Tim Schwecke’s Post

“Mitchell-Lama 2.0,” it would differ in several key ways from the original. 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.

In 2023, New York City experienced a significant slowdown in housing production. The Real Estate Board of New York (REBNY) reported a 78% decrease in multi-family housing unit filings compared to 2022, with only 9,909 apartments proposed. This decline is attributed mainly to the expiration of the 421-a tax break, which previously encouraged the development of multi-family buildings. The report focuses on multi-family foundation plan applications, indicating imminent construction and providing insight into the city's development. Since the tax break's expiration in June 2022, filings have continued to decrease. Despite efforts by Governor Hochul and Mayor Eric Adams to encourage residential construction and reform zoning rules, the 2023 figures fall short of the city's housing goals. #NYCHousingCrisis #RealEstateNY2023 #REBNYReport #421aTaxBreak #HousingProductionSlump #MultiFamilyHousing #NYCDevelopment #HousingPolicy #AffordableHousingNY #CityOfYesForHousing

When the cost to construct housing is driven by land use regulations and other government policies, government must intervene to aid in reducing the costs of home building. Join me as we look at the math and what other communities are doing to reduce costs and ignite housing production. Our workforce is depending on action to help stabilize pricing and government is depending on our workforce for tax revenue. Its time to act.

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

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!

With new low income housing units coming in as high $1.2 million a door on Irving St and S18th St or $960,000 a door on Haight St calls for implementing mature FP&A to optimize limited tax dollars. City and County of San Francisco & Metropolitan Transportation Commission.

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!

"The plan to provide up to $25,000 in down payment assistance to 4 million first-time buyers over four years is likely to inadvertently raise home prices, thereby diminishing the intended benefits of this support." "The fundamental problem with past programs and Harris's proposed efforts is not insufficient subsidies but structural issues—namely, restrictive zoning and land use rules—that are holding back housing construction. These regulations make buildable land both scarce and expensive." #Housing #RealEstate #Economics #Policy https://lnkd.in/gQvHFhz3

Belleville Faces $2.6M Shortfall in Development Charge Revenues Belleville has reached 87% of its housing construction target for the year but faces a $2.6 million shortfall in development charge (DC) revenues due to provincial legislation. Paul Carr informed the city council that future annual losses are estimated at $2.8 million. To address this, the council approved Carr's motion to request $1.081 million from the Ontario government to cover the 2023 shortfall. Carr emphasized that without additional support, the financial burden will fall on property taxes and user rates. The city also seeks a new funding program to offset future revenue losses due to recent housing legislation. Belleville has exceeded its 2023 housing target, building 553 units against a goal of 227, and is on track for its 2024 target. Source:- Read more in the full article by Derek Baldwin in The Intelligencer. https://lnkd.in/gsYbTs3h #belleville #housingconstruction #developmentcharges #citycouncil #ontariogovernment #provinciallegislation #financialshortfall #propertytaxes #userrates #housingtargets #paulcarr #municipalities #fundingrequest #budgetimpact #communitygrowth #urbanplanning #economicdevelopment #localgovernment #publicpolicy #housingcrisis #realestate #infrastructure #citydevelopment #legislativeimpact #affordablehousing #municipalfinance #buildingfasterfund #housingpledge #ontariopolitics #strongmayors #newhomes

More flexible zoning is much needed