DC Flex, Washington DC

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DC Flex, Washington DC

Mismatches Vulnerable groups
Policies and regulations Local policies Governance Data and monitoring Evaluation and impact Evictions
Financing Public funding Demand subsidies
Ownership and tenure Protection of social housing

Main objectives of the project

The housing crisis in the US, particularly affecting Washington DC, prompted the introduction of the DC Flexible Rent Subsidy Program (DC Flex) in 2017, aiming to assist middle-class individuals and low-income families facing delays in traditional housing assistance. Unlike existing programs like housing choice vouchers (HCVs) and rapid rehousing (RRH), DC Flex offers fixed subsidies to extremely low-income households, providing flexibility in rent payments and serving as a financial safety net for those living paycheck to paycheck. A study conducted after its first year of implementation revealed positive outcomes, with the program effectively maintaining housing stability and reducing homelessness rates among participants to just 1.8%. This measure do not only offer good results, but it is a good practice of governance with NGOs and of simplification of administrative burden.

Date

  • 2017: Implementation

Stakeholders

  • District of Columbia Council

Location

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

Description

The housing crisis gripping the United States has put immense pressure on Washington DC's housing market. Despite traditional and federal subsidies, the District of Columbia found itself grappling with a complex situation, particularly in aiding middle-class individuals. While many low-income families qualify for housing choice vouchers (HCVs), the lengthy waiting lists often delay assistance. Rapid rehousing (RRH) programs offer short-term rental subsidies, but their long-term effectiveness is uncertain. To bridge this gap, the DC Flexible Rent Subsidy Program (DC Flex) was introduced in 2017 as a four-year pilot initiative, funded by a $5 million appropriation from the District of Columbia Council and supported by Mayor Muriel Bowser.

DC Flex targets extremely low-income households, comprising those earning up to 30 percent of the area median income, with at least one employed adult and children. Participants must have recently sought emergency or temporary housing assistance and reside in a legal rental unit within the city. The program aims to prevent eviction for families living paycheck to paycheck. Each household enrolled in DC Flex receives a checking account and an escrow account containing the full $7,200 subsidy balance. This subsidy can only be used for rent payments, with participants granted flexibility in allocating funds. In other words, each month they can choose how much money of the fund they use to pay the rent. Capital Area Asset Builders, a District-based financial education nonprofit, manages the program, transferring funds from the escrow account to the checking account monthly to cover rent expenses. Unlike HCVs, DC Flex subsidies remain fixed regardless of changes in income or household size, serving as a financial safety net for low-income families facing income disruptions.

A study conducted after the first year of implementation found that DC Flex was successfully launched and managed. The Urban Institute, responsible for the assessment, recommends DC Flex as a viable alternative to existing housing services based on initial findings. Focus groups highlighted the program's role in maintaining housing stability, particularly for families ineligible for other subsidy programs or exiting RRH. Over time, program adjustments have extended the eligibility period to five years and increased the subsidy amount to over $8,000. However, once participants' earnings exceed 40% of the Area Median Income, their benefits cease. Notably, upon program completion, families gain unconditional access to any remaining funds in their account, effectively transforming it into a Basic Income. With only 1.8% of participants experiencing homelessness after exiting the program, DC Flex demonstrates promising outcomes compared to control groups.

Terner labs

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Terner labs

Mismatches
Policies and regulations Governance Data and monitoring Evaluation and impact
Urban Design

Main objectives of the project

Terner Labs, affiliated with UC Berkeley's Terner Center for Housing Innovation, utilize data, transparent methodologies, and innovative approaches. Their aim is to support policymakers in devising more effective solutions to California's housing crisis.

Date

  • 2019: Implementation

Stakeholders

  • Terner Center

Location

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

Description

In response to California's significant housing crisis, UC Berkeley established the Terner Labs as part of the Terner Center, aiming to tackle the issue head-on. The mission of the Terner Center for Housing Innovation is to develop innovative strategies to provide affordable housing for families from diverse backgrounds in sustainable and vibrant communities. Founded in 2015, the Terner Center has swiftly emerged as a leading advocate for identifying and advancing solutions to the nation's most challenging housing issues.

The Terner Labs, the main innovative arm of the center, comprises three distinct labs. The oldest among them is the Housing Venture Lab, established in 2019. This lab serves as an accelerator, offering comprehensive support to entrepreneurs with fresh and bold ideas aimed at enhancing the accessibility, equity, and sustainability of housing. Through the lab, entrepreneurs gain access to a network of leading figures in construction, policymaking, nonprofits, and entrepreneurship on a national scale. Moreover, they receive guidance from experienced professionals and strategic partners to chart a course for substantial impact. Then, they can test the ideas and analyze how they work.

The Data Solutions Lab focuses on developing data-driven tools for housing and land use modeling, enabling policymakers, researchers, and advocates to make well-informed decisions regarding community housing. A notable tool developed by this lab is the housing supply simulator. This simulator assesses the potential impact of policy changes, such as adjusting height limits or unit numbers, on the types of housing developed at different scales. Furthermore, it evaluates the financial viability and likelihood of development across various building types, zoning categories, and neighborhoods. Additionally, it predicts how policy alterations could affect housing production in proximity to transit, in areas susceptible to displacement, or in regions prone to wildfires, among other considerations.

Lastly, the Builders Lab, set to launch in 2024, will collaborate with emerging leaders in architecture, engineering, and construction to implement and scale innovative methods that streamline housing delivery nationwide. The lab aims to cultivate a cohort of ventures that pioneer advancements in construction techniques to facilitate the provision of affordable housing.

Collectively, these three labs exemplify how leveraging data, engaging stakeholders, and harnessing technology can pave the way for more effective housing policies.

State of Homelessness (US)

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State of Homelessness (US)

Mismatches Vulnerable groups
Policies and regulations National policies Data and monitoring Evaluation and impact Evictions

Main objectives of the project

The National Alliance to End Homelessness produces the influential "State of Homelessness" report, using HUD data to assess and analyze homelessness nationwide, while also evaluating emergency services and risk factors that might lead to homelessness.

Date

  • 2023: En proceso

Stakeholders

  • National Alliance to End Homelessness

Location

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

Description

The National Alliance to End Homelessness is a nonpartisan, nonprofit organization dedicated solely to eradicating homelessness in the United States. Utilizing research and data, they seek solutions to homelessness, collaborating with federal and local partners to establish robust policies and resources supporting these solutions. Subsequently, they assist communities in implementing these strategies. Annually, they produce the "State of Homelessness" report.

This report relies on data from the U.S. Department of Housing and Urban Development (HUD) to offer an overview of homelessness in the U.S. on a given night in 2022 and highlight emerging trends. Drawing from HUD's Point-in-Time (PIT) Count and Housing Inventory Count data, the NAEH organizes and analyzes the information.

Through this process, the NAEH obtains a count of homelessness in each U.S. state while also evaluating the state of emergency services and assistance available to homeless individuals. This comparison between the number of people experiencing homelessness and the aid accessible to them is crucial. Additionally, they consider risk factors contributing to homelessness, such as rent burden, which helps forecast potential increases in the homeless population.

In summary, the NAEH's "State of Homelessness" report stands as the premier nationwide assessment of this pressing issue, providing invaluable insights into the state of homelessness across the country.

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.

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.