Bill Mague’s Post

The issue of housing affordability and availability is gaining national attention in the presidential campaign. Both major party tickets have proposed plans to address the crisis, focusing on homeownership assistance, new housing units, and zoning reforms. However, some experts argue that more emphasis should be placed on rental housing and rental affordability. 

Housing is a contriction from a policy perspective. It is an issue with predominantly local issues and state-level solutions, yet remains a top issue in the Presidential election. Housing is also an issue where Republicans and Democrats can unite around the importance of housing affordability and access, and the supply-side solutions that can solve the housing crisis. In The Hill, Gov. Tina Kotek (D-OR) and Gov. Spencer Cox (R-UT) talk about how Governors are leading and what role Congress can play. "All across the country — from big and mid-size cities to small rural towns — Americans are struggling with an unaffordable housing market. With low housing supply, the highest interest rates in 20 years, zoning restrictions and other contributing factors, we risk a generation of Americans missing the chance to build long-term economic stability and civic roots through homeownership." #housingpolicy #housing #homebuilding https://lnkd.in/djsCeQRt

QUOTE: ". . .Condos and rentals built through the program would have to be affordable to middle-income households. For example in New York City, the housing would need to be affordable to a family of four that earns $232,980.. . ." UNQUOTE THIS LEGISLATION HAS A STRANGE WAY OF DEFINING "MIDDLE-INCOME HOUSEHOLDS". $232,980 FOR A FAMILY OF FOUR, IMPLIES 2 INCOMES OF ABOUT $116,000 EACH. THE MEDIAN INCOME IN THE USA (PER usdebtclock.org) is $35,000. THE ARITHMETICAL AVERAGE IS ABOUT $90,000, NOT $116,000. AND THE $90,000 IS NOT "MIDDLE-INCOME".

While expansion of LIHTC is critical, a more targeted approach is necessary. Our nation needs more deeply affordable units. Owners/operators of affordable housing aren’t maxing out rent limits because they’re trying to squeeze out greater distributions, they’re doing so because the HAVE TO. Operational costs are skyrocketing. For example - staffing (we’re not in the business of creating our own clients, are we?), insurance rates due to more frequent and more costly natural disasters, increases in property taxes, and the need for significant capital improvements that can’t magically be funded with affordable rents are all SIGNIFICANT drivers in the dramatic increase in rents. Further, the rubber is finally meeting the proverbial road and we’re seeing how the growing gap in wealth/shrinking middle class and an older population with fixed incomes translates to greater demand for units for households at 50% and 30% AMIs. Communities that could once mask the number of people experiencing homelessness are starting to see more and more unsheltered families and older adults. Yes, we need more affordable units, but more importantly, we need deeper investment and more subsidies that will allow developers (for profits and nonprofits) to produce and operate these units! #deepaffordability #homelessnessisahousingproblem

If you're looking to understand housing affordability and availability in Indiana, this IBR article has you covered. All the things like household formation, escalation in rent and house prices (note: house prices have risen more than rent!), housing unit shortfalls, interest rates, and more. Definitely worth a read. Note that it looks at Indiana statewide so no local analysis but it's still a worth a click.

“Because we believe that housing is a human right, like food or health care, we believe that more Americans deserve the option of social housing. That’s why we’re introducing the Homes Act, a plan to establish a new, federally backed development authority to finance and build homes in big cities and small towns across America. These homes would be built to last by union workers and then turned over to entities that agree to manage them for permanent affordability: public and tribal housing authorities, cooperatives, tenant unions, community land trusts, nonprofits and local governments. Our housing development authority wouldn’t be focused on maximizing profit or returns to shareholders. Rent would be capped at 25 percent of a household’s adjusted annual gross income. Homes would be set aside for lower-income families in mixed-income buildings and communities. And every home would be built to modern, efficient standards, which would cut residents’ utility costs. Renters wouldn’t have to worry about the prospect of a big corporation buying up the building and evicting everyone. Some could even come together to purchase their buildings outright.” Opinion | Alexandria Ocasio-Cortez and Tina Smith: Our Solution to the Housing Crisis

Friends getting a place together to make housing affordable... sounds like a good case for housing cooperatives. Policies need to be upgraded to make cooperative housing a more viable option. Such as, local zoning ordinances which are often a big barrier to cooperative housing efforts. And did you know that a HUD program called the FYI Voucher (Foster Youth Initiative) specifically disallows cooperative housing? I cannot imagine why the government would want to deny young adults aging out of foster care the benefits of living in a cooperative community to be nurtured in practical and interpersonal skills. https://lnkd.in/gnbNEuS8

President Biden’s proposed 5% rent cap on landlords with over 50 units aims to curb rising housing costs but faces backlash from housing groups and developers. Critics argue it will reduce housing supply and deter new developments, worsening the crisis. #HousingCrisis, #RentControl, #AffordableHousing, #HousingMarket, #BidenPolicy, #RealEstate, #HousingDevelopment, #NAR, #RentersRights, #UrbanPlanning

Debate Over Federal Rent Cap Heats Up! President Biden's proposal to cap rent increases at 5% faces opposition from housing and real estate industry groups. It's certainly important to have affordable housing, but have you ever seen rent caps help a community achieve this goal in the long term in a sustainable fashion? I have yet to hear a true community success story from rent caps! * Industry Pushback: Housing groups argue against President Biden's proposal to cap rent hikes at 5% for multifamily properties with over 50 units, calling it ineffective and damaging. * Building More Housing: Experts stress that creating more affordable housing is a better solution than imposing rent controls. * Potential Consequences: Critics warn that rent caps could decrease housing quality and deter new construction, worsening the housing crisis. * Mixed Opinions: While some advocate for protections against rent gouging, others see rent caps as a barrier to investment in housing. #HousingCrisis #RentControl #RealEstate #AffordableHousing #multifamily SVN Desert Commercial Advisors National Multifamily Housing Council National Apartment Association (Naahq) National Low Income Housing Coalition National Housing Conference https://lnkd.in/gThR_Bih

In City Limits, Adolfo Carrión Jr., commissioner of the New York City Department of Housing Preservation and Development, and Eric Enderlin, president of the New York City Housing Development Corporation, penned an op-ed on the dire need for more housing. They cited the Low Income Housing Tax Credit (#LIHTC) program as a critical tool for financing the development of affordable homes. One additional tool that we should consider is the New Market Tax Credit (#NMTC) program. By leveraging NMTCs for affordable for-sale housing, we can continue to support the proliferation of homes—and work to mitigate the ongoing impact of the housing crisis. Read more here in City Limits and click the link in the comments to learn more about NMTCs and affordable housing: https://lnkd.in/gZTGcWWN #housingshortage #housingsupply