The Battle Lines for Affordable Housing Space

A problem that has existed for decades has been exacerbated by the coronavirus pandemic, and is on the precipice of breaking the lives of millions of Americans as we approach the fall of 2021.

Affordable low-income housing simply does not exist to the level this country’s population requires.

The recent Supreme Court decision lifted the moratorium on rent and mortgage evictions means that millions of people who have suffered financially due to loss of income during the pandemic are going to find themselves in a position where they come up with the funds to pay off their overdue living expenses…. or find someplace else to live.?

This is a crisis, but it is not a crisis without a solution. The solution is to find, acquire and/or develop property upon which new low-income housing can be created.

The following paragraphs will offer a quick look at the challenges we face in creating more housing options in underserved neighborhoods. But a more detailed examination of the situation can be acquired by contacting The Community Preservation Corporation today.

Existing space

The easiest solution to the housing crisis in America is taking advantage of existing space.?

The federal government maintains a database of low-income housing availability. The Housing and Urban Development division has information on public housing, local retenanting information, laws related to fair housing and tenant rights.

But none of that is going to solve the problem, it merely maintains current standards and statistics. The solution lies in finding investors to locate existing space, some residential and some commercial, and working to convert those spaces into affordable housing for low-income citizens.?

Subsidized housing programs are run on state levels, and an inventory of options are available on line on most state government websites.

But, there are thousands, perhaps hundreds of thousands, of housing units that sit empty around the nation, for one reason or another. There are housing units that are dilapidated and in need of repair before anyone, of any wealth level, could live there.?

There needs to be a renewed effort by city, state and federal governments to promote the use of available existing housing by low-income individuals, and to utilize the spaces sitting idle, often in neighborhoods where affordable housing is most necessary. Properties in which squatters and homeless people reside could be converted into more accessible housing by developers who already work with those aforementioned governments to provide new or renewed housing for the open real estate market.

The call to developers

The housing market has erupted due to the pandemic, as people spent more time in their homes or apartments than ever before. The thinking is, if I have to live in this space for a majority of my life, including my work hours, then I want to live in as much home as I can afford.

There is a boom in renters from the Baby Boomer market, as the older citizens find themselves priced out of their single-family home and want to find affordable apartments or condominiums to move into. Developers are building units for those new home shoppers at record pace around the country.

But those same developers can be incentivized to build low to moderate income (LMI) housing by the local, state and federal governments which license and contract with developers to allow for construction rights. Many communities already demand developers put forth a certain percentage of their annual work to the creation of housing units in LMI neighborhoods, but those percentages are too low for today’s needs, and are often not strictly enforced. In this time of a resurgent economy, there needs to be a more urgent call to developers to do what they can to build housing units which can be rented or sold to LMI citizens.?

The reality of supply and demand

It is estimated that there are 10.8 million renters in America who are at low income or below poverty level in household income. The inventory of affordable housing for LMI citizens is well below half that number.

There needs to be a recognition that demand is exceeding supply. There appears to be little effort being put forth to change the demand; the fight to increase minimum wage is ongoing, and there are occasional victories, but overall, LMI citizens are likely to remain in that demographic.

So, if demand cannot be lowered, then supply needs to be increased. And it can be.

The Community Preservation Corporation works to find solutions to affordable housing for LMI citizens. We call on all developers and landowners, as well as governmental housing authorities and non-profits, to discuss with us ways in which we can increase the supply of housing for the ever-increasing demand that exists today.