8.2 Affordable housing and anti-displacement strategies

Affordable housing and anti-displacement strategies are crucial for sustainable urban planning. These approaches aim to provide stable, accessible housing options for all income levels, while protecting vulnerable residents from displacement due to rising costs or gentrification.

Strategies include inclusionary zoning, density bonuses, public-private partnerships, and community land trusts. Preserving existing affordable units, assisting with homeownership, addressing homelessness, and implementing tenant protections are also key components of comprehensive housing policies.

Affordable housing challenges

• Affordable housing is a critical issue in sustainable urban planning, as it directly impacts the social, economic, and environmental well-being of communities
• Challenges in providing affordable housing can lead to increased social inequality, economic instability, and environmental degradation

Rising housing costs

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• Housing costs have been increasing at a faster rate than household incomes, making it difficult for many individuals and families to afford adequate housing
• Factors contributing to rising housing costs include:
  • Increased demand for housing in urban areas
  • Limited supply of affordable housing units
  • Speculative real estate investments
  • Rising construction and land costs
• Rising housing costs can lead to housing cost burden, where households spend more than 30% of their income on housing expenses

Limited housing supply

• Many cities face a shortage of affordable housing units, particularly in high-demand areas
• Factors contributing to limited housing supply include:
  • Zoning restrictions that limit the development of higher-density housing
  • Lack of incentives for developers to build affordable housing
  • Insufficient public investment in affordable housing construction
  • Conversion of affordable housing units to market-rate housing
• Limited housing supply can lead to increased competition for available units, driving up costs and exacerbating affordability challenges

Gentrification and displacement

• Gentrification is the process of neighborhood change characterized by the influx of higher-income residents and businesses, often leading to rising property values and rents
• Displacement occurs when lower-income residents are forced to move out of their neighborhoods due to rising housing costs and other factors associated with gentrification
• Gentrification and displacement can have significant negative impacts on communities, including:
  • Loss of affordable housing units
  • Disruption of social networks and community ties
  • Increased housing instability and homelessness
  • Disproportionate impacts on low-income and minority communities
• Addressing gentrification and displacement requires a combination of affordable housing strategies, tenant protections, and community-driven planning processes

Affordable housing strategies

• Affordable housing strategies aim to increase the supply of affordable housing units and ensure that low- and moderate-income households have access to safe, stable, and affordable housing
• Effective affordable housing strategies often involve a combination of policy tools, financial incentives, and partnerships between the public, private, and non-profit sectors

Inclusionary zoning policies

• Inclusionary zoning policies require or incentivize developers to include a certain percentage of affordable housing units in new residential developments
• These policies can be mandatory or voluntary and may apply to rental or homeownership units
• Inclusionary zoning can help create mixed-income communities and increase the supply of affordable housing in high-demand areas
• Factors to consider when implementing inclusionary zoning include:
  • Setting appropriate affordability requirements and income targets
  • Providing incentives for developers to offset the costs of providing affordable units
  • Ensuring long-term affordability of inclusionary units
  • Monitoring and enforcing compliance with inclusionary zoning requirements

Density bonuses for developers

• Density bonuses are incentives that allow developers to build more housing units than typically allowed under zoning regulations in exchange for providing affordable housing units
• Density bonuses can take the form of increased height limits, reduced setback requirements, or other zoning variances
• By providing density bonuses, cities can encourage the development of affordable housing in areas where it might not otherwise be financially feasible
• Factors to consider when implementing density bonuses include:
  • Setting appropriate affordability requirements and income targets
  • Ensuring that the increased density is compatible with the surrounding neighborhood
  • Providing clear guidelines for developers to access density bonuses
  • Monitoring and enforcing compliance with affordability requirements

Public-private partnerships

• Public-private partnerships (PPPs) involve collaboration between government entities and private sector partners to develop, finance, and operate affordable housing projects
• PPPs can leverage the strengths of both the public and private sectors to create affordable housing that meets the needs of the community
• Examples of PPPs in affordable housing include:
  • Joint development projects on publicly-owned land
  • Tax increment financing (TIF) to fund affordable housing development
  • Low-Income Housing Tax Credit (LIHTC) partnerships
• Factors to consider when establishing PPPs for affordable housing include:
  • Clearly defining the roles and responsibilities of each partner
  • Ensuring that the partnership aligns with the community's affordable housing goals
  • Establishing performance measures and accountability mechanisms
  • Engaging the community in the planning and decision-making process

Community land trusts

• Community land trusts (CLTs) are non-profit organizations that acquire and manage land to provide affordable housing and other community benefits
• CLTs typically retain ownership of the land and sell or lease the housing units on the land to low- and moderate-income households
• By separating the ownership of the land from the ownership of the housing units, CLTs can ensure long-term affordability and prevent displacement
• CLTs can provide a range of affordable housing options, including:
  • Homeownership units with resale restrictions to maintain affordability
  • Rental units with below-market rents
  • Limited equity cooperatives
• Factors to consider when establishing a CLT include:
  • Engaging the community in the planning and governance of the CLT
  • Securing funding for land acquisition and housing development
  • Establishing clear eligibility criteria and resale restrictions for CLT units
  • Providing ongoing stewardship and support for CLT residents

Rent control and stabilization

• Rent control and stabilization policies aim to protect tenants from excessive rent increases and ensure that rental housing remains affordable over time
• Rent control typically limits the amount that landlords can increase rents each year, while rent stabilization may allow for larger increases when units become vacant
• These policies can help prevent displacement and provide stability for low- and moderate-income renters
• Factors to consider when implementing rent control and stabilization policies include:
  • Setting appropriate rent increase limits and exemptions
  • Ensuring that the policies do not discourage new rental housing development
  • Providing clear guidelines for landlords and tenants
  • Establishing enforcement mechanisms to ensure compliance with the policies

Preserving existing affordable housing

• Preserving existing affordable housing is often more cost-effective than building new affordable units and can help prevent displacement of low-income residents
• Strategies for preserving affordable housing include rehabilitation and renovation, affordable housing preservation funds, and tenant protection laws

Rehabilitation and renovation

• Rehabilitating and renovating existing affordable housing units can improve the quality of life for residents and extend the useful life of the buildings
• Rehabilitation and renovation projects can include:
  • Upgrading building systems (HVAC, plumbing, electrical)
  • Improving energy efficiency and sustainability
  • Enhancing accessibility for residents with disabilities
  • Modernizing unit interiors and common areas
• Funding sources for rehabilitation and renovation projects can include:
  • Low-Income Housing Tax Credits (LIHTC)
  • Community Development Block Grants (CDBG)
  • HOME Investment Partnerships Program
  • State and local housing trust funds

Affordable housing preservation funds

• Affordable housing preservation funds are dedicated funding sources that provide financing for the acquisition, rehabilitation, and preservation of existing affordable housing units
• These funds can be used to:
  • Acquire properties at risk of converting to market-rate housing
  • Provide low-interest loans or grants for rehabilitation and renovation projects
  • Establish long-term affordability restrictions on preserved units
• Affordable housing preservation funds can be capitalized through a variety of sources, including:
  • General obligation bonds
  • Real estate transfer taxes
  • Developer fees and contributions
  • Philanthropic donations

Tenant protection laws

• Tenant protection laws can help prevent displacement and ensure that low-income renters have stable, affordable housing
• Examples of tenant protection laws include:
  • Just cause eviction policies that require landlords to provide a valid reason for evicting tenants
  • Tenant right to counsel programs that provide legal assistance to renters facing eviction
  • Tenant opportunity to purchase laws that give tenants the right to purchase their building when it is sold
  • Anti-harassment laws that prohibit landlords from engaging in harassing or discriminatory behavior
• Tenant protection laws can be implemented at the state or local level and may require ongoing funding for enforcement and tenant education

Homeownership assistance programs

• Homeownership assistance programs aim to help low- and moderate-income households achieve the benefits of homeownership, including wealth building, housing stability, and community engagement
• These programs can take a variety of forms, including down payment assistance, low-interest mortgage loans, and shared equity homeownership models

Down payment assistance

• Down payment assistance programs provide grants or low-interest loans to help homebuyers cover the upfront costs of purchasing a home
• These programs can be targeted to specific populations, such as first-time homebuyers, low-income households, or public service professionals (teachers, firefighters, etc.)
• Down payment assistance can be provided through:
  • State and local housing finance agencies
  • Non-profit organizations
  • Employer-assisted housing programs
• Factors to consider when designing down payment assistance programs include:
  • Setting appropriate income and purchase price limits
  • Establishing recapture or resale provisions to ensure long-term affordability
  • Providing homebuyer education and counseling to ensure successful homeownership

Low-interest mortgage loans

• Low-interest mortgage loans can help make homeownership more affordable for low- and moderate-income households by reducing monthly mortgage payments
• These loans can be provided through:
  • Government-backed programs (FHA, VA, USDA)
  • State and local housing finance agencies
  • Community development financial institutions (CDFIs)
• Low-interest mortgage loans may have features such as:
  • Below-market interest rates
  • Reduced or waived mortgage insurance premiums
  • Flexible underwriting criteria
• Factors to consider when designing low-interest mortgage loan programs include:
  • Setting appropriate income and purchase price limits
  • Ensuring that borrowers have the ability to repay the loans
  • Providing homebuyer education and counseling to ensure successful homeownership

Shared equity homeownership models

• Shared equity homeownership models allow homebuyers to purchase a share of a home's equity, while a public or non-profit entity retains ownership of the remaining share
• Examples of shared equity homeownership models include:
  • Community land trusts (CLTs)
  • Limited equity cooperatives (LECs)
  • Deed-restricted homeownership programs
• Shared equity models can provide a balance between the benefits of homeownership and the need for long-term affordability
• Factors to consider when designing shared equity homeownership programs include:
  • Establishing clear resale restrictions and equity-sharing formulas
  • Providing ongoing stewardship and support for homeowners
  • Ensuring that the programs are financially sustainable and scalable

Addressing homelessness

• Homelessness is a complex issue that requires a comprehensive and coordinated response from the public, private, and non-profit sectors
• Strategies for addressing homelessness include the Housing First approach, permanent supportive housing, and rapid re-housing programs

Housing First approach

• The Housing First approach prioritizes providing permanent housing to individuals and families experiencing homelessness, without preconditions such as sobriety or treatment compliance
• Housing First programs typically provide:
  • Rapid access to permanent housing
  • Voluntary supportive services to help individuals maintain housing stability
  • Harm reduction strategies to address substance use and other challenges
• The Housing First approach has been shown to be effective in reducing chronic homelessness and improving health and social outcomes for individuals experiencing homelessness

Permanent supportive housing

• Permanent supportive housing (PSH) combines affordable housing with ongoing supportive services for individuals and families with complex needs, such as chronic homelessness, mental illness, or substance use disorders
• PSH programs typically provide:
  • Long-term rental assistance or subsidized housing units
  • Intensive case management and support services
  • Access to healthcare, mental health treatment, and substance use treatment
• PSH has been shown to be effective in improving housing stability, reducing healthcare costs, and improving quality of life for individuals with complex needs

Rapid re-housing programs

• Rapid re-housing programs provide short-term rental assistance and supportive services to help individuals and families experiencing homelessness quickly transition into permanent housing
• Rapid re-housing programs typically provide:
  • Housing search and placement assistance
  • Time-limited rental assistance (usually 6-12 months)
  • Case management and supportive services to help individuals maintain housing stability
• Rapid re-housing can be an effective strategy for preventing and reducing homelessness, particularly for individuals and families with less complex needs

Anti-displacement strategies

• Anti-displacement strategies aim to prevent the involuntary displacement of low-income residents and communities of color due to gentrification, rising housing costs, and other factors
• These strategies can include tenant rights education, legal assistance for tenants, just cause eviction policies, and displacement risk assessment tools

Tenant rights education

• Tenant rights education programs provide information and resources to help renters understand their legal rights and responsibilities
• These programs can cover topics such as:
  • Lease agreements and tenant-landlord laws
  • Eviction prevention and defense
  • Fair housing laws and discrimination protections
  • Rent control and stabilization policies
• Tenant rights education can be provided through:
  • Community-based organizations and non-profits
  • Local government agencies
  • Online resources and hotlines

Legal assistance for tenants

• Legal assistance programs provide free or low-cost legal services to tenants facing eviction, harassment, or other housing-related issues
• These programs can include:
  • Legal representation in eviction proceedings
  • Assistance with negotiating with landlords
  • Help with filing complaints and asserting tenant rights
• Legal assistance for tenants can be provided through:
  • Legal aid organizations
  • Pro bono attorneys
  • Tenant right to counsel programs

Just cause eviction policies

• Just cause eviction policies require landlords to provide a valid reason for evicting tenants, such as non-payment of rent, lease violations, or owner move-in
• These policies can help prevent arbitrary or retaliatory evictions and provide tenants with greater housing stability
• Just cause eviction policies may include:
  • A list of allowable reasons for eviction
  • Notice requirements for landlords
  • Relocation assistance for tenants evicted for certain reasons (owner move-in, substantial renovations)
• Factors to consider when implementing just cause eviction policies include:
  • Defining clear and reasonable grounds for eviction
  • Providing adequate notice and due process for tenants
  • Establishing enforcement mechanisms and penalties for non-compliance

Displacement risk assessment tools

• Displacement risk assessment tools are data-driven tools that help identify neighborhoods and populations at risk of displacement due to gentrification, rising housing costs, or other factors
• These tools can use a variety of data sources, including:
  • Demographic and socioeconomic data
  • Housing market data (rents, home values, evictions)
  • Public investment and development data
• Displacement risk assessment tools can help inform:
  • Targeted anti-displacement interventions and policies
  • Community-driven planning processes
  • Allocation of resources for affordable housing and tenant protection programs
• Factors to consider when developing displacement risk assessment tools include:
  • Engaging community stakeholders in the design and implementation of the tool
  • Ensuring that the tool is transparent, accessible, and regularly updated
  • Using the tool to guide equitable and inclusive urban planning and policymaking

Funding affordable housing

• Funding affordable housing requires a combination of public, private, and philanthropic resources
• Strategies for funding affordable housing include Low-Income Housing Tax Credits (LIHTC), Tax Increment Financing (TIF), housing trust funds, and social impact bonds

Low-Income Housing Tax Credits (LIHTC)

• The LIHTC program is a federal tax credit program that incentivizes the development of affordable rental housing
• Developers can receive tax credits in exchange for building or rehabilitating affordable housing units
• LIHTC projects must meet certain affordability requirements, such as:
  • Renting a certain percentage of units to low-income households
  • Maintaining affordability for a minimum of 30 years
• LIHTC has been a major source of funding for affordable rental housing, producing over 3 million units since its inception in 1986

Tax Increment Financing (TIF)

• TIF is a financing tool that uses future increases in property tax revenues to fund current public improvements and development projects
• TIF can be used to fund affordable housing by:
  • Providing gap financing for affordable housing development
  • Funding infrastructure improvements that support affordable housing
  • Establishing affordable housing requirements for TIF-funded projects
• Factors to consider when using TIF for affordable housing include:
  • Ensuring that TIF projects align with community affordable housing goals
  • Establishing clear affordable housing requirements and monitoring mechanisms
  • Engaging community stakeholders in the TIF planning and implementation process

Housing trust funds

• Housing trust funds are dedicated funding sources for affordable housing development and preservation
• These funds can be established at the state or local level and can be funded through a variety of sources, including:
  • Real estate transfer taxes
  • Developer fees and contributions
  • General fund allocations
  • Philanthropic donations
• Housing trust funds can provide a range of financing options, including:
  • Grants and loans for affordable housing development and preservation
  • Operating subsidies for affordable housing providers
  • Rental assistance for low-income households
• Factors to consider when establishing a housing trust fund include:
  • Identifying a dedicated and sustainable funding source
  • Establishing clear priorities and criteria for funding allocation
  • Engaging community stakeholders in the fund's governance and oversight

Social impact bonds

• Social impact bonds (SIBs) are a type of pay