Mandatory Versus Incentive-Based State Zoning Reform Policiesfor Affordable Housing in the United States:A Comparative Assessment

To break the chain of exclusionary zoning and produce affordable housing, mandatory state zoning reform policies have been in place for a couple decades in the United States. Their success is often constrained by local resistance and noncompliance. Some scholars argue that the lack of incentives to communities for affordable housing production is one of the main reasons for their resistance to state mandates. At present, no incentive-based state zoning reform policy is at work except in Massachusetts. Inclusionary zoning policies do offer incentives to developers but not to communities. This article examines the strengths and weaknesses of mandatory state policies and Massachusetts's incentive-based policy and offers policy insights for the future.     

Measuring What Matters: A Call for a Meaningful Metric of Affordable Rental Housing Production Cost-Efficiency

The metric commonly used in debates and research concerning the cost-efficiency of multifamily rental housing production, total development cost per unit, sacrifices too much analytical power in return for its ease of computation. This article proposes a replacement metric, the subsidy per housing affordability equivalent (SHARE) ratio. This measure is applied to a set of 399 nonprofit-sponsored rental housing developments completed in California over the past decade. Evidence suggests that the use of SHARE would evaluate deeply subsidized family projects and mixed-use projects with commercial space more favorably than total development cost per unit would. The reverse is true for projects restricted to seniors and for those financed with Low-Income Housing Tax Credits.     

Addressing the Affordable Housing Crisis for Vulnerable Renters: Insights From Broward County on an Affordable Housing Acquisition Tool

South Florida is experiencing an affordable rental crisis that is especially burdensome on those most vulnerable in society, low-income households. Rapid urbanization has resulted in inequitable land-use patterns that are a barrier to housing for the poor. As a solution to the crisis, local housing agencies seek to expand their affordable housing stock for vulnerable renters in opportunity-rich neighborhoods, but there is no standard framework for identifying properties for acquisition. Broward County serves as a case study to develop a housing acquisition tool. Using a combination of spatial statistics and principal components analysis, neighborhoods in which housing agencies may consider acquiring property are identified through the creation of an affordability surface in ArcGIS. Affordability is overlain by an opportunity surface derived from neighborhood quality and accessibility rankings. The results identify neighborhoods in Broward County that are both affordable and opportunity-rich, to better serve the county's most vulnerable renters.     

Challenges in the Creation of Mixed-Use Affordable Housing: Measuring and Explaining Its Limited Prevalence

ABSTRACT

Mixed-use affordable housing buildings collocate residences and commercial uses. The Low-Income Housing Tax Credit (LIHTC) program provides one mechanism to fund such structures. But the literature offers little insight into the frequency of mixed-use LIHTC buildings, partly because of a lack of data identifying them, and it does not pinpoint conditions that facilitate their development. I explore these issues through a Chicago, Illinois, case study. First, I analyze imagery to create the first database of mixed-use LIHTC buildings. I show that only 5% of LIHTC structures incorporate commercial uses, and that these are concentrated in wealthier, whiter, and already retail-heavy neighborhoods. Second, I use stakeholder interviews to explain the low rate and selective location of mixed-use projects; I find that the stiffest barriers are conflicting governmental policies, difficulties securing financing in the context of a perception of weak retail demand and investor desires for reliable returns, and design constraints.     

Affordability After Subsidies: Understanding the Trajectories of Former Assisted Housing in Florida

Each year, thousands of units are lost from the assisted rental housing inventory through deterioration and default, subsidy expiration, and market-rate conversion. While a good deal of research and data collection has focused on identifying at-risk developments, less is known about what happens to former assisted developments after they exit income and rent restrictions. This article uses a survey of former assisted properties in Florida to identify their postsubsidy trajectories—that is, as to whether developments continue as rental housing, are converted to condominiums, or leave the housing stock through vacancy and demolition; and for those that continue as rental housing, whether they continue to offer affordable rents. Using logistic regression models, the article examines the property, housing market, and neighborhood characteristics that determine these trajectories. The results show that smaller properties, those that have been out of subsidy programs longer, and those in stronger neighborhood housing markets are more likely to be converted to condominiums. Among developments that continue as rental housing, those that previously had more stringent rent restrictions, those in strong rental submarkets, and those with better transit access tend to become unaffordable compared with previous rent limits.     

The Importance of Design in Affordable Housing: Lessons From Mutual Self-Help Housing in California

We focus on three nonprofit organizations developing mutual self-help housing and analyze their projects to examine how they are addressing cost increases. We find that instead of using simpler designs, they are developing more elaborate homes through intricate financing. We are critical of this evolution. First, we suggest that the original modest house design of mutual self-help housing allowed for more affordable housing through post-occupancy improvements and de facto incremental development. Second, after the modest design was replaced with a larger model, development costs increased. Despite financial innovations, including longer loan terms and secondary financing, participation by poor households dropped. Third, we urge a return to the modest housing idea. Fourth, we call for policymakers to better integrate design-based thinking in housing policy.     

Beyond the ‘At Risk’ Individual: Housing and the Eradication of Poverty to Prevent Homelessness

A prevention framework represents one of the fundamental means of the Australian Government's contemporary drive to achieve permanent reductions in homelessness. Consistent with prevailing policies in the UK and US, Australia has approached homelessness prevention through identification and early intervention of individuals ‘at risk’ of homelessness. In this article we suggest that prevention strategies focused on the risk factors that individual pose obscures efforts to address the underlying structural factors that contribute to homelessness, or to reduce the prevalence of homelessness at the overall population level. The article examines the efficacy of increasing the supply of affordable housing to prevent homelessness, but suggests that the provision of housing alone may be insufficient to realising related well‐being objectives. In turn, it is proposed that policy which focuses on poverty reduction has the capacity to achieve the sustainable prevention of homelessness ambitions.     

Future Prospects for Public Housing in the United States: Lessons From the Rental Assistance Demonstration Program

This article provides an overview of the Rental Assistance Demonstration (RAD) program in the United States and examines its early implementation from its start in 2013 through April 6, 2016. RAD was devised to address the physical deterioration of public housing and secure a more stable funding stream. It requires public housing authorities to shift properties out of the public housing program into a different subsidy program (project-based Section 8) which enables them to obtain mortgages on more favorable terms and to secure tax-credit investment. The program is currently limited to 185,000 housing units. As of April 6th, the program was fully subscribed, and had generated more than $2 billion in new investment. Extrapolating from the early results, RAD has the potential to yield more than $15 billion for fund the redevelopment and renovation of public housing.     

The local political economy of the regulatory state: Governing affordable housing in England

Regulatory governance involves the use of heterogeneous mechanisms to extract welfare gains from market-based processes. While often viewed as a depoliticization mechanism, here, we explore a distinctly political manifestation of regulatory governance. Our study focuses on the governance of affordable housing in England, specifically on local authorities' use of ‘Section 106′ (S106) powers to compel private developers to include affordable housing in new developments. We show that, following the financial crisis, the governance of affordable housing shifted from a partisan to a valence issue. As the crisis increased the issue salience of affordable housing, left-wing authorities' hitherto higher tendency to intervene was eroded in the midst of a broad-based increase in S106 deployment. In addition to extending insights into the political economy of regulatory state intervention, our findings shed valuable light on the undersupply of affordable housing in England.     

Affordable Rental Housing Development in the U.S. For-Profit Sector: Implications of a Case Study of McCormack Baron Salazar

The question of how to build decent housing that is affordable to lower income households has challenged policymakers in the United States for decades. In response, the federal government has developed a variety of partnership approaches that involve private for-profit developers. Although these entities are currently the major producers of affordable housing in the United States, they have received relatively little attention from the academic and policy communities. This inquiry is aimed at filing a small portion of this gap by presenting a qualitative case study of one of the country’s leading for-profit developers that has a longstanding commitment to affordable housing, McCormack Baron Salazar. Using a modified version of the quadruple bottom line framework as the starting point, this exploration discusses the complexity and challenges facing the affordable housing sector and offers programmatic and policy recommendations that are applicable to both for-profit and nonprofit developers. In view of the results of the 2016 presidential election, and the likely continued retreat by the federal government from supporting affordable housing, the need to better understand, and form productive working alliances and collaborations with, private for-profit affordable housing developers is more compelling than ever.     

Breaking the Double Impasse: Securing and Supporting Diverse Housing Tenures in the United States

What might be described as a double impasse characterizes debate on U.S. housing tenure with advocates fighting for rental or ownership housing on one side and Third Way or mixed-tenure solutions on the other. Breaking this impasse requires disengaging from conceptions of an idealized form of tenure and instead advocating making virtually all tenures as secure and supported as possible, so that diverse households are able to live in homes that best fit their changing needs over their life cycles. This essay (a) presents data on the variety of tenures in the United States; (b) conveys a new two-dimensional map of tenure according to their degrees of control and potential for wealth-building; and (c) shows how U.S. institutions shape their risks and subsidies. Most U.S. tenures are at least somewhat risky, including those that receive the greatest federal subsidies. A new housing system is needed to secure and support as many tenures as possible.     

Affordable housing in New Urbanist Communities: A survey of developers

Abstract

Despite the unequivocal goal of income diversity as expressed in the Charter of the Congress for the New Urbanism, one of the more significant challenges facing the movement has been the creation of socially diverse neighborhoods, especially ones that include a mix of incomes. Although recent reports show that most New Urbanist developments are being built for upper‐middle‐class residents, some projects have managed to support income diversity. This article takes a closer look at those projects, reporting on the results of a nationwide survey of New Urbanist developers.

We found that many developers have used complex, creative schemes to make affordable housing possible within the New Urbanist context. Developers created affordable opportunities by combining available government programs, partnerships with nonprofits, and innovative design solutions. These efforts have provided important sources of affordable housing within the context of walkable communities—serving as examples that should be emulated by future developers.     

Hidden Costs and Deadweight Losses: Bundled Parking and Residential Rents in the Metropolitan United States

There is a major housing affordability crisis in many American metropolitan areas, particularly for renters. Minimum parking requirements in municipal zoning codes drive up the price of housing, and thus represent an important potential for reform for local policymakers. The relationship between parking and housing prices, however, remains poorly understood. We use national American Housing Survey data and hedonic regression techniques to investigate this relationship. We find that the cost of garage parking to renter households is approximately $1,700 per year, or an additional 17% of a housing unit’s rent. In addition to the magnitude of this transport cost burden being effectively hidden in housing prices, the lack of rental housing without bundled parking imposes a steep cost on carless renters—commonly the lowest income households—who may be paying for parking that they do not need or want. We estimate the direct deadweight loss for carless renters to be $440 million annually. We conclude by suggesting cities reduce or eliminate minimum parking requirements, and allow and encourage landlords to unbundle parking costs from housing costs.     

Housing vouchers in the United States,great Britain,and the Netherlands: Current issues and future perspectives

Abstract

We compare the current U.S. housing voucher program with the British housing benefit and the Dutch housing allowance programs. After presenting the theory behind income‐related housing support, which underpins both the U.S. and European systems, we compare the three programs with respect to their scope (the budgeted versus the entitlement approach), the relationship between housing support and rent levels, the poverty trap, moral hazards, and administrative problems.

The United States can learn from Great Britain and the Netherlands that a full entitlement program can best promote equity, but given the present political and economic climate, it is unlikely that Congress will adopt such a program anytime soon. Great Britain and the Netherlands can learn from the United States how to design a more efficient tenant subsidy program, one that provides incentives to find less expensive units and promotes family self‐sufficiency through enhanced job‐seeking behavior.     

Beyond People Versus Place: A Place-Conscious Framework for Investing in Housing and Neighborhoods

This article argues for a next generation of place-conscious strategies that recognize the importance of neighborhoods in the lives of families, but look beyond narrowly defined neighborhood boundaries to address market-wide opportunities and barriers, capitalize on demographic and market trends underway at the regional scale, and envision alternative models of how neighborhoods can function for their residents. It offers five principles for ongoing experimentation and knowledge building: (a) develop citywide strategies that promote both inclusion and redevelopment; (b) anticipate and plan for residential mobility and neighborhood change; (c) connect residents of poor neighborhoods to city and regional opportunities; (d) capitalize on the coming rental housing boom; and (e) use data for continuous learning and accountability. Advancing this agenda will require enhanced capacity for collaboration and governance at the local levels.     

Shelter Poverty in Ohio: An Alternative Analysis of Rental Housing Affordability

ABSTRACT

In the United States, housing is most commonly considered unaffordable when a household spends more than 30% of income on housing and utilities. Although easy to calculate, it fails to account for how other categories of essential expenses affect income available to spend on housing. This article compares the ratio-based approach with shelter poverty, a measure that accounts for these elements, evaluating differences in results between the two methods among renters in Ohio. Shelter poverty identifies a higher rate of households in economic distress due to housing market conditions. Further, the average “affordability gap” is four times higher using the shelter poverty than with the 30% threshold. Relative to shelter poverty, the ratio method underestimates the unaffordability of rental housing in economically distressed areas, as measured by median household income, and modestly overestimates it in high-income areas.     

Second-Generation Policy Priorities for Colonias and Informal Settlements in Texas

Along the Texas border with Mexico, more than 400,000 people live in over 2,000 informal self-help settlements known as colonias. These exceedingly low-income, largely Latino settlements have historically suffered from severe health risks, poor infrastructure and housing conditions, and physical and social isolation. Researchers and policymakers have focused extensively on what I call “first-generation policy priorities.” This has primarily entailed efforts to regularize title and infrastructure, support self-help home improvement for colonia homeowners, and prevent the growth of new informal settlements along the border region. I provide a comprehensive review of existing research on colonias to document the myriad ways in which housing and infrastructure conditions and titling practices have changed since these settlements first proliferated throughout the border region in the second half of the 20th century. These changes necessitate a rethinking of the policy priorities for colonias and informal settlements throughout the state. In particular, I argue that colonias must be recast to recognize the significant improvements that have taken place but also the long-term and sometimes severe problems that persist. These “second-generation policy priorities” include the development of sustainable forms of governance, regulation, and finance to address ongoing infrastructure investment needs in colonias; supporting access to and upkeep of safe and affordable renter- and owner-occupied housing through both self-help and contractor-led projects; ensuring long-term title clarity; and promoting community organizing in new and aging settlements.     

Squatting for Survival: Precarious Housing in a Declining U.S. City

Despite severely depressed property markets, housing in declining U.S. cities can be surprisingly unaffordable for poor residents. Yet the characteristics of decline, such as abundant vacant property and constrained economic/political conditions, also provide opportunity for squatting. This article explores survival squatting—illegal occupation of property as a means for procuring suitable housing by marginalized residents. Drawing on a 4.5-year ethnography in Detroit, I examine the mechanisms by which people strategically choose squatting as a method of sheltering in the context of local conditions, and the experiences and conditions of this practice. I situate these empirical findings within a broader discussion comparing squatting and other forms of housing that have received considerable attention by researchers (e.g., shelter use, sleeping rough, doubling up). Squatting is particularly risky and unstable, and often very hidden. Substandard housing conditions prevail, and substance abuse is common. Squatting may have negative implications for child welfare, but may also provide measures of independence, self-determination, and comfort for illegal occupiers. There is a critical need for further research in this area, both to inform comprehensive housing policies and to anticipate how squatters’ well-being is impacted by other urban initiatives, such as blight demolition.     

Rethinking Locational Outcomes for Housing Choice Vouchers: A Case Study in Duval County,Florida

This study examines locational patterns of housing choice vouchers in Duval County, Florida, using the Housing Suitability Model (HSM), a newly developed geographic information system–based model that evaluates residential land parcels and neighborhoods in terms of their suitability for affordable housing. The HSM was used to characterize voucher locations and other residential parcels across the county in terms of opportunity and accessibility. The analysis explores the tradeoffs between opportunity and accessibility inherent in many neighborhoods throughout the county. It finds that voucher holders' locations lag substantially behind other residential locations in terms of opportunity measures but are more comparable in terms of accessibility. Further analysis finds differences in opportunity and accessibility among subgroups of voucher holders by various demographic characteristics. The study recommends the incorporation of opportunity and accessibility for voucher holders into local housing planning, including the implementation of proposed rules for Affirmatively Furthering Fair Housing.     

Rooms for Improvement: A Qualitative Metasynthesis of the Housing Choice Voucher Program

This article synthesizes housing subsidy voucher research to explain why, when in theory vouchers enable users to move out of poor neighborhoods, in practice they often do not. This qualitative meta-analysis presents an examination of the assumptions of the program and their relationship to empirical findings.

Two themes emerged from this synthesis: market barriers and product problems. Data from a variety of studies and contexts portray recipients struggling to use vouchers in the private rental market due to market barriers, including lack of public transportation and the presence of discrimination. Product problems constrained freedom of choice about where to move and when to make a housing transition. These constraints manifest as compromised housing quality and low voucher utilization. This synthetic view cannot account for all outcomes or exceptional cases, but results suggest where participant experiences are generalizable and attributable to features of the housing market and structure of the program itself.