NATIONAL LEAGUE OF CITIES

Homeward Bound THE ROAD TO AFFORDABLE HOUSING NATIONAL LEAGUE OF CITIES

About the National League of Cities

The National League of Cities (NLC) is the voice of America’s cities, towns and villages, representing more than 200 million people. NLC works to strengthen local leadership, influence federal policy Table of Contents and drive innovative solutions. 2 Foreword Acknowledgements 4 Introduction 8 A National Agenda Special thanks to the housing specialists, scholars, real estate developers, city staff and task force members whose participation and contributions to the task force made this work possible. 12 Affordable Housing For Vulnerable Populations 16 A Different Set of Challenges – Smaller Cities, Photo credits: All photos Getty Images, 2019, unless otherwise noted. Towns, and Villages and Legacy Cities 20 Local Solutions and Practices Staff to the Task Force and Primary Authors Task Force Members James Brooks Chair: Mayor Muriel Bowser, Washington, D.C. 42 Recommendations Michael Wallace Councilmember Lana Wolff, Arlington, TX 48 Summary of Recommendations for Local Actions Gideon Berger Mayor Keisha Lance Bottoms, Atlanta, GA Jess Zimbabwe Councilmember Brandon Scott, Baltimore, MD 50 Summary of Recommendations for Federal Actions Elisha Harig-Blaine Mayor Cyndy Andrus, Bozeman, MT 54 Conclusion Polly Donaldson Councilmember Jesse Matthews, Bessemer, AL 55 Appendix A – The work of the task force Richard Livingstone Mayor Vi Lyles, Charlotte, NC Danilo Pelletiere Mayor Alfred Mae Drakeford, Camden, SC 59 Appendix B – The state context Brooks Rainwater Councilmember Albus Brooks, Denver, CO Councilmember Greg Evans, Eugene, OR Contributing Authors and Editors Mayor John Giles, Mesa, AZ Laura Cofsky Mayor Francis Suarez, Miami, FL Domenick Lasorsa Mayor Libby Schaaf, Oakland, CA Aliza Wasserman Councilmember Denise Moore, Peoria, IL Rita Ossolinski Mayor Lovely Warren, Rochester, NY Leon Andrews Mayor Ron Nirenberg, San Antonio, TX Kristen Vinculado Councilmember Teresa Mosqueda, Seattle, WA Terrah Glenn Mayor Jamael Tito Brown, Youngstown, OH Kitty Dana Carolyn Coleman, League of California Cities Sue Polis Daniel P. Gilmartin, Michigan Municipal League Laura Furr Mayor Karen Freeman-Wilson, Gary, IN (ex-officio) Andrew Moore Clarence E. Anthony, National League of Cities (ex-officio) Anthony Santiago Cooper Martin Anna Marandi

2019 © National League of Cities Homeward Bound: The Road to Affordable Housing

he United States has a housing crisis. In We know: When cities come together and FOREWORD cities and towns nationwide, access to focus on an issue, we get the work done. Cities Thousing — particularly access to safe are incubators for innovation and places where and affordable housing — continues to be a rhetoric translates into action. FROM MAYOR BOWSER major concern and increasingly serves as one of the biggest barriers to economic prosperity But cities cannot do this work alone. for American families. The federal government must step up, treat our nation’s housing needs seriously, and Because of stagnant wages, rising real estate recognize that housing is infrastructure. prices, higher interest rates, and strict lending Together, we must double-down on solutions standards, housing has become an outsized that are working. We must think bigger cost for more and more working families. And and bolder to address our most persistent not just for homeowners. Nearly 40 percent of challenges. And when we have solutions, households in the U.S. are rented homes, and we must fund them. of these households, half are “cost burdened,” meaning they spend more than 30 percent of A safe and stable home is the first step to a their income on housing. Too many Americans safe and stable life. Together, we must act with are forgoing basic necessities just to pay rent urgency to end our nation’s housing crisis. or make their mortgage payment.

This crisis is affecting the quality of life for people throughout our nation, and the time to act is now. All levels of government need to face this housing crisis head-on.

//////////////////// MURIEL BOWSER Mayor, Washington, D.C., and Chair, NLC’s Housing Task Force

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ousing is the single biggest factor with better opportunities earn an INTRODUCTION impacting economic mobility for average of $302K more in their lifetime. HAmericans. 1,2 When residents have And affordable housing options in high stable living conditions, the benefits are opportunity neighborhoods create apparent — students do better in school and economically diverse schools, which health outcomes improve.3 Communities are 22 times more likely to be high benefit as a whole from this stability. performing as high-poverty schools.5 Opportunities for investment growth Job security. The construction of 100 and economic prosperity develop when affordable homes generates on average sustainable housing serves the needs of $11.7 million in local income, 161 local residents across generations and income jobs and $2.2 million in local taxes.6 levels. It’s up to local governments to make Conversely, involuntary housing loss, like the right housing decisions to create positive forced moves and evictions, is strongly outcomes for residents and communities. correlated to involuntary job loss.7 Stable housing is a prerequisite for: Health and well-being. Young children in Economic mobility. Federal investment families who live in unstable housing are in affordable, stable housing is also an 20 percent more likely to be hospitalized 8 investment in children and their future. than those in stable housing. In addition, Student achievement is maximized households with poor housing quality had when students can go home to stable, 50 percent higher odds of an asthma- related emergency-room visit during affordable housing. Low-income children the period of the study.9 Other research in affordable housing score better on indicates that “five percent of hospital cognitive development tests than those users who are responsible for half of the in unaffordable housing.4 Younger low- health care costs in the U.S. are, for the income children in families using housing most part, patients who live below the vouchers to move to neighborhoods poverty line and are housing insecure.10

1 The Links Between Affordable Housing and Economic Mobility, Reid, Carolina, The Terner Center, University of California at Berkeley, May 2018. 2 Housing Policy Levers to Promote Economic Mobility, Blumenthal, Pamela and McGinty, John, the Urban Institute, October 2015. 3 The Positive Impacts of Affordable Housing on Health: A Research Summary, Lubell, Crain, and Cohen, Enterprise Community Partners, 2007. 4 Housing Affordability and Child Well-Being, Newman, Holupka, Bloomberg School of Public Health, Johns Hopkins University, January 2015. 5 High-flying schools, student disadvantage, and the logic of NCLB Harris, American Journal of Education, 113(3), 367–394. (2007). 6 Housing Investments Spark Economic Stimulus and Job Creation, Fact Sheet, Opportunity Starts at Home Campaign, 2019. 7 Who gets evicted? Assessing individual, neighborhood, and network factors, Desmond, Gershenson, Harvard University, Social Science Research, 1-16, 2016. 8 Housing as a Health Care Investment: Affordable Housing Supports Children’s Health, Sandel, Cook, Poblacion, Sheward, Coleman, Viveiros, Sturtevant, National Housing Conference, Children’s HealthWatch, 2016. 9 Pediatric Asthma Health Disparities: Race, Hardship, Housing, and Asthma in a National Survey, Hughes, Matsui, Tschudy, Pollack, Keet, Academic Pediatric Association, November 2016. 10 Tailoring Complex Care Management for High-Need, High-Cost Patients, Blumenthal, Abrams, JAMA, October 2016.

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The task force settled on a set of five They also settled on five local national housing policy recommendations: recommendations:

1. Immediately stabilize and stem 1. Establish local programs by the loss of public and affordable combining funding and financing housing. streams to support housing goals.

2. Follow emergency intervention 2. Modernize local land use policies, with passage of a long-term, stand- including zoning and permitting, alone federal housing bill that to rebalance housing supply and authorizes ten years of new funding demand. for pilot programs that advance housing for all. 3. Identify and engage broadly with local stakeholders; and coordinate 3. Support innovation and across municipal boundaries, to modernization of land-use and develop a plan to provide housing planning at the local and opportunities for all. regional level.

4. Support the needs of distinct 4. Fix inequities in housing sub-populations including the development and the housing homeless, seniors and persons with finance system. conviction histories.

5. Support scalable innovation 5. Prioritize equitable outcomes in and financing for cities, towns and housing decision as it is an essential villages. component for success.

Our goal is to ensure that safe and quality housing will be viewed as a right, not a choice.

In order to make real progress in narrowing the gap in access to quality, affordable and safe housing, local leaders must take on the status quo and make significant structural alterations. The most obvious route to address historic inequities would be to institute new policies that consider housing affordability, housing stability and the gap in availability of safe, healthy housing in all communities. City governments must provide tenants with legal support, prevent foreclosures, prioritize control over zoning by communities of color and create independent equitable development entities that put decision-making power over public investment in the hands of communities most at risk for displacement.

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Every American deserves the opportunity for housing, A NATIONAL AGENDA because stable housing is a prerequisite for economic mobility, job security, and health and well-being. ///////////////////////////////

resident Lyndon Johnson signed based on race and ethnicity. National The Housing and Urban Development policy sanctioned by the Federal Housing PAct into law in 1965. With the stroke of Administration included color-coded lines his pen, he transformed the way government drawn on maps to delineate areas where approaches housing. The new law established financial institutions should or should a national goal to “make sure that every not invest. family in America lives in a home of dignity and a neighborhood of pride, a community of The federal government built redlining opportunity and a city of promise and hope.”11 into its developing federal mortgage The Act would reshape American cities, towns, system, transforming American cities. and villages by vastly expanding housing and Local government was complicit in redlining homeownership opportunities — for some. through its role in using the federal guidelines. Official policies of residential segregation and In the 1930s, redlining converted clear racist housing discrimination, including mortgage action into structural racism that has resulted redlining, made their own mark on cities and in long-lasting negative impacts. The practice tribal lands in ways we still haven’t overcome. shaped the geography of American cities, towns and villages, and embedded drastic racial bias into both institutional policy and Early Federal Policy implicit associations by setting the precedent that spaces associated with people of color American’s attitudes and biases about are risky investments. housing are changing; local governments are changing in response. Historically, decisions made by local government leaders have in many cases Today’s housing crisis is rooted in the bedrock exacerbated this crisis. While there is of America’s founding and the seizure of increasingly strong leadership by mayors land for development by new settlers. and councilmembers, the problems with Fast forward to the 1930s: America was the current-day housing crisis are often the building on existing racist deed restrictions outcomes of past restrictive local policies, with the introduction of redlining, which such as the movement in the post-World was the overt practice of restricting the War II era toward suburbanization and neighborhoods in which homebuyers could housing policies dependent on automobiles. get federally-backed home mortgages

11 HUD at 50: Creating Pathways to Opportunity, Khadduri, U.S. Department of Housing and Urban Development, Office of Policy Development and Research, 2015.

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Adding to this history of inequitable Changing Urban Patterns outcomes in the housing market are choices made by local government officials to Urban decline, characterized by “white flight” protect incumbent homeowners rather than (a term coined in the mid-20th century to newcomers through “NIMBY” politics. describe the departure of white people This trend has grown over the last 70 years. from places largely populated by people of Even though some trends are reversing on color), and residential segregation, mortgage sprawl, NIMBYism is still a potent force. discrimination, and federal disinvestment in legacy infrastructure, has made its way In addition to impacts on housing and to the towns, villages and suburbs beyond geography, the legacy of redlining facilitated city limits. Problems once concentrated the racial wealth gap. Since most Americans in large urban areas have sprawled. But build wealth through homeownership, the there’s another problem. Local leaders in the provision of higher value government- suburban and rural areas don’t have federal backed loans to white families that were programs tailored to their municipalities. denied to families of color subsidized the Instead, their only choice is to address intergenerational accumulation of wealth these challenges using set federal programs differentially by race. People of color were established with large cities in mind. systematically denied loans and forced into devalued properties. Unfortunately, these Suburban sprawl is resulting in problems patterns of racial discrimination in lending once relegated to urban spaces. Such assistance, and the demonstrable need for when the government avoids shutdowns. continue as, even today, real estate and problems include those associated with greater policy interventions, federal housing Uncertainty over program funding and financial industries deny low-interest loans to maintenance and replacement of decades- assistance is poised to fall to its lowest level subsidy availability weakens potential for 1,2 people of color at higher rates than they do old, federally-funded legacy infrastructure in 40 years. federal intervention in the housing market, and public housing. And no matter the where lenders and developers alike crave to white people. For many reasons, the federal budget and location or size of a city, village or town, and reward certainty. appropriations process has failed to create Racialized zoning has permanently altered challenges like these are too big to opportunities for Congress to intervene Furthermore, most public housing in the U.S. America’s cities. It embedded legally solve alone. recognized segregation into our geography sufficiently before a housing crisis, past is at least 40 years old and in need of repair. and social relationships. Today’s housing Local elected officials are hearing the or present. The housing foreclosure crisis Despite a clear need, years of funding cuts, crisis is a descendant of these destructive, message loud and clear that all residents precipitated The Great Recession that finally uneven management and oversight have 90-year old policies. Addressing today’s are ready for a new direction on housing. spurred Congress into action with a recovery jeopardized the longevity of about a million housing crisis requires us to examine our Local governments, having contributed to act, and a new set of quickly-assembled units of permanently affordable public past. It also requires city leaders to address the present state of housing affordability, are programs to mitigate foreclosure and housing. The primary residents of public those residents most impacted by the changing their approaches to housing. Many eviction. In the end, these efforts did not housing — families with children, the elderly housing crisis today. These efforts may are adopting practices that reduce costs and live up to expectations. and people with disabilities — will strain limit other barriers to housing development. public services if their housing becomes help rebuild the trust that communities of The federal budget and appropriations Experimentation and innovation at the distressed to the point where they have to be color have lost in their local governments processes are also subject to constant local level, free from the threat of federal involuntarily removed. due to centuries of policies, practices and growing uncertainty, even in years and procedures that caused differential preemption, is the appropriate response at outcomes by race. this time. Despite abundant research and evidence 1 New Budget Deal Needed to Avert Cuts, Invest in National Priorities, Parrott, Kogan, Taylor, Center on Budget supporting the importance of housing and Policy Priorities, 2019 stability, the growing demand for housing 2 Chart Book: Cuts in Federal Assistance Have Exacerbated Families’ Struggles to Afford Housing, Rice, Center on Budget and Policy Priorities, 2016

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ousing affordability issues can is housing, turned this framework around in AFFORDABLE be particularly harmful for more the early- to mid-1990s. The strategy placed Hvulnerable populations like the people into housing, regardless of sobriety homeless, senior citizens and residents and medication compliance. It also provided HOUSING with incarceration histories. However, client-tailored case management services. improvements over the past decade serve as As efforts built, these services began to FOR VULNERABLE evidence that positive change will continue. include clinically-proven case management techniques based on harm-reduction and POPULATIONS trauma-informed care. In 2010, the federal government’s plan, Opening Doors, amended its plan to prioritize specific sub-populations for the first time. By then, many communities had developed plans to end homelessness, and since 2010, veteran homelessness in the U.S. has declined 48.8 percent.

The Homeless

Housing and other issues, such as homelessness, have been viewed as intractable urban policy issues for decades. But the nation’s housing-affordability crisis has only been around since the 1970s, with the modern experience of homelessness emerging in the early 1980s.

As cities grappled with unsheltered homelessness, a variety of responses Senior citizens developed around the idea of emergency With an estimated 50.8 million people aged shelter. In the ensuing decade, a shelter and 65 and older in the U.S., addressing the issue transitional housing-based system developed of home repairs and modifications so that with budding federal resources. At the start residents can age in place can seem daunting of the 1990s, homelessness became less of for local leaders. But these modifications are a priority. Additionally, the homeless were necessary to reduce emergency responder often required to demonstrate medication and calls for injuries resulting from homes not sobriety compliance before being considered having things like ramps and grab bars. for permanent housing placement. To strategically meet this growing need, city Introduction of the U.S. Housing and Urban leaders can standardize the assessment of Development’s Housing First strategy, built on needs, improve resource targeting, enhance the premise that the answer to homelessness service provider coordination, increase client-

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level data-sharing and persistently engage for subsequent re-incarceration.” (Notice PIH local decision makers. 2013-15 (HA)12

Home repair programs administered by local To cut down on the risk of homelessness for government (and often funded with resources these residents and improve their access from the CDBG program) can be targeted to to housing, city leaders must commit to support low-income seniors. Capturing these reviewing, and modifying if necessary, local data and targeting information about these fair-housing policy related to landlords’ households allows cities to address various ability to deny rental applicants based solely housing challenges. on conviction history. Prison and pre-arrest “ diversion also rank high on the list of city policy options. City leaders must Some city leaders may also have the ability commit to reviewing, to influence local public housing authority (PHA) policies. PHA can also contribute to other inequities, as described in 2015 HUD and modifying if necessary, guidance: “Because of widespread racial and ethnic disparities in the U.S. criminal justice local fair-housing policy system, criminal-history-based restrictions on access to housing are likely disproportionately to burden African-Americans and Hispanics.” related to landlords’ ability (Notice PIH 2015-19)13

Residents with City leaders who can influence PHA policy to deny rental applicants incarceration histories should dig further and ask themselves if Cities and towns of all sizes need to consider the local PHA places additional restrictions based solely on their roles in policy, services and support for on access to public housing beyond the nine million Americans who get released those restrictions required by Federal conviction history. from jail each year, as well as the more than regulations (which are limited to one’s name 600,000 persons released annually from appearing on the lifetime sex offender state and federal prisons. Even a few days registry or convictions for manufacturing spent in jail can cause housing issues. In methamphetamines on government property). addition, challenges to finding housing often If such additional restrictive layers exist, worsen after prison reentry. In 2013, HUD city leadership should look into whether noted that “Incarceration and homelessness or not the restrictions meet a “reasonable are highly interrelated as the difficulties in and necessary” test of producing tangible reintegrating into the community increase the evidence of improved public safety. If they risk of homelessness for released prisoners, don’t, actions should be taken to remove and homelessness in turn increases the risk those additional layers.

12 Guidance on housing individuals and families experiencing homelessness through the public housing and housing choice voucher program, U. S. Dept. of Housing and Urban Development, Washington, D.C., June 10, 2013 13 Guidance for Public Housing Agencies and Owners of Federally-Assisted Housing on Excluding the Use of Arrest Records in Housing Decisions, U.S. Dept. of Housing and Urban Development, Washington, D.C. Nov. 2, 2015

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merican municipalities represent Efforts to boost economic growth do not A DIFFERENT a huge variety of sizes, places and directly address vacant and abandoned Acircumstances, each with their own housing, one of the greatest challenges housing challenges. For many cities, especially for cities in this bucket. The 2018 report, SET OF CHALLENGES — those smaller in size or those with a legacy of The Empty House Next Door,14 suggests that growth driven by industrial manufacturing or small cities and rural areas have levels of SMALLER CITIES, family farms, stagnant economic trends have vacancy comparable to, or higher than, even led to an excess of homes and/or residential the most distressed central cities. lots. TOWNS, VILLAGES Other problems can include rental property Cities in this situation show a distinct pattern owners who fail to maintain their property of economic changes that diminish the in habitable condition, inadequate building AND LEGACY CITIES earning power of workers, often starting inspection and code enforcement, and limited with increasing global competition, the loss protections for tenants facing eviction. of major employers or natural disasters such Problems can extend to the leveraging of as draught or flood. In the absence of jobs public lands through land trusts or land and with reduced opportunities, populations banks, and effectively using the Community decline, and tax dollars for new municipal Reinvestment Act to advance private sector investments designed to spur growth investment. decrease.

14 Guidance on housing individuals and families experiencing homelessness through the public housing and housing choice voucher program, U. S. Dept. of Housing and Urban Development, Washington, D.C., June 10, 2013

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The first step is accruing data on vacant Neighbors Inc. property in Boston’s Roxbury rental assistance, vigorous code enforcement property. Gary, Indiana, through its Gary neighborhood. The trust manages real including rental inspection ordinances, Counts initiative, has inventoried more than estate pulled from the private marketplace. incentive funds for improvements to homes 58,000 parcels, leading to the identification Home prices are kept at below market rates and apartment buildings (going to owner- of more than 25,000 empty lots and 6,500 because the land is kept by the trust and the occupants or to building owners), and vacant buildings. More than 200 volunteers, appreciation of the property is shared from protections for tenants from evictions that plus partners from Indiana University, owner to owner over time. Each owner can aren’t just-case. Seniors on fixed incomes, for University of Chicago, The Knight Foundation buy into the trust at a below-market price in example, are a perfect target for programs and the Legacy Foundation, supported the exchange for sharing the appreciated value that offer financial assistance for home effort. The goal of this exercise, according of the property with the trust at the time of maintenance and improvement toward the to Gary Mayor Karen Freeman-Wilson, sale. This mechanism guarantees long-term goal of helping residents age in place. was to “make smarter, more calculated affordability in perpetuity. For smaller communities that lack capacity decisions on how to best address demolition for such preemptive measures, a shared and redevelopment.” The city made this a The best strategy is for cities to use an regional housing authority (or even shared community-wide priority. “upstream approach.” This means preventing code inspection and enforcement) may prove vacancy before it happens. This approach to be an appropriate mechanism to manage Although demolition of a dilapidated house is requires coordination of several strategies such tasks. often the safest course of action, the cost of including temporary or emergency mortgage/ demolition and the backlog on such projects Finally, because housing is such an important remain a challenge. Once a lot is cleared component of community prosperity, however, an increasing number of policy investments in nurturing or simplifying options emerge, like greening empty lots, the creation of new small businesses is an side-lot annexations, land banking and land essential task for city government. The U.S. trusts. benefit: Open land absorbs rainfall instead Small Business Administration indicates of contributing to runoff that clogs sewer that there are more than 30 million Additionally, many cities create opportunities pipes. For land that is neither immediately small businesses, which account for more for vacant lot annexations as part of a wider commercially viable for sale nor useful for than 99 percent of the U.S.’ businesses.15 neighborhood stabilization plan. In this case, parks and open space, land banks and land These businesses are the drivers of economic existing homeowners may annex an adjacent trusts present the most useful options. churn in American communities and vacant lot, thus increasing the size of their A land bank acquires and holds land for future hire locally. individual lot. This usually comes with an investment and development. Often these incentive, such as a property tax waiver for properties were the subject of foreclosure some fixed period on the value added to proceedings and may be tax-delinquent individual’s property. This technique keeps properties. Land banks are separate land on the tax rolls over the long-term, brings institutions from local governments but work stability to the neighborhood and provides hand-in hand to establish strategic long-term a tangible benefit to the homeowner who goals for real estate development. acquired the extra land. A land trust (or community land trust), on Another alternative is to reinvent vacant lots the other hand, is a form of shared equity as open space, especially in neighborhoods ownership to ensure permanently affordable with few parks and playgrounds. Open housing. The largest and most well-known space can also be turned into neighborhood in the U.S. is the Champlain Housing Trust in gardens. Maintaining open space around a Vermont. The second largest is the Dudley 15 2018 Small Business Profile, U.S. Small Business Administration, Washington, D.C., 2018, https://www.sba.gov/sites/default/ neighborhood has an added environmental files/advocacy/2018-Small-Business-Profiles-All.pdf.

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merican cities have varying levels of 4. Availability and cost of credit for LOCAL SOLUTIONS authority and different combinations consumers and for investors of housing-related policy tools at their A 5. The presence and capacity of real disposal. Even more important to note is that AND PRACTICES each city faces unique conditions in its local estate developers housing market. These varying conditions 6. The presence and capacity of Community call for a diverse array of approaches to Development Corporations and reach successful outcomes especially for Community Development Financial “missing middle” housing for average income Institutions Americans. When it comes to cities providing housing for low and very low income 7. Availability, cost and regulation of land residents, the efforts contributed by local 8. The type, location and quality of governments must be supported by robust existing housing federal housing subsidy programs such as HUD’s HOME and CDBG programs. 9. State preemptions

Local housing market factors include: 10. Building codes and inspections policies

1. Fluctuations in job and population 11. Tenant protections (such as just-cause growth or loss eviction, rent control, rental inspections)

2. Labor costs 12. Federal housing supports 3. Building material costs

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13. History of real estate lending practices, like seniors — experience greater and greater including disparities by race, gender, etc. economic strain.

14. History of restrictive covenants and These cities in economic transition often have discriminatory zoning practices like little capital to make strategic investments to redlining keep decay, blight and abandonment at bay. The spiral continues until land prices drop so 15. Perceived quality of schools low that they entice private sector speculation. 16. Perceived value of housing stock This trend has severe consequences, like the production compared to other policy potential loss of existing affordable housing “ goals (such as community character, due to abandonment, neglect and ultimate In cities with hotter building height, setback requirements demolition, and displacement of existing and other aesthetics) residents who will not reap the benefits associated with new investments. markets, skyrocketing Some of these conditions are beyond local government control. Others, such as use of federal housing supports, land regulation, and housing prices are often how a city manages its permitting and real- estate development processes can be greatly the result of mismatches influenced by local governments.

In cities with hotter markets, skyrocketing between supply housing prices are often the result of mismatches between supply and demand. A growing economy paying good wages to an and demand. expanding high-skill workforce attracts more residents. Those residents in turn compete for a limited pool of housing. Thus, supply of housing for middle income working families remains insufficient. Meanwhile, older housing stock that might otherwise be affordable remains out of reach for many lower- and middle-income residents because consumer demand keeps rents high overall. This is an example of downward market pressure.

In cooler-market cities where employment numbers are flat or declining and population may also be declining, property values tend Local Case Studies to be stagnant. This happens when properties Different cities have handled these challenges fail to appreciate, which means homeowners differently. Members of the housing task don’t accumulate wealth even though tax force have shared their stories to help their rates often increase. Existing residents — peers think through their own housing many of whom may be on fixed incomes, challenges, and consider what tools might

help solve them.

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Following the recommendations of the preserved as affordable housing since the that provides modest housing assistance to LOCAL GOVERNMENT: DC Housing Preservation Strike Force start of fiscal year 2018. low-income seniors who do not otherwise (an 18-member team of housing experts and receive housing assistance. LEVERAGING Targeted programs that address challenges 1. members of the public created in 2015 by in the housing market are aligned with the FINANCES Mayor Muriel Bowser to address the issue funding. For instance, the Small Buildings of affordable housing), the city created a Grant Program will provide funds for limited “Preservation Unit” within the Department systems replacement and other key repairs of Housing and Community Development. to eligible property owners of multi-family The unit launched in 2017 and focuses on rental housing of five to 20 units. Repairs are preserving affordable units with and without expected to improve substandard housing government subsidies. It also collects and conditions, including safety and environmental maintains data on all affordable housing hazards in D.C. as required by other regulatory opportunities in the city. Its specific agencies. The Tenant Opportunity to Purchase duties include: Act gives tenants in buildings for sale the • Reaching out to property owners, first opportunity to buy the building. The investors and others associated with following services are available to support Case Study: real estate and housing advocacy in the tenant groups seeking to purchase a building Safeguarding Affordable Homes, District to establish relationships and and convert the units into cooperatives or Oakland 17K/17K gather information. condominiums: Case Study: Washington, D.C.’s Housing • Discussing specific options with owners 1. Financial assistance such as seed money, Key strategies learned in Oakland: Preservation Fund and other interested parties with the goal earnest money deposits and acquisition • Set realistic targets. of coming to agreement on preservation funding; Key strategies learned in Washington, D.C.: outcomes, even when the threat to • Back the initiative with local resources. 2. Technical assistance; and • Make preserving existing affordable affordability is not in the immediate future. • Secure community support. housing a priority. 3. Specialized organizational and • Providing financial and technical development services, to include Oakland, California, rode the crest of a great • Partnerships outside local government are assistance in real-time so preservation structuring the tenant association, economic wave in 2015. Years of growth in essential to secure the necessary capital. emerges as the most efficient and preparing legal documents, and helping effective method for the city to provide both higher-wage and lower-wage jobs had with loan applications. Washington, D.C.’s, population and economy affordable housing. helped to make the city a haven for tech have grown in recent years, causing an entrepreneurs and others seeking to share More than 1,000 units have been preserved as increased demand for affordable housing Mayor Bowser invested $10 million in local in the growing prosperity and Bay Area affordable housing since fiscal year 2002. for low and moderate income households. In funds for the unit’s Housing Preservation lifestyle. But the large numbers of businesses addition, the current affordable-housing stock Fund in fiscal years 2017 and 2018. Along Other targeted programs, like the Single- and people pouring into the city strained the is at risk because: with additional private and philanthropic Family Rehabilitation program and the local housing market. Limited housing supply investments, the fund will grow to about $40 Safe at Home program, assist seniors with and rising prices contributed to the growing • Between 2006 and 2014, at least 1,000 million. The money will be used to help finance home repairs to alleviate D.C. building-code number of Oaklanders unable to purchase subsidized housing units became less eligible borrowers intending to purchase and violations, remove health and safety hazards, or rent affordable homes. In addition, local affordable. maintain occupied multi-family housing with and improve accessibility for residents with housing dynamics led to the displacement of more than five units, half of which must be • An additional 13,700 units have subsidies mobility or other physical impairments. generations of vulnerable residents, including affordable to households earning up to 80 that will expire by 2020 and may also The city is also instituting a new Housing many residents of color and low-income percent of the median family income. As of become less affordable. Assistance Program for Unsubsidized Seniors families who initially established the vibrant this writing, more than 800 units have been and diverse culture of the city.

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Mayor Libby Schaaf decided to guard M. Blank Family Foundation in partnership these communities. In September 2015, she with Urban Land Institute Atlanta and convened the Oakland Housing Cabinet, an others, developed a set of 23 tactical assembly of city councilmembers, housing recommendations to improve housing experts and community stakeholders. The affordability. The recommendations focused Housing Cabinet quickly established a set of on households earning less than 120 percent shared values and criteria for evaluating the of the area’s median income (AMI). HouseATL feasibility of the city’s strategic options on committed to raising $500 million from housing affordability, with help from the city’s local private and philanthropic resources, Roadmap Toward Equity: Housing Solutions and another $500 million from local public for Oakland.16 The following year, the Housing resources.19 Cabinet released its Oakland at Home17 report. The report outlined a new goal: to protect Case Study: HouseATL’s strategy for leveraging private Case Study: 17,000 households from displacement and A Fight for Housing and philanthropic resources calls for raising Connecting Health and between $20 and $50 million annually from building 17,000 new and affordable homes by Affordability in Atlanta Housing in Portland local social impact funds and other charitable 2024. Mayor Schaaf called the plan “17K/17K.” organizations over a period of eight years. Strategies included using funds from the city’s Key strategies learned in Atlanta: Key strategies learned in Portland: $600 million infrastructure and affordable An additional $50 to $75 million in private housing bond called “Measure KK” and • Partner with the private and capital will be raised from individual and • Leverage investments by local reforming the city’s permitting process. nonprofit sectors. corporate investors through the use of healthcare organizations to expand New Markets Tax Credits. Private sector affordable housing. By 2019, nearly 13,000 Oaklanders now • Set a bold vision. investments in the production of affordable • Prevent displacement to improve benefited from new tenant protections and • Commit local resources. homes will also be facilitated through the number of evictions had declined by more regulatory reforms to Atlanta’s zoning and residents’ health. 18 than 30 percent. In addition, 10,000 new When it comes to affordable housing, Atlanta building codes. This will allow for greater Five local healthcare organizations in homes have been built, representing a 34 is battling a serious crisis. The rising cost innovation, cost savings, and increased Portland, Oregon, recognized the connection percent increase in the number of affordable of owning or renting a home has become production within the housing sector. between housing and health and got together homes over the previous three years. a serious barrier, and eighty percent of city to do something about it. They donated $21.5 households spend 45 percent or more of their million to a nonprofit organization called annual income on housing and transportation Central City Concern (CCC). The organization expenses. About 1,500 homes are lost each was created decades ago by the city of year to deterioration. Portland and Multnomah County to administer Mayor Keisha Lance Bottoms recognized local grant money, since the Oregon the need for funding and a comprehensive Constitution prohibits cities from partnering policy agenda to address the situation. directly with private organizations. HouseATL, a taskforce funded by the Arthur

16 Policy Link & City of Oakland, “A Roadmap Towards Equity: Housing Solutions for Oakland, California” https://www.policylink. org/sites/default/files/pl-report-oak-housing-070715.pdf, (2015). 17 City of Oakland & Enterprise Community Partners, “Oakland at Home: Recommendations for Implementing A Roadmap To- ward Equity…” http://www2.oaklandnet.com/w/OAK057411, (2016). 19 “Investing In an Affordable Atlanta” https://houseatl.org/recommendations/, 2019. 18 City of Oakland & Enterprise Community Partners, “Oakland at Home Update: A Progress Report…” http://www2.oaklandnet. com/w/OAK057411, (2019).

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Other contributors, including the city, have progress on the policy. Seattle’s city council increase development capacity wherever given a total of $90.9 million to CCC’s Housing LEVERAGING LOCAL identified the need to build more affordable requirements were imposed. The program is Health project. The money will fund three LAND USE AND units in late 2014. Affordable housing was designed to create 6,000 new rent- and housing developments that will result in 379 2. advocates and community groups, and faith, income-restricted homes over a decade while units for residents with high medical needs REGULATION labor and environmental organizations, allowing for the creation of more housing and other residents who are either homeless agreed. The council began the process of options to meet the growing need. or at risk of homelessness. reviewing proposals to impose mandatory The program mandated that all new multi- linkage fees on every square foot of family housing developments reserve between Creating these affordable housing units multifamily residential and commercial 5 and 11 percent of planned units as rent is intended to stop further trauma, like development citywide. The proposal excluded restricted housing for low-income families. displacement, as it would make residents’ the 65 percent of the city zoned exclusively The alternative was to contribute between $5 recoveries and long-term health outcomes for detached single-family houses. As and $34.75 per square foot of development more difficult. Each of the three buildings proposed, the linkage fee policy would require to the Seattle Office of Housing fund to build is located in an area of the city identified as payments ranging from $5 to $22 per square affordable housing.20 at risk of gentrification. The three buildings foot developed. There was also an option for MHA also changed provide support services, such as recovery builders to set aside three to five percent of zoning laws in 27 of Seattle’s urban villages support and life skills training, and are units built for affordable housing that would to allow for increased height and density of designed to serve residents with particular be accessible to households that earn up to buildings for developers. In many ways, this needs. For example, the Eastside Health 80 percent of the area’s median income. was the more politically challenging aspect of Center will provide affordable supportive Case Study: In contrast to an earlier incentive-zoning the policy, given longstanding local pushback housing units for people in recovery and Weathering Compromise in Seattle effort, this proposed linkage fee did not on efforts to increase zoning capacity in respite housing, and a small number of include a provision for additional up-zoning Seattle neighborhoods. Over the next four units will be for palliative care. One building Key strategies learned in Seattle: capacity for developers. years, several rezone packages triggering includes a federally-qualified health center. MHA were passed for some of the fastest- • Plan for increasing densities. Area developers opposed this plan with such growing urban center neighborhoods. In force that Seattle city leaders enlisted the March 2019, “citywide” MHA implementation • Include developers in the planning. Housing Affordability and Livability Agenda was signed into law. • Prepare for neighborhood push-back. (HALA) committee to help come up with a compromise. Seattle’s population growth has been explosive. Estimates from 2009 for the Puget HALA put together its leading Sound region suggested that the area’s total recommendation in July 2015. The population would top 5 million by 2040, recommendation was for a policy of an increase of nearly 40 percent. In 2009, Mandatory Housing Affordability (MHA), a there was already substantial competition “both/and” approach to inclusionary zoning. for a relatively limited supply of available and The policy would, for the first time, require affordable homes. The increased competition new multifamily and commercial development for homes drove prices upward and to contribute to affordable housing and exacerbated a persistently limited supply of income- and rent-restricted affordable homes.

Inclusionary zoning had been a priority for affordable housing advocates in Seattle for decades. But the politics around mandatory 20 City of Seattle, “Implementing Mandatory Housing Affordability (MHA) Citywide” http://www.seattle.gov/Documents/De- affordability requirements had stymied partments/HALA/Policy/MHA_Overview.pdf.

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change for the better. The city’s ability to 1. Proximity to current and/or planned locate and maintain affordable housing transit assets and amenities, development also improved. 2. Income diversity, Within five years, market conditions had noticeably evolved. Under the existing HLP 3. Access to jobs within a reasonable rules, many neighborhoods where affordable distance, and housing had occurred naturally became 4. Level of neighborhood change or risk designated as non-permissible areas for of displacement in historically lower- new subsidized-housing development. income neighborhoods. Furthermore, many of the residents of these historically affordable neighborhoods were Development sites were allocated a maximum Case Study: at risk of displacement. Based on community of ten points in each scoring criteria and Case Study: Evolution of Neighborhoods feedback and input from the city council, city scored based on proximity to transit assets Rethinking Vacant Land in Peoria in Charlotte leadership determined that the HLP should and amenities like grocery stores, medical change course and focus on three goals: facilities, schools, banks and parks. Full points Key strategies learned in Peoria: Key strategies learned in Charlotte: were awarded to proposed sites within half a 1. First, the HLP should provide clear mile of transit or other designated amenities. • Leverage city-owned land for permanent • Use data in planning and decision making. guidance for investments that create Fractional points were awarded to sites at affordability since it is an unmatched real and preserve affordable and workforce estate development asset. • Partner with private sector specialists. distances greater than a mile from transit or housing in areas near employment, amenities. City councilmembers assessed site • Utilize land banks and land trusts since • Anticipate that land use priorities are commercial centers, existing and scores independently or in aggregate with they contribute to permanent affordability. not static. proposed transit hubs, and the higher scores, indicating greater alignment center city, and within gentrifying with HLP policy. The scoring methodology Peoria’s Southside neighborhoods are a The overarching goal of Charlotte, North neighborhoods. returned consistent and useful information, microcosm of the city’s housing market crisis. Carolina’s, Housing Locational Policy so the city approached its longstanding The historic area’s commercial and residential (HLP) was to distribute affordable housing 2. Second, the policy should support the partner and a local software company, Esri, to buildings have deteriorated so much so that investments into more affluent communities city’s revitalization efforts. automate its manual processes into an online very little market demand exists. A typical to limit the concentration of poverty 3. Third, the HLP21 should promote diverse geographic information system application. single-family home sells for less than $20,000, within distressed neighborhoods. In 2011, neighborhoods. making new construction impossible without city leadership took the policy a step deep subsidies. In addition, downward pricing further, targeting the city’s investments To meet these goals, city staff proposed pressures make renovation of older housing towards subsidized multi-family housing “site scoring.” The city’s housing operations financially infeasible. With so many Southside developments. The city started by conducting manager, along with the data-analytics team, homes lost to structural deterioration, and in a comprehensive analysis of Charlotte’s used public data to power an online tool. some cases abandonment, the affordability neighborhood statistical areas. The analysis The tool scored proposed development sites and availability of the community’s remaining identified neighborhoods as “permissible” against four criteria: housing stock has been negatively affected. or “non-permissible” areas for multi-family housing development. Over time, local In response, Peoria’s Community Development housing conditions in Charlotte began to

21 “City of Charlotte Affordable Housing Location Guidelines” https://charlottenc.gov/HNS/Housing/Strategy/Documents/Af- fordable%20Housing%20Location%20Guidelines_CouncilApproved_01.14.19.pdf, (Jan 16, 2019).

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Department established a plan for city-owned units to catch up to current demand, and as for UDC and building code compliance. vacant land. The plan emphasized three main many as 6,340 new units by 2023. City officials hope that designs will serve strategies: But Bozeman would need a range of as a model for wider community use. housing units including both rental and for- 1. Land banking (breaking up lots for sale homes for families, employees filling In a separate effort to address housing future sale), vacant and newly created jobs, and retirees. affordability, Bozeman partnered with the Trust for Public Land on the Bridger View 2. Development, and To help ensure affordability, at least 60 percent of the new housing supply would Redevelopment Project (BVR) to create a 3. Side-lot transfer to interested adjacent need to be subsidized. dense community of more than 60 modest, owners. well-designed homes on an eight-acre parcel Early on, city leaders recognized that making in northeast Bozeman. Homes had one to Peoria leadership leveraged the land- a wider and more diverse selection of housing three bedrooms, ranged in size from 800 banking program for city-owned parcels in Case Study: types available could ease Bozeman’s to 1500 square feet, and were clustered in neighborhoods with weak real estate markets Bozeman’s ADU standardization tight housing markets. It would also have a layouts that emphasized shared common and a high density of city property. In other positive impact on affordability. Residential spaces and outdoor living. More than half of Key strategies learned in Bozeman: neighborhoods, leadership made city-owned developments with a greater density of the homes cost between $175K and $250K.24 parcels available to developers if they could • ADUs provide immediate density increases smaller, less-expensive homes, featuring These prices were well below the city’s median demonstrate verifiable plans, financing and while maintaining the form of traditional innovative design rose, to the top of the list. sale price of approximately $375K.25 Revenue familiarity with the development process. In single-family neighborhoods. from the sale of market-rate units subsidized most of these cases, subsidies, tax credits Bozeman’s Unified Development Code (UDC) the sale of the below-market value units. To or in-kind donations from partners such as • ADUs offer greatly decreased cost had recently changed, making accessory increase the feasibility of the project, the city Habitat for Humanity facilitated development. per unit. dwelling units (ADUs), and duplexes easier split the cost of infrastructure and impact fees for homeowners to utilize. The city’s planning Parcels suited for side-lot transfers typically A strong local job market, in part, has driven for the project. had limited development potential and were division worked with a group of college Bozeman’s recent housing challenges. In students from Montana State University’s offered to adjacent property owners with recent years, the city has boomed with 11,000 limited or no history of code violation or College of Architecture in late 2018 to new jobs and now has an unemployment rate promote the use of ADUs to property owners. delinquency. 22 of 2.5 percent. With nearly all of Bozeman’s Students worked with city planners to Through these and other steps, the city local workforce employed, local employers ensure that designs were code compliant. intends to divest itself of ownership of have been forced to look outside the city for They also addressed issues related to parking many vacant properties while facilitating skilled workers to fill the open positions. The requirements and fitting designs into the a more equitable share of residential influx of new residents and job seekers has 600 square-foot ADU size limit.23 development within the capitalized Southside strained Bozeman’s limited housing supply. The students presented their final ADU neighborhoods. The city recently conducted a Community designs to homeowners and the City Housing Needs Assessment. It concluded that Commission. Designs received official the city needed an additional 1,460 housing agency review by the Chief Building Official

23 Policy Link & City of Oakland, “A Roadmap Towards Equity: Housing Solutions for Oakland, California” https://www.policylink. org/sites/default/files/pl-report-oak-housing-070715.pdf, (2015). 24 City of Oakland & Enterprise Community Partners, “Oakland at Home: Recommendations for Implementing A Roadmap Toward Equity…” http://www2.oaklandnet.com/w/OAK057411, (2016). 22Wendy Sullivan & Christine Walker, Bozeman, Montana Community Housing Needs Assessment. City of Bozeman, 2019. 25 City of Oakland & Enterprise Community Partners, “Oakland at Home Update: A Progress Report…” http://www2.oaklandnet. https://www.bozeman.net/home/showdocument?id=8773. com/w/OAK057411, (2019).

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residential areas (formerly R-1) and thus allow • Create new mixed-use and other urban denser development, particularly connected zones that emphasize higher residential to transit zones. Other policy innovations densities, include data-focused research to guide and evaluate housing priorities. These policy • Reduce minimum lot size and increase changes also support different housing types, maximum density in most common like prefabricated and manufactured housing, residential zones, 28 ADUs and tiny houses. • Grant density bonuses for small footprint A variety of local Yes in My Backyard housing developments (with homes of less (YIMBY) activist groups and city officials than 700 square feet), have contributed to the success of these • Increase allowances for ADUs including Case Study: fledging efforts. Conversations about the Case Study: two-bedroom units, Envisioning a New Future in history of discriminatory housing practices Making Boise Work • Expand incentives to developers who Minneapolis and single family perpetuated by single-family zoning (about for All Residents build housing for residents at 80 percent zoning elimination 50-60 percent of Minneapolis is zoned for single-family homes), as well as the need for Key strategies learned in Boise: or below the area’s median income, and Key strategies learned in Minneapolis “missing middle” type homes,29 influenced • Create a land trust to conserve change. Housing advocates and city leaders • Addressing housing affordability for affordable housing financed by public • Confronting historic patterns of housing organized Housing advocates and city leaders residents all incomes requires embracing and private dollars. inequity should be a significant local organized walk-and-talk tours in every ward, denser, more walkable neighborhoods priority. and housing of all types. inviting residents to explore their communities Despite the clear direction and commitment 30 • Aggressive and creative community while envisioning a better future. Street • It’s imperative to secure financial of local leadership, Boise faces significant engagement is essential to a positive fairs and neighborhood events engaged commitments from the public and challenges, including anti-growth groups that outcome. residents rather than traditional neighborhood private sector. advocate for slower change. In addition, 31 meetings. state government prohibits the city from Minneapolis has set ambitious goals for Boise is the most populated city in Idaho making use of inclusionary zoning or issuing This extensive community outreach effort is improving the city’s focus on housing and, with a three percent growth rate in 2017, a voter-approved tax levy for the expansion intended to minimize the potential disruptions affordability and choice, as well as racial is among the fastest growing areas in the of local bus services linking residents to jobs within the city’s neighborhoods. equity and climate change. The plan, called U.S. But despite strong job growth, close to in the area. Minneapolis 2040, reflects two years of half of renters in Boise are considered “cost- public feedback which includes voices from burdened,” spending more than 30 percent of historically underrepresented groups.26, 27 their income on housing. The city estimates New provisions for up-zoning (expanding needing 1,000 new housing units annually for residential zoning to more dense use) will the next 20 years. allow duplexes and triplexes to be built in all To meet this challenge, the city’s Grow Our Housing initiative embraces dense, walkable neighborhoods, access to housing at all income levels, and financial commitments 26 https://minneapolis2040.com/overview/ from both the public and private sectors. 27 https://minneapolis2040.com/planning-process/ The initiative seeks to: 28 https://minneapolis2040.com/topics/housing/ 29 https://www.nytimes.com/2018/12/13/us/minneapolis-single-family-zoning.html 30 https://www.curbed.com/2019/1/9/18175780/minneapolis-2040-real-estate-rent-development-zoning 31 ^

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time working at school and home, using available in the city for every 100 extremely their asthma medications less, and low-income households.32 In a key finding from needing fewer medical visits. Households Milwaukee’s 2018 Anti-Displacement Plan that received follow-up visits showed a (ADP), the Department of City Development 50 percent reduction in hospital bills. noted that the City’s ability to preserve and protect housing choices for its low-income Since the ASHHI project, the Greensboro families at risk for displacement, would require Housing Coalition has taken an even production of new affordable housing units.33 broader approach to asthma prevention. Now, leadership looks beyond the physical In response, Mayor Tom Barrett announced his home environment to neighborhoods most 10,000 Homes Initiative. The goal is to build or impacted by asthma, like Cottage Grove, improve 10,000 housing units over ten years Case Study: which was built on the site of the old city Case Study: in neighborhoods throughout the city. The Greensboro’s Safe Homes dump. Collaborative Cottage Grove is a Reshaping More than 10,000 Homes Initiative will rely on funding for Kids with Asthma grassroots effort that seeks to improve Milwaukee’s Skyline from developer-financed tax-incremental housing and neighborhood conditions districts — an economic development Key strategies learned in Greensboro: by working with the community and local Key strategies learned in Milwaukee: tool infrequently used to fund residential leaders to prioritize initiatives that development. • Both small and large interventions can promote better health. • Focusing on people at risk of displacement improve community health. helps preserve community stability. In early 2019, city leaders drafted guidelines governing the use of tax increment financing • Community partners can bring significant • This focus can become the key to further (TIF) assistance for multi-family residential capacity to help cities achieve their investment, both commercial developments. The new TIF-assistance health goals. and residential. guidelines prioritized residential development The Greensboro Housing Coalition has Downtown Milwaukee has undergone a nearly projects in three types of neighborhoods: worked with the Kresge Foundation on its decade-long construction boom that has those at risk for displacement, those where Advancing Safe and Healthy Homes for reshaped its skyline. Some estimate that the robust market-rate housing development has Children and Families Initiative (ASHHI) to boom has enabled Milwaukee’s builders to exponentially outpaced affordable housing improve rental housing conditions in the city boost the local housing supply with nearly development, and those that lack current since 2012. The coalition’s “Removing Asthma 12,000 new units of market-rate housing. affordable housing options. Triggers and Improving Children’s Health” But, the trend in prosperity belied challenges In order to be eligible for TIF assistance, a project involved working with partners at the in nearby neighborhoods. These communities proposed building or improvement project University of North Carolina at Greensboro, suffered from lingering issues of vacancy and must have at least 20 percent of its proposed Triad Healthcare Network and Cone Health to abandonment as well as rising foreclosures units at prices affordable to households improve housing conditions in the homes of and evictions. They also faced a severe earning 60 percent or less of the AMI and 41 pediatric asthma patients between 2013 shortage of affordable housing units for low 25 percent of units must be affordable to and 2015. income families. In fact, Milwaukee has one of households earning 50 percent of the AMI. All the worst shortages of affordable housing in projects were required to yield a minimum of As a “demonstration project” — one intended America. Only 25 affordable housing units are to promote innovation and serve as a basis 20 affordable housing units that will remain for analysis — the work included home affordable for at least 15 years. interventions such as repairing leaks and improving ventilation. These interventions led 32 Nusser, Susan. “Can Milwaukee Really Create 10,000 Affordable Homes?” CityLab. https://www.citylab.com/equity/2018/10/ can-milwaukee-really-create-10000-affordable-homes/570742/. to patients sleeping better, having an easier 33 Department of City Development, A Place in the Neighborhood. City of Milwaukee, 2018. https://city.milwaukee.gov/ImageLi- brary/Groups/cityDCD/planning/plans/AntiDisplacement/Anti-DisplacementPlan.pdf.

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City leaders redefined the term “affordability” housing and preserves and enhances existing COMPREHENSIVE using the HUD guidelines. The idea was to neighborhoods to prevent displacement. PLANNING do a better job creating, preserving and 3. restoring housing to fit the income needs In 2018, the updated Housing Boston 2030 of Rochester residents and safeguard the plan increased the city’s overall housing target definition of affordability in the city’s charter. from 53,000 to 69,000 new units, including Now, to encourage the development of more 15,820 income-restricted units by 2030. affordable housing units, the city awards Bostonians are supportive of affordable more support to development proposals that housing creation. Voters passed the include plans for some units to be 50 percent Community Preservation Act in 2016 which AMI and below. would create a Community Preservation Fund financed by a one-percent property tax- Under the new charter provisions, low and Case Study: moderate income will be categorized as based surcharge on residential and business Closing the Affordability Gap 37 follows: property tax. The revenue will fund initiatives in Boston in affordable housing creation, historic • Extremely low or less than or equal to preservation and maintenance of open space Key strategies learned in Boston: 30 percent AMI. for public recreation. • Steady, long-term attention to housing Case Study: • Very low, or more than 30 percent and affordability and securing buy-in from Redefining “Affordability” less than or equal to 50 percent AMI. constituents for targeted housing goals. in Rochester • Low, or more than 50 percent and less Boston is part of Suffolk County, which than or equal to 80 percent AMI. Key strategies learned in Rochester: has one of the most narrow housing affordability gaps in the U.S.34 But, housing • AMI is a straight-forward HUD metric. • Moderate, or more than 80 percent and less than or equal to 120 percent AMI. affordability is still pressured by the city’s • City policy makers and developers must growing population. In the recent past, use it effectively to address the needs of Boston projected a population growth of residents in specific neighborhoods. 91,806. Now, the city expects 142,133 more residents by 2030.35 Mayor Martin Walsh and According to HUD, the AMI in the Rochester his administration are focusing on housing Metropolitan Statistical Area for a family of disparity and increasing housing stock by Case Study: four is $74,000. The area median income in implementing the Housing Boston 2030 Plan Resilience in San Antonio the city of Rochester alone is half as much. (HB30).36 The plan sets goals for housing Previously, housing that was affordable for production, including income-restricted Key strategies learned in San Antonio: a family earning $88,800 was considered housing designed to be affordable to a range • Environmental factors frequently create affordable, even though it was not at all of incomes. It also includes plans for strategic added costs for occupants of low-income affordable to the one-third of Rochester’s growth that increases homeownership, housing when it comes to utilities, cost-burdened families that spend more than promotes fair and equitable access to half of their income on housing. maintenance and even health costs.

34 The Urban Institute, “The Housing Affordability Gap for Extremely Low-Income Renters in 2013.” 35 “2018 update on Housing Boston 2030”, found on Boston.Gov. 36 “Mayor Walsh releases “Housing a Changing City: Boston 2030,”” https://www.cityofboston.gov. 37 “Community Preservation Act,” https://www.boston.gov/community-preservation-act.

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• Local climate change impacts exacerbate family) in creating healthy, safe, energy- existing problems. efficient and sustainable homes for families REFLECTIONS ON THE and children.” • Efforts to improve sustainability in housing CASE STUDIES saves residents money and improves One of the flagship initiatives is the Under 1 quality of life for the whole community. Roof program. Launched as a pilot in 2016 with just $200,000, and serving just ten These examples show us that cities need Housing affordability is about more than the families, the program identified and replaced holistic, integrated housing strategies to list price of a home. San Antonio, for example, failing roofs with free, energy-efficient improve housing affordability. Strategies is one of the fastest growing large cities in the “high-reflectance roofs.” These “cool roofs” must connect opportunities for employment United States. The region’s rapid economic helped address a range of health, energy and and new business creation with land-use and population growth has caused local environmental issues.41 decisions. They must also have focus on two housing costs to increase faster than AMI critical factors: making a variety of dwellings 38 for nearly two decades. For residents, that In fiscal year 2018, San Antonio’s city council available to meet the needs of diverse means homes are increasingly difficult approved a $2.25 million budget to expand groups of residents and ensuring access to to afford. And there are other associated Under 1 Roof to include five other districts. transportation options so residents can get to rising costs, like utilities, maintenance and At the time, Councilman Roberto Triveño work and meet other needs like health care, even healthcare. noted that, “What started out as a District shopping and recreation. 1 pilot program with a sliver of funding has San Antonio has always been hot, but climate grown into a multi-million-dollar program that City leaders must explore key questions, change has caused temperatures to spike. assists folks across the city and helps combat including: In recent years, the city’s development boom rising urban temperatures while saving 39 1. What are my city’s local housing goals has generated a growing urban heat island. residents money.” The program, he said, saves 6. Do residents understand the trade-offs and does the comprehensive plan reflect At night, the central urban core can be up to participating homeowners an average of in land use decisions that come from a those goals? 20 degrees warmer than rural areas in the $1,200 per year in energy costs. restricted housing supply on matters like northern part of Bexar County.40 These higher taxes, job growth, investment attraction? 2. What are the economic conditions of my temperatures reduce air quality as the In addition, the city’s municipal utility city’s local housing market? sunlight and heat react with pollutants to (CPS Energy), developed a cool-roof rebate 7. How do city leaders confront and push- back against NIMBYism (The “Not in my generate ground level ozone, exacerbating program to incentivize other residents 3. What are the regulatory conditions of the backyard” phenomenon where residents dangerous smog. to install new roofs with high-reflectance local housing market for development don’t want affordable housing in their materials. Programs like this can dramatically and redevelopment (zoning, permitting, The city has taken a holistic approach neighborhoods) in housing decisions? extend the lifespan of a city’s affordable fees)? through San Antonio Green and Healthy housing stock, and help reduce the need 8. How can good decisions that increase Homes programs, which “provide assistance 4. What policy tools and options are for demolition. housing quality across a range of housing to owners and landlords of residential available to cities in my state to address choices be accomplished for the benefit properties (both single-family and multi- these conditions to improve quality and of existing residents without the collateral affordability? damage of displacement? 5. What is the local political environment for decision making on housing?

38 The City of San Antonio, “Housing Policy Framework.” August 2018. https://www.sanantonio.gov/Portals/0/Files/HousingPol- icy/Resources/SA-HousingPolicyFramework.pdf. 39 Gibbons, Brendan. “Climate Change Will Make Life Hotter, Harder in San Antonio.” San Antonio News Express. https://www. expressnews.com/news/local/article/Climate-change-will-make-life-hotter-harder-in-12221130.php. 40 Huddleston, Scott. “Heat Map of San Antonio Conveys What’s at Stake in Climate Plan.” San Antonio News Express. https:// www.expressnews.com/news/local/article/Heat-map-of-San-Antonio-conveys-what-s-at-stake-13414579.php. 41 Trevino, Robert. “City By Design.” https://citybydesign.org/.

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Federal Policy Agenda

RECOMMENDATIONS National polls overwhelming support greater federal investment in housing. The vast majority of the public (85 percent) believes that ensuring all residents have safe, decent, affordable homes should be a “top national priority.”42 This view is strong across the political spectrum: 95 percent of Democrats agree it should be a top national priority, along with 87 percent of unaffiliated voters and 73 percent of Republicans. Eight in ten voters also say that both the president NLC Calls on the federal government and Congress should “take major action” to enact housing legislation that: to make housing more affordable for low- 1. Immediately stabilizes and stems the loss income households. of public and affordable housing. Local elected officials overwhelmingly Historic unmet demand for units of affordable support greater federal investment in and workforce housing has created a national housing, and recognize that housing is housing crisis. Emergency or supplemental extremely costly for working families. Those appropriations are an appropriate and leaders are also making changes to reduce necessary federal response to quickly the wealth and housing affordability gap. intervene in the immediate crisis of housing According to NLC’s 2019 State of the Cities supply. report, local governments are taking bold action to improve housing stability and • Approve emergency funding to address affordability through land and housing the nation’s highest priority housing trusts, eviction assistance resources and fair needs. Funding could take the form of a housing ordinances. stand-alone emergency bill, or as a piece of any larger infrastructure package. As noted by the task force chair, Washington, D.C., Mayor Muriel Bowser, in D.C., “affordable • Emergency funding should include $30 housing isn’t just a problem for our most billion to address the immediate crisis. vulnerable residents — it affects our Of that amount, $15 billion for the public entire community.” housing capital program, $5 billion for the Community Development Block Grant

program, $5 billion for the HOME program and $5 billion for the National Housing Trust Fund.

42 National Housing Survey, HART RESEARCH ASSOCIATES, Study #12590, February/March 2019.

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2. Authorizes ten years of new programs • Commit to a new vision for public Moreover, inequities exist regionally between lending and entry level homeownership. and funding to provide housing housing and public housing agencies as the cities, towns and villages just as they exist Recent research from the Urban Institute opportunities for all. the nation’s stewards of permanently- between neighborhoods. has shown that, even for credit-worthy affordable housing. Public housing is the borrowers, financial institutions are Now is the time to rethink and modernize nation’s largest source of permanently- • Provide federal grants for local housing, generally not approving small-dollar housing policy at every level of government. affordable housing. More than 3,000 large planning, land use and community mortgages. As a result, three quarters Although cities value current HUD programs, and small public-housing agencies assist engagement. The cost of developing and of homes purchased for $70,000 or it’s clear that existing resources are insufficient families and individuals at the bottom administrating changes to local land-use less in 2015 were purchased with cash, to stem the growth of the affordable rung of the economic ladder by providing policies and practices puts quick action indicating risky property speculation. The housing crisis. housing stability. A well-maintained stock out of reach for many, if not most, of the unavailability of small-dollar mortgages of permanently-affordable housing would 19,000 cities, towns and villages in the U.S. puts housing out of reach for homebuyers • Reauthorize and restore the HOME Federal funding and technical assistance Investment Partnership Program and help cities manage swings in the housing at lower-incomes, and revitalization out of market and weather economic downturns. would speed the development and reach for communities in distress. the Community Development Block adoption of best practices among local Grant Program. The HOME program is • Protect and improve underserved and governments. the only federal grant program aimed affordable housing and homeownership 4. Fix inequities in housing development A federal tax credit at construction of affordable housing requirements on the private market. • Offer renter tax credit. and the housing finance system. in support of local governments. The policies adopted by mortgage finance for renters, which does not currently Unfortunately, funding cuts have giants Fannie Mae and Freddie Mac shape exist, would expand the availability of The long history of federally-sanctioned significantly reduced the impact of the neighborhoods and economic opportunity. federal rental assistance in the form of a housing discrimination and racial segregation program which, today, serves mostly Federal regulatory requirements should refundable tax credit targeted to lower- is embedded in the development of to cover gaps in financing of tax-credit recognize and leverage these forces income, rent-burdened households. A America’s cities, towns and villages. This housing projects. HOME should be which have the power to improve access new balance of renter-tax credits and legacy continues to have profound impacts reauthorized to support the construction to affordable and workforce housing. direct subsidies has the potential to on people of color and other vulnerable of small and medium multifamily units That includes regular allocations to the improve equity and economic mobility groups to this day. According to Brookings, that create greater housing options National Housing Trust Fund and products opportunities at the local level. on average in metropolitan areas, homes in for multiple income levels. The CDBG neighborhoods that are 50 percent black are that support the market for construction • Increase funding, landlord incentives program, the largest single federal grant valued at roughly half the price of homes in of workforce housing and small-dollar and mobility for HUD’s Choice Voucher program available to local governments, neighborhoods without black residents. mortgage loans. Program. Given the fundamental is bloated with regulatory and reporting importance of housing stability for It is incumbent upon all elected officials requirements and is ripe for review to nearly every measure of well-being for to understand how the present housing increase efficiencies and reduce burdens 3. Support innovation and modernization residents, it is unreasonable to place inequities came about. It is also their on grantees. of land-use and planning practices at the local and regional level. arbitrary funding limits on the HUD responsibility to make fully-informed policy • Increase funding for the National Housing Choice Voucher Program and administer choices that stop the perpetuation of these Trust Fund and authorize a pilot allocation Cities, towns and villages across the U.S. housing assistance as a lottery. Rather, in inequities, unintentionally or otherwise. to regional councils of government. are already reevaluating local land use and conjunction with a well-regulated housing • Reform of the Community Reinvestment The pilot would determine if lessons planning practices to make them more market, federal housing assistance should Act (CRA) to increase public learned from regional allocations from the equitable and to address past discriminatory meet the demand for housing for all. Short accountability of banks to serve every Highway Trust Fund can be applied to the practices. These municipalities are also already of that, the federal government should community. CRA assessment areas National Housing Trust Fund. It would also working to establish codes that reflect a need increase funding annually by significant need to be updated to include areas foster for resilience in the face of extreme-weather and predictable margins until the lottery with considerable bank lending and the blending of federal funding for events. Different approaches may make aspect of the program is nullified. deposit gathering outside of bank branch construction of affordable housing and higher-opportunity neighborhoods more — • Fix the market for small-dollar mortgage networks. This would result in more transportation infrastructure. or less — accessible, but the impacts are not always clear.

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loans and investments reaching low and redlining. As documented by the moderate income (LMI) borrowers and Economic Policy Institute, the Federal communities. Regulators should also government’s general failure to intervene improve public data around community in discriminatory mortgage lending development lending and investments in practices is one of the root causes order to provide greater clarity to lenders of racially segregated, impoverished about what qualifies for CRA and to neighborhoods. For such communities, help identify areas around the country in to overcome decades of unfair treatment, need of greater community development new targeted federal resources should be lending and investing. Conversely, federal enacted to restore housing stability and regulators should not adopt a one-ratio or rates of homeownership. This would also single-metric approach to CRA exams, and serve to stabilize impacted neighborhoods should not adjust bank asset thresholds overall. solely for making exams easier for banks to pass, or otherwise dilute attention to • Fair housing and anti-displacement in LMI borrowers and communities. federally-designated opportunity zones. NLC’s 2018 City Fiscal Conditions survey • Eviction prevention and mitigation grants. indicates that local tax revenue growth is In 2016, 2.3 million eviction filings were experiencing a year-over-year slowdown, made in U.S. courthouses — a rate of as it is outpaced by growth in service costs percent of the U.S. population that lives in • Increase coordination between public four every minute. That same year, one and other expenditures. For cities and city small and rural communities. housing agencies regionally. The number in 50 renters was evicted from his or her leaders, opportunity zones represent a of affordable housing units administered The Housing Assistance Council, in home. The federal government should chance to overcome such slowdowns and by Small Public Housing Agencies may be Congressional testimony, put it best: “Rural partner with local governments and other associated neighborhood decline, in new small compared to large PHAs, but there is housing markets are not just smaller versions stakeholders to help residents overcome and innovative ways. Within opportunity nothing more important to the community. of urban ones, and [federal housing programs] events that place them at risk of eviction. zones, private investment supplements In addition to housing, small PHAs often do not necessarily translate to the benefit of public spending to advance public policy serve as a hub for residents to access a far rural places. The few programs and modest • Expand Fair Housing to include sexual goals. It follows that public and private broader range of support services. More federal spending on rural-specific programs orientation, gender identity, marital investment within Opportunity Zones capacity building and technical assistance are simply not enough to maintain a level status and source of income. A growing should be in alignment according to key for small PHAs is necessary so that they playing field with other parts of the country.” number of local governments are performance measures of fair housing and can coordinate regionally and connect enacting fair housing protections beyond equitable economic development. • Increase funding for USDA rural-rental service providers across jurisdictional those required by federal statute to programs and improve alignment boundaries. ensure housing opportunities for every with HUD rental-assistance programs. resident. Unfortunately, various state 5. Supports scalable innovation and • Offer federal assistance to rural For many rural communities, housing preemptions of local authority over land financing for cities, towns, and villages. homebuyers. Homebuyers in small instability and unavailability are use and protected classes has created an and rural communities often face Every U.S. city, town and village relies on compounding broader economic crises uneven and inequitable marketplace for challenges similar to impoverished urban strong regional partnerships with HUD and that have been decades in the making. housing across the country. The federal neighborhoods, like inadequate access the United States Department of Agriculture These situations require a variety of government should level the field by to mortgage credit, aging and declining (USDA) for capacity building and access to approaches to overcome. At the same expanding fair-housing protections. housing stock and higher costs for capital to better serve the housing needs of time, economic recovery cannot begin housing construction and rehabilitation. • Targeted investment and access to their residents. The federal government is without housing stability. Federal-homebuyer assistance should credit for neighborhoods and residents often the only feasible source of technical be available and flexible for use in both impacted by redlining and reverse- assistance and access to capital for the 20 urban and rural communities.

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Establish local programs by combining • Data to understand the local housing SUMMARY OF funding and financing streams to support market conditions, housing goals. Among the means available to • Partnerships with private- and non-profit most cities are: RECOMMENDATIONS sector actors, • Housing trust funds, • Development of a comprehensive housing FOR LOCAL ACTIONS • First-time home buyer supports, strategy based on a set of community- wide values that also identifies the • Housing rehabilitation and preservation consequences that may accrue when grants or loans and making choices among competing values. • Tax incentives. Support the needs of distinct sub-populations including the homeless, seniors and persons with conviction histories. Cities should:

• Look to the success stories on fighting chronic homelessness,

• Prioritize specific sub-populations,

• Target wrap-around support services and

• Maintain existing affordable housing stock and support rehabilitation efforts, reduce or eliminate restrictions on access to public housing that go beyond Modernize local land use policies, including federal mandates for those with zoning and permitting, to rebalance housing conviction histories. supply and demand. Focus on:

• Data management to set development Prioritize equitable outcomes in housing priorities; decision as it is an essential component for • Increased density allowances and ADUs; success. This means:

• Land trusts, banks; and • Ensuring enforcement of Fair Housing laws, • Streamlined development permitting, transparent fees and time-limited review • Putting decision making about public procedures. investments in the hands of communities most at risk for displacement and

• Rebuilding trust between local Identify and engage broadly with local government and communities of color. stakeholders; and coordinate across municipal boundaries, to develop a plan to provide housing opportunities for all. To that end, utilize:

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Immediately stabilize and stem the loss of SUMMARY OF public and affordable housing. • Historic unmet demand for units of RECOMMENDATIONS affordable and workforce housing has created a national housing crisis.

FOR FEDERAL ACTIONS • Emergency or supplemental appropriations are an appropriate and necessary federal response to quickly intervene in the immediate crisis of housing supply.

• Crisis-response funding should include at least $15 billion for the public housing capital program, $5 billion for the CDBG program, $5 billion for the HOME program, and $5 billion for the National Housing Trust Fund.

Follow emergency intervention with passage of a long-term, stand-alone federal housing bill that authorizes ten years of new funding for pilot programs that advance housing Support innovation and modernization for all. of land-use and planning at the local and • The housing crisis, and ongoing housing regional level. inequities, have been decades in the • Local leaders recognize that change is making; long-term corrective action is necessary to create housing opportunities necessary for success. for all, but local budget and capacity • Long-term stand-alone housing bills could constraints put quick action out of reach transform housing in America, just as the for many of the 19,000 cities, towns, and highway bill has done for transportation villages across the U.S. and the farm bill has done for nutrition and • Federal grants to support modernization health. of local housing, planning, land use, and • Program objectives should include community and regional engagement capacity building for local governments, would speed adoption of best practices regional coordination across jurisdictional among local governments bounds, support for permanently • Innovations that could foster additional affordable housing, and achievement change include rental voucher mobility, bonuses for existing programs like CDBG. affordable and small-dollar mortgages

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for first-time homebuyers, and support Support scalable innovation and financing for for small multi-family units that can cities, towns and villages. fill multiple needs in different housing markets. • Increase funding for USDA rural rental programs and improve alignment with HUD rental assistance programs. Fix inequities in housing development and • Increase coordination between public the housing finance system. housing agencies regionally. • Government failures to intervene in discriminatory mortgage lending practices, • Maintain federal support for first-time “ including redlining and predatory lending, homebuyers in cities, towns, and villages Government failures is a root cause of racially-segregated, of every size and circumstance. impoverished neighborhoods today. to intervene in • Federal resources should be enacted to restore housing stability and rates of discriminatory mortgage homeownership for historically segregated and disadvantaged communities and their residents. lending practices,

• Federal fair housing protections should be extended to include sexual orientation, including redlining and gender identity, marital status and source of income. predatory lending, is a root cause of racially-segregated, impoverished

neighborhoods today.

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hile a wide variety of housing techniques to address community housing CONCLUSION challenges faces American cities, needs; Wtwo stand out. In fast-growing • Make use of NLC’s many constituency and cities, wages lag behind housing costs, leading member groups and partners to engage to a scarcity of affordable housing. In legacy local stakeholders and cities with slower growth, a persistent high rate of vacant and blighted housing exists due • Enhance the leadership training and skills to the ongoing after-effects of the foreclosure building programs available through NLC crisis and general economic disruption. University.

As part of NLC’s path forward, we will continue to do research, focus on education, NLC will continue its technical assistance provide technical assistance and capacity and capacity building work to coordinate building, push for advocacy goals that benefit technical assistance efforts across the all communities, and bring stakeholders organization including those targeting: together. • Homeless veterans,

• Seniors seeking to age in place, NLC’s research will: • Equitable wealth creation, • Continue to share quantitative and • Shared equity housing models, qualitative data on housing quality and affordability; • Sustainable and healthy housing and • Dive more deeply into urban-rural, small • Our Cities of Opportunity: Healthy People, and legacy city questions including the Thriving Communities pilot program. integration of housing strategies with

economic growth initiatives; NLC will continue advocacy work to: • Seek partnerships with the Urban Institute • Advance a strong voice at the federal and the New York University Furman level to push for implementation of Center (among others) to advance mutual recommendations contained in this research priorities; report and • Identify tested as well as promising • Exercise leadership in coalitions including practices that increase affordable housing Opportunity Starts at Home and Mayors & and CEO’s for U.S. Housing Investment, • Further investigate the emerging among others. intersection between climate resilience and housing affordability. City leaders are working to make a difference but all city residents, and all levels of government, have more to do. This report and NLC’s focus on education will: the subsequent work to come are meant to • Lift up the lessons from cities captured provide a resource for city leaders, a platform by the task force and by countless for community conversation, and an action other cities, towns, and villages that are plan for solutions. implementing both tested and innovative

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Appendix A: call on December 19, 2018, but the work began because of its intersections with regulations as well as their development Summary of the Task Force Work in earnest with their first in-person convening neighborhood economic development, review processes. January 22-23, 2019 in Washington, DC. At household wealth creation, access to jobs NLC’s President Karen Freeman-Wilson, mayor that meeting the members worked with and and services, placemaking, public health, 4. Federal housing resources. of Gary, Ind., announced the formation of the learned from partners in the non-profit and race and equity, etc. 5. Role of comprehensive planning in National Housing Task Force in November private sectors. These included: building a shared vision and collective 2018, under the leadership of chair Muriel • The need to address housing not just from action for housing. Bowser, mayor of Washington, D.C. • Carlton A. Brown, Principal, Direct the supply side but also from the demand Investment Development, LLC side via focusing on access to economic

“Every American deserves a place to call opportunity and income growth. • Sarah Brundage, Senior Director of Public The task force next met via webinar for a staff home. But in cities across the country, serious Policy, Enterprise Community Partners, Inc. • The levers cities have over housing forum on February 20, 2019 to share local shortages of adequate housing means that through local land use policies and innovations. This discussion and subsequent too many residents don’t have the security of • Lorraine Collins, Director of Public Policy, regulations including their development follow-up with NLC staff identified case a stable home,” said Freeman-Wilson at the Enterprise Community Partners, Inc. review processes and comprehensive studies for sharing in this report based on the time of the task force’s formation. • Chris Herbert, Managing Director, Joint plans. four categories of local actions prioritized in Center for Housing Studies of Harvard Local leaders are on the front lines of • The need for the federal and state the first meeting: local funding, land use policy University ensuring that residents have safe, affordable governments to be better partners and regulation, comprehensive and strategic housing. Through the formation of this task • Mike Koprowski, National Campaign for cities and have more defined roles planning and engagement and housing for force, NLC sought to leverage its members’ Director, Opportunity Starts at Home (such as the federal role on low-income distinct and vulnerable populations. collective experience to help solve this urgent Campaign housing). challenge. Comprised of 18 other elected • Marion McFadden, Sr. Vice President, The second and final in-person task force city leaders representing a diversity of city • The need for cities to unlock the Public Policy, Enterprise Community meeting took place on March 11, 2019 during sizes, geography, roles in their respective production potential of the private market Partners, Inc. NLC’s City Congressional Conference in regions and market types – plus the executive and better partner with the private Washington, D.C. The meeting included directors of two state municipal leagues • Christopher Ptomey, Executive Director, development community. reflections by Boston Mayor Martin Walsh on (California and Michigan) – the task force Terwilliger Center for Housing, Urban Land • The need for a toolkit of practices that the efforts he has implemented to address was charged to develop a set of best and Institute cities from a variety of market types can housing in one of the highest-cost cities in the promising practices at the local level, as well utilize. • Adrianne Todman, CEO, National U.S. These efforts include: as policy recommendations to federal and Association of Housing and • Creating a housing plan for 69,000 units state governments. Redevelopment Officials Through their deliberations, the task force by 2030, of which 29,000 units have Reflecting on her own city, Mayor Bowser • Margery Austin Turner, Senior Vice also settled the following five priorities. already been built or are in construction, said, “The affordable housing crisis is one of President, Urban Institute the most critical issues we are facing in this 1. Identifying housing funding and financing • Emphasizing low- and middle-income country, and one on which we are effectively resources cities have at the local level, housing including for seniors and students, Common Themes and Priority Topics (such as housing trust funds and land working to tackle in Washington, D.C. From • Streamlining approval processes, investing hundreds of millions of dollars for banks and trusts, etc.). A series of common themes emerged from the • Pushing back on input from affordable units in new developments to first convening that the task force members 2. How to address special populations in neighborhoods that don’t want to see building creative livings spaces like grand- shared, as listed below. local housing policy such as (seniors, the growth and family housing for seniors raising their homeless, and people with conviction grandchildren, we know that mayors will lead • The regional nature of housing policy histories). • Opening a new Office of Housing Stability, the way in providing innovative solutions.” issues contrasts with the local controls to deal with evictions and displacements cities have over land use and funding. 3. Levers cities can exercise on housing The task force kicked off with an introductory • The need to address housing holistically utilizing local land use policies and

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Mayor Walsh also emphasized the need for distressed property. At the City Congressional Conference, NLC • Fair Housing: policy proposals to address more federal support for public housing staff took advantage of the gathering of historic injustices and ongoing inequities, • Require that every annexation includes as well as for vouchers for low-income more than 2,000 city leaders in Washington, and anti-displacement proposals. a percentage of affordable housing with households. D.C. to engage with them directly about the community amenities (such as grocery • Housing for Small, Rural and Legacy task force’s work and seek their input on stores and parks). Communities: policy proposals aimed the same questions the task force members at towns and villages below 30,000 in City Leaders’ Housing Aspirations • Require developers to provide and were addressing. Staff met with the following population or in a state of economic subsidize more affordable housing. groups: At the March 11 task force meeting, Mayor transition. Bowser also facilitated an aspirational • Tie economic development incentives • NLC Board of Directors discussion around a question: what would for corporations to affordable housing • Advisory Council task force members do to solve this problem production. Task force members discussed nearly 30 if they “weren’t afraid to fail?” Their answers • Community and Economic Development proposals responding to the following • Spread affordable housing around to revealed insights into what cities could and Policy and Advocacy Committee questions: deconcentrate poverty. should be doing to address their housing • Large Cities Council 1. Are there any priorities identified by challenges. Responses fell into the four members of the task force, or that are categories of local actions: • Small Cities Council Planning important to your city, that are missing • Young Municipal Leaders • Conduct a comprehensive housing from this list? Local funding assessment and a timeline to accomplish Valuable feedback from each of these 2. Are you able to identify a single top the city’s needs and goals. • Create a fiscally sustainable local housing constituencies was incorporated into the priority within each of the five policy trust fund. • Define displacement and create a strategy report and helped shape its direction. outcomes? to prevent it as part of growth. • Offer more rental subsidies and where 3. Are you able to identify three top permitted some forms of rent control. A Federal Housing Policy Agenda for Cities priorities overall? • Require every corporation in city to Distinct and vulnerable populations After the City Congressional Conference, task 4. If the federal government could enact establish a workforce training fund/ • Create a new equity housing fund to force members convened a final time remotely one single housing policy proposal this program. address the legacy effects of redlining. via webinar on April 10, 2019 to discuss a year, which proposal would have this • Bolster anti-poverty programs like federal policy agenda for NLC to advocate most immediate significant impact for Land use policy, regulation and development workforce training and only attract for on behalf of cities. The proposals were your city? process employers that pay living wages. organized according to five distinct policy outcomes (although there was some overlap • Ask residents in all neighborhoods • Increase the minimum wage to help among those outcomes). The five outcomes From this process, the task force developed to agree upon their share of citywide households afford better housing. identified by the task force are: the federal policy agenda section of housing, production and preservation • Implement policies to address the related the report. goals as a way of combatting resistance • Housing Affordability: policy proposals costs that impact housing affordability to growth and NIMBYism (Not in My addressing the growing gap between (like transportation). Backyard attitudes). rising rents and flat incomes. • Require building owners to notify tenants • Ensure that affordable housing is built • Housing Availability: policy proposals to when they intend to sell a property, giving along new transit lines, especially along preserve and expand the number of units tenant coops an opportunity to purchase. routes that connect to employment of affordable housing. centers. • Housing Stability: policy proposals to • Reduce barriers such as onerous stabilize those in financial distress related development regulations especially on to housing, and preventing eviction.

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Appendix B: The local housing context varies by regional development regulations and can carefully The State Regulatory Context housing market types and by the tools examine these tools to improve housing available to cities, towns and villages to options across income levels. For example, Local Tools to Address Housing Affordability: address the needs of their communities. cities can relax density requirements in areas A State-by-State Analysis, shows the Based on our assessment of inclusionary designated as single family, modify parking following: housing, rent control, housing voucher holder requirements and streamline development protections, housing trust funds and state processes for projects with an affordability Given the diverse landscape of housing tax incentive programs, cities in New York, component. affordability, cities must build and maintain the California and the District of Columbia have proper tools and flexibility to meet the needs more tools to address housing affordability Fill a policy vacuum. Cities in 23 states do of their residents. To that end, cities have than others. Cities in Idaho, Indiana, Kansas, not have state or local sources of income implemented solutions such as inclusionary Texas and Virginia have fewer. protections for housing voucher holders. housing, rent control, fair housing and These states also do not have explicit housing trust funds. They have also leveraged In addition to the number of tools available to restrictions on local fair housing, meaning programs like their states’ tax incentive cities, the way these policies play out locally that many cities could create policies to programs to expand housing affordability varies significantly by state. For example, in limit discrimination and help extend housing and access. some states with local inclusionary housing, options to those using housing vouchers. rent control restrictions limit the authority NLC conducted an assessment of all 50 states of cities to implement mandatory programs, Leverage state programs for local investment. and the District of Columbia to show how whereas in other states, this is not the case. Cities should leverage state tax credits and states and cities interact in each of these state housing trust funds to maximize their policy areas and provide details about cities’ A new example of rent control can be seen in ability to provide affordable housing at all implementation authority. In the pages of Oregon. In February 2019, it became the first income levels. Local Tools to Address Housing Affordability: state in the U.S. to enact mandatory statewide Proactively engage state partners. For A State-by-State Analysis, data for each policy rent control. Cities in Oregon must adhere example, cities Utah have been working with comes from existing research, state legislation to the statewide rent control laws and are the state legislature and state Commission and relevant court decisions. Among the preempted from passing their own. This has on Housing Affordability to craft a bill that highlights are the following: created a new dynamic, the impacts of which will need to be evaluated. not only accelerates affordability in regional • Cities in 20 states and the District of housing markets across the state, but also Columbia are expressly permitted or face Despite these variations, one thing is clear: offers cities flexibility to do so in ways that no legal barriers to inclusionary housing. The significant housing problem facing our meet their individual needs. • Cities in 13 states and the District of country is compelling cities and states to Columbia are permitted, have some rethink how they address the issue, and to barriers, or have limited control to adapt the relationship they have with each implement rent control. Oregon is the only other to meet the scale of the challenge. state to mandate rent control. Cities can take several steps to achieve the • Cities in 25 states and the District of careful balance of local flexibility and mutual Columbia have either state law protections housing affordability goals, including the or local protections for those using recommendations outlined below. housing vouchers as a source of income. Review, strengthen and update tools to • Cities in 35 states and the District of improve housing affordability. Nearly all cities Columbia have established housing have control over local planning, zoning and trust funds.

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