SE Residents Cite 22 Corporate Owned Residential Properties Near U.S. Capitol

CM Charles Allen (at right) heard from a group of New Jersey Avenue, SE, residents on a tour to look at residential properties near the U.S. Capitol which are being used for non-residential purposes by corporations or non-profits or political organizations. ANC6B01 Commissioner Frank Avery is at left.

SE Residents Cite 22 Corporate Owned Residential Properties Near U.S. Capitol

By Larry Janezich

Posted September 27, 2023

CM Charles Allen and ANc6B01 Commissioner Frank Avery led a community walk to hear neighbors’ concerns about what they see as an existential threat posed to the South Carolina Avenue SE neighborhood posed by the increasing practice of corporations illegally buying up residential houses to use for corporate purposes including fund raising events and social gatherings.  The corporations, they say, are a nuisance presence who make the neighborhood less desirable for residents and inflate the value of properties beyond what families can afford or are willing to pay. 

Avery says that he and neighbors have identified at least 22 corporate owned properties located on New Jersey Avenue, 1st Street, D Street, and 2nd Street, SE.  They have forwarded the list to CM Allen and the Acting Director Brian Hanlon, Department of Buildings.  The exact locations are not being made available owing to ongoing legal issues with some of the properties.

Allen told residents, that he didn’t care about the politics of the corporations using residential properties. “My biggest frustration is that it’s blatantly illegal – they aren’t allowed and there should be enforcement.  Getting the Mayor’s agencies to do enforcement has been incredibly difficult.  They have found every reason why they can’t do this – ‘we found a technicality – we can’t do that’….  So Brian Hanlon, our new Director of the Department of Buildings, should be here tonight – they are not.  That being said…he met with me…and the very first thing I talked about was this issue.  He did say, ‘I get it.  I will work on this, just give me a little bit of time to get in the agency to figure out how do I get the right people in the right place‘.  But the clock is ticking Many of you know Brian – he’s a really good guy.  But we also are expecting that he has to deliver in this job and be able to do the enforcement.”

Hanlon is in a hard place.  On one hand, Allen is pressuring him to enforce the city regulations that ban commercialization of residential real estate.  On the other, there are good reasons the Mayor might not want to push city agencies to poke this bear.   Residents say one of the corporate houses is owned by Speaker Kevin McCarthy’s Super PAC.  Other houses are owned by major corporations such as UPS, General Dynamics, and Amway.  Still others are occupied by lobbyists.  

Allen pointed out that the problem is not unique to ANC6B and that ANC6C shares similar concerns.  Some NE residents have pushed ANC6C to take a more active role in ramping up the pressure on the city to address the problem.  But despite 6C Chair Mark Eckenweiler’s pledge to make the issue a discussion item on the Commission’s agenda last July, that discussion has not taken place.  (In 6C, the Heritage Foundation owns an entire block of commercial zoned offices on Massachusetts Avenue, NE, and has bought a half dozen properties around the corner on 3rd Street, NE, which it uses for residential purposes.  Similarly, the Conservative Partnership has bought several commercial properties on Pennsylvania Avenue, SE, and several residential properties on 3rd Street, SE, which will apparently be used for residential and entertainment spaces.) 

Residents cite the un-neighborliness of the businesses operating on New Jersey and near-by blocks and say the activities associated with the houses affect their quality of life.  They say that the corporations are paying less in property taxes than they would for commercial property and that the inflated purchase price for the commercialized properties based on the purchase price increases the property taxes on their own homes. 

Hanlon’s nomination has to be confirmed by the City Council and that confirmation hearing is coming before the Committee on the Whole on October 18.  Here’s a link to the hearing:  https://bit.ly/457QYpo  

Allen said he told Hanlon, “I want to see a set of policy recommendations before I can vote for you.  Can you help me with that so I can feel more confident that yes, you get this issue and you’re truly going to be working on it?  Those are some of the things…how  I can use the seat that I have to compel them into different kinds of solutions.”

Allen said he would like DOB to come and do a similar walk.  Hanlon was scheduled to participate in such a walk last week, but cancelled.  Allen said, “We tried really hard to get them to be here tonight… I think it would be helpful for them to have to stand here and hear what you are describing.  And I want them to be in a position to say, ‘Well, here’s why that’s legal or here’s why I can’t do that” – I want to be able to put them on the spot in front of constituents.  We’ve got to have an agency that will enforce and inspect – not be afraid to knock on the door.”