Eric Alexander’s Post

“The $250 million proposal is modeled on the Mitchell-Lama legislation, passed in 1955. Taking its name from the two state legislators who were its main sponsors — Senator MacNeil Mitchell, a Republican, and Assemblyman Alfred A. Lama, a Democrat — that program helped transform New York’s housing landscape after World War II by enabling the construction of more than 100,000 units of middle-income housing at a time when the city was experiencing a housing crisis exacerbated by an influx of returning service members as well as immigrants and refugees. It aimed to spur affordability for both renters and homeowners by using developer incentives to create a protected supply of homes available to residents with incomes beneath a certain threshold. The new version, which lawmakers are calling “Mitchell-Lama 2.0,” would differ in several key ways. Among other things, it would form a new state entity that could finance developments on state-owned land. The state would give developers cheap leases on state land, which would be exempted from taxes and from certain elements of the public review process. The state would also lend money to developers, to make building quick and inexpensive for companies. 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.” https://lnkd.in/e2kH_m9h

The New York State Senate is gearing up to introduce a comprehensive bill aimed at tackling the state's escalating housing crisis. This legislation is set to promote new construction, introduce fresh tenant protections, and rejuvenate some older affordable housing strategies, notably the establishment of a public benefit corporation to finance housing on state-owned land, reminiscent of the mid-20th-century Mitchell-Lama program. The urgency of the housing situation in New York, highlighted by soaring rents and a surge in homelessness, particularly due to an influx of migrants, has pressed state leaders to find a cohesive solution. Despite the challenge of aligning diverse stakeholder interests, the Senate's plan seeks to balance the needs of tenants, unions, and developers to foster substantial new housing development. In 2022, the expiration of a developer tax break, 421a, which had incentivized the inclusion of affordable units in new developments, led to a decline in construction. The Senate's new proposal suggests a tax break with stronger affordability requirements. Furthermore, it emphasizes the adoption of "good cause eviction" legislation, aimed at protecting tenants from unjust evictions and excessive rent hikes, though this measure has met with resistance, particularly from landlord groups and within the State Assembly. The proposal also includes strategies to increase residential building sizes in Manhattan and legalize basement units, alongside a $250 million plan modeled after the Mitchell-Lama program, aiming to create affordable housing for middle-income families through incentives to developers on state land. The effectiveness of this ambitious Senate plan, intended as a starting point for budget negotiations with the Governor and the Assembly, remains contingent on the details and the balance of interests among New York's political leaders. The proposal's impact on New York's housing market, amidst a backdrop of high rents and low vacancy rates, is eagerly anticipated. #NYHousingCrisis #SenateHousingBill #AffordableHousing #MitchellLama2 #TenantProtection #NewYorkLegislation #HousingDevelopment #GoodCauseEviction https://lnkd.in/gjBwEAtf

🚨 Senate Bill 1537, the only bill Kotek requested this year, is a package of incentives and policy changes intended to boost construction and meet her goal of building 36,000 homes annually. Economists estimate Oregon is 140,000 homes short of the current demand and needs to build at least 500,000 new homes within the next 20 years. “You have the power, you have the resources to allocate to this bill,” Kotek said. “You can say ‘We’re going to do housing differently over the next few years.’” Money in the bank The state’s latest economic forecast, indicated a $1.7 billion surplus for the state in the budget cycle that ends in June 2025. Even after a 1% allocation to the state’s rainy day fund, lawmakers would be left with about $1.3 billion to spend or save as they see fit. Home Forward supports Senate Bill 1537. ❤️🏠⚖️ HOUSING is at the core of what we do, and PEOPLE are the reason it matters! https://lnkd.in/gKY2iGs4

For those unfamiliar with the Low Income Housing Tax Credit (LIHTC) this is an easy to follow summary of the program and what it takes to preserve it!

I wanted to share some important updates in the world of affordable housing that may be of interest to you: Legislative Update: The Tax Relief for American Families and Workers Act of 2024, which includes key low-income housing tax credit production priorities, has faced significant challenges. While the bill received strong approval in the House, it has been stalled in the Senate for several months. There is still hope for a compromise, though it will be difficult given the Senate's tight schedule. HUD Budget Increase: In March, Congress increased the HUD budget by 2.55% as part of a $450 billion funding package. This $1.8 billion increase will provide 3,000 additional vouchers, renew project-based rental assistance programs, and address public housing needs. LIHTC Income Limit Changes: In April, HUD issued FY 2024 income limits with a 10% ceiling on income limit increases. This cap will impact allowable rent increases for LIHTC properties, potentially reducing rents where previous calculations would have resulted in higher increases. Freddie Forward Program Changes: Freddie Mac has announced changes to the Affordable Forward Commitment Program, effective April 1, 2024. These changes include eliminating the commitment fee and reducing the conversion UPB percentage from +10% to +5%. These adjustments are designed to encourage new housing supply and reduce barriers to market entry. If you have any questions or want to chat about these updates, feel free to contact me. I’d love to hear your thoughts, so don’t hesitate to comment below!

Can Washington solve the housing crisis? Erin Norman's recent opinion piece in Governing Magazine argues that while President Biden's budget proposes significant funding for housing, including tax credits and grant programs, these measures are unlikely to address the underlying problem of housing scarcity. Instead, the article advocates for empowering communities through incentives to state and local governments to adopt innovative solutions tailored to their specific needs, such as converting empty commercial real estate into residential dwellings; removing zoning restrictions to allow for more housing construction; and updating the definition of “manufactured housing” to allow builders more flexibility in design and construction of accessory dwelling units. I'm curious to hear your thoughts. Is the solution best left to state and local governments, or is tax credit and grant funding from Washington also needed to effectively increase housing supply? #housingpolicy #zoning https://lnkd.in/gButtp7M

The decision by BAHFA to withdraw the $20 billion affordable housing bond measure is a very significant and tragic setback in addressing California's housing crisis. While I understand the complexities that led to the decision, the urgency of our housing crisis remains unchanged and the solutions cannot wait until 2026 or beyond when we may be able to pass a bond measure. The decision underscores the need for bolder solutions from our state and local governments. Incremental measures have failed, and we must take bold, immediate steps to eliminate the roadblocks that have hindered the construction of much-needed housing for far too long. The time has come to take decisive action to meaningfully reform CEQA, the Coastal Act, local zoning regulations, and all other impediments and obstacles to the rapid development of housing. As well-intentioned as those regulations may have been, they are directly responsible for where we are today - in a crisis of epic proportion. Since we aren’t going to have the financial support the bond would have provided, we have to refocus immediately on accelerating the construction of new housing. This includes both market-rate and affordable housing to meet the diverse needs of our communities. The lack of affordable housing is hurting California’s economy. Businesses are struggling to attract and retain talent, and the vibrancy of our communities is at risk. We simply cannot afford to wait any longer hoping the solutions will materialize someday. https://lnkd.in/g3uvM3ah

Exactly right.

The Low-Income Housing Tax Credit program (LIHTC) is a critical federal tool that encourages private investment in the construction and preservation of rental homes affordable to low-income families. Demand for the program is high—and the number of renters struggling with housing costs continues to increase—but every year, more units phase out of their affordability requirements. In the current market, it is difficult for affordable housing developers to replace them. The Terwilliger Center published an overview of the long-term affordability challenges facing LIHTC and examined potential solutions, like extending the LIHTC affordability period. Check it out on the Bipartisan Policy Center website: https://lnkd.in/eA3jQ9fp

I'm in Green Building Advisor talking about Kamala Harris' proposed housing policy, such as it is... To get a clear sense of what a Harris-Walz Administration might do to solve the affordable housing crisis, it requires some reading between the lines. Kamala Harris has spoken of an "opportunity economy," which includes implementing a $6,000 child tax credit, providing up to $25,000 in down-payment assistance for first-time buyers, and building 3 million new homes by the end of her first term. (The nation's housing deficit is currently estimated to be between 4.5-7 million.) The details to realizing all this are vague, and for any number of reasons, Harris is not campaigning on the historic policy achievements of the Biden-Harris Administration, particularly the CHIPS Act, Bipartisan Infrastructure Law (BIL), and the Inflation Reduction Action (IRA). One might hope that, if elected this November, her admin's housing policies would ride the momentum of previous legislation and leverage the many funding channels that have been put in place, via HUD, USDA, DOE, EPA, and other federal agencies. Here's my latest #policywatch ... read the comments section if you dare 🤔 https://lnkd.in/ehk2Aj2v #KamalaHarris #Harrishousingplan #affordablehousing #housingcrisis #cleanenergyeconomy #greenhousing #InflationReductionAct #childtaxcredits Jennifer Castenson Antje Steinmuller