackstone, holding an astronomical 45.99 million shares in the firm as of December 31, 2023. Blackstone snapped up 38,000 homes across America in one January 2024 transaction alone.
I've monitored home prices in the D.C. region, and across the country, for many years. Home prices have not only surged in our expensive area in recent times, but also in some of the most undesirable Podunk Junction towns in the middle of nowhere. Being funded by BlackRock, and then trying to be a credible voice on affordable housing, is quite an acrobatic feat to say the least.
Joint Center for Housing Studies at Harvard University? Its advisory board is stacked with leaders from the real estate development industry. Housing Association of Nonprofit Developers (HAND)? As a very smart person once said, "They call it a non-profit, but somebody profits." Not only do non-profit or public housing entities often partner with private developers on projects that generate windfall profits for the latter, but - as we've seen in Montgomery County - non-profit leaders often draw and increase large salaries from taxpayer funds, and then write political campaign checks to the same elected officials who voted for those grants of taxpayer funds.
And let's not be surprised that the Post gives favorable coverage to COG's plan and all other pro-development and upzoning initiatives. The paper not only derives significant revenue from real estate advertising, but has been a major real estate player in the region itself, selling its former D.C. headquarters for $159 million and its Alexandria warehouses to developers for an estimated $30 million. The latter became the kind of dense development being advocated for by the COG housing targets.
The Post story on COG's housing targets also aligned with many of the attempts to leverage the race card into developer private profits we've seen in recent years. It's a shameful tactic by the development industry, which has historically leveraged race in this way from blockbusting, to the reversal of blockbusting by driving people of color out of those same neighborhoods decades later via gentrification. "Equity" is not a $2300-a-month rent.
This latest effort by COG and the Post to revive the zombie housing target scheme makes clear they intend to let no obstacle stand in the way of developer profits at taxpayer expense. The article explicitly calls for removing public input from zoning and development decisions, resident stakeholder communications the article complains "account for 40% of a housing development's budget." We're familiar with this effort in Montgomery County, whether hearing developer lobbyists urge the County Council to ignore public input because it is coming from "old people who have nothing better to do than testify at public hearings," or the Council's full-court press to continue to block restoration of the Office of the People's Counsel, an attorney who can provide free advice to residents and represent their interests in administrative hearings."
Elrich supports restoring the Office of the People's Counsel. He should continue to correctly oppose COG's housing target scheme.
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