Last week I blogged about the Impediments to Fair Housing Report and the recommendations in that report as well as the Equal Opportunities Commission Housing Report recommendations. Those were more focused on fair housing. Today, the Affordable Housing Action Alliance recommendations on what needs to be done.
If you are interested in this group, we meet the first Wednesday of the month at 4:30 at the Social Justice Center (1202 Williamson St.) conference room.
We met with the Mayor last week. The group put together their list of priorities about what they would like to see the City do on Affordable Housing. The group is somewhat diverse, and I’m not sure we all agree on all of the items, but that’s the beauty of community organizing. Here’s our list.
I should say, the mayor started off my comments on the 9.5M hole in her budget and saying that if we wanted to spend any money, we had to tell her where to cut. Some of these things do cost money, some don’t. But doing nothing is costing us all in various ways.
TOP PRIORITIES
A. Non-profit Capacity
We have a huge nonprofit capacity problem regarding
- Homeless Services
- Nonprofits don’t have middle management to expand programs and apply for additional funds.
- Wages are increasing faster than COLA increases and resulting in wage compression for middle management.
- Instead of building housing, non-profits are partnering with for-profits but funding for services will be at risk in the future.
- 3rd Sector Affordable Housing Developers
- They do so few projects expertise leaves the agency before the next project.
- Projects are exhausting for the organization.
- All – It has become difficult for nonprofits to hire and keep workers, due to the low wages and benefits they offer and the difficult work they do.
Solutions:
- Mayor’s office could have a discussion with nonprofits about what they need.
- Provide core funding for nonprofits. Grants usually do not include pay for the core administrative costs and program supervision.
- We need to find ways to expand capacity, including more training and higher wages to recruit and expand the number of skilled and well-resourced providers.
- Encourage CDA to develop affordable housing. CDA has a bonding authority that it doesn’t use for developing affordable housing.
B. Get the community on the same page when talking about affordable housing.
We need community education around affordable housing. Everyone talks about the need for affordable housing and few agree on the specifics of what is needed and how to do it. Many who care about the issues feel like they don’t know how to solve the problem.
Solutions:
The city should host an Affordable Housing Summit. City staff and the Housing Strategy Committee would be there, as well as members of the general public. Part of the goal should be to explain various definitions of affordable housing and affordable housing programs, explore solutions and help identify how much housing of various types is needed.
C. Racial Disparities
Stable housing makes addressing other issues so much easier. Housing provides a foundation for academic success, improved health outcomes, etc. That is why the housing first model shows so much promise. When individuals have additional difficulty obtaining housing due to discriminatory practices, progress is slowed or stymied in multiple areas.
Solutions:
- More effective enforcement of non-discrimination laws. The EOC needs more power and enhanced respect in the city.
- Homeownership should be promoted as a way out of poverty as a way to build wealth in a family and create generational wealth. Consider supporting building lower end condos and single family homes. May need to include homeownership classes as well.
- Re-institute Inclusionary Zoning for home ownership development. Require that developers of homes make a certain percentage of their units affordable to households at 50% or 60% of AMI. The developers cannot “buy” their way out of this requirement.
D. Work smarter. Re-examine the use of the Affordable Housing Trust Fund, Prioritize housing for those who need it the most and where it will stay affordable longer.
Building workforce housing for people at 60% AMI has marginal impact. Building housing for people at below 30% AMI is a gamechanger. Investing in housing that only remains affordable for 15-30 years is good. Making investments in housing that will remain permanently affordable or be used to invest in other affordable housing projects is better. When for profit developers create WHEDA (Section 42) developments two problems are created:
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- They build housing at 60% AMI not the lower ranges (50% AMI or 30% AMI)
- The affordability of those developments expires in 15-30 years.
Solutions:
Switch to focusing on non-profit developers instead of for-profit developers. Focusing on giving the money to non-profits and building their capacity (See A) who have a mission to keep the affordable housing longer and reach lower-income individuals.
E. Prevent the loss of affordable housing
Section 42 properties are “going market rate” after the for profit developers are outside of their affordability period.
Solutions:
- If Section 42 projects are funded by the city
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- Give nonprofits first refusal rights before it goes to market-rate
- Require detailed Opt out/Displacement Plan and fund developments that will not opt out.
- Explore alternative housing models to create more multi-generational housing to include individual dwelling units and shared common space to encourage socialization, security, etc.
- Using the city’s Neighborhood Indicators Program (NIP) to identify the most desirable neighborhoods and to encourage owners to locate future developments in those areas
- Create a map or chart of properties that are expiring so we can consider creative solutions to preserving this affordable housing.
- City funding to prevent displacement.
F. Encourage non-traditional affordable housing forms
Solutions:
- Build micro-units, 400 to 600 square feet. (Note: If you have a cluster of micro units, it should include some larger common spaces, indoors and out. This could require a change in zoning & building requirements.
- Cottage Courts.
- Tiny Houses.
- The city could buy rundown housing and fix it and rent it or sell it under a contract that preserves affordability and avoids gentrification. This would be a good way for the city to also land bank, to make sure it has property available to it if needed. Land costs are often a barrier to the development of affordable housing.
OTHER IDEAS
- Decriminalize homelessness – Eliminate Section 23.07(6)b. of the trespass ordinances (possession of sleeping materials) and other ordinances that criminalize homelessness.
- There needs to be a spectrum of housing options. This includes:
- We need homeless housing programs for families and individuals who don’t meet the HUD definition of homelessness, including doubled up or self-paying in motels/hotels.
- Need to modify rental inclusionary zoning so it would survive a legal challenge
- “So you want to be a landlord” classes for people who might consider renting rooms in their houses.
- As Madison begins annexing Town of Madison, how do we protect manufactured/mobile home park residents and owners from losing their housing (and their investment if they own their home). There are still not protections in place for mobile home owners. There’s a park on Rusk Road that has lots of families in it. We want to make sure that when we’re talking about housing we’re also taking these residents into consideration.
