Tuesday, March 27, 2007

And how to help them?

The report also details seven high priority strategies, with a matrix on which population of low income households it would help and to what degree.

To help the extremely low income families, three strategies are considered to be the most effective:
  1. Providing incentives to assist developers to create affordable housing including density bonuses, fee waivers, reduced zoning requirements, and expedited permitting. This is taken from numbers that show substantial cost savings in a multi-family development--roughly $10,500/unit would be saved if permits, utilities, and parking were waived or reduced. For single family homes, waiving permits, broker commissions, and closing costs would take $24,000 off of a 2030 sq. ft. home. And if you could acquire the land for free, and all interest on the loan, a house worth $285,000 could go for $129,000.
  2. Create a new local dedicated revenue source for populations below 80% of the median income. This would mean possibly a housing levy (a la Seattle's levy), a % of real estate tax (like 1%), or housing trusts or land trusts
  3. Tax relief for developers who build and maintain affordable housing. (an expanded version of what we already have basically).

Those are some cool options they've put together I'd say.

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