Housing Affordability

Housing affordability is a crisis in many cities and towns today. Neighborhoods and apartment communities are undergoing gentrification and redevelopment. However, middle and lower income families are being pushed out and can no longer afford the city they were raised in, the city where they work, or the city they love. We believe there are ways to counter this trend and to sustain communities with a diverse housing base where residents of all economic strata can happily coexist.

There are two different means of addressing this issue: the first is the creation of traditional subsidized housing at a cost to taxpayers; the second, and in our opinion the more favorable, is simply increasing and protecting the supply of all housing and especially housing that is modest and affordable. We refer to the first approach as “subsidized housing” and the second approach resulting in housing that rents or sells below current market rates is referred to as “affordable housing”.

Increase Housing Supply: Housing is subject to supply and demand and an increase in overall housing supply can place downward pressure on housing costs. Policies that encourage housing citywide can result in greater affordability. One approach is to create housing overlay zones that allow housing as a use regardless of underlying zoning. The overlay zone would allow housing up to the FAR of the underlying zone. This strategy would accomplish three things:

1. It would increase overall housing supply and lower the pressure on housing costs
2. It would alleviate pressure on development of housing within existing residential zones - possibly discouraging the demolition of existing affordable housing stock, and
3. Development of housing within less favorable sites with lower land basis may result in the delivery of housing that actually costs less to bring to market,

Protect current inexpensive market rate housing stock: Older, less favorable housing that may be less encumbered by debt is the primary source of housing for lower income families, and this commodity needs to be protected. Can tax relief be offered to owners who maintain but not improve current housing stock? Municipal boards can and should raise the bar on owners who ask for increased entitlements that involve greatly improving or demolishing existing housing.

Become Leaders in the Development of Affordable Housing. Cities can become leaders in the development of affordable workforce housing by sponsoring initiatives to address housing affordability. Bringing together the knowledge and expertise of residents to solve this problem would be a great use of municipal resources. The initiative could bring local developers, architects, planners, construction professionals, financing professionals and most importantly the residents who need affordable housing to brain storm in regard to how best to satisfy housing needs. The biggest contribution of most participants would be time and ideas. More able participants could contribute services, funds and in some cases even land in an effort to test and create successful solutions. With enough momentum, national associations such as the ULI, NAHB, and AIA may be attracted to participate.

If housing affordability is a priority, it can be addressed through a comprehensive mix of multiple strategies including but certainly not limited to the three presented above. We need more housing of all types, we need to maintain non subsidized workforce housing, we need to “tax” or discourage any developer who wants to remove exiting affordable housing stock and we need to explore as many other creative venues to address affordability as we can think of. Cultural and economic diversity will maintain the vibrancy that we all know and appreciate and housing affordability is one means of ensuring that diversity.

Deena de Montigny, AIA and Joe Demshar