Daniel Herriges wrote this article in “Strong Towns” on November 30, 2016. The full text of the article can be found here.
The article discusses the challenges and potential solutions surrounding affordable housing in the United States, particularly in the context of reliance on federal funding and the need for local control. The author, a graduate student in Urban and Regional Planning, reflects on the uncertainty surrounding the future of the U.S. Department of Housing and Urban Development (HUD) and its impact on affordable housing initiatives.
The distinction between “Affordable Housing” (capital-A) and “affordable housing” (lower-case-a) is highlighted. The former refers to housing that receives subsidies, while the latter simply means housing that is affordable for individuals without subsidies. The article notes that the affordable housing industry, particularly in regions like the Twin Cities in Minnesota, relies heavily on federal funding, which creates a fragile system vulnerable to political changes.
Historically, affordable housing was primarily public housing funded by the federal government until the mid-1960s when the focus shifted to leveraging private and nonprofit sectors through programs like Section 8 vouchers and the Low Income Housing Tax Credit (LIHTC). The LIHTC has become the dominant funding source for affordable housing, creating nearly 3 million units since its inception. However, the reliance on federal grants makes the sector chronically underfunded, with only a small fraction of the demand for subsidized housing being met.
The article emphasizes the importance of local solutions to address the affordable housing crisis. It suggests several strategies for cities and affordable housing developers:
- Utilize Local Resources: Cities should dedicate local funds to leverage federal grants, building connections with local foundations and businesses to address affordable housing as an economic development issue.
- Support Small Landlords: Most affordable housing exists in the open market without subsidies. Local policies should ease code enforcement to help small landlords maintain their properties and provide affordable housing.
- Unlock Incremental Growth: The article argues that zoning regulations have stifled the development of “missing middle” housing types, which could help meet demand. Encouraging incremental development can prevent the binary system of no change or drastic change in neighborhoods.
- Promote Shared Equity Models: Community Land Trusts and Limited-Equity Cooperatives are proposed as mechanisms to provide affordable homeownership and preserve affordable housing stock by removing land from speculative markets.
- Create Local Funding Sources: Localities should establish funding mechanisms that reflect market demand, such as property tax surcharges dedicated to affordable housing or inclusionary zoning that requires developers to set aside units for low-income tenants.
- Advocate for Federal Policy Change: While local solutions are crucial, the article acknowledges that federal policies still play a significant role in addressing housing issues. Advocacy for reforms that support local land-use policies and provide necessary resources is essential.
The author concludes that building Strong Towns requires creating local economic ecosystems that are sustainable and responsive to local conditions, emphasizing the need for a balance between local and federal efforts in addressing affordable housing challenges.