600 people displaced from the last affordable apartments in Buckhead, how the system is broken, and what you can do about it.

Last week, Curbed.com wrote about the Darlington — an affordable housing complex located in the heart of Buckhead. The story highlights a tragic narrative: the residents living in 600 apartments received 60 days notice to pick up and move out. This same narrative plays out in cities and towns across the country everyday, and I must say that after spending years as a real estate developer, I’m not at all surprised by this. The affordable housing market — both public and private — has been broken for decades.
The Darlington story is, sadly, not at all original. I haven’t found a clear explanation around what happened to the subsidy supporting affordability at this location, but regardless, all current affordability programs using tax credits and public subsidies expire. And when they expire, the housing units, and the residents, are subjected to the whims of private market forces resulting in mass displacement of low-income populations to make way for higher profit units. Regardless of the specific case around subsidies and restrictions here, the Darlington units were rented below $800, while the average studio rental rate in Buckhead is $1,484. Is it really a surprise that the existing residents were forced out in order to renovate and re-lease the property for a potential gain of more than $400K/month? Some of these residents now fear homelessness, many will have to move to locations that will quadruple their commute times and almost everyone will be faced with paying more and saving less while trying to stay afloat.
At the same time, it’s important to note that even though the rents may have been affordable, the living conditions in the Darlington were far from ideal. Based on the photos of water damage I’ve seen, the building has clearly needed capital repairs for some time. But capital repairs are expensive, and it’s unrealistic to expect anyone to invest into a property without a reasonable return on that investment.
After seeing this same scenario play out all too often, I started PadSplit in 2017 to help address the brokenness of affordable housing. The main issue was the horrible misalignment of incentive structures for property owners. I wasn’t cynical about this — of course people purchased real estate and rented out their units in order to turn a profit. But what if there was a way to check that box while also offering a fixed and affordable rate for prospective residents?
Meanwhile I was cynical that a public sector “fix” for affordable housing would come any time soon, so I set a personal goal to see if it would be possible to align incentives and make quality affordable housing profitable, so that it could exist in a private market environment. I’m pleased to say that we’re proving out the model and finding that yes — affordable, dignified housing for residents is possible, while also increasing the profit potential for property owners by more than 30 percent. This model — as it continues to scale — can help prevent future Darlington situations from arising.
Today, PadSplit is focused on the Atlanta market, providing a shared housing experience — a “PadSplit” — with furnished private bedrooms and fixed utility costs, so residents can enjoy safe, clean and affordable housing that enables them to budget and save money more easily. We’re also moving workers closer to employment, resulting in savings of $360/mo between housing and commute costs, and reducing traffic for the rest of the city. For property owners, every PadSplit is professionally designed and maintained, exceeding HUD specifications while complying with all zoning requirements, and residents undergo a rigorous application process, which allows for increased profitability and fewer headaches. We currently have over 1,000 residents on the waiting list and are bringing new units online monthly as more and more property owners see the financial upside.
PadSplit is trying to contact residents of the Darlington to let them know that we exist and to start our application process. But with our current waitlist, the reality is that it will take some time to help these residents. I wish I could write this article today with a more immediate solution for those who are being displaced. But I do find it important to write this article to call further attention to the underlying reasons of why the Darlington situation is happening in the first place, and how solutions like PadSplit can help solve the broken incentive structure.
If you read this article — thank you. I truly appreciate your interest. I also need your help. PadSplit is currently trying to spread the word about our model and its benefits in order to bring more units online. Our mission is to change the world, one room at a time, and I know we can continue to create more affordable housing options for residents while maximizing profits for property owners.
