8.2 Affordable housing and anti-displacement strategies
12 min read•august 20, 2024
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 , , , and . Preserving existing affordable units, assisting with homeownership, addressing homelessness, and implementing 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
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
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, , 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:
(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:
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 , , and
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 , , and
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
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
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