Dana Hendrix, CPA’s Post

Public vs. Private Roles in Solving the Housing Crisis Today, let’s talk about a big issue that affects many people—housing affordability. We'll look at the roles of both the public (government) and private (businesses) sectors in solving the housing crisis. This is a complex topic, but I'll make it simple so we can all understand how these efforts impact our communities. What’s the Issue? Many people find it hard to afford a good place to live. This problem is called the housing crisis. It happens because there aren't enough houses that people can pay for without spending too much of their money. Public Sector Role The public sector includes our government. Governments can help in several ways: 1. Building Affordable Homes: They can build housing that’s affordable for everyone, even for people who don’t make a lot of money. 2. Making Laws: Governments can make laws that help keep housing prices reasonable, like controlling how much rent can go up each year. 3. Offering Money Help: They can give money help, like tax credits or subsidies, to make it easier for people to buy or rent homes. Private Sector Role The private sector includes businesses and investors. Here’s how they can help: 1. Building and Investing: Companies can build more homes, which might help make housing less expensive because there are more homes available. 2. Innovative Solutions: Businesses can use new technology and ideas to build homes more quickly and cheaply, like using modular homes or new building materials. 3. Community Projects: Sometimes, private companies invest in communities by building parks, schools, and affordable homes that make neighborhoods nicer and more valuable. Why Both Roles are Important We need both public and private sectors because they each bring different strengths and resources. The government has the power to make laws and use taxes to help, while businesses can move quickly and try new ideas that might work better. Navigating These Roles as Real Estate Professionals - Stay Informed: Knowing about local and national housing policies can help you understand the market better and provide better advice to clients. - Partner Up: Sometimes, public projects need private help, and private projects can benefit from public support. Look for opportunities to work together. - Advocate for Changes: If you see ways that policies could be better, speak up. Real estate experts have a lot of knowledge that can help shape effective housing solutions. Discussion Time Do you think the public or private sector has a bigger role in solving the housing crisis? Have you seen successful examples of public-private partnerships in housing? Let’s share our thoughts and learn from each other. Understanding the roles both the public and private sectors play in addressing the housing crisis can help us make better decisions and recommendations as real estate professionals.

Boone EDC Announces Release of 2024 Housing Study and Utility Needs Analysis for Boone County The Boone Economic Development Corporation (Boone EDC) is excited to announce the release of the 2024 Housing Study and Utility Needs Analysis for Boone County. This comprehensive report, conducted in collaboration with Urban Partners and HWC Engineering, is a vital component of the Boone EDC's 5-year strategic plan and was made possible through a generous grant from READI 1.0. It is a report that is all encompassing for the future planning of Boone County. The report was unveiled on January 23, 2024, during an exclusive presentation, where key partners gathered to learn about the findings that will shape Boone County's future development. Key Findings from the Report: Population Growth: Boone County has experienced a remarkable 51% population growth from 2000-2021, surging from 46,107 to 69,839 residents. Income Trends: The county is attracting wealthier households from Marion County, boasting an average median household income of $94,843. Housing Challenges: Newly built homes are increasing in size, posing challenges to housing attainability. Vacancy rates for multi-family rentals, particularly in Lebanon, remain critically low. Housing Cost Burden: Despite the high median household income, 7,350 Boone County households are grappling with housing cost burdens. Land Use and Zoning Policies: Current policies, coupled with community opposition, may restrict housing developments. Infrastructure Challenges: Growth potential for Jamestown, Thorntown, Advance, and the Western Boone School District is limited by infrastructure capacity. Future Projections: By 2050, Boone County's forecasted population is estimated to reach 97,944, with a growth of 13,600 households. The LE/AP district is projected to add 15,600 households by 2050. "This Housing Study and Utility Needs Analysis serves as a critical compass for the future of Boone County. As our community experiences unprecedented growth, understanding the dynamics of our housing landscape and infrastructure needs is paramount. This report not only unveils the challenges we face but also illuminates the pathways to sustainable and inclusive development. It is a blueprint for ensuring that Boone County continues to thrive, providing homes for all and fostering an environment conducive to economic prosperity and community well-being,” says Molly Whitehead, Executive Director, Boone EDC. The comprehensive report, will be available through the Boone EDC in a few weeks, provides in-depth statistics, both current and projected, potential housing strategies, and utility needs for Boone County. It aims to guide the community in fulfilling current and future needs, fostering growth, and supporting economic development. Find out more on how to get the comprehensive Housing Study and Utility Needs Analysis Information in the below link. #housingstudy #housing #boonecounty #reports #growth  

The Cincinnati Metropolitan Housing Authority (CMHA) has had a significant economic impact on the local community in the fourth quarter of FY 2024. As the largest landlord in Hamilton County, CMHA provides homes to approximately 8,000 individuals across 4,300 units, utilizing both operating and capital funds for maintenance and improvements. In fiscal year 2023, CMHA received $24,443,070 in operating funds and $12,088,119 in capital funds. The economic impact extends beyond housing, with every dollar of public housing expenditure generating additional economic activity in the local market. For example, $24.4 million in operating funds generated an additional $22.7 million in economic activity, totaling a $47.2 million impact. Similarly, capital expenditures created a significant local economic impact, with $12.1 million in capital funds generating an additional $13.5 million, totaling $25.6 million. CMHA's contributions to the local economy include over $1.1 billion in community expenditures, impacting landlords, contractors, suppliers, wages, and taxes. The Housing Choice Voucher (HCV) program provided nearly $100 million in rental income to landlords in FY 2024, benefiting around 5,354 landlords. CMHA awarded 62 new service and material contracts this quarter, with 81% going to local businesses. The Rental Assistance Demonstration (RAD) projects are expected to create substantial economic benefits, including over $126 million to Section 3 businesses, $87 million to minority-owned businesses, and $21.8 million to women-owned businesses. RAD projects have also generated 56 new jobs, with 30 of these positions filled by Section 3 individuals, supporting CMHA's mission of creating economic opportunities for low-income residents and promoting self-sufficiency. Take a look at the full Q4 Economic Date Report for more Information!

"Last year, California counted more than 180,000 people living on the streets, a 40% rise in five years. Housing costs in the state are now double what they are in the rest of the US. Average monthly payments for a newly purchased mid-tier home are more than $5,500 a month and wages have not kept pace with rising rents. “You now need to earn $200,000 a year to have a comfortable middle-class life in California,” said Jennifer LeSar of the Global Policy Leadership Academy, which organises the trips to Vienna. There are some obvious differences. Vienna is densely built, with the majority of residents living in relatively small apartments within easy distance of the city centre. Most Viennese are renters, and use the well-connected public transport system to move around. Most Californians live in owner-occupied single-family homes in the suburbs. Public transportation systems are underfunded, and most residents use their car to travel. But the biggest difference is how much new affordable housing is going up in Vienna. “Just look at all the cranes,” said Adam Briones from California Community Builders, a research and advocacy organization working to close the racial wealth gap through housing. The city of Vienna builds about 6,000-7,000 new units of subsidised housing every year as it tries to keep up with rising demand. “They’re just building more housing than us. It’s not rocket science,” said Corey Smith of San Francisco's Housing Action Coalition . Another key difference is the way Vienna chooses to spend its annual housing budget. Most of it goes into subsidising construction, whereas in the US it mostly goes to directly subsidising residents through vouchers and housing benefit schemes. In other words, Vienna focuses on supply whereas the US focuses on demand. “I’d love someone to do a calculation of how much the US is spending on housing vouchers nationwide and see whether some of this money could be transferred into building new homes instead,” said Gleam Davis, the Santa Monica city councilmember." Betsy Reed The Guardian US https://lnkd.in/exZQAwEh

🌟 Tackling the Housing Crisis in Alberta's Communities 🌟 Recently, Calgary, the Town of Banff and other Albertan communities passed changes to their land use bylaw to address the housing shortage, including eliminating residential parking requirements and increasing building sizes. This reflects a growing trend among Alberta communities seeking policy housing solutions, but residents have been voicing many legitimate concerns and common ground must be sought. TIAA believes valuable lessons can be shared across municipalities, especially from the tourism industry, which has long grappled with housing affordability. 🏘️ Rental Vacancy Rate Plummets 📉 Alberta's communities are in the middle of rental vacancy crisis. Mountain towns like Banff, Jasper, and Canmore have rates below 1%, while currently Calgary's stands at a shockingly low 1.4%. A healthy market typically has a 3-5% vacancy rate. Persistent housing affordability issues can and will reduce the available workforce, age populations, and diminish communities long-term. To address this, many municipalities have proposed new density and parking amendments through blanket zoning or other mechanisms. These changes aim to increase multifamily units and alleviate the shortage, though they risk alienating residents. 🤸♀️ Balancing Density and Community Character 🚶♂️ Discussions about housing density must include diverse perspectives and respect community values. Calgary's recent blanket rezoning faced public opposition, raising concerns about infrastructure, schools, and services. Balancing increased housing with maintaining community character is crucial. Real changes are needed, as no single solution exists. Aligning community values and implementing tangible measures can significantly impact the housing crisis. Collaborative efforts are essential to meet housing needs without compromising neighborhood essence. 📊 Upcoming Affordability Study: Insights from Tourism Communities 📊 TIAA will soon release a comprehensive housing affordability study exploring various options available for communities. Our goal is to provide insights and strategies to ensure that the tourism industry and municipal officials remain open to a variety of solutions and actively seek public support. This study will incorporate experiences from resort communities grappling with housing shortfalls, contextualizing them for other urban centers facing similar issues. Alberta's housing market shows positive growth, with almost 18,000 new homes started this year, indicating a positive investment climate for homebuilders. What other solutions could address the affordability crisis?

📢 North Cowichan selected to receive housing targets from Province! 🏘 North Cowichan has been selected as one of the priority communities for housing development in British Columbia. The Province introduced the Housing Supply Act in 2023 and established housing targets for priority municipalities based on areas of greatest need and highest projected growth. Twenty priority municipalities, including North Cowichan, have been identified. The Province will work with identified communities to ensure they meet their housing targets, laying the foundation for tens of thousands more homes to be built quicker. Municipalities are taking action to approve housing quicker through the implementation of provincial legislation to allow small-scale multi-unit housing, designated Transit-Oriented Areas, updated Official Community Plans and streamlined local-development approval processes, as well as standardized housing designs that will be available this year. To help facilitate the implementation of these initiatives and the housing targets, the Province will continue to provide local governments with a range of resources and supports, such as: ◾ $1-billion Growing Communities Fund ◾ $10 million for a second intake of the Local Government Development Approvals Program ◾ $51 million in grant-based funding to support activities or projects, such as updating existing zoning bylaws, housing needs reports and official community plans. The Housing Supply Act is part of the Province's Homes for People action plan to deliver more homes in BC. It builds on BC's $19-billion housing investment and the introduction of effective tools to tackle speculation and increase the number of rentals. To learn more about the Housing Supply Act, visit: https://lnkd.in/dFMJTCxF

𝗡𝗲𝘄 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁𝘀 𝗶𝗻 𝗖𝗵𝗶𝗰𝗮𝗴𝗼 𝗔𝗳𝗳𝗼𝗿𝗱𝗮𝗯𝗹𝗲 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 Chicago is taking a significant step forward in addressing its affordable housing crisis through the latest allocation of Low-Income Housing Tax Credits (LIHTC). • 𝗧𝗵𝗶𝗿𝘁𝗲𝗲𝗻 𝗡𝗲𝘄 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁𝘀: The city has awarded LIHTCs to thirteen new affordable housing projects, with a combined development cost of $562 million. These projects will also receive $154 million from tax-increment financing and city public loans. • 𝗣𝗲𝗿𝗺𝗮𝗻𝗲𝗻𝘁 𝗦𝘂𝗽𝗽𝗼𝗿𝘁𝗶𝘃𝗲 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 (𝗣𝗦𝗛): PSH is a housing model designed to provide long-term housing and supportive services to individuals who are homeless or at risk of homelessness, particularly those with chronic health conditions, disabilities, or other barriers to stable housing. These services can include case management, mental health care, substance abuse treatment, and assistance with daily living activities. • 𝗘𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁𝗮𝗹 𝗮𝗻𝗱 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗺𝗲𝗻𝘁𝘀: The projects emphasize energy efficiency, decarbonization, and enhanced broadband infrastructure. The developments are aligned with the City’s Climate Action Plan. • 𝗖𝗼𝗺𝗺𝘂𝗻𝗶𝘁𝘆 𝗙𝗼𝗰𝘂𝘀: Areas such as Woodlawn, East Garfield Park, and Pilsen will see significant site-specific developments, fostering inclusive and vibrant communities. • 𝗘𝘃𝗶𝗰𝘁𝗶𝗼𝗻 𝗣𝗿𝗲𝘃𝗲𝗻𝘁𝗶𝗼𝗻 𝗣𝗹𝗮𝗻𝘀: A new mandate requires developers to implement eviction prevention plans, ensuring stability for residents. 𝗞𝗲𝘆 𝗦𝘁𝗮𝘁𝗶𝘀𝘁𝗶𝗰𝘀: • 𝗧𝗼𝘁𝗮𝗹 𝗖𝗼𝘀𝘁: $562 million for the combined development of thirteen projects. • 𝗣𝘂𝗯𝗹𝗶𝗰 𝗮𝗻𝗱 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗙𝘂𝗻𝗱𝗶𝗻𝗴: Includes $154 million from tax-increment financing and public loans. • 𝗔𝗳𝗳𝗼𝗿𝗱𝗮𝗯𝗹𝗲 𝗛𝗼𝘂𝘀𝗶𝗻𝗴 𝗗𝗲𝗺𝗮𝗻𝗱: Chicago needs an estimated 120,000 affordable units to meet current demand. These new projects exemplify a multi-faceted approach to addressing Chicago's affordable housing needs, ensuring that every resident has access to safe and affordable housing. This initiative highlights the city's commitment to fostering inclusive and sustainable communities through strategic public-private partnerships. --------------------------------------------- 𝗦𝗼𝘂𝗿𝗰𝗲𝘀: Hoodline: https://lnkd.in/g9-8RsUY The Real Deal: https://lnkd.in/gZazrXJH OMD News: https://lnkd.in/g5_X3UzT Chicago.gov: https://lnkd.in/gw3yzx3U #commercialrealestate #affordablehousing #CRE #chicago

Measuring Community Efforts to Address Housing Supply Housing availability and affordability are at or near the top of the public policy agenda in New Hampshire and elsewhere.  A slave to the principles of supply and demand, I see constrained supply as the primary culprit raising prices and limiting labor availability and economic growth. In fairness, even with an “adequate” supply, there will still be individuals and families where housing is unaffordable and for whom income support (via housing vouchers or other income support) is needed. But it is foolish to think that our “housing crisis” is primarily a product of slow or inadequate income growth. Advance to the head of the class if you believe that raising everyone’s income level without increasing housing supply will do anything except cause housing prices to rise even faster.  Adding truly affordable housing is, of course, the fastest way to address affordability. It is also the solution the faces the most headwinds. That isn’t a reason to abandon or neglect affordable housing development solutions, but neither is it a reason to completely discount the downward price impacts of more overall housing construction, even if those impacts are not immediate. The late 1980s and early 1990s in New England are an extreme (and unfortunate) example of how excess housing construction can produce downward prices impacts. There are lesser examples where building too much and too expensive housing exceeded “effective demand” (based on local or regional income levels), causing prices to fall. There are large differences among New Hampshire communities in the willingness to permit and construct new housing units, especially multi-unit buildings where rental price increases have arguably the greatest negative impact on individuals and families. Most of the recent multi-family housing construction has not been “affordable housing” but by adding to the supply, it will help to facilitate in-migration to the state, easing labor constraints and, over the longer-term, help ease price pressures. Attempting to develop a metric that captures community efforts to permit and construct multi-unit housing, I compared larger New Hampshire communities permitting of multi-unit housing, in buildings of 5 or more units, per 1,000 community residents from 2010 to 2022. The differences are striking. Not all permitted units get constructed, but the approval of them is an indication of a community’s efforts to allow multi-unit housing. The attached chart shows results for a handful of communities. Some, like Portsmouth, Salem, Londonderry, and Rochester, have seen large increases in permitted buildings and most had increased levels between 2020 and 2022, while Manchester and Nashua had no increase in their permitting of multi-unit housing (2023 data will change those results). It will be interesting to see how these differences affect the population and demographics of communities in the state over the next decade.  #housing

Unraveling the Housing Conundrum: A Plea for Municipal Action Similar to the prophets of old, our contemporary era demands a thoughtful consideration of the unfolding political and socioeconomic dynamics within our midst. Lately, my involvement in community projects has unveiled a growing concern – the allocation of title deeds to long-term farm residents, while those born in townships appear to be systematically overlooked. Venturing into areas like Drommedaris, Vlakkeland, New Rest, and Project 2, I discovered a notable presence of foreigners occupying residences, claiming to be renting from property owners who possess multiple houses. This shift, coupled with former farm dwellers getting title deeds through unwarranted displacement from farms, presents a nuanced challenge. Post-relocation, farms no longer serve as substantial employment hubs, leading new property owners to construct shacks attached to their homes for additional tenants - worst case was witnessing a lady moving out of her house to allow foreigners to live in it while reducing her dignity to living in a shack in her own yard. These burgeoning trends, if unaddressed, may escalate into mass protests, reminiscent of historical uprisings, fueled by discontent and a growing vocal youth. History may not repeat itself, but it sure as hell does rhyme. (Paarl Poqo Uprising) Critical to this issue is the Municipal Housing system's backlog of twenty thousand individuals awaiting approval for new houses, a persistent problem since 1999. This prompts a crucial question – has local government resigned itself to the mounting backlog? A comparison with the oft-criticized Home Affairs queues invites reflection on the efficiency of our local government in tackling housing issues. A potential resolution lies in the deployment of specialized units to regulate, monitor, and evaluate tenant-landlord dynamics. This approach could unveil insights into tenant identities, landlord locations (some residing outside the province), and the apparent preference given to farm owners. Addressing these disparities may pave the way for an equitable and just housing allocation system. In conclusion, municipal authorities must reassess and reinvigorate their approach to housing allocation, acknowledging the urgency and gravity of the situation. A proactive stance, accompanied by a comprehensive examination of existing challenges, will not only alleviate the persistent backlog but also foster a sense of fairness and justice within our communities. It is our shared responsibility to ensure that the current undercurrents of discontent do not coalesce into a storm of unrest, echoing historical lessons.

Why Public Housing Fails to Solve the Affordable Housing Crisis When people think of public housing, a familiar image often comes to mind: large, deteriorating brick buildings, malfunctioning elevators marked by graffiti, and neighborhoods plagued by crime and drug-related issues. Given this negative perception, previous governments have distanced themselves from public housing as a solution for low-income residents. However, with the current housing affordability crisis, public or social housing is once again being proposed as a potential remedy. The Growing Demand for Affordable Housing With homelessness increasing and housing costs skyrocketing—homes are now out of reach in 80% of U.S. counties—there is an undeniable need for affordable housing. High interest rates and soaring rent prices are affecting not only low-income individuals but also the middle class. Both presidential candidates have recognized the severity of this issue and have proposed solutions. “This is affecting first-time home buyers who can’t enter the housing market, as well as middle-class renters who are spending over half of their income on rent,” said Brian McCabe, Associate Professor of Sociology at Georgetown University, in an interview with Time magazine. “The affordability crisis isn’t new, but it’s now impacting a much larger group of Americans.” The Varied Faces of Public Housing Not all public housing is synonymous with crime-ridden, poorly maintained buildings. The concept is gaining renewed attention due to innovative developments like The Laureate in Montgomery County, Maryland, which challenges traditional notions of public housing. The Laureate, with its modern design and numerous amenities, could easily be mistaken for a luxury apartment building in many places. Montgomery County has been at the forefront of public housing initiatives, implementing a groundbreaking law requiring developers to allocate 15% of units in new projects to households earning less than two-thirds of the area’s median income, which is now $152,100 for a family of four. Although The Laureate was built by private developers, the Montgomery County Housing Opportunities Commission (H.O.C.) holds a 70% stake, allowing it to reserve 30% of the building’s 268 units for affordable housing. This stands in stark contrast to Co-op City in the Bronx, which remains the largest cooperative housing development ever built. Despite its admirable intentions, Co-op City has been plagued by mismanagement, corruption, and subpar living conditions. At its peak, the development required a $500 million emergency repair bill in 2003, demonstrating that public housing projects can face significant challenges even when designed with the best of intentions.