The Hidden Cost of Building on a Marginal Development Site

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Affordable housing is often relegated to marginal development sites, frequently with environmental issues, adding to the cost and time associated with development. Indeed, the developer and the future residents of these projects will ultimately pay for remediation, which is no way of incentivizing much-needed development.

From the piece:

“During a Feb. 7 Citizen Advisory Committee South St. Petersburg Community Redevelopment Area (CRA) meeting, City Architect Raul Quintana informed the committee members the soil contamination was discovered through sampling, and they are now working with the DEP (Department of Environmental Protection) on the removal process. Soil contamination is commonly found at industrial sites.

A dry-cleaning business and metalworks building once operated at the location.”

A link to the piece is found here

Endless Studies: NIMBY Tactic to Discourage Development

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This is how they do it. Affluent towns like New Canaan use endless “studies” to discourage affordable housing development. And they often create “committees” purportedly to produce more affordable housing, but in reality to kill any new proposals.

I’ve even seen cities purposely rezone low-lying and swampy areas for affordable housing, knowing they will never be buildable. That way, they can look good on paper (zoning map) while systematically discriminating against lower income families.

From the piece:

“In a letter to the town, Karp’s attorney Christopher Smith argued the WPCA is trying to prevent more affordable housing from being developed in New Canaan and the delay has nothing to do with global warming.”

A link to the piece is found here

 

Workforce Housing: Excellent Inflation Hedge

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“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.”

A link to the article is found here

A New Approach to Workforce Housing Development

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This is the way to do it.

The city has the tools for fast-track approvals and the issuance of bonds. Private companies like mine can bring the technical expertise to design and manage these developments for cities who choose this approach.

From the piece:

“City staff is working on a plan that would have the city build and hold its own workforce housing.”

A link to the piece is found here

Linking Housing Development with Economic Development

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There’s the old adage: “You always get less of what you tax.” That’s why an affordable housing tax on developers is such a bad idea.

In reality, the creation of workforce housing should be linked to job creation. It should be treated just like any other public improvement.

For example, a large manufacturer comes to town and the city determines what new infrastructure will be needed to support the new facility. The city issues bonds to extend water, sewer, gas, and electricity and contracts the construction of these new utilities.

While they’re at it, why not evaluate the manufacturer’s housing need and issue bonds for it, too? This, along with fast-tracking the zoning approvals for a sufficient number of workforce housing units, would be a good aporoach.

Cities have all of these tools at their disposal. Proactively using them instead of doing the bidding of the short-sighted NIMBY crowd is the solution to our workforce housing problem.

From the piece:

“Starting in 2017, all new apartment buildings built in Portland with more than 20 units must dedicate a portion of their units to low and moderate-income housing. But some developers are choosing to pay a penalty instead of creating affordable housing.”

A link to the article is found here

Workforce Training Incentives

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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.”

Find a link to the news piece here

The Durability of Workforce Housing Investments

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“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.”

Find a link to the news piece here

Let the Marketplace Work

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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.”

Affordable Housing Lottery Launches for 200 Montague Street in Brooklyn Heights