Affordable Housing: From an Experienced Developer’s Perspective

 

It seems that neither appointed city members nor community members can solve the affordable housing crisis. This cyclical issue has been ongoing, with the methods of displacement and rezoning as its temporary fixes. But those who fall under the category of low-income residents (in NYC, it’s those earning less than $34,500 a year) are often left out of the equation (Oscar Perry Abello). They are easier to move because neither landlords nor prospect developers want them in their buildings. In Perry’s article, “How East Harlem Wrote Its Own Development Plan,” he explains the strategies community members have consistently been doing to try and solve this reoccurring issue. In one instance, they play a hypothetical game with hypothetical figures (such as mayor) and work in groups to create developments and adjustments in East Harlem that would better fix the housing issue and the community’s needs.

“Each group had to decide where to place the market-rate and affordable housing units, at a ratio of four market-rate units to every one affordable unit, up to a certain height limit. The groups discussed where to put units, and why” (Abello). While this strategy provided some clarity, there was still discourse at hand. The community members, of course, strive for housing affordability, but many are against the idea of more density.

 

Sam Davis, a UC Berkley scholar and experienced affordable housing developer, explains the real issues behind affordable housing and whether or not it can be solved. In his article, “The housing affordability crisis: Can it be solved?” he first defines what it means to be a low-income resident. “In the United States, anyone who spends more than 30 percent of their income on housing is considered “cost burdened,” and has difficulty paying for other of life’s necessities such as food, clothing, transportation and health care.” Similar to Mayor DeBlasio’s plan, most affordable housing are only targeted at those 30 to 50 percent of the median income. Thus, those who fall below it are either unrecognized, forgotten, or expected to move.

 

He explains the several options and their correlating issues when it comes to the lower income residents and community members.

  1. Moving to a more affordable neighborhood. (The rise in transportation costs to either work, school, stores, or medical centers counteract one’s savings in rent)
  2. Sharing a unit to split the costs. (What about single parents? Parents who are jobless? Families that need a larger space, which means higher rent?)

 

Along with these issues is the issue of actually building affordable housing. According to Davis, “The cost…is as much or more than market-rate housing.” Construction only accounts for 60 percent of total cost. It is the quality of the interior design (types of materials used) that makes the largest difference. Luxury buildings can afford higher end materials such as granite because monthly rent will account for the features. Affordable housing, however, tends to use higher quality materials on the exterior so that building maintenance can be as low as possible. Unlike luxury buildings, these rents are insufficient, therefore making affordable housing less enticing.

 

So the solution, if there is any, lies in a variety of things based on the general location and amenities that a community has to offer. “More employers need to consider either making employee housing contributions as they currently do for healthcare, or developing housing for their workforce. Health and housing are inexorably linked, and employees well-housed near work will be more productive resulting in reduced absenteeism, healthcare costs, and staff turnover.” This will increase demand and the need for more housing because more housing creation will eventually lower rent costs. (Though a little idealistic in terms of finding willing employers to do so). Davis ultimately explains that simply displacing the issue will lead to more costs in such as in: “health, environmental degradation, transportation, and homelessness.” Subsidizing housing for lower income residents seems to be the most probable solution, one that he incurs by handing out housing vouchers.

 

Above all, people need homes and sustainability without feeling as though they are pests. I think that Davis brings up a lot of important issues and behind-the-scenes knowledge where low-income resident members, government officials, and building developers can begin a plan together.

 

https://nextcity.org/features/view/east-harlem-neighborhood-plan-upzoning-affordable-housing

3 comments

  1. Cheyenne Madrid says:

    I really liked that Liz mentioned the cyclical properties of affordable housing because it means that we might need to try something else. The main issue with affordable housing is that those who need it the most are not eligible for it. Can the state be solely to blame when there is such a lack of funding (How to fix the affordable housing crisis, big government-style)? Other articles proposed that federal government involvement was a step in the right direction.
    Liz indicates in her blog post that one of the factors of this problem is how much it costs to actually build the housing complexes. If the cost of creating housing is high, then just like any regular building, the price to live there will increase as well. At this point, developers are unable to build enough affordable housing “to make a dent in the housing affordability problem” (Why Is ‘Affordable’ Housing So Expensive to Build?). The federal governments budgeting directly affects affordable housing and the most recent budget proposal takes away from the “federal programs that can give low-income families housing stability” (Trump’s budget guts affordable housing during an affordable housing shortage). As though the state and local governments weren’t having enough of a problem finding resources for affordable housing, this “eliminates two block grant programs” (Trump’s budget guts affordable housing during an affordable housing shortage). The reasoning behind this decision was that the grants proved ineffective and that the state and local governments were better qualified to handle these situations despite the fact that they were already doing that – but now they will be doing it with much less funding (Trump’s budget guts affordable housing during an affordable housing shortage).

    Ultimately, it’s not a sure thing that if there was more money coming from the federal government that affordable housing would be more attainable for the New Yorkers that need it. But, we do know that by taking away that funding, the state and local governments would be unable to even try. Unfortunately, there needs to be willingness across the country to contribute to the efforts of affordable housing, but with the reluctance to pay more taxes the chances are slim to none.

  2. melissadangelo says:

    Unfortunately, while affordable housing is a major crisis, there is nothing major being done about it. Like most sore subjects, it’s a problem that’s being talked about but not worked on in any productive way. The fact that it’s easy to displace New Yorkers who make <$35,000 a year means that the people who run the city (and I say this quasi fastidiously) want it to continue to be easy while deferring from backlash. I don't mean to say that people and organizations aren't trying to help – they are, and there are a lot of proposals that can actually help – what I mean to say is that the municipal government doesn't want a solution because not only is it not it's problem, it's actually an aid to making the city richer (having more wealthy residents, resulting in them putting in more money in their community.) It's also easier to kick them out in case they need land. That's how Robert Moses was able to change the landscape of NYC, making it a more attractive, wealthy area. New York, as we learned, isn't known for manufacturing anymore; it's prime focus and bragging point is its real estate, and because it's one of the only things it has left, they don't want to jeopardize making housing that either doesn't add to the market, or takes away value from it.

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