Vernon Jay’s Post

Housing took on a new role in the U.S. after World War II because people started viewing housing as a financial product. The widespread adoption of long-term mortgages and the prominence of single-family housing changed a lot more than just the homes people live in. That’s why Charles Marohn of Strong Towns wants local governments to get more involved in innovating and financing new kinds of housing products. “The more housing we build becomes abstracted from the people who live in it, the more it morphs into a financial product, the less responsive it becomes to … what people are asking for and need,” he said. Marohn suggests local governments can alleviate the housing crunch by reducing regulations on creating simple starter homes like backyard cottages, making single-family homes into duplexes or adding accessory apartments.

Affordability and the Law: Clearing the Path for Canadian Housing Solutions In today's housing market, securing affordable housing is becoming increasingly challenging for many Canadians. This issue extends beyond mere numbers and statistics; it represents a growing crisis that affects families, single parents, seniors, and others who find themselves pushed toward the margins of society. Understanding the legal and financial frameworks surrounding affordable housing is crucial in determining whether these initiatives will become realities or remain unfulfilled promises. Key Legal and Financial Challenges: 1. Land Acquisition: Navigating municipal zoning laws and land-use regulations is essential. Transforming commercial plots into residential spaces requires stringent legal compliance. 2. Permitting and Compliance: Securing permits involves adhering to building codes, environmental standards, and safety regulations—all of which demand rigorous legal oversight. 3. Government Policies: The National Housing Strategy offers frameworks and financial support but comes with specific legal requirements that prioritize certain demographics. 4. Community Integration: Beyond public consultations, legal strategies are vital to overcoming local opposition, particularly the "Not In My Back Yard" (NIMBY) challenges. 5. Financial Regulations: Banks must navigate strict lending laws, including regulations on loan-to-value ratios and interest rates, while collaborating with community organizations to tailor financial solutions. The Impact Collaborating with community organizations helps banks and developers tailor their financial products for maximum impact. For example, loans can be structured with longer repayment periods to ease the financial burden on developers, facilitating lower rents. Affordable housing, when effectively implemented, can positively transform neighborhoods. Stability in housing cultivates robust communities, fostering economic growth and social cohesion. Stable housing means families can participate more fully in the labor market, and children can focus on their education, creating long-term societal benefits. Today's affordable housing projects also align with sustainability goals by necessity. Using energy-efficient appliances, green spaces, and sustainable building materials not only keeps costs down in the long term it also ensures that the drive for affordable housing doesn't compromise environmental integrity. Understanding these legal dimensions empowers all stakeholders, from developers to community advocates and concerned citizens. If you're involved in or considering an affordable housing project, Aura LLP can help you meet and address the requirements needed with confidence. Let's Build Together To explore how we can support your affordable housing initiatives, connect with us today. Together, we can create a future where every Canadian has a place to call home.

More good news for affordable living! Raleigh Housing Authority has helped to provide additional critical affordable housing units in the Raleigh area through bond financing. RHA recently closed on a $28 million bond transaction for New Bern Crossings, a 192-unit low-income, multi-family rental housing development in Southeast Raleigh. Plans call for 70 one-bedroom units, 82 two-bedroom units and 40 three-bedroom units. The new apartments will be located right off the City of Raleigh’s Wake BRT route, providing residents with access to convenient public transportation and resources. The project targets individuals and families with incomes ranging from 30% to 60% Area Median Income (AMI), helping those who may be at risk of experiencing homelessness to afford quality housing. Construction is expected to begin next week and move-ins will start in late 2025. Greystone Affordable Development Haven Design|Build & Harmony Housing Affordable Development   Key Partners: LIHTC Allocating Agency: NCHFA (North Carolina Housing Finance Agency) Bond Issuer: Raleigh Housing Authority Senior Lender: Regions Bank Subordinate Lender: Wake County Affordable Housing Development Program Subordinate Lender: City of Raleigh Municipal Government Community Rental Development Program Additional Partners: Families Together - a PLM Organization. #affordablehousing

A pivotal challenge lies in the financing arena for affordable housing real estate developers, particularly in underserved neighborhoods. This article delves deep into these challenges, providing insights and potential pathways forward. #attainablehousing

I would correct this report by saying this is already a silent pandemic. According to Pew Research, 49% of Americans say the availability of affordable housing in their local community is a major problem. In 2021, the DePaul University's Institute of Housing Studies says Chicago's affordability gap reached a ten-year high of 119,435 units. Chicago, and throughout the nation, needs a dedicated funding source aside from tax credits to pay for affordable housing. Whether it is carving out from income taxes, state sales taxes, or a consistent transactional funding source. Additionally, Chicago needs to eliminate the competition between areas of the City for funding. For example, if the City was divided into 8 sub-regions, each area should be allocated a funding amount equally or distributed based on the greatest need for affordable housing. The Far South Side area should not have to compete with the Far West Side Area. If we set up an affordable housing development plan for the next 10 years for each sub-region, then each area will know how to plan for the next 10 years and identify scalable projects. https://lnkd.in/gYhknVzB

Fort Wayne is often touted as an affordable place to live, claiming a spot in the top five most affordable places to live in 2023, according to a report from U.S. News. On a national scale, Fort Wayne’s cost of living falls below the national average and on paper, when compared to other cities, Fort Wayne is easily marked as an affordable place to live. But what’s on paper might not be the whole picture. George Guy, CEO of the Fort Wayne Housing Authority and chair of FHLBank of Indianapolis’ Affordable Housing Advisory Council says there are disparities in the information we see about housing affordability. “We are in a challenging situation right now—there's a shortage of affordable housing overall because wages are low, but there's also a lack of subsidized housing for those who need it,” he says, going on to explain that the Fort Wayne Housing Authority has a waiting list for access to its housing programs. We explore how one institution is helping create affordable housing across Indiana here:

Always follow the money. Low Income Housing Tax Credits (LIHTC) are practically the only game in town for developers to create new affordable housing units. This deep dive by Shelterforce (Miriam Axel-Lute) is worth reading. While the program helps build affordable housing for people making ≤ 60% AMI, it is strictly a rental program and hard to complete projects of less than 100 units in size. What is clear is that there is a need for more and different kinds of affordable housing funding. https://lnkd.in/ecxsBB73 Does inclusionary housing programs help shift the needle meaningfully to offer more housing options for people making ≤ 100% AMI? What expectations should be built in around owning or renting for people in this space? What other financing options might developers look to? #affordablehousing #lihtc #realestatedevelopment #rentalproperty #housingfinance

The affordable housing delivery system in America is at a crossroads. Post-pandemic challenges and economic stressors have left housing providers navigating uncharted waters, facing conditions that threaten their stability and ability to deliver much-needed affordable rental homes to families and individuals with low incomes. The sector has always faced obstacles, but the current headwinds are reshaping its landscape in unprecedented ways. As CEO of the Housing Partnership Network, I’ve spoken with our members from across the country to understand these shifts and explore solutions. In my latest #blogpost, I offer candid insights on what’s at stake—and what needs to be done to safeguard the future of affordable housing.

Let’s start with a basic fact: Housing feels un-affordable because it is un-affordable. From 2020 to 2021, rent in Massachusetts jumped by a whopping 21%. The average home sale price in the same two years increased by nearly 30%. And housing is now the single largest contributor to inflation. It's little wonder that when I meet with constituents from Boston to Pittsfield to the Cape, often the first thing I hear is that the cost of housing is just too high. And when I ask employers their biggest challenge, many mention that they can’t find workers or have trouble attracting top talent because of high housing prices. So what can we do to lower costs? I’ll lay out my thoughts below. But first, please add your name to let me know you agree that our government needs to tackle the skyrocketing cost of housing across our country. It’s important that we tackle this issue as a strong movement — and I’d be honored to have you on board. For starters, we need to increase supply. We need to build more housing. It’s plain-old Econ 101. Here in Massachusetts, we are lucky to have a governor who has made it her priority to address the housing crisis head-on. Last fall, Governor Maura Healey introduced the Affordable Homes Act, a set of bold policy proposals to boost the supply of housing and drive down housing costs. But our Commonwealth can’t tackle this issue all on our own. It’s time for the federal government to step up and take a bigger role in increasing housing supply. We can use money from my 15% minimum corporate tax on billionaire corporations. And for less than 5% of the annual defense budget, we could create a fund that year after year could be used to increase and upgrade the supply of housing nationwide. I’ll keep fighting for a bill to inject over $40 billion a year into the construction of affordable homes. Since the Great Recession, institutional investors have bought up hundreds of thousands of single-family homes, hoovering up a significant chunk of the existing housing supply. By 2030, these big, Wall Street firms are expected to own as much as 40% of all single-family rental homes. Once their power is entrenched, there’s little stopping corporate landlords from squeezing families for profits. In communities across the country, institutional investors have hiked rents by double digit margins and jacked up fees, all while letting homes fall apart. Meaningfully addressing the Wall Street investor problem will require Congress to pass legislation. And Republicans have refused to support investments on the scale of what’s needed. But here there’s hope for more urgent action. I’ve called on the Biden Administration to use its authority to deliver immediate relief to renters, both from high costs and greedy investors. In response to my call, President Biden revealed a series of federal agency actions and a Blueprint for a Tenant Bill of Rights earlier this year. Thanks for being a part of this, US Senator Elizabeth Warren

Housing Solutions to Meet the Housing Crisis The U.S. housing crisis now touches every part of our country, across multiple income segments and all housing types. The crisis is often attributed to restrictive land use policies. But the crisis has more systemic and complex roots, which will demand a broader set of solutions. My latest piece, co-authored with Michael Saadine, Benjamin Preis and Emily Desmond, frames the crisis in new ways. The housing system is federated, with responsibilities divided across multiple layers of government and sectors of society. Everyone is in charge so no one is in charge. The system is also highly financialized. In recent years, for example, it has become more lucrative for investors to buy housing for speculative or other reasons than to build it. And the system is fossilized. The mainstay federal housing programs have been around since the mid 1980s and early 1990s, becoming more rigid and ossified over the decades. Solving this crisis will not happen via tinkering with or tweaking the existing system. We need bolder, more disruptive interventions. The good news is that a growing number of states and localities are experimenting with a broad set of solutions. Zoning reform is a consistent focus. But communities are also moving solutions that touch upon Land, Construction, Capital, Regulation and Delivery. Scaling these innovations across the country, with routinized practices and products, new functions and intermediaries and (hopefully) ambitious federal reforms and investments, needs to be the order of the day. To that end, the Nowak Metro Finance Lab and Accelerator for America will launch a bipartisan National Housing Crisis Task Force next month. Stay tuned …. https://lnkd.in/ed4Hu2nD