Heroes in our midst:
Making luxury housing affordable in D.C.
How community developer Buwa Binitie is fighting the housing crunch and strengthening D.C.’s communities
November 2, 2022
When Buwa Binitie moved to Washington, D.C., he couldn’t find an apartment.
“Initially, it was hard for me, even with a good income, to find an affordable place to live,” he said. That was 16 years ago. Since then, the cost of housing in Washington has almost doubled, far outpacing the growth of household income. As the cost of housing spiked during the pandemic, affordable housing has become scarcer — and the housing crunch isn’t going away any time soon.
“The forecast over the next 10 years for the District of Columbia is another 100,000 people,” Binitie said. “So if we have a shortage of 30,000 units today, what do you think that shortage is going to be 10 years from now? We need to be working at breakneck speed, at light speed, to create as much affordable housing as possible.”
Binitie’s personal experiences led him to found Dantes Partners, a community-based development company with a focus on building affordable housing. Since 2006, Binitie has helped develop 6,000 units across 36 buildings. Binitie describes his homes as “luxury affordable housing” — affordable homes that are indistinguishable from market-rate housing, with amenities like penthouse fitness centers and communal outdoor spaces.
Affordable housing is key to maintaining a thriving community. Access to affordable, quality homes allows residents to live close to their places of work, meaning more money in their pockets and, thanks to shorter commutes, more time to spend with family and support local businesses.
A recent report states that to keep up with demand, the D.C. region needs to add over 300,000 more housing units between 2020 and 2030, and the majority of those units need to be affordable. Developers have built almost 30,000 housing units in D.C. since 2019, but only around 6,000 affordable units. The reason for that mismatch? Affordable housing developments are notoriously complex to get off the ground.
“We need to be working at breakneck speed, at light speed, to create as much affordable housing as possible.”
– Buwa Binitie, CEO and founder of Dantes Partners
Because a building with affordable housing won’t collect as much in rent as a market-rate building, lenders may only provide them with smaller loans to acquire land or start construction. This creates a financing gap for affordable housing projects, which is one of the main contributors to the shortage. While market-rate housing projects might rely on only a few sources of private capital, affordable housing projects often close the financing gap by relying on more than a dozen sources of financing, including federal and state housing tax credits, or loans or grants from charitable foundations and trusts.
Simplifying these sources of funding is one of the best ways to speed along the construction of affordable housing, according to Brett Macleod, Executive Director of Community Development Banking at Chase.
“It was clear that Buwa’s vision would be game-changing for D.C., and for the entire affordable housing industry,” said Macleod. “Our goal is to accelerate the impact of Dantes Partners by simplifying their funding, helping to build local relationships and make these vital projects happen faster.”
JPMorgan Chase has collaborated with Dantes Partners on five projects, providing Binitie’s company with both debt funding and Low-Income Housing Tax Credits. This reduced the cost and complexity of constructing buildings like the Todd A. Lee Senior Residences, a 38-unit, all-affordable building just half a mile from Rock Creek Park, where residents 55 and older pay far below market rents for high quality of life.
The partnership is only growing: five more developments with 500 more housing units financed by JPMorgan Chase are set to open soon, The projects are funded as part of JPMorgan Chase’s $30 billion Racial Equity Commitment, which is helping to create more affordable housing in Black, Hispanic and Latino communities and continue business growth in the D.C. region. The impact of these buildings reaches beyond their residents.
The impact of these buildings reaches beyond their residents.
“A Black-owned firm was the contractor for this building,” Binitie said of the Todd A. Lee residences. “We identify architectural firms that look like us. We look for ways to ensure that our communities are a part of our growth.”
Dantes Partners estimates that it has provided $90 million in contracts to other Black and Brown businesses in the last four years. With impact like that, it’s easy to feel Binitie’s warmth when he says, “The future is bright.”
The testimonials on this page or provided via linked videos are the sole opinions, findings or experiences of our customer and not those of JPMorgan Chase Bank, N.A. or any of its affiliates. These opinions, findings or experiences may not be representative of what all customers may achieve. JPMorgan Chase Bank, N.A. or any of its affiliates are not liable for decisions made or actions taken in reliance on any of the testimonial information provided.
For informational/educational purposes only: The views expressed in this article may differ from those of other employees and departments of JPMorgan Chase & Co. Views and strategies described may not be appropriate for everyone and are not intended as specific advice/recommendations for any individual. Information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results.
Learn more about the JPMorgan Chase
$30 billion Racial Equity Commitment at
jpmorganchase.com/racialequity