The Laureate is a highly controversial apartment building that is loved by developers and hated by anti-gentrification activists. Positioned as “inspired living,” the building is located outside of Washington, D.C., and offers convenient access to amenities such as a nearby Starbucks and the Metro’s red line. Its modern design and sleek lines cater to young professionals, and it is part of Montgomery County, Maryland’s effort to transform a former industrial area into an expensive instant neighborhood.
Interestingly, the Laureate is also considered public housing. Although it was built by for-profit developers, the majority owner is the Housing Opportunities Commission of Montgomery County (H.O.C.), a government agency. As a result, 30 percent of the 268 units are allocated for affordable housing. Kadiatou Sylla, the first resident of the Laureate, was attracted to the building because of its newness and the amenities it offered, such as a courtyard pool, a pet washing room, and a gym. Additionally, living at the Laureate significantly reduced her daily commute time from 45 minutes to just 10.
Historically, Montgomery County has been at the forefront of affordable housing initiatives in the United States. They enacted a groundbreaking law that requires developers to set aside around 15 percent of units in new projects for households earning less than two-thirds of the area’s median income. The median income is currently $152,100 for a family of four. The Laureate takes this commitment even further by setting aside a significant number of units for affordable housing.
The affordable housing crisis in America is widespread and severe, making it challenging to identify an effective solution. Many policymakers have focused on loosening zoning and building regulations to accelerate construction and increase the housing supply. The belief is that if supply catches up with demand, prices will eventually stabilize or decrease. However, others argue that interventions like rent control, subsidies, and a resurgence of public housing are necessary to truly address housing affordability. These measures aim to provide immediate relief to families in need who cannot wait for supply to catch up with demand.
The Laureate represents an attempt to merge these opposing viewpoints in a single project, combining supply with subsidies and public with private investment. It is the first building financed by a $100 million fund created by Montgomery County. H.O.C. directly invests in new projects and utilizes its ownership position to prioritize public benefits over profitability. In essence, the Laureate represents public housing, albeit in a nontraditional form.
In recent decades, the term “public housing” has acquired negative connotations due to its association with failed projects. As a result, lawmakers have steered away from government-owned housing and instead focused on options such as demolishing or transferring government-owned apartments to the private sector. Traditional public housing, funded by the Department of Housing and Urban Development and managed by housing agencies, is in a state of decline.
Today, the majority of federal housing funds flow through the private sector rather than being used to build government-owned buildings. Section 8 vouchers enable tenants who cannot afford market rent to reside in private accommodations. The Low-Income Housing Tax Credit incentivizes corporations to invest in subsidized buildings operated by nonprofit and for-profit developers. Consequently, the narrative suggests that government-owned housing is outdated.
In Montgomery County, however, the government has steadily increased its stock of government-owned housing while redefining its purpose. This is due to the fact that federal housing programs cannot fulfill the overwhelming demand for affordable housing in the Washington region. To bridge this gap, Montgomery County has taken proactive measures.
Nonetheless, Montgomery County still faces a housing shortage and is plagued by the same “not-in-my-backyard” politics that worsen the crisis. Additionally, some of the housing, such as the Laureate, caters to middle-class tenants rather than those earning minimum wage. Nevertheless, H.O.C.’s ability to actively contribute to expanding the housing supply aligns with the approach experts believe is necessary to slow down rent increases, which are a significant driver of inflation and a substantial expense for tenants.
When I spoke with Kadiatou Sylla, she was enjoying the amenities offered in the clubhouse, such as the pool table, fireplace, and even the hot chocolate dispenser, which she frequents on sleepless nights. Before moving to the Laureate, Sylla resided in a basement apartment with her sister, her sister’s husband, and their three children. The one-bedroom apartment in the Laureate represents her first official dwelling, her initial experience of living independently and having her own space.
Interestingly, nobody in Montgomery County refers to the Laureate as public housing, and few tenants are aware of the true identity of their landlord. This intentional lack of acknowledgment appears to be a strategic decision and has garnered attention from other areas. As the housing shortage expands and reaches crisis levels in various locations across the country, states such as California, Massachusetts, Colorado, Hawaii, and Rhode Island, as well as cities like Seattle and Atlanta, have either implemented or contemplated public housing programs that use alternative terminology or rebrand themselves as “social housing.” Regardless of the nomenclature, they all draw inspiration from the Montgomery County model.
Andrew Friedson, a member of the Montgomery County Council who championed the creation of the new housing fund, emphasizes the need to discard the notion that certain terms are negative. “Public housing” and “developer” are not dirty words, he asserts. Friedson believes that the market alone cannot address the housing crisis effectively and emphasizes the importance of government intervention.
The history of Montgomery County as an innovator in housing is intertwined with its relationship with the federal government. Located just outside Washington, D.C., the county’s one million residents have ties to the nation’s capital, with many either working for the government, attempting to influence it, or engaging in business activities related to government operations. In the 1960s, as adjacent counties experienced rapid growth with the construction of new homes for families employed by agencies like NASA and the Federal Communications Commission, Montgomery County became a hub for educated, progressive individuals.
During this period, a group of women activists, including Joyce Siegel, who was raising three children while studying books like “The Feminine Mystique,” emerged. They partnered with organizations like the League of Women Voters to advocate for housing affordability. At the time, professionals were finding it increasingly difficult to afford housing, leading to overcrowding as low-income families had to share accommodations.
Their efforts resulted in the creation of the Moderately Priced Dwelling Unit program, an innovative initiative that required developers of large projects to allocate a portion of units to affordable housing. This program aimed to address the needs of both young professionals and low-income families by maintaining housing affordability.
Montgomery County’s commitment to affordable housing has continued to grow over the years, driven by the overwhelming demand that federal housing programs alone cannot meet. However, challenges such as housing shortages and opposition from residents persist. Despite these obstacles, H.O.C.’s direct involvement in expanding housing supply aligns with expert recommendations to address rising rental costs, which significantly impact tenants’ budgets.
The Laureate, with its combination of private and public investment in a single project, acts as a model for other areas seeking to tackle the affordable housing crisis. By reevaluating traditional notions of public housing and embracing developers as partners, communities can benefit from increased housing supply and improved affordability. It is time to shed negative perceptions of governmental involvement and work towards innovative solutions that prioritize the public good over profitability.
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