As part of our comprehensive workforce housing program, we offer downpayment assistance to residents who complete their 2- or 4-year degrees. Scholarships only incentivize students to BEGIN their studies. Our program incentivizes students to FINISH their studies.
From the piece:
“Fewer than two-thirds of students complete college within six years, according to the National Center for Education Statistics – that includes nearly 40% of people who took out college loans between 2012 and 2017 didn’t finish after six years. And the default rate among those borrowers is three times as high as the rate for borrowers who did earn a diploma.”
“Some multifamily types are more inflation-resistant than others. This is particularly true with workforce housing—one of the more overlooked and underappreciated segments of the multifamily market. Due to its strong fundamentals and lack of existing housing supply, workforce housing is a worthwhile consideration as an investment, especially during volatile economic times.”
Read this headline. Think about what it’s saying. It puts the words “affordable” (i.e., inexpensive and plentiful) in the same sentence with “lottery” (i.e., scarce).
Remember when 72-inch flat-screen TVs were a $10,000 luxury? Now we can select from scores of competing brands for a small fraction of that cost.
How did this happen? Was it the result of a lottery? Government regulation? Limits on new flat-screen TV production and ownership?
No. It was the result of competition.
Let the marketplace work. Deregulate the production of housing and let developers like me reach renters and buyers previously unreached.
From the piece:
“The affordable housing lottery has launched for 200 Montague Street, a 20-story residential building in Brooklyn Heights, Brooklyn. Designed by Beyer Blinder Belle and developed by Aurora Capital Partners, the structure yields 121 residences. Available on NYC Housing Connect are 38 units for residents at 80 to 130 percent of the area median income (AMI), ranging in eligible income from $54,960 to $215,1500.”
Met with the City of Rock Hill this morning to sort out stormwater, sanitary sewer, domestic water, electric, and landscape requirements for Johnston Farms Apartment Homes, our proposed 120-unit workforce housing development.
The city was very accommodating and identified several design changes that will save us hundreds of thousands of dollars in development costs and expedite our approvals.
Many thanks to the city engineers who met with us this morning!
Rising construction & operating costs – along with rising interest rates – were partially offset by significant rent increases for market rate properties in 2022. Many of these deals were salvaged by increased market rents last year.
Not so for affordable multifamily.
Costs and interest rates rose for affordable multifamily, too. But rents – which are tied to household income – increased only modestly in 2022. Because of this, many of these restricted rent deals don’t pencil out.
From the piece:
“The 2023 housing market’s ‘headwinds’ are the same for all homebuilders — high construction costs compounded with high interest rates that have lowered borrowing amounts. But those challenges are especially sharp for affordable housing developers.”
This has always puzzled me. When private investment comes to a blighted neighborhood it’s labelled “gentrification” (which is bad, I am told). But when public investment comes, it’s labelled “redevelopment” (which is good, I am told).
Isn’t ANY investment in blighted neighborhoods good? Sure, the people being displaced need a safe/affordable place to live. But the blighted structures they lived in previously weren’t safe.
Isn’t the question we should be asking “What can we do to produce more affordable housing so people don’t have to live in slums?” Saying “Look at those heartless private investors, displacing poor families from blighted, unsafe housing?” seems to miss the point.