Housing Choice: Most Promising Housing Strategies

1
Housing Choice Most Promising Housing Strategies

• 2005 American Planning Association State National
  Planning Conference
• San Francisco, CA
• March 20, 2005

2

• Bill Klein, AICP
• Director of Research, American Planning
  Association
• bklein_at_planning.org
• Stuart Meck, FAICP
• Senior Research Fellow, American Planning
  Association
• smeck_at_planning.org
• Lynn M. Ross
• Research Associate, American Planning Association
  
• lross_at_planning.org

3
Housing Choice Scoping Sessions

• Sponsored by Fannie Mae Foundation
• 6 half-day sessions held Fall 2004
• North Carolina, Southern New England,
  Oregon-Washington, Midwest, Texas, and
  California.
• Participants from various disciplines.

4
Key Discussion Components

• Each Scoping Session Addressed
• Housing Need
• Politics of Housing
• Affordable Housing Production and Retention
• Most Promising Strategies

5
North Carolina
6
Housing Need(North Carolina)

• Regional differences
• East
• Metropolitan areas
• Coastal areas and resort areas
• Impact of second home owners
• Section 8 waiting list
• Demand for one person units

7
Politics of Housing(North Carolina)

• Lack of overarching housing policy
• Housing policy and production functions spread
  out
• No dedicated source of funding

8
Affordable Housing Production and Retention
(North Carolina)

• Lack of capacity for rehabilitation
• Limitations on investment tax credits
• Shortage of land for multifamily housing
• Difficulty in amending state building code
• Lack of express authority of inclusionary zoning
• Race-based opposition

9
North CarolinaMost Promising Housing Strategies

• Education on handling money and credit
• Authorization for inclusionary zoning
• Statewide minimum housing code
• Development of rental housing production capacity
• Incentivized housing trust fund for realtors and
  bankers
• Education campaign on benefits of affordable
  housing

10
Southern New England
11
Housing Need (Southern New England)

• Transition from industrial to service economy
• Changes in household size and composition
• Immigration, especially for key target areas
• Loss of subsidy for very low income hshds
• Stratification/segregation
• Focus on workforce hsng impacts very low income

12
Politics of Housing (Southern New England)

• Anti-tax feelings drive the discussion
• Resources down to ¼ what they once were
• Anti-development feelings generally
• Fear of in-migration, impact on schools
• Perception of excess profits by developers
• Legitimate infrastructure needs
• The Governor must lead

13
Affordable Housing Production and
Retention(Southern New England)

• Devolution of Federal responsibilities
• More sophisticated ways to stop dev
• Loss of by-right zoning for multi-family
• Lack of certainty in process
• Diminished profitability, fewer for-profits
• Impact fees pacing and phasing mechanisms
  off-site improvements

14
Southern New England Most Promising Housing
Strategies

• Massachusetts Chapter 40R Smart Growth Zoning
  Districts
• 2 carrots for higher density
• Rhode Island Public Laws, Chapter 286
• R.I. Affordable Housing Act
• Inclusionary Housing Strategies
• Voluntary vs. mandatory inclusionary tools

15
Oregon-Washington
16
Housing Need(Oregon-Washington)

• Most counties in Washington and Oregon have
  affordable housing need
• Age and income cohorts affect housing
• Immigration impactHispanics represent 1 in 3 new
  households
• Portland, Corvallis becoming more expensive
• Seattlevery expensive

17
Politics of Housing(Oregon-Washington)

• Strong state growth management structure
• Limitation on use of inclusionary zoning in
  Oregon
• No dedicated source of funds
• Voluntary housing goals from Portland Metro
• Reliance on sales tax and commercial activity

18
Affordable Housing Production and Retention
(Oregon-Washington)

• Land inside Portland growth boundary not ready
  for development
• Hard to find individual building lots for under
  100,000
• Hope VI working well in Seattle
• Investment tax creditstoo many soft costs

19
Oregon-Washington Most Promising Housing
Strategies

• Oregon LCDC needs to develop capacity to assist
  local governments with affordable housing
• Needs to be a mechanism to pledge affordable
  housing as a condition of UGB expansions
• Real estate transfer tax for affordable housing,
  lift ban on exclusionary zoning in Oregon
• Banking land for affordable housing
• Citizen education
• More short term activity to produce affordable
  units

20
Midwest
21
Housing Need(Midwest)

• Participants were from Indiana
• Loss of jobsno longer strong industrial base
• Central Indiana housing affordable, northern part
  of state more need
• Lack of high-end housing in Indianapolis
• Imbalance of housing choices in Indy region
• Lack of very low income housing
• Homelessness

22
Politics of Housing(Midwest)

• State has 66 public housing authorities
• But state oversees public housing
• No dedicated revenue source for affordable
  housing
• No housing planning requirement in Indiana, but
  now in Illinois

23
Affordable Housing Production and Retention
(Midwest)

• Manufactured housing filling needs in rural areas
  of state
• Special exception requirements for manufactured
  housing
• Fort Wayne citywide housing strategy
• Affordable housing trust fund in Indianapolis
• Owner-occupied downtown housing in Indy

24
Midwest Most Promising Housing Strategies

• Illinois Comprehensive Housing Plan
• Illinois Affordable Housing Planning and Appeal
  Act
• Cooperative efforts outside government
• Training local planning commissions concerning
  affordable housing
• UniGov approach to housing to share burdens and
  benefits

25
Texas
26
Housing Need (Texas)

• Immigrant Influx
• Household Composition
• Spatial Component- Rural v. Urban
• Jobs- Housing Balance
• Change in Poverty Dynamics
• Boom/Bust Economy

27
Politics of Housing(Texas)

• State Level
• Not typically a Governors Office issue
• A Regional Issue for the Legislature
• Local Level
• NIMBY
• Race and Income Segregation
• Property Values

28
Affordable Housing Production and
Retention(Texas)

• Low Income Housing Tax Credit
• Regulatory Barrier Removal
• State Programs
• Role of the Non-profit Sector
• Manufactured Housing

29
Texas Most Promising Housing Strategies

• S.M.A.R.T. HousingTM program
• Austin
• Land Assemblage Redevelopment Authority (LARA)
• Houston
• Volunteer Income Tax Assistance (VITA)
• San Antonio

30
California
31
Housing Need(California)

• Sharp population growth
• Immigration
• Inadequate production of housing overall
• Two markets
• Those who bought early
• Those who are trying to get in
• Speculative housing in Sacramento region

32
Politics of Housing(California)

• Proposition 13 and impact
• Housing policy not a priority for any governor
• Lack of comprehensive approach
• Local government barrierslarger houses, larger
  lots

33
Affordable Housing Production and Retention
(California)

• Builders wary of affordable housing market
• Regulatory barriers
• Private, but not public, enforcement of state
  housing element law
• Lack of certainty
• San Diego SRO

34
California Most Promising Strategies

• More housing generally
• Accessory dwelling units
• Higher densities
• Statewide inclusionary zoning
• Maintaining Section 8
• The Urban Williamson Act
• Linking affordable housing to job development
• Building affordable housing in smaller clusters

35
Top 10 Most Common Themes

• 10. Impact of Local/Regional Tax Structure
• 9. Inadequate State Funding for Housing
• 8. Lack of Support at State Legislative Level
• 7. Use of Tax Credits
• 6. Wages vs. Cost of Living

36
Top 10 Most Common Themes

• 5. Service Gap for the Very Low Income
• 4. Change in Household Composition
• 3. Impact of Federal Programs
• 2. Need for More Education, Training, and
  Capacity-Building Programs
• 1. Not In My Backyard

37
Learn More

• APA Website, www.planning.org
• Affordable Housing Reader
• Free online reader features 100 APA published
  articles.
• Housing and Community Development Division
• Learn about the division activities, join, read
  the newsletter.
• Housing Choice online (coming soon)
• Complete session summaries, theme analysis,
  strategy descriptions.

38
Thank you for attending!

• 2005 American Planning Association National
  Planning Conference
• San Francisco, CA