Advancing Housing Affordability: Best Practice and Policy Recommendations for County Leaders

HOUSING IS ESSENTIAL TO HEALTHY, SAFE, VIBRANT AND PROSPEROUS COMMUNITIES

For a growing number of Americans, the cost of housing is crowding out the rest of their household budget. In 18 percent of counties, households must spend more than 3.5 times their annual income to afford a typical home. Nearly a quarter (23 percent) of households that occupy rental units are severely cost-burdened, spending more than half of their annual income on rent. According to Freddie Mac, there is a shortage of more than 3.8 million homes – both rental and owner-occupied – across the country, and it will take more than 20 years to close the housing unit gap despite the recent acceleration in development, according to the National Association of Realtors.

Housing affordability challenges come in many shapes and sizes. In some communities, the greatest challenge is having access to housing stock that is affordable to the workforce, while others may struggle with restrictive zoning that prevents development or rehabilitation of the typologies of housing needed to address the growing challenge. Similarly, housing can refer to many typologies and groups, including renters and homeowners, supportive housing and the unique needs of the elderly and college students – all making the conversation complex. Similarly, housing can refer to many typologies and groups, including renters and homeowners. In any case, the first step is to name the issues, identify the county touchpoints, and develop a shared understanding of the community's challenges.

County leaders have varied authorities in cultivating housing affordability, but each county may play a role in the solution. Depending on the county, housing can span a wide range of touchpoints. As such, counties must look holistically across each “leg of the stool” and consider how changes in one area may affect another.

There are five key areas in which counties may use financial, policy, educational and administrative levers to foster housing affordability.

• Federal-County Intergovernmental Nexus
• Land Use, Zoning, Infrastructure and Community Planning
• Regulation, Codes and Associated Fees
• Community Engagement, Partnerships and Education
• Finance, Lending and County Tax Policy

POLICY INTO ACTION: USING THE RECOMMENDATIONS TO FOSTER CHANGE

Housing affordability is complex, multifaceted and interdependent. So too are county authorities and resources on housing local housing policy, financing and regulation. Because of the varied authorities, each county’s approach to addressing the challenge is different. Recognizing the acute need for housing affordability, the county housing ecosystem and associated recommendations seek to provide local leaders an opportunity for best practices and policy that reflects the diverse tools of county governments.

It is also important to recognize that each policy or ecosystem pillar does not exist independently, but are pieces of a whole. The land use and zoning plans in a community ultimately impact the county tax base and services; the partnerships established within a community can inform state and federal advocacy efforts; use of federal funds can reflect financing of new developments; and local regulations can have significant implications on community engagement. Recognizing this interconnection is important to understanding the levers and opportunities available to counties to foster affordability and quality.

Regardless of the county approach, the process of creating solutions for housing affordability at the local level is often slow, contentious and grueling. This recommendation framework does not intend to provide a prescriptive implementation guide. Rather, this document provides a broad set of tools and examples county leaders may use to develop a local housing action plan that reflects each community’s unique needs, values and priorities and considers the varied relationships and resources available.