Housing Solutions Lab, US

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Housing Solutions Lab, US

Mismatches
Policies and regulations Governance Data and monitoring Evaluation and impact

Main objectives of the project

The Housing Solutions Lab, part of the NYU Furman Center, assists small and midsize cities in developing, implementing, and assessing evidence-based housing policies that promote racial equity, enhance access to opportunities, and enhance the long-term health and well-being of residents.

Date

  • 2024: En proceso

Stakeholders

  • NYU Furman Center
  • Robert Wood Johnson Foundation

Location

Continent: North America
Country/Region: United States of America

Description

While larger and coastal cities tend to dominate national housing discussions, small and midsize cities—defined as those with populations between 50,000 and 500,000—encounter their own set of intricate housing challenges. These challenges range from disinvestment and concentrated poverty to housing instability and affordability gaps. However, small and midsize cities also present fertile ground for innovation. They often exhibit greater agility and less bureaucratic red tape compared to larger cities, enabling them to more effectively involve higher levels of leadership, gain recognition for promising strategies, and foster trust and engagement within their communities. Nonetheless, they may lack the philanthropic and corporate support enjoyed by larger cities, as well as the necessary staffing, resources, and access to data, best practices, or specialized expertise required to develop and implement effective housing responses. Additionally, the affordability crisis in rental housing disproportionately impacts people of color, who are more likely to be renters, exacerbating existing disparities in homeownership rates between white, Black, and Latino households, which are already pronounced in larger cities and even more pronounced in small and midsize cities.

Recognizing these challenges, the NYU Furman Center established the Housing Solutions Lab—an interdisciplinary team of housing research and policy experts housed within the NYU Furman Center, a collaborative initiative between the NYU School of Law and the Robert F. Wagner Graduate School of Public Service. Through its Local Housing Solutions website and Lab Notes blog, the Lab provides a plethora of housing policy resources, data tools, cases of study and analyses. Furthermore, it facilitates peer learning opportunities for city leaders, furnishes access to local housing and neighborhood data, conducts rigorous research and evaluations, and offers technical assistance to cities striving to achieve their housing policy objectives. Continually seeking opportunities for collaboration, the Lab endeavors to support local government leaders, researchers, and other housing stakeholders in pursuing equitable, evidence-based housing policy goals.

In addition to providing strategies, data, case studies, and other innovative solutions, the Lab spearheads two main initiatives. Firstly, it administers The Peer Cities Network—a year-long program that convenes leaders from small and midsize cities to explore housing policy research, innovative practices, and avenues for achieving local housing objectives. Secondly, it conducts the Housing Solutions Workshop—an intensive three-week training program offered annually to teams of housing leaders from small and midsize cities, equipping participants with the skills necessary to develop comprehensive local housing strategies.

Vancouver’s (WA, US) tax property levy to build affordable housing

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Vancouver’s (WA, US) tax property levy to build affordable housing

Mismatches Financing
Policies and regulations Local policies Regulation Governance Participatory processes
Financing Public funding

Main objectives of the project

In response to an escalating housing crisis, Vancouver, WA implemented a property tax levy aimed at generating $42 million over a seven-year period for an affordable housing fund. The city employed a meticulously crafted strategy to garner backing from both industry stakeholders and residents for the levy proposition. City officials engaged industry representatives early in the levy proposition's design process and adjusted plans for the affordable housing fund based on their feedback. Moreover, the city actively involved residents by organizing community meetings to solicit input, incorporating suggested changes to address concerns, and launching a homelessness awareness campaign to educate residents on their role in promoting affordable housing and the significance of the levy. The city's strategic approach proved successful, with the levy proposition receiving approval from 58 percent of voters in 2016.

Date

  • 2016: Implementation

Stakeholders

  • Bring Vancouver Home Coalition
  • Vancouver City Council
  • Vancouver Housing Authority

Location

Continent: North America
Country/Region: Portland, United States of America

Description

The public administrations have a huge constraint to work out affordable housing solutions: financing them. To do so, they have to increase taxes. Yet, this means in the vast majority of cases facing opposition. Vancouver offers a different narrative. Vancouver is proof of the ability to enforce new taxes to create a fund for affordable housing if the proper political coalition is formed.

In June 2016, data from Apartment List revealed that Vancouver ranked third nationwide for the swiftest rent hikes. Situated adjacent to Portland, OR, Vancouver experienced a staggering 38 percent surge in average rents from 2011 to 2016, juxtaposed with a mere 3 percent uptick in median income. The mounting pressures in Portland's housing market propelled Vancouver's population and housing demand, catalyzing gentrification and the subsequent displacement of numerous low-income households. By 2016, the Affordable Housing Task Force of Vancouver disclosed alarming statistics: an estimated 11,675 households with very low incomes were grappling with housing cost burdens, while nearly 700 individuals resorted to shelters in Clark County, where Vancouver resides. Moreover, over 2,000 children and youths found themselves homeless or lacking stable accommodations, many resorting to couch-surfing or enduring overcrowded conditions. The Task Force underscored a notable surge in households seeking rental assistance, prompting the Vancouver Housing Authority to replace its traditional waitlist with a lottery system limited to households facing the most acute needs.

In response to these distressing figures, the Vancouver City Council declared a housing emergency, a move sanctioned by State law, enabling the City to propose a ballot measure for a property tax levy to establish an affordable housing fund. The levy, anticipated to amass $6 million annually for seven years spanning 2017 to 2023, aims to aid individuals at risk of homelessness and foster the creation and preservation of affordable housing for residents with incomes at or below 50 percent of the area median. The City aims to develop 336 affordable housing units, safeguard 454 units, furnish rental assistance to 1,500 households to prevent evictions, and augment the count of shelter beds within the city. On June 20, 2016, the City Council unanimously greenlit the inclusion of the property tax proposition on the November ballot.

Anticipating a public hearing on the proposed property tax levy, personnel from the City's Community and Economic Development Department conducted surveys and convened several public meetings to gauge community sentiment regarding the tax proposal and the affordable housing fund. Although a segment of Vancouver residents voiced resistance to heightened taxes, a substantial majority emphasized the City's obligation to confront the housing crisis. To garner support for the levy, the Bring Vancouver Home Coalition emerged. Comprising nonprofit and for-profit housing developers, homeless service providers, mental health and healthcare professionals, and education advocates, the Coalition raised over $100,000 to orchestrate a public outreach campaign bolstering the levy. Employing professional campaign staff, the Coalition orchestrated a multifaceted strategy encompassing door-to-door canvassing, website dissemination, and cable television advertisements advocating for the affordable housing fund. Additionally, the Coalition convened four community forums and engaged with neighborhood associations, churches, and advocacy groups championing fair housing and combating homelessness.

Resistance to the tax levy primarily stemmed from real estate agents, for-profit developers, and residents apprehensive about their ability to afford escalated property taxes. To assuage concerns, the City implemented exemptions for specific groups from the tax burden, including low-income residents, individuals with disabilities earning below $40,000, and seniors reliant on fixed incomes. These provisions averted burdening the very residents the levy aimed to assist. Furthermore, the City facilitated for-profit developers' access to a portion of the funds for housing development, garnering support from developers and residents who might have otherwise opposed the proposition. In November 2016, the levy secured passage with 57.6 percent of voters' support. Over the subsequent six years, property owners would be taxed $0.36 per $1,000 of assessed property value, equating to $180 annually for a property valued at $500,000.

The property tax levy took effect on January 1, 2017, with the City's Community and Economic Development Department entrusted with managing the funds garnered. Subsequently, the Department has been disbursing grants from the affordable housing fund to developers and service providers. The City fosters resident engagement with the affordable housing fund throughout its funding process, with the Affordable Housing Task Force inviting businesses, nonprofits, real estate agents, and faith-based organizations to participate in a community review panel. Applications undergo scrutiny by city staff and the community panel, appraised according to criteria prioritizing applicants with pertinent experience and a demonstrated commitment to equity. The Task Force diligently monitors and reports data on the outcomes of affordable housing fund utilization, encompassing the tally of preserved and created housing units and the number of individuals assisted by income category. Between 2017 and 2019, the City realized the creation of 137 housing units, preservation of 7 units, provision of rental assistance to 549 households, and addition of 30 new shelter beds for homeless households via the affordable housing fund. Notably, 78 percent of assisted households exhibited incomes at or below 30 percent of the area median.

Through raising awareness of its housing crisis and garnering support from property owners, Vancouver, WA, succeeded in passing a property tax levy to directly tackle the escalating homelessness attributable to soaring housing costs and burgeoning development. Local fund generation facilitated a prompt response to heightened housing needs, enabling the City to target funds to areas of immediate exigency, such as eviction prevention and shelter expansion, while simultaneously fostering housing creation and preservation for the long term.

Family Housing Expansion Project (Minneapolis)

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Family Housing Expansion Project (Minneapolis)

Mismatches Price Diversity Vulnerable groups
Policies and regulations Local policies Planning
Urban Design Environments Quality Liveability Inclusion
Promotion and production Public promotion

Main objectives of the project

In 2021, the Minneapolis Public Housing Authority (MPHA) faced a substantial waitlist of more than 8,000 families seeking affordable housing. To meet the demand for two and three-bedroom units, MPHA launched the Family Housing Expansion Project. This initiative involves constructing 84 new deeply affordable housing units spread across residential neighborhoods in Minneapolis. The project capitalizes on the Minneapolis City Council's decision to eliminate single-family zoning, as outlined in the Minneapolis 2040 Comprehensive Plan. By replacing single-family or duplex homes, MPHA aims to bolster the supply of missing middle housing and affordable units, aligning with the goals of the Comprehensive Plan. The Family Housing Expansion Project utilizes modular construction techniques to build 16 small multifamily buildings. Each building comprises four to six two or three-bedroom units. Of these units, 64 are designated for households earning at or below 30 percent of the Area Median Income (AMI), while the remaining 20 units cater to residents with incomes up to 60 percent of AMI, helping to mitigate displacement. Completion of the buildings is anticipated by late summer 2023.

Date

  • 2023: Construction

Stakeholders

  • Promotor: Minneapolis Public Housing Authority (MPHA)
  • Architect: DJR
  • Constructor: Frerichs Construction
  • Constructor: RISE Modular

Location

Continent: North America
Country/Region: Minneapolis [Saint Paul], United States of America

Description

Minneapolis has adopted a bold approach to realize its housing objectives under the Minneapolis 2040 plan, envisioning a city with increased affordability and density. An innovative measure taken involves the elimination of single-family zoning, creating opportunities for constructing new affordable housing in areas previously designated for single-family residences. However, the pressing need to address the lengthy waitlist for public or affordable housing prompted swift action. In response, the Family Housing Expansion Project was initiated.

The Minneapolis Public Housing Authority (MPHA) focused its strategy for this project on achieving efficiency and speed while adhering to stringent housing quality standards. To execute this strategy, MPHA collaborated with its procurement office to issue a two-part Request for Proposals (RFP) for both a project design team and a construction team.

Following the submission and evaluation of initial proposals, MPHA selected the three highest-ranking teams, encompassing both traditional and modular construction methods, to develop schematic designs and cost estimates. This process enabled a comparative analysis between modular and traditional construction methods, revealing that modular construction best aligned with the project's scattered-site approach and objectives.

Modular construction was projected to be 33 percent faster than traditional methods, minimizing disruptions for tenants. Additionally, it proved to be 13 to 22 percent less expensive and generated less waste. Given these advantages, MPHA chose a team comprising modular manufacturer RISE Modular, general contractor Frerichs Construction, and architecture and interior design firm DJR. Together, MPHA and its chosen team evaluated 22 potential sites throughout the city for new housing. Factors such as zoning constraints, parking availability, and suitability for modular construction were considered in selecting the most viable sites. Ultimately, 16 sites were chosen for the development of small apartment buildings featuring two or three-bedroom units.

Community engagement was a key aspect of the project, with MPHA actively involving neighborhood groups and residents in the design and construction processes. Meetings were held with residents impacted by the project, allowing them to provide feedback and select interior finishes for the units. Concerns raised by stakeholders, such as parking availability and the impact of construction on existing residents, were addressed by the project team. Measures were taken to maximize off-street parking and provide relocation benefits to temporarily displaced residents. Furthermore, existing tenants were assured the right to return to a new unit once completed.

Of the 84 units in the Family Housing Expansion Project, 16 will be accessible units, and 17 will cater to high-priority homelessness cases with services funded by Hennepin County. Long-term affordability will be ensured through project-based vouchers, with residents paying 30 percent of their incomes for the units.

The renter equity program, Cincinnati, OH

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The renter equity program, Cincinnati, OH

Mismatches Price
Policies and regulations Local policies Governance
Financing Savings systems
Ownership and tenure Rental and temporary tenure

Main objectives of the project

Implemented in a neighborhood of Cincinnati, the renter equity program empowers renters to accumulate financial assets while actively engaging in and reaping the benefits of managing their apartment communities. Since its inception in 2000, the program has expanded from one to three apartment communities, with Cornerstone Renter Equity broadening its approach to include supporting families in enhancing financial literacy and attaining financial objectives. Residents emphasize that their contentment with the program primarily arises from the sense of community it cultivates, alongside the augmented wealth and financial stability it brings. For Renters Equity, having an affordable home is also enabling people to have financial stability thanks to their collaboration and involvement in the building.

Date

  • 2000: Implementation

Stakeholders

  • Cornerstone Renter Equity

Location

Continent: North America
Country/Region: Cincinnati, United States of America

Description

The Renter Equity program was initiated in the Over-the-Rhine neighborhood of Cincinnati, aiming to address the financial struggles faced by working-class individuals who are able to pay rent but find it challenging to afford other expenses. This program operates under the premise that renters lack house equity, despite making monthly payments towards their residence, thereby hindering their ability to access the value they've invested in the property for various purposes.

Cornerstone Renter Equity, established in 1986 as a community development loan fund, conceived the renter equity program to have a more significant social impact in Cincinnati. The program awards "equity credits" to residents upon completion of specified "renter obligations," which include timely rent payment, attendance at monthly tenant meetings, and participation in assigned apartment community upkeep tasks. These tasks typically require one to two hours per week and may involve property maintenance or contributing to property management decisions.

Residents can earn a maximum of $10,000 in equity credits over a ten-year period, which are held in a reserve fund managed by Cornerstone. These credits become vested after five years, at which point participants can withdraw them as cash or borrow against them for purposes such as education expenses or debt repayment. However, the program is tailored to a specific target audience: working-class individuals with limited financial assets who do not currently own or plan to purchase a home and hence lack a means of accumulating home equity.

The structure of the renter equity program revolves around three key components: the Renter Equity Agreement, Resident Association Agreement, and House Rules. These documents outline residents' obligations and the property management system's structure, emphasizing the earning of equity credits through fulfilling responsibilities. Prospective residents undergo a comprehensive orientation process, attending three monthly sessions to fully understand program requirements.

Residents benefit from community events and initiatives facilitated by the program, such as block parties, summer camps, monthly management meetings, and collaborative projects like building a playground together. Participants have reported experiencing greater financial security and satisfaction with their apartment communities as a result of accumulating equity credits. They have utilized these credits for various purposes, including funding long-term ventures and addressing financial needs such as paying for education or medical expenses.

While residents appreciate the opportunity for control over property management and the quality of their living environment, the primary appeal of the program, according to evaluations, lies in the sense of community fostered through participation. A majority of residents stay for five or more years and accumulate significant equity, though most end up using the funds to pay off debt or cover essential expenses rather than for investment or purchasing assets like cars or homes.

Seattle “Grand Bargain” and the Mandatory Housing Affordability (MHA) program

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Seattle “Grand Bargain” and the Mandatory Housing Affordability (MHA) program

Mismatches Financing
Policies and regulations Local policies Regulation Building capacity Planning Public-private initiatives
Promotion and production Public-private partnerships
Ownership and tenure

Main objectives of the project

On July 15th, 2016, a coalition comprising 10 city officials, private developers, and advocates for affordable housing came together to sign the Seattle "Grand Bargain." This agreement, forged through unprecedented negotiations and collaboration, aimed to implement an inclusionary zoning and linkage fee program across upzoned neighborhoods in the city. Central to the Grand Bargain is the Mandatory Housing Affordability (MHA) program, which mandates the incorporation of rent-restricted units for low-income households in new developments, but specifically within neighborhoods upzoned for increased density. Consequently, the Grand Bargain ensures the inclusion of affordable units in new developments while also offering development incentives to facilitate the construction of more units on a given lot, thereby mitigating the revenue loss associated with affordable housing. Through the negotiation of the Grand Bargain, the city sought to simultaneously expand the overall housing supply (by increasing density) and the availability of dedicated affordable housing for lower-income households (via mandatory inclusionary measures).

Date

  • 2019: Implementation
  • 2016: En proceso

Stakeholders

  • City Council of Seattle
  • Grand Bargain coalition

Location

Continent: North America
Country/Region: Seattle, United States of America

Description

In 2016, the City Council of Seattle ratified the Grand Bargain's Mandatory Housing Affordability (MHA) program, incorporating it into city law. This program encompasses zoning code revisions to boost density across much of the city, the establishment of a mandatory inclusionary housing scheme mandating certain affordability standards for new apartment complexes, and the introduction of commercial linkage fees requiring owners of new commercial spaces to contribute funds toward constructing affordable units within the city.

The MHA program, spearheaded by then-Mayor Ed Murray in collaboration with Seattle's Housing Affordability and Livability Advisory Committee, aims to produce 6,000 affordable housing units for families at or below 60 percent of the area median income (AMI) within a decade. This initiative is anchored by 65 individual policy recommendations, with the MHA being a prominent feature. Under the MHA, the city undertakes zoning changes to boost density in commercial and multifamily residential areas and neighborhoods near transit lines. Developers are then obligated to include dedicated affordable housing within new constructions in these areas.

To offset the costs associated with incorporating affordable units into new developments and to bolster the overall housing supply, the city representatives agreed to heighten residential density in select neighborhoods in exchange for affordability requirements in new development. The MHA mandates that approximately six percent of single-family zones transition to a newly designated category termed Residential Small Lot, facilitating the construction of multiple "cottage" homes on a single lot, as well as the creation of duplexes and row houses. Additionally, some single-family zones will permit the construction of triplexes, townhomes, row houses, and three- to four-story apartment buildings.

Once an area undergoes rezoning to increase density, the Grand Bargain stipulates that residential developers constructing new units must incorporate units affordable to families at or below 60% AMI. This requirement applies solely to new constructions and/or alterations that increase the total number of units within a structure. The Mandatory Inclusionary Housing program dictates that a percentage of units constructed be rent-restricted for a minimum of 50 years. The affordability criteria range between 3-7% of units, depending on the market. Developers opting out of including affordable housing must pay the city a per square foot in-lieu fee ranging from $5 to $33, contingent on the development's size and location.

Furthermore, in neighborhoods rezoned for increased density, commercial developers are mandated to pay a linkage fee on new developments, ranging from $5 to $17 per square foot. These fees, contingent on building size and location, apply to all new constructions, expansions, or conversions from residential to commercial use. The collected linkage fees are allocated to nonprofit organizations to aid in constructing affordable housing in Seattle.

However, the path to implementing these regulations was fraught with challenges. The Mandatory Inclusionary Housing components within the MHA program only take effect once neighborhoods are upzoned, and since the program's adoption, the city's upzoning efforts have faced legal disputes and community resistance. After nearly four years of legal battles, the agreed-upon timeframe for adopting all zoning changes extended beyond the original 2017 deadline. In 2019, eventually, all the rezoning measures were enforced.

The adoption of zoning changes to boost density marks Seattle's efforts to expand its housing supply by facilitating the development of new multifamily buildings. While increased housing supply theoretically improves affordability, the significant supply deficit in high-cost cities often means initial expansions merely meet existing demand, having limited immediate impact on housing prices. By coupling increased density with mandatory inclusionary housing requirements, the policy ensures the availability of lower-cost units for low-income families and their continued affordability through legal constraints.

The Arroyo, Santa Monica

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The Arroyo, Santa Monica

Mismatches Location Functional adequacy Diversity Climate change
Policies and regulations Local policies Planning
Financing Financial actors
Urban Design Environments Quality Liveability
Promotion and production Private promotion

Main objectives of the project

Santa Monica's efforts to tackle its housing crisis and mitigate climate change converge in projects like the Arroyo. The city's commitment to affordable housing is evident in its mandate to create over a thousand new units annually, with a focus on affordability. The Arroyo exemplifies this mission, providing 64 units tailored to different income levels and incorporating sustainable design elements like photovoltaic cells and natural ventilation. Its recognition with prestigious awards like the 2020 LEED Homes award demonstrates its success in marrying affordability with environmental responsibility, serving as a model for future developments amidst California's dual challenges of housing and climate.

Date

  • 2019: Construction
  • 2020: Ganador

Stakeholders

  • Promotor: Community Corp.
  • Constructor: Benchmark Contractors
  • Architect: Koning Eizenberg Architecture
  • John Labib + Associates

Location

Continent: North America
Country/Region: Los Angeles, United States of America

Description

The affordable housing crisis in Santa Monica mirrors that of California as a whole, with over half of households spending more than 30 percent of their income on rent. The city also faces the daunting task of meeting the goals set in the 2021 regional housing needs allocation (RHNA): planning for an average of 1,109 new housing units annually for the next 8 years, with over two-thirds of them designated as affordable. This year's allocation represents a substantial increase compared to the previous RHNA cycle. To tackle this challenge, Santa Monica has implemented aggressive measures, including inclusionary housing (IH) regulations, to encourage the development of affordable housing units. Simultaneously, the city grapples with the climate crisis, experiencing higher average temperatures and prolonged droughts. In response, Santa Monica devised its 2019 Climate Action and Adaptation Plan, incorporating strategies to achieve carbon neutrality in buildings. Recent housing projects in the city, such as the 64-unit Arroyo developed by the Community Corporation of Santa Monica, epitomize this dual focus on sustainability and affordability.

The Arroyo, a five-story building featuring two parallel wings connected by bridges on each floor, boasts a central courtyard that follows the path of the former arroyo, now replaced by a stormwater drain. This courtyard extends into a basketball half-court and picnic area with covered activity space. Additionally, indoor spaces cater to residents' needs, providing a vibrant community atmosphere. Two community rooms host various free programs, including fitness classes, financial management courses, and computer training sessions. Tailored programs for younger residents, such as afterschool homework assistance and college readiness courses, further enrich the community experience.

The genesis of the Arroyo lies in the city's housing and planning regulations applied to 500 Broadway, a downtown development proposed by DK Broadway in 2013. Subject to city requirements mandating affordable units or contributions towards affordable housing elsewhere, DK Broadway opted to provide a site for affordable housing a few blocks away, subsequently transferred to the Community Corporation. The financial backing, including low-income housing tax credits and loans from Bank of America, facilitated the Arroyo's development without city or state funding.

Sustainable design features are integral to the Arroyo's ethos. Natural airflow facilitated by the courtyard, bridges, and open-air corridors promotes ventilation and cooling without increasing energy demand. Photovoltaic cells and solar water heating panels harness Southern California's abundant sunshine, while high-albedo roofs and window shades mitigate excessive sun exposure. Proximity to amenities and a Metro light rail station encourages car-free living, supported by onsite bicycle parking and electric vehicle chargers. These sustainable elements, coupled with affordability, earned the Arroyo recognition, including a 2020 LEED Homes award from the U.S. Green Building Council.

The Arroyo's accolades extend beyond sustainability, with awards such as the AIA National Housing Award (2021) and the Jorn Utzon Award (2020) underscoring its architectural and societal significance.

Diverse Metropolis Regulation

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Diverse Metropolis Regulation

Mismatches Diversity
Policies and regulations Local policies Planning
Promotion and production Public-private partnerships
Ownership and tenure

Main objectives of the project

Montreal, Canada, implements a new regulation to have affordable housing, the Diverse Metropolis Regulation. The main goal of the regulation is that all the projects done in “affordable zones” (a new zoning category) must reach an agreement with the city to enhance social and affordable housing. Preserving the diversity of our neighborhoods and promoting access to suitable housing for all: this is the objective set by the City of Montreal with its Regulations for a mixed metropolis.

Date

  • 2021: Implementation

Stakeholders

  • Montreal

Location

Continent: North America
Country/Region: Canada, Montreal

Description

Montreal wanted to foster more mixed communities. However, in its planning legal framework, the private initiative has a lot of power. Thus, agreements with promoters must be reached in order to have affordable housing and a diverse typology of housing units. For this reason, in 2021, they enforced a new planning regulation on certain areas of the city. Any person who carries out a project involving the addition of at least 1 dwelling and a residential surface area exceeding the threshold set in the Regulation must enter into an agreement with the City in order to contribute to the supply of social, affordable and family housing. This may be a new building, an extension or the conversion of a building.
The threshold set in the Regulation is 450 m² of added residential area (equivalent to approximately 5 housing units). However, until December 31, 2026, the threshold is temporarily increased to 1,800 m² (equivalent to approximately 20 housing units) in order to take into account the economic context. After this period, the threshold will be restored to 450 m².

Contributions are made either for social housing (any dwelling unit owned by a non-profit organization, cooperative, government or paramunicipal corporation that is intended for people with special housing needs or households with low or modest incomes) or affordable housing (dwelling unit, not necessarily owned by non-profits or municipality, for which the selling price or rent is subject to a commitment of at least a 20-year period). The percentage going into affordable housing is between 10 to 20% of the project. Then you must add the social contribution depending on the surface of land.

The affordable contribution of the project is agreed with the city and has three main ways to be fulfilled: the creation of affordable housing by the promoter; the sale of a building to the city, which can take the form of the sale of an existing rental building or vacant land; a financial contribution: the contribution varies depending on the size of the project and the sector in which it takes place. A combination of the three is also possible. In the case of social housing, a portion of land must be selled to the city or made a financial contribution.

The new regulation is an innovative way to generate mixed communities in a market-driven development scheme. Using the legal tools of planning, the municipality enhanced social housing and affordability in different typologies of buildings.

PACE and Phyllis Wheatley YWCA rehabilitation

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PACE and Phyllis Wheatley YWCA rehabilitation

Mismatches Financing Vulnerable groups
Policies and regulations National policies Public-private initiatives
Financing Financial actors Public funding

Main objectives of the project

Washington, D.C. is addressing the significant deferred maintenance requirements and the challenge of high utility bills faced by affordable housing properties and non-profits. Through the implementation of Property Assessed Clean Energy (PACE) financing in affordable housing projects, the city is making sustainable upgrades accessible to an underserved market. This initiative demonstrates that green retrofits and housing affordability can complement each other effectively.

Date

  • 2018: Finalista
  • 2016: Construction

Stakeholders

  • Promotor: Dantes Partners
  • US Department of Housing
  • Washington DC Mayor
  • Architect: Miner Feinstein Architects

Location

Continent: North America
Country/Region: United States of America, Washington D.C.

Description

The property assessed clean energy (PACE) model represents an innovative approach to financing energy efficiency and renewable energy enhancements on private property. PACE financing, commonly established within a "land-secured financing district," akin to an assessment district or local improvement district, typically involves local government-issued bonds for projects like streetlights or sewer systems. Recently extended to encompass energy efficiency and renewable energy initiatives, this model allows property owners to undertake improvements without substantial upfront costs. Participants in a PACE program, opting in voluntarily, repay improvement expenses over a defined period—typically 10 to 20 years—through property assessments, secured by the property itself and billed as an addition to property tax obligations.

Although PACE financing is accessible across much of the USA, the Phyllis Wheatley YWCA project stands out as the first instance where it has gained approval for a Department of Housing and Urban Development-assisted mixed finance public housing property. By synergizing with affordable housing subsidies, this pioneering mechanism facilitates the preservation of low rents, ensuring the property's sustained status as public affordable housing for a minimum of 40 years, all while reducing its environmental impact.

The Phyllis Wheatley YWCA, a nationally registered historic edifice, fulfills the needs of marginalized women by providing secure housing and counseling services. Originally erected in 1920 and significantly renovated in the early 1990s, the building is experiencing resident attrition. While only 30 units retain full amenities, thanks to the rehabilitation the rest now have shared shower rooms and kitchens on each floor, each unit now includes a toilet and sink. Additionally, the restoration of the first-floor common areas to their historic splendor entails the removal of current utilitarian finishes. Thanks to PACE financing, newly installed photovoltaic systems, sophisticated computerized control integration for mechanical and electrical systems, and stormwater management solutions optimize the building's technological efficiency.

Washington DC exemplifies how national programs can be used to maintain social housing and improve them. Benefiting from what was once thought for private owners can lead to useful results for the public administration, too. The result is the enhancement of a historic social housing building in a gentrified neighborhood, generating a more diverse and vivid environment also in the surrounding community.

This project was completed in December of 2016 and won 3rd place in the renovation category for the Affordable Housing Conference of Montgomery County Design Awards, 2018.

NextGeneration NYCHA Sustainability Agenda

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NextGeneration NYCHA Sustainability Agenda

Mismatches Climate change
Policies and regulations Governance Data and monitoring
Promotion and production Public promotion Public-private partnerships

Main objectives of the project

The New York City Housing Authority (NYCHA) has formulated a comprehensive strategy aimed at reducing emissions across all sectors by 80% by 2050 while safeguarding 300,000 residents from the adverse effects of climate change, including heat waves, storms, and rising temperatures. To achieve this goal, the city is enacting groundbreaking policies to decarbonize energy consumption in residential buildings throughout NYC.

Date

  • 2016: Implementation
  • 2021: Implementation

Stakeholders

  • Promotor: New York City Housing Authority (NYCHA)

Location

Continent: North America
Country/Region: New York, United States of America

Description

In 2016, the NextGeneration NYCHA Sustainability Agenda was crafted as a 10-year blueprint aimed at cultivating healthy and resilient homes capable of withstanding climate change impacts, while aligning with the city’s pledge to reduce greenhouse gas emissions by 80% by 2050. This plan delineates 17 strategies to curtail NYCHA’s carbon footprint by 30% by 2025, bolster resilience, and uphold resident well-being. These strategies encompass enhancements in heating and hot water efficiency, establishment of standards for both new and existing buildings, widespread adoption of clean energy, and facilitation of residents' access to economic opportunities.

Central to this agenda are the following objectives: (1) Eliminate the root causes of mold by fixing leaks in roofs, façades, and pipes and by modernizing ventilation systems; (2) Eliminate overheating and unplanned heat and hot water outages; (3) Start on the path to meeting the City’s goal of reducing greenhouse gases by 80 percent by 2050; (4) Address climate adaptation and resiliency in all capital planning; and (4) Incorporate sustainability into day-to-day management of all properties.

Flood risk and stormwater management stand out as priorities, with resilience plans underway for all housing susceptible to coastal flooding. This includes risk evaluations and retrofit directives informed by lessons from Hurricane Sandy. The initial phase of stormwater infrastructure implementation projects holds the potential to capture approximately 72 million liters per year. Furthermore, NYCHA aims to furnish backup power for all Sandy-affected developments, establish microgrids at select developments, and install 25 MW of solar power to shield public housing residents from climate change's short- and long-term effects. These efforts involve deep retrofits to diminish energy consumption and the deployment of solar panels on residential rooftops, complementing the city’s 2025 target of 100 megawatts of solar energy for municipal buildings.

A pivotal aspect of the plan involves transitioning away from fossil fuel reliance in heating and cooking via innovative electrification solutions. Through initiatives like the Clean Heat for All challenge, manufacturers were invited to develop new cold-climate heat pumps, capable of swift installation in windows, minimizing resident disruptions. The city plans to procure 24,000 heat pumps to expedite low-cost electrification in tens of thousands of multi-family buildings, ensuring dependable heating. Additionally, geothermal energy solutions are being implemented, and gas stoves are being replaced with induction cookstoves in select buildings.

These actions not only create equitable job opportunities for public housing residents but also contribute to overhauling the city's electricity supply. More than 300 city residents have been employed to execute these initiatives, with an additional 40 enrolled in solar training programs. NYCHA is also establishing the Clean Energy Academy to train 250 residents over four years in green jobs within the solar and building decarbonization sectors.

The plan stands as a prime example of how affordable housing can fortify climate resilience in urban landscapes while promoting integration and social justice. After the success in 2016, in 2021 the strategies were updated by the new administration.

Affordable Housing Bonus Program in San Francisco

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Affordable Housing Bonus Program in San Francisco

Mismatches Vulnerable groups
Policies and regulations National policies Local policies Planning Public-private initiatives

Main objectives of the project

San Francisco has faced challenges in ensuring affordable housing for its low and middle-income residents. However, through a reevaluation of California's Density Bonus schemes, a solution has been achieved. This involves providing incentives for the construction of affordable housing by allowing developers to surpass construction regulations.

Date

  • 2016: Implementation

Stakeholders

  • San Francisco Planning

Location

Continent: North America
Country/Region: San Jose, United States of America

Description

In California, the public administration does not have a lot of finance or land options to develop affordable housing. In a system relying on private investment, the USA and California have developed a way to push privates to build affordable housing. One of these options is the Density Bonus.

In a density bonus scheme, a developer is permitted to build a larger project on a site than would otherwise be permitted, in exchange for including specific elements such as a certain percentage of affordable housing units. In some cases, a developer can contribute land or funds for creating off-site affordable housing. In California, State law requires local governments to encourage housing development for all income levels and assist in the development of adequate housing to meet the needs of low- and moderate-income households. In 2016, the city of San Francisco revised its original scheme to adopt a 100 per cent “Affordable Housing Bonus Program”.

San Francisco encountered a significant issue with its density bonus scheme: the majority of housing units were allocated to low-income individuals, neglecting access for middle-income workers. Additionally, these schemes fell short of achieving the diverse mixture typical of a dense city like San Francisco. In response, the city introduced the "Affordable Housing Bonus Program" to address these challenges.

First, the program determines commercial corridors where developments can be made. The idea is to build in diversity and mixture of use. Then, the Local AHBP will offer incentives to project sponsors that elect to provide 30 percent or more affordable housing units on-site. Of this 30 percent, 12 percent must be permanently affordable to low- and moderate-income households and 18 percent permanently affordable to middle-income households. Projects that include 30 percent or more affordable units for low and middle-income households will be able to build more residential units and up to an additional two stories than currently allowed under existing zoning regulations. Yet, the Local AHBP includes special incentives for 100% affordable housing developments. These projects are generally built by non-profit developers, and usually require public subsidies. Projects with 100 percent affordable units will be able to build more residential units and up to three additional stories of residential development than currently allowed under existing zoning regulations.

This program goes beyond the State one, allowing for only one story more and having just a maximum of 20% of affordable housing.