8.2 Affordable housing and anti-displacement strategies
12 min read•august 20, 2024
Affordable housing and anti-displacement strategies are crucial for sustainable urban planning. These approaches aim to provide stable, accessible housing options for all income levels, while protecting vulnerable residents from displacement due to rising costs or gentrification.
Strategies include , , , and . Preserving existing affordable units, assisting with homeownership, addressing homelessness, and implementing are also key components of comprehensive housing policies.
Affordable housing challenges
Affordable housing is a critical issue in sustainable urban planning, as it directly impacts the social, economic, and environmental well-being of communities
Challenges in providing affordable housing can lead to increased social inequality, economic instability, and environmental degradation
Rising housing costs
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Housing costs have been increasing at a faster rate than household incomes, making it difficult for many individuals and families to afford adequate housing
Factors contributing to rising housing costs include:
Increased demand for housing in urban areas
Limited supply of affordable housing units
Speculative real estate investments
Rising construction and land costs
Rising housing costs can lead to housing cost burden, where households spend more than 30% of their income on housing expenses
Limited housing supply
Many cities face a shortage of affordable housing units, particularly in high-demand areas
Factors contributing to limited housing supply include:
Zoning restrictions that limit the development of higher-density housing
Lack of incentives for developers to build affordable housing
Insufficient public investment in affordable housing construction
Conversion of affordable housing units to market-rate housing
Limited housing supply can lead to increased competition for available units, driving up costs and exacerbating affordability challenges
Gentrification and displacement
Gentrification is the process of neighborhood change characterized by the influx of higher-income residents and businesses, often leading to rising property values and rents
Displacement occurs when lower-income residents are forced to move out of their neighborhoods due to rising housing costs and other factors associated with gentrification
Gentrification and displacement can have significant negative impacts on communities, including:
Loss of affordable housing units
Disruption of social networks and community ties
Increased housing instability and homelessness
Disproportionate impacts on low-income and minority communities
Addressing gentrification and displacement requires a combination of affordable housing strategies, tenant protections, and community-driven planning processes
Affordable housing strategies
Affordable housing strategies aim to increase the supply of affordable housing units and ensure that low- and moderate-income households have access to safe, stable, and affordable housing
Effective affordable housing strategies often involve a combination of policy tools, financial incentives, and partnerships between the public, private, and non-profit sectors
Inclusionary zoning policies
Inclusionary zoning policies require or incentivize developers to include a certain percentage of affordable housing units in new residential developments
These policies can be mandatory or voluntary and may apply to rental or homeownership units
Inclusionary zoning can help create mixed-income communities and increase the supply of affordable housing in high-demand areas
Factors to consider when implementing inclusionary zoning include:
Setting appropriate affordability requirements and income targets
Providing incentives for developers to offset the costs of providing affordable units
Ensuring long-term affordability of inclusionary units
Monitoring and enforcing compliance with inclusionary zoning requirements
Density bonuses for developers
Density bonuses are incentives that allow developers to build more housing units than typically allowed under zoning regulations in exchange for providing affordable housing units
Density bonuses can take the form of increased height limits, reduced setback requirements, or other zoning variances
By providing density bonuses, cities can encourage the development of affordable housing in areas where it might not otherwise be financially feasible
Factors to consider when implementing density bonuses include:
Setting appropriate affordability requirements and income targets
Ensuring that the increased density is compatible with the surrounding neighborhood
Providing clear guidelines for developers to access density bonuses
Monitoring and enforcing compliance with affordability requirements
Public-private partnerships
Public-private partnerships (PPPs) involve collaboration between government entities and private sector partners to develop, finance, and operate affordable housing projects
PPPs can leverage the strengths of both the public and private sectors to create affordable housing that meets the needs of the community
Examples of PPPs in affordable housing include:
Joint development projects on publicly-owned land
Tax increment financing (TIF) to fund affordable housing development
Factors to consider when establishing PPPs for affordable housing include:
Clearly defining the roles and responsibilities of each partner
Ensuring that the partnership aligns with the community's affordable housing goals
Establishing performance measures and accountability mechanisms
Engaging the community in the planning and decision-making process
Community land trusts
Community land trusts (CLTs) are non-profit organizations that acquire and manage land to provide affordable housing and other community benefits
CLTs typically retain ownership of the land and sell or lease the housing units on the land to low- and moderate-income households
By separating the ownership of the land from the ownership of the housing units, CLTs can ensure long-term affordability and prevent displacement
CLTs can provide a range of affordable housing options, including:
Homeownership units with resale restrictions to maintain affordability
Rental units with below-market rents
Limited equity cooperatives
Factors to consider when establishing a CLT include:
Engaging the community in the planning and governance of the CLT
Securing funding for land acquisition and housing development
Establishing clear eligibility criteria and resale restrictions for CLT units
Providing ongoing stewardship and support for CLT residents
Rent control and stabilization
and stabilization policies aim to protect tenants from excessive rent increases and ensure that rental housing remains affordable over time
Rent control typically limits the amount that landlords can increase rents each year, while rent stabilization may allow for larger increases when units become vacant
These policies can help prevent displacement and provide stability for low- and moderate-income renters
Factors to consider when implementing rent control and stabilization policies include:
Setting appropriate rent increase limits and exemptions
Ensuring that the policies do not discourage new rental housing development
Providing clear guidelines for landlords and tenants
Establishing enforcement mechanisms to ensure compliance with the policies
Preserving existing affordable housing
Preserving existing affordable housing is often more cost-effective than building new affordable units and can help prevent displacement of low-income residents
Strategies for preserving affordable housing include rehabilitation and renovation, , and tenant protection laws
Rehabilitation and renovation
Rehabilitating and renovating existing affordable housing units can improve the quality of life for residents and extend the useful life of the buildings
Rehabilitation and renovation projects can include:
Upgrading building systems (HVAC, plumbing, electrical)
Improving energy efficiency and sustainability
Enhancing accessibility for residents with disabilities
Modernizing unit interiors and common areas
Funding sources for rehabilitation and renovation projects can include:
(LIHTC)
Community Development Block Grants (CDBG)
HOME Investment Partnerships Program
State and local housing trust funds
Affordable housing preservation funds
Affordable housing preservation funds are dedicated funding sources that provide financing for the acquisition, rehabilitation, and preservation of existing affordable housing units
These funds can be used to:
Acquire properties at risk of converting to market-rate housing
Provide low-interest loans or grants for rehabilitation and renovation projects
Establish long-term affordability restrictions on preserved units
Affordable housing preservation funds can be capitalized through a variety of sources, including:
General obligation bonds
Real estate transfer taxes
Developer fees and contributions
Philanthropic donations
Tenant protection laws
Tenant protection laws can help prevent displacement and ensure that low-income renters have stable, affordable housing
Examples of tenant protection laws include:
that require landlords to provide a valid reason for evicting tenants
Tenant right to counsel programs that provide legal assistance to renters facing eviction
Tenant opportunity to purchase laws that give tenants the right to purchase their building when it is sold
Anti-harassment laws that prohibit landlords from engaging in harassing or discriminatory behavior
Tenant protection laws can be implemented at the state or local level and may require ongoing funding for enforcement and tenant education
Homeownership assistance programs
Homeownership assistance programs aim to help low- and moderate-income households achieve the benefits of homeownership, including wealth building, housing stability, and community engagement
These programs can take a variety of forms, including , , and
Down payment assistance
Down payment assistance programs provide grants or low-interest loans to help homebuyers cover the upfront costs of purchasing a home
These programs can be targeted to specific populations, such as first-time homebuyers, low-income households, or public service professionals (teachers, firefighters, etc.)
Down payment assistance can be provided through:
State and local housing finance agencies
Non-profit organizations
Employer-assisted housing programs
Factors to consider when designing down payment assistance programs include:
Setting appropriate income and purchase price limits
Establishing recapture or resale provisions to ensure long-term affordability
Providing homebuyer education and counseling to ensure successful homeownership
Low-interest mortgage loans
Low-interest mortgage loans can help make homeownership more affordable for low- and moderate-income households by reducing monthly mortgage payments
These loans can be provided through:
Government-backed programs (FHA, VA, USDA)
State and local housing finance agencies
Community development financial institutions (CDFIs)
Low-interest mortgage loans may have features such as:
Below-market interest rates
Reduced or waived mortgage insurance premiums
Flexible underwriting criteria
Factors to consider when designing low-interest mortgage loan programs include:
Setting appropriate income and purchase price limits
Ensuring that borrowers have the ability to repay the loans
Providing homebuyer education and counseling to ensure successful homeownership
Shared equity homeownership models
Shared equity homeownership models allow homebuyers to purchase a share of a home's equity, while a public or non-profit entity retains ownership of the remaining share
Examples of shared equity homeownership models include:
Community land trusts (CLTs)
Limited equity cooperatives (LECs)
Deed-restricted homeownership programs
Shared equity models can provide a balance between the benefits of homeownership and the need for long-term affordability
Factors to consider when designing shared equity homeownership programs include:
Establishing clear resale restrictions and equity-sharing formulas
Providing ongoing stewardship and support for homeowners
Ensuring that the programs are financially sustainable and scalable
Addressing homelessness
Homelessness is a complex issue that requires a comprehensive and coordinated response from the public, private, and non-profit sectors
Strategies for addressing homelessness include the , , and
Housing First approach
The Housing First approach prioritizes providing permanent housing to individuals and families experiencing homelessness, without preconditions such as sobriety or treatment compliance
Housing First programs typically provide:
Rapid access to permanent housing
Voluntary supportive services to help individuals maintain housing stability
Harm reduction strategies to address substance use and other challenges
The Housing First approach has been shown to be effective in reducing chronic homelessness and improving health and social outcomes for individuals experiencing homelessness
Permanent supportive housing
Permanent supportive housing (PSH) combines affordable housing with ongoing supportive services for individuals and families with complex needs, such as chronic homelessness, mental illness, or substance use disorders
PSH programs typically provide:
Long-term rental assistance or subsidized housing units
Intensive case management and support services
Access to healthcare, mental health treatment, and substance use treatment
PSH has been shown to be effective in improving housing stability, reducing healthcare costs, and improving quality of life for individuals with complex needs
Rapid re-housing programs
Rapid re-housing programs provide short-term rental assistance and supportive services to help individuals and families experiencing homelessness quickly transition into permanent housing
Case management and supportive services to help individuals maintain housing stability
Rapid re-housing can be an effective strategy for preventing and reducing homelessness, particularly for individuals and families with less complex needs
Anti-displacement strategies
Anti-displacement strategies aim to prevent the involuntary displacement of low-income residents and communities of color due to gentrification, rising housing costs, and other factors
These strategies can include tenant rights education, legal assistance for tenants, just cause eviction policies, and
Tenant rights education
Tenant rights education programs provide information and resources to help renters understand their legal rights and responsibilities
These programs can cover topics such as:
Lease agreements and tenant-landlord laws
Eviction prevention and defense
Fair housing laws and discrimination protections
Rent control and stabilization policies
Tenant rights education can be provided through:
Community-based organizations and non-profits
Local government agencies
Online resources and hotlines
Legal assistance for tenants
Legal assistance programs provide free or low-cost legal services to tenants facing eviction, harassment, or other housing-related issues
These programs can include:
Legal representation in eviction proceedings
Assistance with negotiating with landlords
Help with filing complaints and asserting tenant rights
Legal assistance for tenants can be provided through:
Legal aid organizations
Pro bono attorneys
Tenant right to counsel programs
Just cause eviction policies
Just cause eviction policies require landlords to provide a valid reason for evicting tenants, such as non-payment of rent, lease violations, or owner move-in
These policies can help prevent arbitrary or retaliatory evictions and provide tenants with greater housing stability
Just cause eviction policies may include:
A list of allowable reasons for eviction
Notice requirements for landlords
Relocation assistance for tenants evicted for certain reasons (owner move-in, substantial renovations)
Factors to consider when implementing just cause eviction policies include:
Defining clear and reasonable grounds for eviction
Providing adequate notice and due process for tenants
Establishing enforcement mechanisms and penalties for non-compliance
Displacement risk assessment tools
Displacement risk assessment tools are data-driven tools that help identify neighborhoods and populations at risk of displacement due to gentrification, rising housing costs, or other factors
These tools can use a variety of data sources, including:
Demographic and socioeconomic data
Housing market data (rents, home values, evictions)
Public investment and development data
Displacement risk assessment tools can help inform:
Targeted anti-displacement interventions and policies
Community-driven planning processes
Allocation of resources for affordable housing and tenant protection programs
Factors to consider when developing displacement risk assessment tools include:
Engaging community stakeholders in the design and implementation of the tool
Ensuring that the tool is transparent, accessible, and regularly updated
Using the tool to guide equitable and inclusive urban planning and policymaking
Funding affordable housing
Funding affordable housing requires a combination of public, private, and philanthropic resources
Strategies for funding affordable housing include Low-Income Housing Tax Credits (LIHTC), Tax Increment Financing (TIF), housing trust funds, and social impact bonds
Low-Income Housing Tax Credits (LIHTC)
The LIHTC program is a federal tax credit program that incentivizes the development of affordable rental housing
Developers can receive tax credits in exchange for building or rehabilitating affordable housing units
LIHTC projects must meet certain affordability requirements, such as:
Renting a certain percentage of units to low-income households
Maintaining affordability for a minimum of 30 years
LIHTC has been a major source of funding for affordable rental housing, producing over 3 million units since its inception in 1986
Tax Increment Financing (TIF)
TIF is a financing tool that uses future increases in property tax revenues to fund current public improvements and development projects
TIF can be used to fund affordable housing by:
Providing gap financing for affordable housing development
Funding infrastructure improvements that support affordable housing
Establishing affordable housing requirements for TIF-funded projects
Factors to consider when using TIF for affordable housing include:
Ensuring that TIF projects align with community affordable housing goals
Establishing clear affordable housing requirements and monitoring mechanisms
Engaging community stakeholders in the TIF planning and implementation process
Housing trust funds
Housing trust funds are dedicated funding sources for affordable housing development and preservation
These funds can be established at the state or local level and can be funded through a variety of sources, including:
Real estate transfer taxes
Developer fees and contributions
General fund allocations
Philanthropic donations
Housing trust funds can provide a range of financing options, including:
Grants and loans for affordable housing development and preservation
Operating subsidies for affordable housing providers
Rental assistance for low-income households
Factors to consider when establishing a housing trust fund include:
Identifying a dedicated and sustainable funding source
Establishing clear priorities and criteria for funding allocation
Engaging community stakeholders in the fund's governance and oversight
Social impact bonds
Social impact bonds (SIBs) are a type of pay
Key Terms to Review (26)
Affordable housing preservation funds: Affordable housing preservation funds are financial resources allocated to maintain and protect existing affordable housing units from being lost due to market pressures, redevelopment, or neglect. These funds aim to support initiatives that keep housing affordable for low- and moderate-income households, ensuring they can remain in their communities despite rising costs and gentrification.
Case Studies: Case studies are in-depth examinations of specific instances, projects, or policies that provide insights into best practices, challenges, and outcomes in real-world scenarios. They serve as valuable tools for understanding complex issues by analyzing successes and failures in various contexts. This method helps to illustrate theoretical concepts through practical examples, enabling a clearer comprehension of the interplay between planning strategies and their impacts on communities.
Community land trusts: Community land trusts (CLTs) are nonprofit organizations that acquire and hold land for the benefit of a community, focusing on providing affordable housing and fostering local development. By separating the ownership of land from the ownership of buildings, CLTs ensure long-term affordability for residents while protecting against market pressures that can lead to displacement. This model promotes sustainable urban growth and enhances community control over land use and development decisions.
David Harvey: David Harvey is a prominent social theorist and geographer known for his work on urban studies, social justice, and the political economy of space. His theories critique the capitalist system and highlight how urban environments are shaped by economic forces, especially concerning housing and community dynamics. Harvey’s ideas emphasize the importance of equitable access to resources and the need for participatory practices in urban planning to empower communities against displacement and disenfranchisement.
Density Bonuses: Density bonuses are incentives offered by local governments to developers that allow them to increase the allowable density of a project beyond what is typically permitted under existing zoning regulations. These bonuses are often tied to specific benefits that developers must provide, such as affordable housing, green space, or community amenities. By encouraging higher density development, municipalities aim to promote sustainable growth, reduce urban sprawl, and address housing shortages while still ensuring that community needs are met.
Displacement risk assessment tools: Displacement risk assessment tools are methodologies and instruments used to evaluate the potential for residents, particularly low-income communities, to be displaced from their homes due to economic pressures, development projects, or policy changes. These tools analyze various factors, such as housing affordability, demographic shifts, and local market conditions, to predict which areas are most vulnerable to displacement. Understanding these risks is crucial for developing effective affordable housing and anti-displacement strategies.
Down Payment Assistance: Down payment assistance refers to financial programs designed to help homebuyers cover the upfront costs associated with purchasing a home, particularly the down payment. This support can take various forms, such as grants, low-interest loans, or deferred loans, which aim to make homeownership more accessible for individuals and families with limited financial resources. By easing the burden of the initial payment, these programs are crucial in promoting affordable housing and combating displacement in urban settings.
Equitable development: Equitable development refers to a planning and policy approach that ensures fair access to resources, opportunities, and benefits for all community members, particularly marginalized groups. This approach emphasizes social justice and the need to address systemic inequalities in housing, employment, and environmental conditions, making it essential in creating thriving, sustainable communities. It aims to balance economic growth with social equity, ensuring that everyone can benefit from urban development projects.
Gentrification prevention: Gentrification prevention refers to strategies and policies aimed at safeguarding low-income communities from the adverse effects of gentrification, which can lead to displacement and loss of cultural identity. These efforts are crucial in ensuring that existing residents are not pushed out of their neighborhoods due to rising property values and rents, often fueled by new developments and an influx of wealthier individuals. Effective gentrification prevention often involves a combination of affordable housing initiatives, community engagement, and legal protections for tenants.
Housing bonds: Housing bonds are financial instruments issued by government entities or agencies to raise funds for the development, rehabilitation, and preservation of affordable housing projects. These bonds typically provide low-interest loans to developers and can be used to finance both new construction and the renovation of existing properties, playing a vital role in ensuring that communities have access to affordable housing options.
Housing first approach: The housing first approach is a strategy that prioritizes providing permanent housing to individuals experiencing homelessness without preconditions such as sobriety or employment. This method is rooted in the belief that stable housing is a fundamental human right and that it can serve as a foundation for addressing other issues like mental health, substance abuse, and unemployment.
Inclusionary Zoning: Inclusionary zoning is a land use regulation that requires or incentivizes developers to include a certain percentage of affordable housing units in new residential developments. This approach aims to promote a diverse and equitable community by ensuring that low- and moderate-income households have access to housing in areas that are often dominated by higher-income residents, thus fostering inclusive and equitable design, shaping zoning regulations, influencing urban growth boundaries, and supporting affordable housing strategies.
Janet Yellen: Janet Yellen is an American economist who served as the Chair of the Federal Reserve from 2014 to 2018, and is currently the U.S. Secretary of the Treasury. Her policies have significantly influenced economic stability and recovery efforts, which are crucial in addressing issues related to affordable housing and anti-displacement strategies.
Just Cause Eviction Policies: Just cause eviction policies are regulations that prevent landlords from evicting tenants without a legitimate reason, ensuring that tenants have a fair and justifiable basis for remaining in their homes. These policies are crucial in protecting renters from arbitrary evictions, promoting housing stability, and addressing the challenges of displacement in urban areas, particularly where affordable housing is scarce.
Low-Income Housing Tax Credits: Low-Income Housing Tax Credits (LIHTC) are a federal tax incentive designed to encourage private investment in the development of affordable rental housing for low-income households. This program, established under the Tax Reform Act of 1986, allows developers to receive tax credits based on the costs of constructing or rehabilitating rental housing that is affordable to low-income individuals and families. By providing these credits, the program aims to stimulate the creation of more affordable housing options and combat displacement in communities facing gentrification.
Low-interest mortgage loans: Low-interest mortgage loans are home loans that have a lower interest rate compared to standard mortgage rates, making monthly payments more affordable for borrowers. These loans are designed to promote homeownership, especially among low- and moderate-income families, as they help reduce financial strain and can prevent displacement from affordable housing. Lower interest rates can make it easier for families to purchase homes in gentrifying neighborhoods, thus playing a crucial role in affordable housing strategies.
Mixed-income development: Mixed-income development refers to a housing strategy that integrates various income levels within a single residential project or community. This approach aims to create a diverse and inclusive environment by combining affordable housing units with market-rate units, fostering social interaction and economic diversity while addressing the challenges of displacement and gentrification.
Permanent Supportive Housing: Permanent supportive housing is a housing model that combines affordable housing with supportive services to help individuals and families experiencing homelessness or those with disabilities maintain stable housing. This approach not only provides a long-term residence but also includes access to various services such as healthcare, job training, and counseling, aimed at fostering independence and improving overall quality of life.
Public-Private Partnerships: Public-private partnerships (PPPs) are collaborative agreements between government entities and private sector companies, aimed at financing, designing, implementing, and managing public projects and services. These partnerships leverage the strengths of both sectors, with the public sector providing oversight and regulation, while the private sector brings in expertise and capital to enhance efficiency and innovation in delivering public goods.
Rapid re-housing programs: Rapid re-housing programs are designed to quickly transition individuals and families experiencing homelessness into stable housing with the support of various services. These programs focus on minimizing the time spent in shelters or on the streets, providing financial assistance, and connecting participants to necessary resources such as employment support and case management. By offering both immediate housing solutions and ongoing support, rapid re-housing aims to prevent long-term homelessness and foster self-sufficiency.
Rent Control: Rent control is a government policy that sets a limit on the amount landlords can charge for renting out a property, aiming to make housing more affordable and prevent excessive rent increases. This policy is often implemented in response to housing shortages and the rising cost of living, and it plays a crucial role in the broader discussion of affordable housing and anti-displacement strategies, as it seeks to protect vulnerable populations from being priced out of their homes.
Shared equity homeownership models: Shared equity homeownership models are arrangements that allow multiple parties to share the financial investment and ownership of a home, typically between the homeowner and a government or nonprofit organization. These models aim to make homeownership more affordable by reducing the upfront costs and financial burden on individual buyers, while also ensuring that homes remain accessible to low- and moderate-income families. By promoting equitable access to housing, these models serve as a strategy to combat displacement and create stable, affordable communities.
Social Equity: Social equity refers to the fair distribution of resources, opportunities, and benefits within a community, ensuring that all individuals, regardless of their background or circumstances, have access to essential services and opportunities for participation. This principle emphasizes the importance of inclusion and fairness in policy-making and planning, aiming to address systemic inequalities that exist across various dimensions such as race, income, gender, and ability. By prioritizing social equity, communities can foster environments where diverse populations can thrive together.
Spatial analysis: Spatial analysis refers to the technique of examining the locations, attributes, and relationships of features in spatial data. This method is essential for understanding how different factors interact in a geographic context, allowing planners to make informed decisions regarding urban development and housing policies. By incorporating geographical information systems (GIS) and statistical tools, spatial analysis can reveal patterns and trends that inform affordable housing initiatives and anti-displacement strategies.
Tenant protections: Tenant protections are legal measures designed to safeguard the rights of renters, ensuring they have access to safe, affordable housing while preventing unjust eviction and displacement. These protections can include rent control, limits on eviction procedures, and guidelines for housing conditions, all aimed at creating stability for tenants in the face of rising housing costs and market pressures. Such measures are particularly important in discussions around affordable housing and strategies to prevent displacement in urban areas.
Transit-Oriented Development: Transit-oriented development (TOD) is a planning strategy that focuses on creating high-density, mixed-use communities centered around public transportation hubs. By integrating residential, commercial, and recreational spaces within walking distance of transit stations, TOD aims to promote sustainable living, reduce reliance on cars, and enhance accessibility.