1. Housing A necessity, and an investment A factor in transportation finance / economy access

2. Housing Policy Requires insight on much more than structures A multi-disciplinary approach

3. Housing Policy Focus on Homeownership (tenure) variety of mortgages and mortgage assistance tax benefits (deductions, capital gains) social investment in ownership (reinvestment) Economy Construction jobs Financial industry Multiplier effects

4. Housing Markets A dynamic of households and housing As quality decreases, so does price and as a corollary, affordability increases Magic: quality, affordable housing (right…) Housing of decreasing quality filters downward Households with rising incomes filter upwards

5. Housing Markets The dynamic tends to leave insufficient housing for lower incomes (shortage) the investment potential for developers of low income housing is unappealing Profit on affordable housing is low Require volume to generate comparable profits

6. Housing Markets Why: Many houses don’t filter down remain occupied converted for other uses demolished for better/higher use of land

7. Housing Markets Why: Prices must fall greatly to filter down must be affordable fall in price reflects decrease in quality decreased quality may reflect inhabitability

8. Housing Markets Process or Outcome? Process cyclical – what declines will later rebound; what is of high quality will filter down. Housing AND Neighborhoods Outcome Neglect leads to blight Attention and maintenance leads to stability

9. Housing Markets The Housing Bubble Housing valued more as an investment rather than a necessity Housing values inflated beyond “rational” value Bubble may burst

10. The Last Bubble

11. Post-bubble prices

12. Low Income Housing A regulatory problem building codes zoning / subdivision An indirect regulatory problem NIMBY & public housing A market problem

13. Public Housing

14. Property Rights vs. Common Good Self-Reliance vs. “Nanny State” Private Market vs. Gov’t Interference

15. Public Housing Housing Act (1949) 810,000 public housing units authorized Authorized by Congress, implemented by localities

16. Housing Act (1949) Eliminating substandard housing Revitalizing city economies Constructing good housing Reducing segregation Approach: Tabula Rasa

17. Housing Act (1949)

18. Market Process was failing new housing & opportunity on periphery spurred suburban flight (pull effect) left central cities in decline left local governments with diminished tax base limited ability to provide public services pushed mobile people out of cities left immobile behind

19. Housing Act (1949) Market failure called for gov’t intervention 90 year old tenement in CBD 50’ x 100’ sq. ft. lot 12 apartments (bringing in $200/mo. each) Value: 100 times rent roll (12 x $200 x 100) $240,000 / 5000 sq. ft. = $48 / sq. ft. $48 x 43,560 = $2,090,880 / acre Who’ll buy a derelict tenement valued like this? Who would sell for less? Why not buy vacant land in the suburbs?

20. Housing Act (1949) Created LPA’s (Local Public Agencies) Given power of Eminent Domain 2/3 funded by feds, 1/3 locally LPA’s: Planners as Entrepreneur Acquired Land Cleared Land Prepped Land for Development Sold Land to Developers at or Below Cost Took care of “holdout landowner”

21. Section 8 Housing Vouchers A subsidy to apply to participating units Bridges gap between market rent and ability to pay Qualifying Housing stock Set-asides from inclusionary zoning Landlords choosing to participate in market

22. Housing Trust Funds $$ From: mortgage recording fees transient occupancy taxes permit fees Used to make affordable housing more attractive to builders many different mechanisms provide this preservation, land acquisition, subsidies

23. Streamlined Permitting In General: faster permitting processes reduce costs overall (reduction in costs being passed along to the homeowner) Targeted: giving preferential treatment to developers who choose to compete in the affordable housing market thus meeting state & regional housing goals.

24. Accessory Dwellings “Mother-in-Law Flats” Basement units Relaxing restrictions in Single Family zoning districts to allow for accessory units Makes dominant unit more affordable Makes housing available in otherwise unaffordable neighborhoods

25. Development Agreements In master-planned developments, negotiating for faster approvals in exchange for the provision of affordable housing

26. Relax Minimum Floor Size Smaller homes = cheaper housing State Building codes discourage small homes Relaxing standards means possibility of more affordable units Affordability is dependent on cheap land prices Tiny Homes, Cottage Homes, Pocket Neighborhoods

27. Inclusionary Requirements As a condition for approval Requiring a proportion of units to be designated as affordable Working in concert with Housing Authorities