ANTHONY A. WILLIAMS’ RESPONSES to METPAC QUESTIONNAIRE
July 20th, 1998

Rent Control

1) Do you think it is time to make changes to the D.C. rent control law, or do you think it should be left alone?

I support the continuation of moderate rent control because it continues to bridge the gap between housing costs and income levels. A long-term policy is needed that supports affordable housing construction in the District.

2) If you think it should be changed, do you have specific ideas on how it should be changed? If not, can you tell you tell us what the outcome of any changes should be, i.e. what the problems are that you think exist with the rent control law which need to addressed?

As indicated above, a long term policy is needed whereby the District works in partnerships with developers to increase the supply of affordable housing in the District. My vision is that as the economy continues to improve and the District maintains balanced budgets with surpluses over time we can provide tax incentives to developers to build low and moderate income housing. Such incentives are necessary because, for example, a GS-12 working for the Federal government earning in the mid-40s cannot afford to pay $1,500 a month in rent in the high-income housing that is currently being built.

3) What is your position on "vacancy decontrol," in which rent control would be lifted from an apartment unit once the current tenant vacates, but rent control stays in effect on it so long as that tenant has not moved?

I am concerned about the economic viability of the rental housing industry. I believe that the exemption on housing built after December 31, 1975 in the current law has helped bolster the profitability of this industry.

4) Right now, when a housing provider wants to make capital improvements to his or her property (e.g. new roof, boiler, windows, etc), and needs to pay for them by raising rents, he or she has to go through a long and costly rent control process as the Dept. of Consumer and Regulatory Affairs (DCRA). Would you support a change in the law to exempt these capital improvement rent increases from rent control regulations, since their purpose is to maintain and improve the condition of our city's deteriorating housing stock?

Allowable increases for justified capital improvements are essential to ensuring the condition and safety of District rental housing is maintained and improved. Before changing the law, however, I strongly believe in aggressively pursuing the reform of the administration of the rent control process in DCRA. The current business practices of DCRA that are predicated on inefficiency and red-tape are completely unacceptable. DCRA must be streamlined and reformed so that it achieves the highest standard of customer service.

5) Are the answers you provided to these questions substantively consistent, in your view, with the positions you have advocated before tenant groups in the course of this campaign?

Throughout the campaign I have articulated a comprehensive housing affordability strategy that includes the continuation of moderate rent control but also involves a series of other policy considerations. As indicated above, continued fiscal improvements will allow for the use of tax incentives for developers to build low and moderate income housing that will provide the citizens of the District the highest quality of life.

In addition, the District must review the Economic Development Zones Incentives Amendment Act of 1988 to ensure that the tax incentives are being used to spur development in the designated areas. If not, the law should be amended to allow us to use it to revitalize our community.

Finally, the District must adopt an aggressive policy to renovate condemned property by providing free property to developers who agree to develop low and moderate income housing. This policy could be used in conjunction with the tax incentives I envision as part of a comprehensive low and moderate income housing strategy for the District.

Crime in Residential Neighborhoods

1). What specific actions would you recommend to address the problem of crime in neighborhoods?

I would make neighborhood policing work. A year ago, the Metropolitan Police Department adopted a model for community empowerment policing as its basis for reorganization. Boundaries for 83 new Police Service Areas were drawn up, and some positive things have happened in those neighborhoods where officers made a real commitment to the concept of neighborhood policing, got the training and equipment they needed, and where citizens were aggressive about forming a partnership with police to solve problems that breed crime.

But for most neighborhoods, effective neighborhood policing is still a dream. PSAs are understaffed, equipment is inadequate, training is poor, attitudes are negative, and commitment is half-hearted. Officers transfer out too soon to get to know who's who and what's what in their assigned neighborhood.

Criminals prey on neighborhoods where it looks like no one cares. Effective neighborhood police teams not only deter crime and arrest offenders, they work with citizens and businesses to solve ongoing problems, from abandoned houses and cars to graffiti, junky vacant lots, and the lack of school and city services needed to create neighborhood environments resistant to crime.

I would ensure that five specific steps are taken to make neighborhood policing work:

• Resource Reallocation. Currently, only 1,627 of the department's 3,607 sworn officers are assigned to PSA teams — 45% — and many of those are on limited duty, medical or administrative leave or temporary assignment elsewhere. The number should be closer to 65% to 70% — 2,400 to 2,600 — and should represent officers ready to work the streets. Adequate staffing and equipment will let every neighborhood have foot and bike patrols and still handle 91 1 calls quickly. Officers must serve longer tours of duty in PSAs — long enough to truly get to know citizens and business owners and put that knowledge to work.
• Improve training. The community policing concept requires a sea change in how officers approach their jobs, and requires new skills in team-building, problem solving and communication. The short, one-time training done a year ago was inadequate. Training must be continuous, must be tailored for the specific needs of the PSA team, and should include team training with leaders of neighborhood citizens and business groups.
• Department-wide implementation. Neighborhood policing and the thinking and skills that support it must become the operating philosophy of the entire department. I will ensure that whatever reorganization, retraining and reassignment is necessary to make that happen will actually take place.
• Planning and support. Years of mismanagement have left with a police department unskilled at the planning that is essential to good management. Chief Ramsey is beginning to change that. For neighborhood policing to work not only must each neighborhood police team have a plan, but each sector and district must have a plan as well. These plans should focus on the PSAs' support needs and also address issues such as crime problems that cross PSA boundaries and should be handled at the district level.
• Better coordination and support from other agencies. Neighborhood problem solving means bringing other agencies onto the team. Officials from housing, schools, public works, prosecutors, corrections and other agencies and organizations both public and private must work together to help solve crime.

Chief Ramsey has recently put forward similar priorities. As Mayor, I will work with him and the department's leaders to meet these goals.

2). Because the crime problem has gotten so out of control, housing providers must now spend hundreds of thousands of dollars to hire off-duty MPD officers to patrol their buildings because the on-duty police are overwhelmed. Would you support a full or partial DC tax credit for housing providers who must undertake such extraordinary measures to protect their tenants?

I would be willing to study such a proposal.

Evictions

I ) Would you support legislation to create something like a three strikes and your out rule which would ensure that such problem tenants can be evicted, if a judge finds that they have repeatedly violated their lease and their continued presence is disturbing or endangering the other tenants in a building?

The District must enforce existing regulations in landlord/tenant disputes before instituting more draconian measures that would adversely affect lower income tenants. Unfortunately, a high percentage of the District's population rents rather than owns housing. The District must balance the needs of the tenants to have certain rights with the needs of the owners to have certainty and stability in their business operations.

As Mayor, I would immediately I would assemble a group of property owners and renters and call for a consensus solution to the challenge facing both constituent groups.

2) Right now, a housing provider even has to go through the entire court process for eviction when a tenant has already "skipped" the apartment, i.e., the tenant has clearly abandoned the apartment but did not "officially" give notice to vacate. The court costs and delays in re-renting the apartment are unnecessary hardships on housing providers. Would you support legislation to streamline the process, for example, by allowing the housing provider to certify that the tenant has not be seen in a specified period of time, and having penalties for false certification by a housing provider?

Eviction is clearly an activity that must be done with the greatest of protections for tenants, notwithstanding the inconveniences to the landlord. As Mayor, I would, however, review the current regulations and begin a dialogue with tenant and landlord groups in an effort to forge a consensus on procedures that take into account the concerns of both parties. Since a large percentage of the population rents property, it is important that protections remain in place for renters. Again, this must be balanced with the needs of the property owners.

Size of Government: Financial Issues

1) The District's financial problems are far from over. What specific actions would you propose during your term to address the city's financial problems?

As Chief Financial Officer, I built a financial organization that improved revenue collections and cost controls to produce a $185 million surplus in fiscal year 1997. As Mayor, I will build on this success through four key strategies:

• Enhance the revenue stream. I will work closely with the CFO to further improve tax collection systems to ensure the timely collection of revenues and maximum convenience and fairness for taxpayers.
• Control costs through greater efficiency.. Across government agencies, poor management and 1950's technology results in well-funded programs producing sub- par results. Through professional management and updated technology, I will reform District agencies to cost less while producing better services for District residents and businesses.
• Restore our credit rating. After years of poor management, Wall Street downgraded the District's bond rating to "junk bond" status. As CFO, I brought credibility and financial expertise to begin improving our reputation, receiving a bond upgrade for the District for the first time since its' financial crisis began. As Mayor, I will ensure that the District collects revenue and invests wisely, and Wall Street will see that the District is worthy of Triple-A ratings.
• Invest in infrastructure. One of our most important financial decisions is non- financial in nature. By investing in major infrastructure improvements now, the District will avoid costly repairs in the future. In addition, substantial infrastructure improvements will foster economic growth that will ensure the District's financial viability for many years to come.

2) What is your position concerning further downsizing of the government?

As CFO, I found that through smart management, many services could be improved through intelligence and hard work and no extra funding. In other cases new technology, training, and staff are absolutely necessary to improving services. In the long run, however, government can work better and cost less, and that will be the goal of my administration.

For now, however, I believe that District residents and businesses care more about receiving better services than they do about government downsizing. Therefore, as Mayor, my primary goal will be to deliver quality services, while improving efficiency and controlling costs to the maximum extent practicable.

3) Many cities have found that privatization of some city services is a key to long term economic health. Do you support the concept of privatization? In what specific areas and services do you see opportunities for contracting out of city services?

As Mayor, my goal will be to reform government agencies to achieve at least the same service quality and efficiency as the private sector. In areas where this cannot be achieved, however, I am willing to consider privatization. For such cases, the process of privatization will include:

• Allowing government employees to compete against the private sector;
• Assistance for displaced city workers, including job retraining and other assistance; and
• Severance packages for displaced workers.

There are other services, however, that are inherently public functions. Public education and government oversight, for example, require a public commitment and responsiveness that can only be provided by public servants.

4) How do you feel about the job that the Financial Control Board has done so far? How will you, as Mayor, work with the Control Board?

In evaluating the performance of the current District leadership, I defer to the citizens of the District. They are dissatisfied with the current government as it exists. They have concluded that it is time for new leadership. This is why the citizens of the District drafted me to run for the Mayor's office. They have asked me to provide new leadership to guide the District into the 21st Century, and I have accepted the challenge.

As Mayor, I will build a governing coalition that includes not only the District Council and Control Board, but also business owners, not-for-profits, labor leaders, and citizens. By establishing a partnership among these people, I will ensure that all interests are represented. Now, this doesn't mean that we'll have management by committee, or that everyone will be pleased with every decision I make. Instead, it means that all interests can voice their interests, hear others' concerns, and eventually support the decisive action that I take.

5) The same question as above, only in regard to the Chief Management Officer: How is she doing? How will you, as Mayor, work with her?

As I stated above, I defer to the citizens of the District in their evaluation of the current government leadership. These citizens are not only concerned about the capacity of leaders to improve service delivery, but also their accountability. Who's interests do they represent? Who's priorities do they serve? I believe that the citizens of the District deserve the same right as all other Americans — the right to elect their own leaders.

As Mayor, I intend to provide the leadership that citizens expect from that office. Through this leadership, I will create a governing coalition with other District leaders to set priorities and make decisions that serve the needs and interests of the public. I will also work closely with appointed officials throughout the government to carry out the policy implementation and government reform needed to serve these priorities.

6) Do you have specific proposals for attracting more businesses to the District, and for keeping those that are still here from leaving?

Absolutely. Maintaining a strong business community is key to the District's continued economic viability, and as Mayor I will ensure that the District provides a business- friendly environment. Specifically, I will do the following:

• Reform District regulations. Right now, D.C. subjects local businesses to a brutal maze of regulations and virtually no customer service to help navigate through. As Mayor, I will merge duplicative rules, and eliminate unnecessary regulations. In doing so, I will waste no time developing a panel or committee to review the Districts regulations, I will instead rely on the credible reviews conducted to date, such as the Business Reform Regulatory Commission's report.
• Provide one-stop shopping. In addition, I will create a one-stop customer service hot-line and center. This service will provide businesses with a centralized, knowledgeable, and courteous representative who will respond to all needs regarding permits, licenses, inspections, and any other concerns a business person may raise. We will work towards a technology-friendly environment where business licensing and many other transactions can be completed electronically.
• Promote fair and equitable taxes. At present, District businesses face taxes that are 50% to 75% higher than those paid by their suburban counterparts. In fact, D.C. has the region's highest taxes on commercial real property, corporate income, retail sales and utilities! As Mayor, I will work to ensure that taxes are restructured in a way that creates a friendly business climate in the District. Specifically, I will promote the implementation of key recommendations issued by the Tax Revision Commission.
• Improve basic services. To operate effectively, local businesses need clean and safe streets, reliable trash collection, and a well-maintained infrastructure. As Mayor, I will ensure continued upgrading of services to support a strong local economy.
• Enhance neighborhood business centers. In addition to "downtown" businesses, our city has many important neighborhood sectors and commercial corridors. These neighborhoods are not only key to our economic stability, but to our civic and cultural identity. As Mayor, I will build on my economic development experience in Boston and St-. Louis, to ensure that active support and assistance are focused on these areas to provide opportunities for growth and development.
• Promote tourism. Despite our wealth of cultural amenities and national landmarks, the D.C. is now often regarded as dangerous and unclean. To reclaim our status as a premier tourist city, we must restore basic city services like police patrols and street maintenance. In addition, we must market our city more effectively by advertising nationally and regionally, for both major national attractions as well as local neighborhood sites.
• Provide small, minority assistance. Small businesses are often the engine that drives economic growth. They provide new economic opportunities to both people and places. As such, I will focus resources on supporting small businesses, ensuring they have access to capital, access to local business networks, and full cooperation from key government agencies.
• Support Business Improvement Districts (BIDs). BIDs have provided a much- needed response to the District's failure to provide basic services. Local businesses should not have to tax themselves for basic city services while being taxed by the city for the same purpose. This type of initiative mirrors the type of neighborhood partnerships that I, as Mayor, will bring to the entire District.
• Promote Regional Cooperation. Washington is the hub of the second largest technology region of the country. We should make every effort to take advantage of this opportunity by working with other regional governments and with business coalitions to train technology workers and support emerging new businesses.
• Enhance international business opportunities: The availability of new communications technology creates new opportunities for businesses and organizations in Washington to participate in the expanding global trade more than ever before. I will support the efforts of the city's culturally diverse businesses and organizations to create and expand new international business opportunities.

These decisions, of course, will not be made by me alone. As Mayor, I will build a governing coalition that includes not only the Council and Control Board, but also business owners, not-for-profits, labor leaders, and citizens. By establishing a partnership among these folks, I will ensure that interests are represented and that my decisive action will be supported.

Government Regulations of Businesses and Citizens

1) Do you think the regulation of businesses and citizens, particularly by Department of Consumer and Regulatory Affairs (DCRA) is acceptable, or do you share the view that it is unduly complicated, time consuming and unpredictable?

DCRA is the District's day-to-day contact with the business community. As such the mission of DCRA must be to both support business development while ensuring that vital health and safety regulations are followed. The mindset of DCRA must change from that of a sustaining the existing bureaucracy to providing an efficient and effective services -to the business community. This change in organizational culture can be achieved when professional employees work in an environment that utilizes streamlined processes and cutting edge technology to deliver the highest level of customer service.

2) Do you think that DCRA is functioning adequately enough to perform its mission? What do you think needs to be done at the agency?

DCRA is not functioning adequately to perform its mission. As Mayor, I would recommend that first rate managers are hired who have experience in the business world and in customer service. Second, I would ensure that the workers have the tools they need, including technology and training so that they can be responsive to the customer. Third, I would work with to see that the necessary changes, as outlined in various studies of the DCRA, be implemented in a rapid fashion.

3) The Control Board has mandated a wide variety of regulatory reforms, some of which require action by the elected government, and others of which will be taken on its own. Please provide, in detail, your responses to the regulatory reform recommendations the Control Board made in the areas of:

Land Use and Development

Key provisions in the Authority's Resolution and Order require:

• increased staff end improved technology to expedite the review of building permit applications,
• streamlined construction inspection process,
• expedited review of home and small business structural modification proposals,
• computerized certificates, permits, and other records.

This is consistent with the vision I have set forward to reform all regulatory reform dealt with by businesses and residents. This reform will involve improved staffing, streamlined processes and investments in people and technology. But, perhaps most importantly, will be a commitment to sound management principles and accountability.

Street and Alley Closings

In this area the Authority makes the following key recommendations:

• conduct a full review of street and alley usage,
• pass resolutions to close unneeded streets and alleys.

Environment Regulations

The District's administration of its environmental regulations institute an additional layer of inefficient bureaucracy on an already cumbersome process. The entire regulatory process must be streamlined to ensure a balances between the interests of protecting the health and safety of District residents and encouraging new development. I will utilize all available resources including the BRRC report and management reform studies to develop and implement a regulatory system that strikes this balance.

d) Adoption of Updated Construction Codes
e) Self-Certification in the Construction and Development Process
f) Code Enforcement

The building code enforcement process is one of dozens of services that has suffered from incompetent management where customer service is an afterthought and not a priority. This process requires a top-down review in which every unnecessary step will be eliminated and managers who do not adhere to strict standard of customer service will be removed. An efficient code enforcement process will reduce time dedicated to red tape and paperwork and focus efforts on the number one priority: ensuring the health and safety of District residents and visitors.

Street Vending Regulations

Street vendors are an excellent example of micro-enterprises which have flourished in the District. However, these businesses present a unique regulatory challenge due to the sidewalk location of vendors and the intense competition for prime vending locations. Stifling these entrepreneurs with special regulations and requirements will send a message that the District is unfair and capricious in its treatment of small business. Thus, the regulatory treatment of vendors in other large cities will be reviewed in order to develop a fair and equitable policy.

Tax Reform

Please provide detailed responses to the major recommendations of the Tax Revisions Commission, addressing, at a minimum, the following:

1) Do you agree with the TRC's conclusion that a major restructuring of the District's tax base is required in order to ensure a stable future revenue base?

Comprehensive tax reform is vital to the long-term economic viability of the District. Both businesses and residents face tax burdens that are much higher than the surrounding suburbs. D.C.'s business tax burden exceeds the suburbs in the metro-Washington area by 50%-70%. D.C. tax burdens are highest in the region on commercial real property, corporate incomes, and public utilities and toll telecommunications.

At present, the District does not have the capacity to administer or implement a value added or gross receipt tax. First, the District must rebuild credibility in its commitment to cut taxes; second, tax reduction must be part of a long-term plan to reduce taxes; and any gross receipt tax itself to incremental reduction. Finally, this must be done in conjunction with an investment in its capital infrastructure.

2) Do you believe that the current system has disproportionately burdened business taxpayers? Do you believe that, within the business, there are also disproportionate burdens which must be remedied, and, if so, what are they?

Clearly, the District's tax structure and tax rates need to be adjusted in order to allow the District to gain a competitive advantage over the surrounding jurisdiction. Commercial property rates in the District as well as personal property rates in the District are higher than in Maryland and Virginia. Additionally, I support a reasonable reduction in the corporate franchise tax rate that fits into a fiscally sound financial plan for the District.

3) What are your views on the TRC's recommended business activity tax, and, if you think it has merit, should the Congress be asked to validate it from a legal challenge?

Both a gross receipt tax and business activity tax would have to meet the three criteria that I articulated in response to question number 1 before the District can successfully implement such a tax. However, the business activity tax does have some legal problems with it and thus, of the two, the gross receipt tax is the better approach.

4) Same question in regard to the gross receipts tax proposed by the Office of Tax and Revenue?

See response to question 1 above.

5) Do you endorse a viable alternative to either of these, and, if so, what?

I originally proposed the gross receipt tax proposal, again, as long as the criteria I have articulated have been satisfied prior to its implementation. I have looked at various options and alternatives and have not found one that will provide the District with a sound tax system.

6) Irrespective of whether general business taxes are revised, do you support the need to:

a) substantially lower the commercial property tax rate;

I favor lowering the commercial property rate in an incremental fashion so that the District can absorb the revenue loss without affecting critical service delivery

b) eliminate Class Five

I favor eliminating the Class-Five property rate.

c) combine multi-family and single-family properties in a single class, at the homeowner rate?

In principle, I support the recommendation of the Brookings study to replace the current five-class property tax system with a two-class system consisting of a one residential class and one commercial class. This proposal, however, has significant cost implications and the first priority of the District must be to maintain the fiscal balance achieved under my leadership over the past two years. Once the fiscal integrity of the District is fully reestablished, then the tax system, and specifically the property tax class system, must be restructured based on the guiding principles of competitiveness with the suburbs, fairness and simplicity.