State and Local Strategies for Affordable Housing: Policies, Tools, and Opportunities

AFFORDABLE HOUSING 101: STATE AND LOCAL GOVERNMENT ROLES

Innovative approaches by state and local governments have significantly advanced our understanding of effective strategies for increasing the avlability of affordable housing units suitable for working-class families. To address complex housing challenges, most communities considering comprehensive solutions will benefit from employing policies that span across six core categories.

1. Expanding Development Opportunities: This involves leveraging publicly owned lands, tax delinquent properties for development into affordable dwellings, and adjusting zoning rules to facilitate the construction of more affordable homes. Communities impacted by a surge in mortgage foreclosures can leverage these measures to ensure reestablishment of foreclosed properties as productive assets that stabilize neighborhoods.

2. Reducing Regulatory Barriers: Streamlining approval processes and revising stringent fees or regulations promotes greater accessibility for constructing affordable housing, making it easier for developers and facilitating the creation of more units within communities experiencing a strong market.

3. Tapping into Market Surge: Communities can leverage increased tax revenue associated with rising property values by incentivizing developers to include a modest number of affordable units in new developments or by issuing general obligation bonds specifically for housing projects. This tool becomes particularly valuable during economic upturns when additional financing and incentives are sought to stimulate affordable housing production.

4. Capital Generation: Promising methods include maximizing federal funds through the Low-Income Housing Tax Credit programs 4 and 9, leveraging bond issuances by state or local authorities, and tapping into support from local employers. Even though these capital might not see regular use during economic downturns, they remn vital for incentivizing or providing financing opportunities when the economy recovers.

5. Preserving Affordable Housing: Strategies like repaying down payment assistance through loans instead of grants, implementing shared equity homeownership, and recycling resources ensure affordable housing remns accessible to working families over generations. These policies are crucial in mntning the affordability of homeowner occupation.

6. Supporting Resident Success: Investing in homebuyer education and counseling programs equips families with knowledge on credit management, navigating private mortgage markets, and retning homes through challenging economic periods. Tenant protection laws safeguard renters facing eviction during foreclosures, ensuring they remn in their residences. Furthermore, adoption of tax incentives and building standards promoting energy efficiency encourages cost savings for households by reducing utility bills.

AFFORDANCE OF HOMEOWNERSHIP SUPPORT THROUGH GOVERNMENT

A range of government subsidies m to mitigate the costs associated with homeownership. The most significant is the federal income tax deduction for mortgage interest, although eligibility necessitates itemizing deductions on tax returns rather than opting for the standard deduction. Consequently, many working-class homeowners might miss out on this benefit.

Nonetheless, these families may still access alternative forms of support through government policies reducing the cost of homeownership: below-market mortgage rates from state or local housing finance agencies; down payment assistance progra d in purchasing private market homes or initiatives funding the construction of affordable dwellings. Working-class families can also profit from homeowner education and counseling that assists them throughout the home-buying process.

Furthermore, by adopting shared equity strategies, communities ensure a single investment in affordable homeownership is beneficial for multiple generations of homeowners, allowing one family's investment to support successive families' housing needs over time.
This article is reproduced from: https://housingforwardva.org/toolkits/affordable-housing-101/what-can-state-and-local-governments-do-how-does-the-government-support-home-ownership/

Please indicate when reprinting from: https://www.ao39.com/Rental_housing_prices/AFFORDABLE_HOUSING_101_STATE_LOCAL_ROLES.html