Last time Jerry was on, we talked about what low income housing is and just started to scratch the surface on what we can do to solve the low income housing shortage.
In today’s episode, we’re talking with Jerry Anderson, president of Federal Consulting Group, about possible short-term and long-term solutions for the shortage of low income housing across the country.
Solutions for Low Income Housing
Our national shortage of low income housing runs in the millions of units. The latest numbers for Colorado indicate a shortage of approximately 121,000 units. So with these kind of numbers, what can be done to improve appropriate housing and not have the current struggles for homeownership and rentals. Below are some thoughts that may assist in solving our low income housing crisis.
- From a national level, the U.S. Department of Housing and Urban Development has programs/financing available to assist with the maintenance and development of low income housing.
- Providing financing via 221(d)(4) loans (new development or substantial rehab) or 223(f) financing for moderate rehab.
- Developing programs for affordable preservation, i.e. adding preservation Use Agreements on contract renewals or transfers, Rental Assistance Demonstration for converting public housing to the Section 8 subsidies allowing for private sector financing for rehab.
- Developing Notice of Funding (NOFAs) providing funding for various studies again for preservation purposes.
- From the local level, some states provide financing for new development or substantial rehab of affordable properties.
- Again, local Financing Agencies provide Low Income Housing Tax Credits (LIHTC) for new development or substantial rehab.
- Housing Finance Agencies and Commissions strive to protect their affordable housing stock and also work to develop new projects.
- Some private developers also develop affordable properties utilizing the above.
With all of the above, one would think we should be able to meet our requirements for affordable housing but it is simply not the case. Although we have tools to assist with the process, we have extreme “red tape” to accomplish the above. In addition, affordable housing is not well received by communities as they feel affordable housing deters neighborhoods and we get NIMBY (Not In My Back Yard) syndrome. Local governments are becoming more active on the affordable front that is certainly assisting with the process.
Cost of housing is also contributing to making affordable housing out of reach.
ABOUT TODAY’S GUEST
Joining us today is a very special guest! We have Jerry Anderson, President of Federal Consulting Group.
- Prior to Federal Consulting Group, Jerry was associate deputy assistant to the secretary of the office of affordable housing preservation.
- Throughout his career Jerry has been heavily involved with HUD related transactions.
- He is one of the few high level executives at the OAHP that developed the Green Initiative and Green Retrofit Program.
- He also served as chairman of HUD’s national loan committee and several other internal committees for loan and process approval.