Authors:

Porter Ingrum

Patty Wright

Brad Sheffield

Many components encompass an effective growth management plan.  These components include public facilities, economic development, environmental impacts, transportation, community design, and housing.  Unfortunately, housing is often given little consideration in comparison with these other growth management issues.  Because housing is a necessity for every individual in our society, it is a significant component of any effective growth management plan.

 

One of the major contributors to sprawl is the location of housing. Housing location can strain public facilities and drain the tax base.  Since residential housing is the major user of land in any city, housing subdivisions should utilize community design practices that efficiently use land and public facilities.

 

Establishing enabling legislation for housing is the motivator for communities to move forward with a balanced growth management plan. Another key issue is affordable housing.  Establishing guidelines to encourage and provide housing for a variety of income levels is important.  Vibrant communities incorporate housing for all economic levels.  Diversity reduces isolation and exclusion and contributes to a healthy economic base.  In addition, housing located in urban areas and provided for all economic levels provides workers with a variety of employment opportunities and reduces the need for long commutes.  This component, enabling legislation, helps address not only transportation, but also economic development programs and effective community design projects.

 

To ensure a balance of housing types, affordable housing programs must be incorporated through adopted enabling legislation.  State mandated fair share programs help address equity issues, since they often are not addressed.  Properties for rent and ownership should be provided in any affordable housing program as this allows additional opportunities for lower income citizens. 

 

One key to establishing effective enabling legislation and affordable housing programs is a strong, effective public awareness campaign of public housing. Education about housing issues is important to understanding, which will lead to acceptance and desire while dispelling fears and ignorance.  Citizen awareness and involvement provides the impetus to force the adoption of enabling legislation, especially for effective growth management programs.

 

Another significant issue concerning housing is older housing units in declining inner cities and suburbs.  Please refer the topics Infill and Redevelopment, Mixed Use, Downtown Revitalization, and Historic Preservation in the Community Design module. Also, refer to Community Design for housing design information.

 

I. Enabling Legislation

 

Laws and ordinances that require, provide or encourage housing for a variety of income levels are an important part of any growth management program. While many localities may desire to create affordable housing, they often need the guidance or incentives that a legislative framework provides.  A comprehensive housing legislation must also address the jobs/housing balance as well as equity issues.  Balanced housing and employment opportunities can result in reducing the obstacles associated with transportation that lower income groups in a community or region face. This will also improve the safety and livability of neighborhoods and increase access to public and private facilities and services.

 

Tools:

 

Achieving quality housing legislation requires specific approaches and clear purposes and goals.  There are generally three approaches to creating housing legislation. But there are numerous examples of localities creating housing ordinances and programs that strive to serve all members of their community.

 

Bottom-Up

A bottom-up approach in which the preparation of housing plans is a collaborative effort between regional planning agency and member local governments under state supervision.

 

Top-Down

A top-down strategy in which the state establishes housing goals for individual local governments based on regional need projections.

 

Appeals Approach

An appeals approach based on the existence of a state-level appeals process that provides for an override, either by a court or administrative body, of local decisions that reject proposals for affordable housing. 

 

Best Practices:

 

Ø      Model Balanced and Affordable Housing Act

 

Ø      Washington State Provides Housing Language in its State Statute

 

Ø      Maryland’s Innovative Live Near Your Work Program

 

Ø      Santa Fe and its Affordable Housing Roundtable

 

Ø      Minneapolis Passes an Affordable Housing Initiative

 

II. Affordable Housing

 

Affordable housing plays a key role in the diverse distribution of a population. Today exclusion and isolation based on social class and income levels threaten that diversity. Affordable housing programs attempt to fight this discrimination in two ways. First, the amount and location of rent affordable housing and second, the amount and location of possible ownership. As a result of the lack of new affordable housing construction, low-income households must locate themselves in the “slum” areas of a city where poverty is high and living conditions are low. By allowing equal development of all levels of income housing an area, local, regional, and state, reach closer to the desired level of quality living.

 

A. Affordable Housing (Properties for Rent)

 

Rental properties consist of all types of buildings that are leaseable to households. Of course it is most cost effective for developers to construct housing for middle to high-income residents since they can charge higher rents. As a result, low-income residents must live in substandard quality housing, which tends to be located further away from jobs and causes commuting problems.

 

Tools:

 

Inclusionary zoning practices

To effectively promote mixed income developments, localities and states have to move away from the trend of exclusionary zoning. Inclusionary zoning allows the integration of all levels of income and allows for a balance between housing and employment. This is done by allowing equal opportunities to all types of developments.

 

Financial Incentives

Financial incentives can be used to encourage the development community to build affordable housing. Incentives include, but are not limited to, states or localities matching funds for development, tax breaks, and reduction or waiving of fees.

 

Density Incentives for developers

Density incentives promote affordable housing by allowing a developer to either build more units per acre of affordable housing or by allowing a developer to build more units of any level income housing in designated areas.

 

Low Income Housing Tax Credits

Low Income housing Tax Credits is a federal program based on the Section 42 of the Internal Revenue Code that was enacted in 1986. This provides credit against tax liability or a dollar for dollar reduction in the amount of liability to individuals and corporations that invest in construction or rehabilitation of low-income housing.

 

Best Practices:

 

Ø      San Diego and the California Coalition for Rural Housing

 

Ø      New York Offers Builders Development Rights for Housing

 

Ø      California Provides Density Bonuses to Affordable Housing Developers

 

B. Affordable Housing (Properties for Ownership)

 

Properties for ownership are those properties where the cost of and cost associated with it do not exceed the income of low-income buyers. There is a large push for providing rent properties for low-income households and to provide opportunities for those same households to own their homes. The idea behind this push is that homeowners will have greater connection with their community if they have an invested interest in it. The problems associated with low amounts of properties for ownership are the same as for rental properties; cost effectiveness of construction and location to employment.

 

Tools:

 

Reducing Regulatory Barriers

Reducing or eliminating the barriers that prevent the development of affordable housing can allow even distribution of housing throughout an area. Zoning and building ordinances, density requirements, and public access contribute to these barriers.

 

Reduce cost associated with home construction

Reduction in the cost of construction of housing is directly or indirectly passed down to the homebuyer. Therefore, cheaper homes will allow for lower-income households to purchase homes.

 

Cooperation

Cooperation between localities allow for targeted growth of affordable housing where needed and reaching each localities’ “fair share” between localities and the states.

 

Public-public

Cooperation between public entities involve agencies, localities, states, or any other government entities working together to provide affordable housing,. Such tools include regional compacts within and between states. Compacts allow for coordination of targeted growth areas and addresses the “fair share” development.

 

Public-private         

Cooperation between public and private entities involves state programs or agencies working with local organizations or employers to promote affordable housing.

 

Private-private

Cooperation between private and private involves lending institutions, organizations, and communities taking initiatives with affordable housing.

 

Best Practices:

 

Ø      Portland’s Metropolitan Housing Rule Reduces Regulatory Barriers

 

Ø      Massachusetts Takes on Affordable Housing Through Zoning Regulations

 

Ø      Connecticut Builds Consensus for Affordable Housing

 

Ø      Joint Venture for Affordable Housing (JVAH)

 

Ø      Lawrence, MA Develops Employer Assisted Housing Partnership

 

Ø      Connecticut Housing Finance Authority Offers Discounted Mortgages for Homeownership

 

Ø      Los Angeles Housing Department Creates Homeownership Opportunities for Low-Income Families

 

Ø      Nevada Consortium Builds Homes for Rural Counties

 

Summary:

 

Affordable housing plays a key role in the diverse distribution of a city population. Today exclusion and isolation due to social class and income levels threatens that diversity. Practices of affordable housing attempt to fight the discrimination that causes this problem. This battle is done on two fields, one is the amount and location of rent affordable housing and the other is the amount and location of possible ownership. It is more cost effective for a developer to construct high-income housing (rent or ownership) than it is for low income. It is also to the benefit of local governments to have higher rents for a larger tax base for that locality. As a result of the lack of new affordable housing construction, low-income households must locate themselves in the “slum” areas of a city where poverty is high and living conditions are low. By allowing equal development of all levels of income housing a city reaches closer to the desired level of quality living.

 

III. Public Awareness/Involvement

 

To effectively promote growth management practices for housing, the public must first be made aware of the impact current sprawl development practices have on the environment. Impacts include increased pollution, the depletion of open space, increasing infrastructure costs reflected in higher taxes and utility bills, and the drain on declining suburbs and inner cities.  Community opposition often prevents changes in building practices due to fears of falling property values, increased traffic, crime, and pollution. Informing the public through a variety of avenues such as public service announcements, advertisements, flyers included in utility and tax bills, visual preference surveys at town and neighborhood meetings, and design charettes, is likely to help establish effective growth management practices through a variety of housing options.

Planning Commissions, which are staffed by appointed community members, and citizens in general can practice better planning and analysis through increased information.  The increased information can be provided through a variety of avenues. Such avenues are the subdivision and zoning codes, print media, professional journals, the Internet, and networking. After information is received it is vital to network what has been learned.  Networking, whether personally or through a “report card” are extremely effective tools for gaining growth management support. This is how adoption for any new initiative is accomplished. Each citizen of a community ultimately has the personal responsibility of knowing what impact decisions have on their community. 

Other than gathering and disseminating information, active involvement is vital to a vibrant and healthy community.  This also involves following through and pressuring decision makers to implement and enforce new programs and initiatives.  Yes, this takes time, but is worth it in the long run.  If asking the governing body is uncomfortable, then why not become one of the legislators or support a candidate and become a leader in developing and implementing a high quality growth management program.  Remember, to have a statewide growth management plan, gubernatorial support is absolutely necessary.

 

Tools:

 

Community involvement

To become aware of housing issues in the context of a growth management program, the community must be educated about housing issues and encouraged to become involved in participating in the decision making process.  This can involve community outreach through public meetings and design charettes.

 

Organizational aid

Many organizations and agencies can bring vital experience and resources through public awareness efforts.  These can include non-profit organizations, government agencies and private firms. Increasing public awareness and community involvement is necessary to enact growth management enabling legislation including fair share affordable housing programs. 

 

Best Practices:

 

Ø      Oregon Developer Engages Community for High Density Project

 

Ø      Kentucky and Bluegrass Tommorow Promotes Smart Growth

 

Ø      St. Louis Ministers Promote Public Awareness and Involvement

 

Virginia Recommendations:

 

Enabling Legislation

1.      Virginia should adopt the Model Balanced and Affordable Housing Act as its own state housing legislation and establish a state-level Balanced and Affordable Housing Council to allow for a statewide regional fair share allocation system for affordable housing.

 

2.      Virginia can create legislation similar to Maryland’s that creates a Live Near Your Work program.  This legislation should also create a stable a stable and continuous funding source.  This funding source could be a one-time only mortgage loan fund that is offered at a low interest rate.

 

 

 

The most effective housing legislation states explicitly what the legislation will achieve, how it will achieve these results and how the results will be measured.

 

Affordable Housing

1.      Analyze market conditions and demands to target growth areas for affordable housing.

 

2.      Target affordable housing growth areas where there is a need to have a job and housing balance for low-income households.      

 

3.      Initiate fair lending practices that will encourage potential homebuyers to purchase homes

 

4.      Initiate building reforms through design and materials used to reduce the cost of home construction.

 

5.      Remove or reduce regulatory barriers to affordable housing, such as density requirements and inapplicable building ordinances.

 

6.      Coordination between localities, states agencies, and states to work together to accommodate each state's “fair share” of affordable housing.

 

Public Awareness/Involvement

1.      Requesting local television stations, newspapers, and magazines to publish news stories concerning the impact of sprawl to declining suburbs and inner cities and the elimination of open space on the suburban fringe and rural areas will help garner support for growth management enabling legislation.

 

2.      Virginia should also provide an annual pool of money for localities to provide affordable housing conferences, design charettes and newsletters.

 

3.      The Virginia Conservation Network (http://www.vcnva.org), an organization normally not associated with affordable housing advocacy, could host an affordable housing conference where it can highlight the connection between affordable housing and sprawl.

 

4.      A report card for the state and localities reporting how effective or ineffective growth management is currently being practiced.  This can be modeled after the Department of Education’s report cards for individual schools and local school divisions.  Accountability and measures for improvement are established with this type of documenting mechanism.  The report card should be sent to each household with information on how to both read and understand the information provided and tools on how to help improve the quality of life for all citizens through growth management. This is accomplished through the reestablished state planning office.  

 

Resources:

 

1.       Affordable Struggle Study shows increasing inclusionary housing boosts available low-income units, The San Diego Union-Tribune, pg. E-2, February 26, 1995.

2.       Blueprint for Sustainable Development of Virginia. 1994. Environmental Law Institute.

3.       Building on the Blueprint, How Virginia Communities are Implementing Sustainable Development. 1995. Environmental Law Institute.

4.       Challenging Sprawl, Organizational Responses to a National Problem. A report by the National Trust for Historic Preservation for the Henry M. Jackson Foundation. 1999.

5.       Doors open for affordable housing, Star Tribune, pg. 1B, May 15, 1999.

6.       Getting Started: Initiating the Process of State Planning Law Reform. American Planning Association. 1996.

7.       Growing Smart Legislative Guidebook Phases I & II Interim Edition page 4-67.

8.       Growing Smart Legislative Guidebook Phases I & II Interim Edition page 7-122.

9.       Krizek, Kevin J. and Joe Power, AICP. A Planners Guide to Sustainable Development. 1996.

10.   Maryland’s Live Near Your Work Program http://www.op.state.md.us/smartgrowth/initiatv.html#live.

11.   Perspectives: Inclusionary zoning, New York Times, pg. 9, March 20, 1988.

12.   Planning in Virginia, Managing Growth Toward the 21^st Century. 1997. Virginia Chapter of the American Planning Association.

13.   Planning, Zoning, and Development Laws, Governor’s Office of Planning and Research, Cal. Chapter 4.3. 1998.

14.   The Principles of Smart Development. 1998. Planning Advisory Service Report Number 479. American Planning Association and the Oregon Transportation and Growth Management Program.

15.   Preservation Alliance of Virginia; http://www.vapreservation.org.

16.   The National Homeownership Strategy: Partners in the American Dream,  Prepared by HUD, Chapter 3, July 1998.

17.   The National Homeownership Strategy: Partners in the American Dream,  Prepared by HUD, Chapter 5, July 1998.

18.   US State and Local Gateway- Community and Economic Development Award Winners; http://www.ksg.harvard.edu/innovations/comserv.htm.

19.   Virginia Conservation Network; http://www.vcnva.org.

20.   Virginia’s Growth Management Tools. Prepared by the Virginia Chapter of the American Planning Association. June, 1999.