Category Archives: housing development

Easing Burlington’s Housing Shortage, Opinion by Erhard Mahnke

(This piece first appeared on the Burlington Free Press opinion page on September 20, 2017)

Safe, stable and affordable housing is essential for a community to thrive economically, socially and culturally. Vermont continues to struggle with housing affordability, and unfortunately the state’s largest city of Burlington is no exception.

A Burlington resident needs to earn over $26 an hour to afford the fair market rent for a two bedroom apartment – that’s more than $5 per hour above the national average.

This is troubling and we hear about the ramifications from families and seniors who can’t find places to live, from young people who are choosing to leave the state for more affordable areas, from agencies serving the homeless, and from our employers who struggle to find qualified employees due to the high cost of housing.

There are several components to addressing the issue of affordable housing, and one of the most critical is the need for capital investment to build new housing and to renovate existing properties. While many additional homes have been built over the past several years, many more are needed to accommodate the growth of 2,375 new households projected for Chittenden County by 2020. Current production is being absorbed into the market quickly, and the long-term vacancy rate for rentals still hovers between 1 and 2 percent, putting supply and demand out of whack.

Not surprisingly, according to Census data, over half of Chittenden County renters are “cost-burdened,” meaning they pay too much of their income for housing, leaving them without enough for other basic necessities.

In terms of affordable housing, last month the Champlain Housing Trust had just five vacancies among their 2,000 plus apartments, and only one vacancy in Chittenden County. Cathedral Square Corp. had over 800 seniors and people with special needs on its waiting list looking to move into affordable housing.

Furthermore, the effective vacancy rate for subsidized rentals in Chittenden County was literally 0 percent for all bedroom sizes. These shocking numbers help explain why the Burlington Housing Authority typically measures their waiting list in years rather than weeks or even months.

These numbers are astonishing, but the good news is that there are clear steps we can take to address the cost of housing. No one project will be the panacea for Burlington’s affordable housing crisis, but developments like the proposed Cambrian Rise project in Burlington’s North End can significantly improve housing options for residents and relieve the pressure on a strained system.

As proposed, Cambrian Rise will be a 739-apartment mixed-income housing neighborhood with an impressive number of affordable homes. The neighborhood will offer Burlington residents housing options for all income levels.

Under Burlington’s inclusionary zoning ordinance, the development will include 128 affordable rentals for families and seniors with household incomes of less than 65 percent of the Chittenden County median income. In English that translates into housing that is affordable for a one-person household making $37,500, or $53,600 for a family of four.

However, with federal, state and local dollars available to Champlain Housing Trust and Cathedral Square, which are partnering to help create Cambrian Rise, many apartments will be even more affordable.

Furthermore, another 60 homes will be affordable to homebuyers earning below 75 to 80 percent of median income, or below at most $46,150 for a single individual and $65,900 for a family of four. In all, the development will offer 188 permanently affordable homes to low income Vermonters. In addition, Cambrian Rise will offer “workforce housing” for sale and rent targeted to more moderate income people up to 120 percent of the median income. Our working families, our seniors and people with disabilities, and our employers desperately need these new homes.

Cambrian Rise not only offers a diverse neighborhood, it is also a model for sustainable development. The project features alternative transportation options, energy efficiency, a state of the art stormwater system to protect the lake, and a conserved 12-acre public park – giving us continuous public access to Lake Champlain from Perkins Pier to North Beach.

Convenient access to the bike path, car share opportunities and a heated bus terminal for year-round use will ease the financial burden for residents of the neighborhood. This mixed-use development is a model for the future, where diverse residents of all income levels, abilities and ages can live, work and play in one neighborhood.

Erhard Mahnke, of Burlington, is coordinator for the Vermont Affordable Housing Coalition. The Vermont Affordable Housing Coalition is a partner organization in the Thriving Communities- Building a Vibrant Inclusive Vermont campaign.

Important Federal Funding Facts About Housing in America

OUR HOMES, OUR VOICES

THE CAMPAIGN FOR HOUSING AND COMMUNITY DEVELOPMENT FUNDING

Information sheet produced by the National Low Income Housing Coalition

Click on Picture for a Full View

[pdf-embedder url=”https://www.thrivingcommunitiesvt.org/wp-content/uploads/2017/07/OurHomes-OurVoices7-2017.pdf”]

Vermont Housing and Conservation Board Will Use $35 Million in Bond Funds to Address Vermont’s Housing Shortage

Passing this Vermont Housing and Conservation Board  press release forward from A Vermont Affordable Housing Coalition news item.

PRESS RELEASE
June 28, 2017
Contact: Gus Seelig, Executive Director, 828-3251, gus@vhcb.org
Jen Hollar, Director of Policy and Special Projects: cell: 793-7346; Jennifer@vhcb.org

The Vermont Housing & Conservation Board will use $35 million in new funding for the creation of rental housing and home ownership opportunities for 550-650 low- and moderate-income Vermonters over the next two to three years. The bold, new initiative represents the largest state investment in housing in more than a decade.  It was first proposed by Governor Phil Scott in his January budget address, gained strong support in the legislature, and was signed into law today.

Governor Scott said, “When workers are unable to find adequate, affordable housing, economic growth is constrained. Vermont has a very low rate of rental vacancy and we need to increase access to homeownership. This effort will ratchet up the production of new housing to serve households at a wide range of incomes, spur economic growth, create jobs, and have a significant impact on Vermont’s supply of housing.”

Tim Ashe, President Pro Tempore of the Vermont Senate, said, “I’ve seen the housing shortage up close. In my time at Cathedral Square, we’d fill up new buildings within hours. Literally. So when I met with Governor Scott in November and we both expressed a strong interest in seeing more housing supply, I knew it was a matter of how we’d do it, not if we’d do it. I want to thank Senators Mullin, Sirotkin, Balint, Baruth, and Clarkson and Representative Head and her team for their hard work to see it to the finish line.”

Helen Head, Chair of the Vermont House General, Housing and Military Affairs Committee, said, “Vermont’s housing crunch has been well-documented. According to a study commissioned by the legislature last summer, we can reduce homelessness dramatically with a targeted approach, creating more housing with support services along with housing for the lowest income households. Middle income households also struggle to find housing. This housing initiative will address the needs of a wide range of Vermonters and we’re proud to support it.”

Gus Seelig, Executive Director of VHCB, said, “We appreciate the support of the Governor and the Legislative Leadership in advancing this exciting initiative.  The first 100 homes should be under construction across the state before the end of the year.”

The bond funds will be matched with state, federal, and private sources to leverage approximately $2-$3 for every one dollar of bond funds, resulting in $70-100 million in additional resources for housing development. Spending on affordable housing yields multiple benefits across the economy. The $35 million housing bond will also act as a stimulus package, generating millions of dollars of economic activity through the creation of jobs and the purchase of goods. At least 25% of the housing will be targeted to households with incomes below $35,000 and another 25% will be targeted to middle-income Vermonters earning $55,000-$83,000 annually (for 4-person households). The balance of the funds will be awarded to projects based on community needs, applications received and the availability of resources for leverage.

“Every night, our shelter, just like shelters across the state, is full of people who need and deserve a home,” said Sara Kobylenski, Executive Director of the Upper Valley Haven, based in White River Junction. “We have allowed ourselves to slide into an alarming housing deficit, and the most vulnerable people in our communities are suffering for it. The housing bond is a timely investment that will improve the lives of many Vermonters.”

“Housing construction is critical piece of our economic engine, and this proposal promises to create hundreds of good paying jobs. It’s also vital to employers who say time and time again how hard it is for their employees or prospective employees to find adequate, affordable housing,” said Tom Torti, President and CEO of the Lake Champlain Regional Chamber of Commerce and board member of the Committee on Temporary Shelter (COTS).

In collaboration with the Department of Housing and Community Development, VHCB is gathering input on the highest priority housing needs and potential projects in regional meetings across the state. VHCB will be accepting applications and funding developments for the construction and rehabilitation of rental housing and single-family homes with an emphasis on creating new homes.

The revenue bond will be issued by the Vermont Housing Finance Agency. It is expected to yield $33-34 million in proceeds and will be paid by a $2.5 million in annual revenue from the property transfer tax over 20 years, through 2039.

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Sources: The Vermont Futures Project of the Vermont Chamber of Commerce, January 2017; Roadmap to End Homelessness, The Corporation for Supportive Housing, December 2016; Vermont’s Statewide Housing Needs Assessment by Bowen National Research, 2014
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VHCB makes loans and grants for the creation of affordable housing and the conservation of agricultural and recreational lands, forest land, natural areas and historic properties. www.vhcb.org

Read this synopsis of the Housing Revenue Bond Initiative.

Read more about the Governor’s budget and the housing bond from the Burlington Free Press.

 

Why Chittenden County Still Needs More Housing

My Turn,  From the Burlington Free Press

” … we applaud efforts in Montpelier and are excited to work with local municipalities that want to make bold investments in affordable housing, realizing that such investments are winners in accomplishing Governor Scott’s three priorities: supporting our economy, making Vermont more affordable for Vermonters, and protecting our most vulnerable community members. Several proposals have been made – we welcome all efforts that satisfy each of these three objectives.”

by Michael Monte

There seems to be a burst of housing construction in Chittenden County, and some are even suggesting that the tide has turned in making the rental market more affordable, or that the vacancy rate is high enough, or we’re building too fast. At the Champlain Housing Trust, our assessment is that although the trend line is improving, more needs to be done – especially for low wage earners priced out of the market, and certainly for the 350 people on any given night in the county who have no home at all.

According to Mark Brooks, co-author of a report that provides a comprehensive semi-annual analysis of the real estate market, the long-term market vacancy rate in Chittenden County is 2%.  The December, 2016 report indicated a market vacancy of 4.4% – a number offered as a point-in-time rate of what’s available without taking in consideration the timing of apartments just completing construction or other factors.

This lower rate is a more accurate assessment, as it takes into account the time in which newly-constructed apartments are absorbed into the market.  Most will agree that a 5% rate will yield a healthy market for renters and owners alike. While we were close at a point in time in December, we’ve not sustainably reached this target.

In the last two years alone, over 1,200 apartments have been constructed. The new construction does give some renters more choices: according to the report, “…landlords are offering incentives such as one month free rent, flexible lease terms, or lower rents.” Rent rates across the board have been stable and closer in-line with inflation – unlike the previous six years.

New households are forming every day in Chittenden County, and large numbers of people are still commuting long distances from less expensive housing in more rural counties to get to work. In fact, in 2002, 73% of Chittenden County workers lived in the county; that percentage dropped to 63% in 2014. Lack of housing opportunity is leading more and more workers to commute longer distances.

Demand is still high as younger people, sometimes saddled with high college debt, are renting instead of purchasing a new home. And employers are still viewing rents and housing availability as being barriers to economic growth. A representative of one business told us recently that her company added jobs in the mid-west instead of Burlington because of the lack of housing.

In order to push the underlying market rate from 2% to a sustained 5%, we need to continue to provide additional growth. Can we sustain this growth and increase the vacancy rate in the future? We hope so. But next year fewer apartments are on track to be coming on line, less than half the number built this year. And although there are an additional 2,400 apartments in the development pipeline county-wide, those won’t be here next year, or even the year after that.

Charlie Baker, executive director of the Chittenden County Regional Planning Commission, part of a coalition launched in 2016 that will try to bring about the construction of 3,500 housing units in Chittenden county over the next five years. Peter Hirschfield / VPR

As importantly, the resources available for affordable housing are seriously limited. Although there is enormous opportunity and capacity to build more affordable housing, the equity or cash needed to insure that rents remain affordable are not available. Non-profit owners continue to struggle with meeting the demand for more affordable housing, as evidenced by long waiting lists for subsidized housing or the 150 applications CHT gets every month for the 20-25 apartments available.

That’s why we applaud efforts in Montpelier and are excited to work with local municipalities that want to make bold investments in affordable housing, realizing that such investments are winners in accomplishing Governor Scott’s three priorities: supporting our economy, making Vermont more affordable for Vermonters, and protecting our most vulnerable community members. Several proposals have been made – we welcome all efforts that satisfy each of these three objectives.

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Michael Monte, is Chief Operations & Financial Officer at The Champlain Housing Trust, founded in 1984, it is the largest community land trust in the country. Throughout Chittenden, Franklin and Grand Isle counties, CHT manages 2,200 apartments, stewards 565 owner-occupied homes in its signature shared-equity program, offers homebuyer education and financial fitness counseling, provides services to five housing cooperatives, and offers affordable energy efficiency and rehab loans. In 2008, CHT won the prestigious United Nations World Habitat Award, recognizing its innovative, sustainable programs. 

What is Fair Housing Month about? HUD explains.

Getting a head start on April in March –

Note: All the content below in this post is taken from a web site maintained by the U.S. Department of Housing and Urban Development.

In April, we come together as a community and a nation to celebrate the anniversary of the passing of the Fair Housing Act and recommit to that goal which inspired us in the aftermath of Rev. Dr. Martin Luther King Jr’s assassination in 1968: to eliminate housing discrimination and create equal opportunity in every community.

Fundamentally, fair housing means that every person can live free. This means that our communities are open and welcoming, free from housing discrimination and hostility. But this also means that each one of us, regardless of race, color, religion, national origin, sex, familial status, and disability, has access to neighborhoods of opportunity, where our children can attend quality schools, our environment allows us to be healthy, and [for us to grow] opportunities and self-sufficiency.

…commitment to fair housing is a living commitment, one that reflects the needs of America today and prepares us for a future of true integration.

History of Fair Housing –

On April 11, 1968, President Lyndon Johnson signed the Civil Rights Act of 1968, which was meant as a follow-up to the Civil Rights Act of 1964. The 1968 act expanded on previous acts and prohibited discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, sex, (and as amended) handicap and family status. Title VIII of the Act is also known as the Fair Housing Act (of 1968).

The enactment of the federal Fair Housing Act on April 11, 1968 came only after a long and difficult journey. From 1966-1967, Congress regularly considered the fair housing bill, but failed to garner a strong enough majority for its passage. However, when the Rev. Dr. Martin Luther King, Jr. was assassinated on April 4, 1968, President Lyndon Johnson utilized this national tragedy to urge for the bill’s speedy Congressional approval. Since the 1966 open housing marches in Chicago, Dr. King’s name had been closely associated with the fair housing legislation. President Johnson viewed the Act as a fitting memorial to the man’s life work, and wished to have the Act passed prior to Dr. King’s funeral in Atlanta.

Another significant issue during this time period was the growing casualty list from Vietnam. The deaths in Vietnam fell heaviest upon young, poor African-American and Hispanic infantrymen. However, on the home front, these men’s families could not purchase or rent homes in certain residential developments on account of their race or national origin. Specialized organizations like the NAACP, the GI Forum and the National Committee Against Discrimination In Housing lobbied hard for the Senate to pass the Fair Housing Act and remedy this inequity. Senators Edward Brooke and Edward Kennedy of Massachusetts argued deeply for the passage of this legislation. In particular, Senator Brooke, the first African-American ever to be elected to the Senate by popular vote, spoke personally of his return from World War II and inability to provide a home of his choice for his new family because of his race.

With the cities rioting after Dr. King’s assassination, and destruction mounting in every part of the United States, the words of President Johnson and Congressional leaders rang the Bell of Reason for the House of Representatives, who subsequently passed the Fair Housing Act. Without debate, the Senate followed the House in its passage of the Act, which President Johnson then signed into law.

The power to appoint the first officials administering the Act fell upon President Johnson’s successor, Richard Nixon. President Nixon tapped then Governor of Michigan, George Romney, for the post of Secretary of Housing and Urban Development. While serving as Governor, Secretary Romney had successfully campaigned for ratification of a state constitutional provision that prohibited discrimination in housing. President Nixon also appointed Samuel Simmons as the first Assistant Secretary for Equal Housing Opportunity.

When April 1969 arrived, HUD could not wait to celebrate the Act’s 1st Anniversary. Within that inaugural year, HUD completed the Title VIII Field Operations Handbook, and instituted a formalized complaint process. In truly festive fashion, HUD hosted a gala event in the Grand Ballroom of New York’s Plaza Hotel. From across the nation, advocates and politicians shared in this marvelous evening, including one of the organizations that started it all — the National Committee Against Discrimination In Housing.

In subsequent years, the tradition of celebrating Fair Housing Month grew larger and larger. Governors began to issue proclamations that designated April as “Fair Housing Month,” and schools across the country sponsored poster and essay contests that focused upon fair housing issues. Regional winners from these contests often enjoyed trips to Washington, DC for events with HUD and their Congressional representatives.

Under former Secretaries James T. Lynn and Carla Hills, with the cooperation of the National Association of Homebuilders, National Association of Realtors, and the American Advertising Council these groups adopted fair housing as their theme and provided “free” billboard space throughout the nation. These large 20-foot by 14-foot billboards placed the fair housing message in neighborhoods, industrial centers, agrarian regions and urban cores. Every region also had its own celebrations, meetings, dinners, contests and radio-television shows that featured HUD, state and private fair housing experts and officials. These celebrations continue the spirit behind the original passage of the Act, and are remembered fondly by those who were there from the beginning.

U.S. Department of Housing and Urban Development

 

Fighting Community Opposition in the Age of…Opposition

From the “Shelterforce Blog”, “Rooflines”

Posted in Shelterforce by Amy Clark on December 14, 2016

http://www.rooflines.org/4710/fighting_community_opposition_in_the_age_ofopposition/ via  @Shelterforce

On Nov, 8, voters across the country heard the affordable housing call and approved numerous state and local housing funding measures that will make it possible for more of our neighbors to live in safe, healthy, and affordable homes. This was a real achievement in housing advocacy, but the work is far from over. Developers, local governments, and advocates must now move to convince the neighbors of proposed housing developments to accept more affordable homes into their communities.

The election that brought over 37 affordable housing measures to the ballot in eight states also elevated toxic rhetoric about people of color and other populations. The public discourse has changed, and that’s likely to affect our efforts to build support for affordable housing development and counter community opposition. Here’s what you may hear about affordable housing in your community, and how to prepare for it:

Racial animus. In the wake of the election, there have been many reports of hate-based harassment and intimidation across the country. An offending segment of our population feels newly empowered to use racist language in all types of situations. While racism and fear of difference have always been, at the very least, an undercurrent of some forms of community opposition, in recent years it’s largely been implied, not overt. You may see an uptick in overt racism in siting conversations.

What to do? While it would be satisfying—and, arguably, right—to call out racist language directly when you hear it, research tells us that this is likely to backfire, causing the speaker to defensively double-down on the prejudiced belief. Instead, a study this year found that “a short conversation encouraging actively taking the perspective of others can markedly reduce prejudice.” It argues for holding small-group conversations and facilitators trained to listen and find common ground.

Misinformation. You’ve likely heard much about the success of fake news during the presidential campaign. Misinformation this election cycle may have had a distinctive rightward bent, but don’t pat yourself on the back if you lean left. All of us are susceptible to information that confirms what we already believe, regardless of its factual accuracy. Don’t be surprised to see an increase in the misinformation about your work being posted online and handed around in anonymous flyers around the neighborhoods where you work.

What to do? Don’t write up a “frequently asked questions” page correcting the lies being told about your work. By emphasizing the misinformation—even when you later correct it—you’re just driving it deeper into peoples’ consciousness. Instead, first tell your truth (“Our apartments increase neighborhood safety.”), then signpost the misinformation and explain the motive behind it (“There is a myth circulating that affordable housing increases crime, promoted by a small new neighborhood group formed to fight our proposal.”), and finally give a brief, clear alternative explanation, repeated in graphics if possible (“In fact, by starting a neighborhood watch program and installing security cameras, we’ve helped create a 13 percent decrease in property crime in another neighborhood where we work. We want to work with you to have a similar positive impact here.”).

Ideological conflict. Research into persistent opposition to affordable housing has shown that spatial ideology—an individual’s set of beliefs around who can live in and use a particular place, and who has the right to participate in decision-making about a place—can be predictive of opposition to, or support of, affordable housing. The recent push to disenfranchise groups of Americans through voter ID laws and other restrictions is an example of a narrow conception of spatial rights, and the electoral contest was rife with rhetoric supporting a conscribed idea of to whom America truly belongs. Opposition may now more frequently focus on delegitimizing prospective low-income residents, perhaps as “not American” or simply “not from here.”

What to do? Unfortunately, ideology might be hard-wired, and thus addressing spatial ideology head-on might not be effective. At the same time, there are likely to be people in your community who believe lower-income people have an equal right to live in a place. Find these potential supporters by emphasizing the values of diversity and inclusion, and give this group a clear way to take action and vocalize support of your work.

Distrust of institutional authority. The success of populist presidential candidates from both parties points to, among other things, Americans’ growing distrust of institutions. Whether it’s in banks, the news media, or government itself, people across the political spectrum have lost faith. Unfortunately, affordable housing development connects to all sorts of things many of our neighbors have come to doubt: taxation, finance systems and entities, and zoning, just to name a few.

What to do? First, people who have lost trust will hear a developer mention “partnering with the government” and translate that into an attempt to paper over a profit-making arrangement. Step away from the marketing talk and use plain language to explain what you do, and why it is successful. Second, reframe the role of these perceived-suspect institutions. A new paper from Enterprise Community Partners and the FrameWorks Institute recommends that we help people understand the role of government in affordable housing by explaining, “the role of systems in shaping outcomes for people and … communities,” and by, “zooming out” to tell broader stories that explain the impact of housing issues on an entire community. You know your work is about more than simply units; help others understand this too.

Countering community opposition has never been easy, and I hope to hear that these predictions have not come true, but even if they do, our work can have a long-term impact on decreasing bias. There is evidence that white people living in diverse neighborhoods “endorsed fewer negative stereotypes, and [feel] closer to Blacks as a group.” When we create diverse, inclusive communities, we help decrease prejudice and division. That’s something truly worth fighting for.

 

“Housing Doesn’t Filter, Neighborhoods Do” by Rick Jacobus

Posted by Rick Jacobus on November 4, 2016 on the “Rooflines, the Shelter Force Blog”
Read the full article (part 1) on the Rooflines, Shelter Force Blog:  http://tinyurl.com/jacobus-filterDown

“There has been a renewed interest in the role that the real estate market can play in solving our growing affordable housing crisis. For decades “affordable housing” has been the near exclusive domain of the public sector, but the crisis has reached the point where we are now calling for all hands on deck. Can private capital, private development companies, and market-rate housing developments help make housing affordable for everyone?”

“Housing advocates tend to agree that we need to supplement market-rate luxury development with subsidized affordable housing, but rarely do we ask the market to provide housing for people further down the income ladder. This dichotomy of new market-rate housing only for the rich and new affordable housing only for the poor has become the de facto housing strategy in most American cities. We can do better.”

New HUD AFFH rule – the Good & Some Devils in Details

Okay dear readers, this is a wonky article but for those of you interested in HUD’s Affirmatively Furthering Fair Housing rule it is a good read. (Ted Wimpey)

The Devils in the Details: Key Issues in Implementing the New AFFH Rule

 by Dan Immergluck and Mindy Kao Rooflines post on July 5, 2016

“For most of the Fair Housing Act’s history, its requirement to “Affirmatively Further Fair Housing” has been largely dormant. With the advent of the new AFFH rules in July 2015, however, there is some promise that this provision might be taken more seriously.”

http://tinyurl.com/AFFH-rule-FHA-DetailDevils  Link to ROOFLINES, the Shelterforce Blog,

 

 

Separating Fact from Fiction to Design Effective Inclusionary Housing Programs

Inclusionary Housing, A Series of Research & Policy Briefs by Center for Housing Policy

[Below is an excerpt. Here is a link to download the full piece -12 pages.  http://www.nhc.org/#!2016-fact-and-fiction/jfbck ]

By Lisa A. Sturtevant, Ph.D.
May 2016
Inclusionary housing programs generally refer to city and county planning ordinances that require or incentivize developers to build below-market-rate homes (affordable homes) as part of the process of developing market-rate housing developments. More than 500 local jurisdictions in the United States have implemented inclusionary housing policies, and inclusionary requirements have been adopted in a wide variety of places—big cities, suburban communities and small towns.
Despite the proliferation of inclusionary housing programs,the approach continues to draw criticism. There have been legal challenges around inclusionary housing requirements in California, Illinois, Idaho, Colorado and Wisconsin, among others.
In addition to legal questions, critics have claimed inclusionary housing policies are not effective at producing affordable housing and have negative impacts on local housing markets. While there have been numerous studies on inclusionary housing, they unfortunately do not provide conclusive evidence about the overall effectiveness of inclusionary housing programs. These studies vary substantially in terms of their research approaches and quality. In addition, it is difficult to generalize the findings from the existing research because researchers have examined policies in only a handful of places and at particular points in time when economic and housing market conditions might have been quite different. Given these limitations, however, the most highly regarded  empirical evidence suggests that inclusionary housing programs can produce affordable housing and do not lead to significant declines in overall housing production or to increases in market-rate prices. [emphasis by author]

Connecting the dots: Housing cost- community economic development – JOBS! Part 1

The insufficient supply of housing at a range of affordable prices, especially for rental housing, has important negative impacts on local economic development. Housing costs and availability impacts adequate workforce availability. The causes of high housing costs are multiple but a few factors are controllable by local municipalities, counties and regions with the understanding and political will. Exclusionary housing development zoning regulations for example fall into that category. Housing supply constraints affect local employment opportunities and wage dynamics especially in areas where the degree of zoning regulation barriers are more severe.

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It’s getting much tougher to find good jobs in areas with adequate affordable housing opportunities. Even when job markets improve, the absence of strong sustained real income growth means that for more and more communities, the relative cost of housing will continue to climb at the same time the availability of adequately affordable housing is decreasing.

Research shows (see, “The Role of Affordable Housing in Creating Jobs and Stimulating Local Economic Development: A Review of the Literature” Center for Housing Policy) that adequate affordable housing in communities has benefits extending beyond its occupants to the community at large. Without a sufficient supply of affordable housing, employers and entire regional economies can be at a competitive disadvantage because of their increased difficulty attracting and retaining workers.

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The excellent study referenced above provides a clear discussion of this issue. The primary thesis of the study is that developing more affordable housing in communities creates jobs — both during construction and through new consumer spending after the homes have been occupied. The positive impacts of building affordable rental housing are on par with and in many respects exceed the impacts of developing comparable market-rate units.

The take away from this is that housing affordability, inclusive communities and vibrant economic development, are intertwined in substantial ways. Communities can positively change the dynamics with various policies including favoring appropriate density in zoning laws.