Agenda - Planning Commission - 02/01/2007

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transportation, according to Upman's 2006 report for the Center for Housing Policy. A Heavy Load: The Combined Housing and Transporta- tion Burdens of Working Families. These prob- lems undermine the well-being of both the affected families and the communities in which they live or wish to live. families that cannot afford the costs of their homes may be only one paycheck away from foreclosure or eviction. They also may have insufficient income left over to afford necessary food, health, and education expenses, leading to adverse nutrition, health, and education outcomes fortheir children. Such problems are compounded by the stress of con- tinually struggling to meet unaffordable housing costs and the high cost and lost time with fam- ily associated with lengthy commutes. for many communities, the high cost of homes makes it difficult or impossible for police officers, fire fighters, and other essen- tial workers to live in the communities they serve, reducing their capacity to respond promptly to emergency situations and to par- ticipate in community life after 5 p.m. The high cost of homes also makes it difficult for communities to attract teachers, nurses, and other valuable community servants and for employers to attract the workers they need to sustain and grow their businesses. These are serious problems. But fortu- nately, there is a wealth of experience in how to address them. While in earlier decades the fed- eral govemment may have taken the lead in developing solutions, the focus of decision maldng today is at the state and local level. Many promising strategies exist for municipal leaders-including a number of policies that rely on the zoning process~to expand the availabil- ity of affordable homes for working families. OPTIONS FOR STATE AND LOCAL GOVERNMENTS State and local governments can choose from six principal options to increase the availabil- ity of affordable homes. Expand the availabiUty of sites for the development of affordable homes. In most com- munities where homes are fiscally out of reach for working families, land is expensive. By mak- ing publicly owned land and tax-delinquent properties available for the development of affordable homes, local govemments can neu- tralize this obstacle. Local govemments also can expand the supply of sites for new develop- ment through changes in zoning rules or maps that make new areas available for development or expand the number of homes that can be built in existing residential areas. Formany communities, the high cost of homes makes it difficult or impossible for police officers, fire fighters, and other essential workers to live in the communities they serve. Reduce red tape and other regulatory barriers to affordable homes. In the develop- ment world, time is money. The longer it takes to gain the necessary approvals to build a home, and the more uncertainty involved in the approval process. the higher the costs of newly built or renovated homes. By expediting the approval process for affordable homes and addressing the regulatory barriers that drive up costs, such as overly restrictive zon- ing rules and building codes and regressive fees, state and local govemments can cut through the red tape and expand the supply of affordable homes. Harness the power af strong housing markets. The greatest housing challenges are found in hot housing markets where the costs c;>f buying or renting a home increase much faster than incomes. Fortunately, state and local governments can take steps to capitalize on strong markets to expand the supply of affordable homes. These policies include strategies for tapping the increased tax rev- enue associated with increases in property values and an active real estate market, as well as incentivizing or requiring the develop- ment of a modest number of affordable homes as part of the process of developing more expensive homes. Generate additional capital for afford- able homes. While successful efforts to reduce regulatory barriers can help expand the supply of affordable homes, in many com- munities additional resources will be needed to bring the price of homes within reach of working families. There is a range of promis- ing approaches for generating revenue for this purpose, including leveraging additional fed- eral funds through the four percent low- income housing tax credit program, support- ing the issuance of general obligation bonds for affordable homes, and tapping employer interest in providing homes for their workers. Preserve and recycle resources for offord- able homes. Given the limited availability of public funds for affordable homes. it is essen- tial that funding be used in a cost-effective ZONING PRACTICE 12.06 AMERICAN PlANNING ASSOCIATION I PSg :?) _ __ .___ ~f'~