“Galoot” on thedailypage forum asked what Cities can do for affordable housing beyond the state and federal programs such as Section 8. It’s a good question, there are some answers and we have done many of them. Some things are more plausible in other states. Some things are better done by the CDA or non-profits. For what it’s worth, here’s a list of solutions gleaned from a few minutes on google.
Community Land Trusts – A trust buys the land and sells the home to a person, reducing the price of the home by the cost of the land, which is then rented at a low price back to the homeowner and they agree to sell to another income-qualified person or the land trust when they sell their home. The City, through the Community Development Block Grant Office, has supported projects of the Madison Area Community Land Trust.
Supporting Local Non-profits – See the Community Development Block Grant site to see our efforts. Non-profits that have added affordable housing units or made current units affordable in our City include Commonwealth Development, Porchlight, YWCA, Moving Out, Project Home, Madison Development Corporation, Tellurian, Independent Living, Madison Area Community Land Trust, Habitat for Humanity, Wisconsin Partnership for Housing Development, Housing Initiatives, Operation Fresh Start, Urban League and . . . I hope I didn’t leave anyone out!
Downpayment Assistance Programs – The City currently has a couple programs to assist persons. Programs we have include American Dream Downpayment Initiative and Home-buy program.
Inclusionary Zoning – We have passed a version of this, it’s a one of a kind, only in Madison version, but we already had more people living in homes in one year than many cities in California have. Their average is 14 families per year. Last year, we had 16 people move in.
Affordable Housing Trust Funds – We have one, but its not well supported because it doesn’t have a dedicated source of income.
“In lieu of” fees – Requires builders to pay a fee if they don’t build affordable housing. It’s my understanding that Wisconsin Law prevents us from doing this outright, there is a version of this in the Inclusionary Zoning law if the developer can prove that their project isn’t financially feasible with the Inclusionary Zoning units.
Linkage fees – These are impact fees to offset the development’s impact on affordable housing. Wisconsin Law also prevents us from doing this.
Rent Control – As we all know, Wisconsin Law prevents us from doing this.
Accessory Dwelling Units or “Granny Flats” – We allow this in some new zoning categories.
Co-op Housing -Madison has a long history of private co-op projects and has supported them in the past. One thing we could do for them is make it easier for them to locate new houses.
Co-Housing – We have one or two examples of this in Madison. Again, through private efforts, but with some City support.
Preservation of Existing Affordable Housing – The biggest loss of affordable housing seems to be from programs that provide money or assistance and then only require the housing to be affordable for 15 years. Many WHEDA programs are like that.
Right of First Refusal Programs – Allows tenants the right to purchase their building. This allows tenants to work together to purchase their buildings and turn them into condominiums. Or in some cases, the law allows tenants the first right of refusal if their apartment building is converted to condos. In cases like Baltimore, they limit the right of first refusal to single family homes.
Revise zoning laws to make infill and mixed use developments easier – The City has been talking about this for at least 10 years, but are finally moving forward on it this year. We have money in the budget to work on this. See 1. b
Skinnier streets – We passed a law allowing skinnier streets.
Fast track approvals – There is an element of this allowed in the Inclusionary Zoning law.
Waiving Impact Fees – My understanding is that we have issues with the State law with this.
10% TIF Set-aside – This allows developers in TIF districts to get additional TIF money if they provide affordable housing.
Capital Revolving Loan Program – If there is money in the fund, it can be used for loans to help create affordable housing.
TIF – Is typically used for high end condos, but if we get creative, it can be used to create affordable housing. It is, however, not a staff preference because generally speaking, high end housing creates more increment than affordable housing.
Beyond what the City can do, businesses can help by providing:
Location Efficient Mortgages
Employer Assisted Housing Programs
The list is the “same old” list I’ve seen for the last 10 years or so and is likely the same most everywhere you go. In other words, no surprises here. If I missed something, please let me know. What we really need here in the City of Madison is political will, (in some neighborhoods) neighbors who don’t fear affordable housing, a general recognition in the community about why affordable housing is good economic development for the community and a development community that is willing to be a part of the solution.
