State and Local Solutions for Expanding the Availability of Homes for Working Families

ULI Southeast Florida/Caribbean

Ft. Lauderdale, June 2008

Lynn M. Ross, AICPDirector of State and Local Initiatives

National Housing ConferenceFor more than 75 years, the nonprofit

National Housing Conference (NHC) has been the United Voice for Housing.

A membership drawn from every industry segment forms the foundation for NHC’s broad, nonpartisan advocacy fornational policies and legislationthat promote suitable housing in a safe, decent environment.

Chicago Mayor Richard M. Daley at 2006 NHC Housing Policy Summit

Center for Housing PolicyResearch affiliate of NHC

specializes in developing solutions through research

Works to broaden understandingof the nation’s housing challenges and to examine the impact of policies and programs developed to address these needs.

Expanded State and LocalStrategy

Increasing the Availability of Affordable Homes: A Handbook of High-impact State and Local Solutions Released in January 2007

Foundation for larger strategy

HousingPolicy.org Online guide to state and local

housing policy

Launched January 2008

Why State and Local Policy? Housing costs, needs and challenges vary

substantially from place to place.

Some of the most pressing policy changes can only be effectively implemented at the local and state levels.

Major federal funding increases for affordable homes unlikely

Federal policies often inflexible

6 Key Roles for Localities andStates

1. Expand Development Opportunities

2. Reduce Red Tape

3. Capitalize on Market Activity

4. Generate Capital

5. Preserve and Recycle Resources

6. Help Residents Succeed

1. Expand DevelopmentOpportunities

Make Publicly-Owned Land Available for Affordable Homes

Facilitate the Reuse of Abandoned, Vacant, and Tax-Delinquent Properties

Expand the Supply of Homes through Rezonings

Solutions in Action—Elm BrookHomes in Concord, MA

Suburban infill project designed for 80 to 140% AMI

Land rezoned for affordable housing

Developer was also able to obtain a zoning amendment that allowed increased density and flexible set-back standards.

2. Reduce Red Tape Ensure Zoning Policies Support a Diversity

of Housing Types

Adopt Expedited Permitting and Review Policies

Revise Impact Fee Structures

Adopt "Rehab Codes" to Facilitate Rehabilitation of Older Homes

Solutions in Action—Villas onSixth in Austin, TX

Designed to be in compliance with Austin's S.M.A.R.T. Housing Initiative, a self-funded program that uses expedited review and fee waivers to stimulate the production of affordable homes.

S.M.A.R.T. = safe, mixed-income, accessible, reasonably priced, and transit-oriented

3. Capitalize on Market Activity Utilize Tax Increment Financing to Fund Affordable

Homes

Stimulate Construction or Rehabilitation Through Tax Abatements

Create or Expand Dedicated Housing Trust Funds

Establish Inclusionary Zoning Requirements or Incentives

Use Cross-Subsidies to Support Mixed-Income Communities

Solutions in Action—MuseumPlace in Portland, OR

Range of tax abatement programs

As of FY06-07, over 13,000 homes received one of these abatements

Issued $30 million in taxable and tax-exempt bonds and 10-year tax abatement to finance and sustain mixed-used development

4. Generate Capital Expand the Use of the 4 Percent Low-Income

Housing Tax Credit

Provide Pre-Development and Acquisition Financing

Support Housing Bond Issues

Use Housing Finance Agency Reserves for Affordable Homes

Leverage Employers' Commitment to Affordable Homes for Workers

Create or Expand Dedicated Housing Trust Funds

Solutions in Action—Via Roble inEscondido, CA

CA HFA HELP program-- local governments get unsecured 10-year loan @ 3.5 % interest rate,

$160 million to support development of more than 19,000 affordable rental and owner-occupied homes statewide

Via Roble-- $1.85 million award to Escondido to assist with site acquisition, development and rehabilitation

5. Preserve and RecycleResources

Preserve Affordable Rental Homes

Recycle Downpayment Assistance

Use Shared Equity Mechanisms to Preserve Homeownership Subsidies

Solutions in Action—Townhomeson Capitol Hill in Washington, DC

Redeveloped with $25 million HOPE VI grant

Purchase price based on income; structured as limited equity cooperative

33 units affordable to households with 24 percent or less of AMI; 34 units affordable to households with 25-50 percent of AMI; 67 units affordable to households with 50-115 percent of AMI; 13 fee-simple, market rate townhomes

6. Help Residents Succeed Expand Homeownership Education and

Counseling

Prevent Foreclosures and Help Affected Renters and Owners

Solutions in Action—ForeclosurePrevention in Chicago, IL

Chicago's Home Ownership Preservation Initiative (HOPI)-- one-stop approach to foreclosure prevention

Counseling and research efforts to prevent foreclosures now, reduce foreclosure risk in the future, and mitigate the damage foreclosures can cause

Initiative prevented over 1,300 foreclosures in its first three years

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What’s Next?

Regional Forums

Peer Network of State and Local Housing Groups

Solutions for Working Families Major Learning Conference on State and Local Housing

Policy

Chicago, June 28-30, 2009

Planning Committee: APA; NACo; NCSL; NLC; Lincoln; CSG; and others

Advisory Services (in development)

Thank You!

National Housing Conference and

Center for Housing Policy

1801 K Street, NW, Suite M-100

Washington, DC 2006

Phone: 202.466.2121 ext. 237

Email: lross@nhc.org