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2	Neighborhood Housing Affordability Introduction “You can build all the doggone houses, condominiums, what ever you want. But if you’re not trying to touch people’s lives and help them improve their lives – you’re just putting up bricks and mortar.” Streets of Hope
3	Achieving Housing Affordability Affordable housing defined as households earning 80% or less of Area Median Income - spending a maximum of 30% of income on housing and utilities
4	Achieving Housing Affordability Land Costs Reduce residential lot size Land banking Leased land rather than fee simple land Community Land Trusts Various regulatory programs to obtain land for affordable housing
5	Achieving Housing Affordability Land Development Costs Reduce yard size; front, side, back yard set back requirements Zero-Lot, Double Zero Z-Lot. Cluster Housing Townhouses Mixed density housing development Ancillary housing units Mixed-use development
6	Achieving Housing Affordability Land Development Costs Street widths, sidewalk, curb, off-site parking requirements, Green infrastructure Various public regulatory subsidies to offset land development costs
7	Achieving Housing Affordability House Development Costs Smaller housing units Simpler housing units / fewer amenities “Optimum value engineering” Green building - energy conservation Build units faster Home owner / builder Relaxation of building codes, especially for rehabilitation / reuse Cooperative housing SROs Various public subsidies to reduce costs
8	Achieving Housing Affordability Regulatory Mechanisms Non-cumulative zoning Lower cost subdivision and housing development standards “as of right” Density bonuses for affordable housing Inclusionary zoning Linkage agreements - Housing Trust Funds Development agreements
9	Achieving Housing Affordability Regulatory Mechanisms Speed up regulatory review process Mixed income housing standards under TND zoning Waivers and reductions of development impact fees Set asides of infrastructure capacity under APFO Building permit allocation systems Urban growth management
10	Achieving Housing Affordability Increase and protect quality of life in existing neighborhoods
11	Achieving Housing Affordability Sources of Funds Housing Trust Funds Tax Increment Funds CRA agreements Capital Improvement Program Community Development Block Grants HOME Land Inventories HOPE Tax Exempt Mortgage Financing Waive Fees Revolving Loan Funds Neighborhood Reinvestment Corporation Intermediaries State Funds Pension Funds Non-profit grants FANNIE MAE
12	Achieving Housing Affordability Mechanisms Down payment Assistance More forgiving underwriting standards High debt - loan ratios Home ownership education Lower interest rates Reduced points and fees Special terms of mortgage Non-performing rehabilitation loans Promissory notes - “silent seconds” Deeds of trust Government ownership Rent control
13	Financial Assets and Social Capital Homeownership and Assets (IDAs) associated with: Future orientation Self-efficacy Involvement with neighborhood association Improvement and maintenance of residence Children’s educational achievement For renters - social capital associated with community participation and problem solving
14	Community Development Corporations Non-profit corporations in low income neighborhoods Address comprehensive set of needs. Carry out activities that reinforce one another Community control / resident participation Mobilize financial, technical, and political resources Create organizational capacity
15	Community Development Corporations
16	Community Development Corporations
17	Sawmill Neighborhood
18	Sawmill Neighborhood Single family Townhouse Apartments Live-Work units Business incubator Light manufacturing Office-warehouse Retail & entertainment Child care - Senior meals
19	Sawmill Neighborhood Govt. subsidies needed: Purchase Site: $1.05 m Env Clean Up: $364 k Public Plaza: $450 k Parks & Trails: $270 k
20	Back to Kentlands Goal of diversity and housing affordability Compatibility of unregulated approach with long-term housing affordability? Effectiveness of incentive-based approach to creation of housing affordability?
21	Questions What is the purpose of affordable housing? Are “building stable communities” and “creating affordable housing” compatible goals? How can a number of neighborhood goals be reached simultaneously?