Colorado Sprawl Action
Center's
Growth Management Toolkit
Table of Contents | Introduction | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11
Affordable
Housing:
Problem | Solution | Applications
| Internet Resources
Special Thanks to the Colorado Affordable Housing Partnership for helping to develop this part of the Toolkit
Home prices in Colorado increased 101% and rents increased 88% during the last decade while wages increased by only 56%. Most job growth has been in the retail, agriculture and services sectors—in these sectors the wage increases have been less than the average. The rising cost of housing has been exacerbated by increased demand due to Colorado's rapid population growth—more than 1 million added people or a 30.6% change in population from 1990 - 2000 (third fastest in the country).
Increasingly the focus of new housing developments has become expensive single-family homes. An adequate supply of "affordable housing" has not been built, and much of the formerly affordable housing stock has been lost due to condominium conversions and a variety of other issues. As a result, the lack of affordable housing is evident across the state from urban to rural areas.
A range of housing for all community members throughout all stages of their lives provides the foundation for a stable, quality community. The vast majority of developments currently being built do not allow for young couples to live near their parents or for elderly couples to live near their middle aged children. Service workers, from resort workers to construction workers to fire fighters, increasingly find it hard to live in the communities in which they work. This injures their sense of connection to the communities they serve, strains familial relationships, and adds to the traffic in those areas due to longer commutes.
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Large lot single family zoning can contribute to a lack of affordable housing options. |
Solution
Overcoming Regulatory Planning and Zoning Issues: Communities must take steps to ensure that a variety of housing types are built in order to provide a diverse housing stock. In this way, market forces will naturally allow some to be less expensive than others. In faster growing and urban areas, where traditionally affordable units are experiencing “gentrification,” affordable-unit requirements for new developments may be in order. This may be particularly helpful to communities in resort areas where the prevalence of resort-homes and skyrocketing land prices have driven out service workers.
Increasing the Availability of Equity and Financing: The amount developers of affordable housing charge for rent or sale is often directly proportional to the amount of subsidy made available to them. Grants, low-interest loans and other forms of low cost financing are an absolutely essential component of effective affordable housing solutions. Communities may look at setting aside land and financial resources for the development and preservation of affordable housing. “Tools, such as government funding, community partnerships and better land-use policies can help in the creation of affordable housing. When the question of building or facilitating affordable housing is raised, there is often concern about the cost. There is no question that housing is expensive, it’s the biggest budget item for most households. But there is value to communities in investing in affordable housing.” (Kimiko)
Combating “NIMBY” Sentiments: Business and civic groups, elected officials, and other community leaders can play an important role in overcoming “Not In My Back Yard” misconceptions about affordable housing. One such misconception is that affordable housing means “projects.” Public education campaigns can set out both affordable housing needs and available affordable housing options.
| "The key issue with respect to affordable housing is that each community needs a range of housing options for different incomes, ages, and family needs. If you think of a person’s entire lifetime, the type of accommodation she or he might need is not the same at every stage." (from Kimiko Karpoff, "Affordable Housing," The Smart Growth Toolkit, Smart Growth BC, ‘01) |
Applications
Local:
Communities can pursue a variety of options to support the provision of affordable
housing. These options include economic assistance, incentives, and requirements
and regulations. A few of the options are listed below.
Communities may promote affordable housing through economic means. They may increase the amount of funding available to support affordable housing programs. Local governments may waive or reduce impact fees for developments that contain affordable housing units for the low or very low income (for instance, those earning less than 50% of the local area’s median income or AMI).
Communities may create regulatory incentives. For example, local governments may streamline the development application process for affordable housing developments or developments that contain a significant portion of affordable units. Another option is reducing parking space requirements for developments that set aside a certain percentage of the total units as permanently affordable.
A community may choose to use zoning to establish mixed income and mixed use developments and neighborhoods. This approach counteracts effects of single use, large lot, and other zoning requirements that may have reduced the supply of affordable housing. Mixed use developments allow residents to live, work, shop, and perform other activities all within a relatively small area.
Communities have a wide
range of tools available in order to ensure that all residents are able to
obtain appropriate housing. These tools should be custom tailored to fit the
needs of each individual community.
State:
The state could
establish guidelines or requirements that local governments must meet. For
instance, a bill may establish a planning requirement for the provision of
housing options for all income levels or promote inclusionary zoning (an affirmative
requirement that housing is available for various income levels). Legislation
could provide a source of funding for the provision of permanently affordable
units or to otherwise financially assist those local governments working to
provide affordable housing units.
The legislature and governor
could also pass legislation to remove barriers to the provision of affordable
housing. One such barrier is the prohibition on rent control—even if it is
negotiated with the developer or property owner.
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On average, home prices in Colorado increased 101% and rents increased 88% during the last decade while wages increased by only 56%. |
Internet Resources
www.rppi.org/urban/ps263.html
“A Line in the Land: Urban Growth Boundaries, Smart Growth, and Housing Affordability.”
www.cml.org/publications/index.html
Colorado Municipal League—publication on affordable housing
www.greenbelt.org/pubs_merchandise/affhousing_good.html
Greenbelt Alliance: Affordable Housing: Why It's Good for the Environment
www.brook.edu/es/urban/atlanta/Housing.htm
"Moving Beyond Sprawl: The Challenge for Metropolitan Atlanta-- Affordable
Housing" By the Brookings Institute and the Center On Urban and Metropolitan
Policy (case study in Altanta, GA)
Table of Contents | Introduction | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11
