Providing Affordable Housing in the Region
The following are tools communities can use to provide affordable housing for everyone.To read about specific solutions and issues, click on the following:
Housing
Trust Funds
Inclusionary Zoning
Housing Near Transit
Section 8 Housing
Location Efficient Mortgages (LEM)
Smart Codes
Housing Trust Funds
Housing Trust Funds raise money for the express purpose of building affordable
housing. Several jurisdictions in the Washington area have established Housing
trust funds, but none have an adequate dedicated revenue source to ensure the
fund is large enough to build the needed units.
While a regional Housing Trust Fund is an excellent ideal, a more immediately
attainable goal might be a publicly-funded Housing Trust Fund for each jurisdiction,
with a dedicated funding source. Over time, greater coordination among each Housing
Trust Fund can eventually meet the region's need for fair distribution of low
cost housing.
Inclusionary Zoning
Inclusionary zoning requires private developers to set aside a certain percentage
of new housing units for moderate- and low-income residents as part of an otherwise
market-rate residential development project.
Montgomery County's Moderately Priced Dwelling Unit Program has received national
recognition. The District of Columbia is considering some legislation inspired
by inclusionary zoning. Other jurisdictions with similar laws (Fairfax, Loudoun
and Prince George's) have reduced requirements over the years, producing extremely
modest results. The potential of inclusionary zoning is great - we need real commitment
from jurisdictions to make it work.
Click here for the Policylink Report, "Expanding Housing Opportunity in Washington, DC: The Case for Inclusionary Zoning". Or go to policylink.org and click on "Publications"
Housing Near Transit
Metrorail station areas are an important place to provide proactive policies for
including affordable housing. Providing affordable housing near transit reduces
the overall cost for lower income families by reducing their transportation costs
as they may be able to manage with less or no cars. Local jurisdictions
and WMATA need to work together to require an affordable housing element in redevelopment
strategies of WMATA-owned lands and other lands adjacent to stations.
Section 8 Housing
The Section 8 Program permits participants to use voucher payments to rent single
family homes, condominiums, and interests in cooperatives.
Nationally the Section 8 program is facing the potential loss of thousands of
units as contracts expire.
Location Efficient Mortgages (LEM)
The big difference between the LEM
and a traditional mortgage is that it takes into consideration the transportation-related
savings that are achieved by households that use public transportation and rely
on local services such as shops and schools. For many households, transportation
savings from living in more walkable neighborhoods served by transit can mean
thousands of dollars in savings that create additional home buying power, in the
range of $15,000 to $50,000. LEM programs have been backed by the Fannie Mae Corporation
and piloted in four metropolitan areas.
Smart Codes
Given the large number of vacant buildings in the city, removing barriers and
reducing costs to rehabilitation could quickly tap into a tremendous resource.
The State of Maryland, following the example of New Jersey cities, enacted "smart
codes" legislation to create greater flexibility for rehabilitating existing
structures and reducing the burden of building code requirements for smaller rehabilitation
projects. When Newark, New Jersey adopted similar smart codes, in 1997, it experienced
a 60% increase in investment in rehabilitation, in just one year.
*Information from Washington
Regional Network for Livable Communities
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