Housing
by Griffin Beronio
What's the Problem?
While luxury housing development has boomed over the last decade, cities have also experienced record high rates of homelessness and housing insecurity. Meanwhile, affordable housing is becoming increasingly rare: since 1965, the cost of housing has increased 150% more than worker income. Moreover, rent prices are only one element of affordability: some base rental rates may initially appear reasonable, however after totalling additional costs, including energy and transportation, housing costs may still be unattainable. Local governments must ensure that high-quality, affordable housing is accessible to everyone.
What are People Currently Doing?
Data & Planning
Local governments should work together to create comprehensive regional housing plans (see ProGov21’s Regional Coordination roadmap on intergovernmental planning). But to do so, these plans require trustworthy data on both the demand and supply in local markets. Local Housing Solutions’s free Housing Needs Assessment tool uses census data to create reports describing demographics, housing affordability, housing stock characteristics, and key housing indicators. Camden, NJ aggregates data across industries like criminal justice and healthcare from both private and public entities. Some cities mandate or incentivize landlords to collect data as part of the permitting process. New York City has successfully integrated permitting data into policymaking: the city’s building code requires energy efficiency reporting, and this data has been used to update and implement building energy efficiency standards.
Building Codes, Enforcement, and Education
Code enforcement and landlord licensing can be used to preserve high-quality affordable housing. Proactive Routine Inspections (PRIs) lead to earlier identification of code violations relative to complaint-based inspection programs. Applying PRIs based on compliance history, prioritizing randomized unit inspections in multifamily housing properties, or using routine exterior inspections to trigger interior inspections can reduce the costs of PRI programs. When inspections uncover problems, rent abatement can incentivize landlords to comply by reducing tenants’ rents until the property is brought up to code.
However, there are high barriers to effective rent abatement programs: tenants are often unaware of their rights, and the processes often involve applications, fees, and hearings. To reduce these barriers, Los Angeles has led multiple initiatives: if a landlord fails to remediate, the city’s Rent Escrow Account Program (REAP) allows tenants to pay reduced rent into escrow. And if landlords cannot afford remediation, the city offers low-interest loans, releases escrow funds for this purpose, or conducts remediation themselves, recouping the costs by placing a lien on the property. When mitigation efforts or code violations result in tenants being displaced, cities may allocate funds, require landlords to cover relocation expenses, or place a lien on the property to finance relocation. Enforcement penalties should focus on facilitating compliance, preserving affordable housing, and avoiding displacement. Further, policymakers should consider the unintended consequences of overly punitive enforcement policies, as these are often transmitted to tenants.
Most importantly, local jurisdictions can use landlord licensing and tenant education to stop problems before they start. Kansas City, MO requires property registration, licensing, and annual renewal. Anne Arundel County, MD mandates licenses as a prerequisite in the eviction process to incentivize registration. Localities like Chicago require lease agreements to inform tenants of their rights and include compliance standards complaint forms. Landlord education programs can reduce eviction rates and costs for landlords, tenants, and local jurisdictions.
Zoning
Zoning is another effective tool for promoting affordable housing. Multifamily zoning laws allow for the development of multi-unit residential buildings on parcels of land zoned for single-family occupancy. The Home In Tacoma housing plan creates opportunities for multi-unit housing in many areas of Tacoma, WA that were single-family only. Arlington, VA expanded housing options by ending mandatory single-family zoning. Richfield, MN passed a zoning law to allow for duplexes in formerly single-family exclusive neighborhoods and reduced the minimum lot size to allow more units to be built on a parcel of land. Inclusionary zoning promotes affordable housing (without new public spending) by requiring or incentivizing market-rate developments to include a set number of affordable units, usually in exchange for regulatory incentives like density bonuses or height allowances. This policy brief provides strategies and examples of successful zoning reforms. New Orleans has established mandatory inclusionary zoning sub-districts, affordability limits, density bonuses, and design standards for new developments.
Cities can also update zoning to enable Accessory Dwelling Units (ADUs), which are secondary dwelling units on the same property as the primary residence and can vary anywhere from basement and attic units to detached outdoor units. ADUs should require inspections and permitting to ensure compliance and promote quality housing conditions and overall well-being. This Chicago ordinance enables ADUs across the city. ADUs are a popular way for seniors to live near children while maintaining an independent living space and the AARP offers informative policy resources and model legislation promoting ADUs for this purpose.
Taking it to the Next Level
Housing Affordability, Transportation, and Energy Efficiency
Transportation costs are place-based, and supposedly cheap housing becomes expensive once the cost of transportation to necessary resources like high-quality employment and food is accounted for. Transportation is usually a household’s second-largest expenditure after housing, and low-income communities with access to lower-cost transportation options experience lower eviction rates. To maximize the benefits of housing, housing must be planned and built together with transportation. Transportation policy should be co-created with housing policy to maximize the effectiveness of transportation and to improve housing affordability. The Center for Neighborhood Technology’s Housing + Transportation Index presents housing and transportation costs together from the neighborhood to the regional level through maps and statistics covering more than 90 percent of the U.S. population (see ProGov21’s Transportation & Mobility roadmap for more).
Like transportation costs, energy costs are a hidden component of housing affordability. More than thirty percent of all energy consumed in homes is wasted, and another thirty percent goes to heating and cooling—meaning that improving a home’s energy efficiency through retrofitting or similar policies can greatly reduce energy costs.
Allies, Advocates, and Advisors
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