Affordability

Affordable housing is defined by income. Most agencies and experts agree that housing is affordable if it
doesnt cost more than 30% of household income. As income goes down, however, the percentage of
income spent on housing rises. Low-income people often spend as much as 60% or more, and what they
get for their money can still be poorly maintained, unhealthy, and unsafe.
Looking at some numbers, affordability becomes clearer. Lets look at a family of four with an annual
income of $28,000.00. Thats one person working full-time at about $13.50 an hour or, more likely, two
people working (perhaps not both full-time) at $7.00 or $8.00 an hour. 30% of that will give that family
$700.00 a month for rent. In or anywhere near most large U.S. cities, its difficult to rent anything beyond
substandard housing for that amount. That means that the family will spend considerably more than 30%
of its income for rent. Buying a house is probably out of the question, even if the family is able to budget
enough to regularly pay a mortgage, because no bank is likely to loan them the money for a down-payment.
At a slightly higher level, most moderate-income families those making something close to the median
income for their area find themselves in a similar bind. Even if they can afford to buy a house, its likely to
be much smaller than they need, and to have other drawbacks on a busy street, in a dangerous
neighborhood, far from public transportation, etc. As a result, moderate- as well as low-income people are
included in our examination of improving housing in the community.

Livability
Affordable housing shouldnt only be inexpensive, however. All housing, regardless of cost, should meet
some basic standards of livability.
It should be:
Decent. That means in good repair no peeling paint or crumbling plaster, plumbing and wiring that
works, unbroken windows that open and close, sturdy stairs and railings, etc. In the case of
multi-unit buildings, it should also mean regular maintenance: clean hallways, no garbage, no
graffiti, shoveled walks in winter, etc.
Big enough for the number of people that live there.
Free of hazardous materials asbestos, formaldehyde, substances high in volatile organic
compounds (VOCs: toxic chemicals given off by many paint products and solvents, cleaners,
glues), lead paint, etc. and other threats to health.
Safe. Locks that work on doors and windows, a locking front door. In multi-apartment buildings,
safety may include an intercom-and-buzzer system. In elderly housing, there may be emergency
switches or cords that can alert someone if a resident has fallen or had a medical emergency.
Accessible to residents, particularly seniors and people with disabilities.
In appropriate areas. Affordable housing shouldnt automatically be built in the least desirable areas
of a city or community: the only residential building in an industrial area, for instance, or located next
to a factory that belches toxic smoke into the air. It shouldnt be located across the street from the
dump, or in a neighborhood that boasts drug dealers and drive-by shootings on every corner.
In reasonable reach of shopping, public transportation, recreation, and health and human services.
In cities, basic shopping should be in walking distance.

Design
The U.S. Department of Housing and Urban Development (HUD) offers principles of affordable housing
design on the web. (While these are aimed at affordable housing, they are, in fact, appropriate for housing
at any level.)
There are four basic principles:
Housing should meet the needs of its users
Understand and respond to its context
Enhance its neighborhood
 Be built to last
Housing should meet the needs of its users
Some of the criteria to be used for meeting needs include:
Size: Units should be big enough for the number of people theyre intended for.
Layout: Space should be used efficiently (lots of storage under and behind counters, closets, etc.),
rooms or spaces should be arranged in a logical manner (dining area next to kitchen, for example),
traffic patterns should be easy and natural. Units should be easy to get to and accessible.
Public spaces: Ideally, there should be outdoor space where kids can play safely and/or places to sit
for adults in sun and shade. If budgets allow indoor common space, it should be comfortable and
adaptable. Hallways and walkways should be maintained and well-lit.
Location: Housing, as discussed above, should be near, or allow access to, transportation,
shopping, and recreation. Affordable housing should not be assigned specifically to areas where no
one particularly wants to live next door to a chemical plant, or in a dangerous neighborhood.
Housing should understand and respond to its context
This is true for the physical, the historic, and the social context of its site and area.
It should use its site well. It should be built on the driest part of the site, should face in the
appropriate direction (toward the sun in cool climates, away from it in warm ones), and take
advantage of site features both to create an attractive space and to help control extremes of climate
(trees that lose their leaves offer shade in summer and allow sun in winter; a line of evergreens on
the north side of a lot can block the winter wind.)
It should fit in with other nearby buildings. It doesnt have to look exactly the same as other buildings
in the area, but using similar building materials, windows, roof heights, etc. will help it to blend in
well, and to increase the appeal of the neighborhood.
It should reflect the history and style of its neighborhood or community. The architecture might
mirror the historic use of the site. An apartment block could be faced with the same red brick as the
19th Century textile mill that once occupied its site. A housing complex in a largely Hispanic
neighborhood could be built in Spanish style, thus acknowledging the communitys character.
Housing should enhance its neighborhood
There are a number of ways in which housing can add to its neighborhood:
It can add to the neighborhoods attractiveness. Well-designed housing, with colorful or particularly
good-looking details, can make the whole neighborhood seem better looking, especially if it echoes
the interesting features and style of existing buildings.
It can add to foot traffic and street life. Setting aside space at street level in an apartment block or
other multi-unit development for retail and commercial use means that people will be using the
street. Activities that draw people out to shop and socialize help to create a neighborhood
community. The more people recognize and talk to one another on the street, the safer and more
pleasant the street becomes.
It can change the desirability of the neighborhood. An interesting or particularly nice building can
attract people to live in it. That, in turn, can make others aware of the existence and advantages of
the neighborhood, and draw new residents to it.
It can change peoples attitudes. Those who dont live in the new housing may start to see
themselves and their neighborhood differently: Since a developer chose to put this really nice
building here, this place must be OK. The result may be people paying more attention to keeping up
their own buildings and houses, and a rise in property values and community pride.
Housing should be built to last
The expected life of many houses or apartment buildings in the U.S. is relatively short not much more
than 25 years or so yet many houses over 100 or even over 200 years old are still lived in, and still solid.
How do you build housing that can last for two centuries, rather than two decades?
Use good-quality, durable materials suited to the climate. Some materials rot or corrode in wet
weather. Others may deteriorate in hot sunlight. Still others are likely to fail after a while under any
 conditions, simply because theyre not meant to last. Using the proper materials can make a huge
difference as to how long a building will stand.
Choose materials and construction techniques that are low-maintenance. There are many
procedures that will weatherproof various materials, but some are toxic (poisonous), and most have
to be continually renewed, like varnish on a wood floor. Using materials that are naturally weather-
and insect-resistant cuts down on the possibility of damage, and also on the expense of upkeep.
Although truly durable, low-maintenance materials may be more expensive to buy, they often save money
in the long run because of low maintenance costs. Current technology has produced a number of different
building materials and methods often cheaper than traditional ones that can keep buildings healthier
longer. Care must be taken, however, to be sure that materials that last dont contain harmful chemicals.
Treated wood, for instance, while it resists rot for decades, is injected with an arsenic compound that can
be dangerous. For years, houses were insulated with urea formaldehyde, which turns out to be toxic, and
especially dangerous when it burns. Do your research: find out what materials are being used, and
whether or not theyre safe.
Employ high-quality construction techniques. The more solidly and competently a building is put
together, the more likely it is to be still standing in 50 or 100 years. Its worth it not to skimp on
construction in order to save money on repairs later.
Pay attention to the use of the building. If children use particular areas a lot, it may be worth it to
reinforce floors, railings, or other elements of those areas. Corridors and other spaces that bear
heavy traffic could have harder flooring surfaces than the rest. Careful planning and analysis when
the building is being designed can add many years to its life.

Environmental responsibility
Environmentally responsible development uses resources carefully, preserves and safeguards the
environment of the development site and surrounding areas, avoids unhealthy materials and practices, and
promotes healthy and environmentally responsible behavior in residents.
There are literally hundreds of ways a building or development can respond to environmental concerns,
including:
Using recycled, non-toxic building materials.
Taking advantage of the site and the climate. This might include installing large, sun-facing windows
in cool climates or overhangs to block summer sun in warm climates; angling buildings to catch or
avoid sun or wind; using natural features (hills, trees) to block sun or wind; or building partially into a
hill or earth mound for insulation.
Where appropriate, using super-insulation and therma-pane windows (windows with two or three
panes separated by air pockets, creating an efficient heat- and cold-barrier) to control indoor
temperatures.
Super-insulated buildings can come with problems as well. They have to be completely tight, so that air
doesnt pass in and out quickly. In a standard, reasonably well-insulated house, the inside air is exchanged
for outside air about once every two to four hours; in a super-insulated house, that exchange may occur
only once every 12-24 hours. The result for residents can be exposure to substances in the air that would
normally never build up to levels where they would be a concern theyd cycle out as fresh air cycled in.
Installing windows that open and close for ventilation, to cut down on or eliminate the need for air
conditioning.
A New England university library was built in the 1960s with large plate-glass windows meant to cut down
on heating costs in the winter. In fact, the combination of sun streaming in through the windows and the
heat of the many bodies of students in the building made it necessary to run the air conditioning year-round.
Controlling energy use by maximizing natural light and installing low-wattage, fluorescent lighting;
installing Energy Star low-energy appliances; and generating energy on-site with solar hot water
collectors and solar- or wind-generated electricity.
 Installing a green roof. This can mean a literal green roof a flat roof covered with earth and
planted with grass that can control water runoff, insulate against heat and cold, and even provide
space to plant a garden. It can also mean a white roof that reflects sunlight in a warm climate, or a
roof that collects rainwater to be used for cooling, irrigation, or other purposes.
Conserving and recycling water. This can be accomplished through the use of low-flow faucets and
showers; the collection and recycling of gray water (from sinks, bathtubs, etc., but not toilets) for
irrigation, cooling, and other similar uses; and landscaping with plants native to the climate to
minimize or eliminate the need for watering.
In addition to what can be done in and on buildings, the use of the site, and of existing buildings can also
figure into environmental responsibility.
Locating near public transportation and/or providing shuttles to stations or shopping to discourage
unnecessary driving.
Creating pedestrian- and bike-friendly spaces, bike and walking/running paths, etc. to encourage
exercise and again discourage unnecessary driving.
Using low-impact construction and landforming methods (changing the site as little as possible, and
minimizing or eliminating the use of heavy machinery). This includes respecting existing landscape
features, especially those, such as streams and wetlands, that have an important place in the local
ecology.
Being careful not to damage or threaten water supplies; not to use toxic materials in building,
landforming, or landscaping; and to dispose of construction waste properly, so that it doesnt foul
anyone elses backyard, either.
Reclaiming brownfields. Brownfields are former industrial sites that are polluted, but cleanable.
Using a brownfields site for development can be tricky, in that all the toxic material has to be either
removed or cleaned in such a way that it will never be a danger to those living there. If its done
right, however, reclaiming a brownfields site has many advantages: it recycles an area that has
already been built on, rather than clearing new ground and eliminating more open space; it cleans
up a polluted area, leaving a healthier environment and eliminating a danger; and it turns an
eyesore into a community asset.
Reclaiming old buildings. Turning an empty mill, warehouse, or hotel, for instance, into housing
reuses a valuable resource, rather than throwing it away, and preserves community history as well.
Rehabilitating derelict buildings. Many old buildings are solid under their outer decay. Rather than
being torn down, they can be turned into attractive and durable housing, often with the labor of
those who will occupy them. Thus, they can provide housing for people, save them money (they
exchange their labor for part of the rent or purchase price of the housing), and teach them skills at
the same time. This also can rehabilitate whole neighborhoods by eliminating abandoned buildings
that may be used as crack houses, or become dangerous places for children to play.
Infilling.This is the practice of building housing throughout a neighborhood on empty lots, rather than
all in one place. This uses available space in an already-built area, thus helping to eliminate sprawl.
Preserving open space through cluster housing. With cluster housing, housing units are built close
together on a large lot, with the rest of the lot left as common open space. Thus, rather than each
unit having a small amount of open space, the development as a whole has a large amount to
share.

Social effects
Improving housing, particularly affordable housing, can have far-reaching social consequences. If housing
for low-income people is placed nowhere but in low-income neighborhoods, those neighborhoods can
remain low-income and ignored indefinitely. If affordable or public housing is essentially racially
segregated either by design or by location or circumstance thats a lost opportunity for people of
different races to get to know one another. Some of the ways in which communities and developers try to
improve housing with social effects in mind:
 Mixed-income development. A mixed-income development includes, as you might guess, residents
of different income levels. While all the units in a development may be similar in design, if not in
size, a certain number may be subsidized (usually for residents at or below 150-200% of poverty
level), others may be low- to moderate-income (with rent or purchase price based on income), and
still others may be market-rate (full price for a comparable unit). The intent here is to create a
diverse community that spans two or more income levels, with no distinctions made, where
cross-cultural and cross-class socializing and friendships are possible. There is an assumption that
lower-income people will raise their aspirations, and that the more affluent will gain more
understanding of and empathy for those with less. In the ideal, the diversity of the residents
removes the stigma and isolation of poverty that often goes with subsidized housing, and
encourages all to take pride in maintaining their homes.
Mixed-use development. A mixed-use development includes both residential and commercial space,
often one above the other. It may also be mixed-income, and/or include residence areas for both
seniors and families with children. One advantage of mixed use is that it encourages street life, and
creates a village feel to the development, making the area safer and more pleasant. It also makes
access to shopping or other services easier for residents, especially seniors and people with
disabilities, for whom public transportation may be difficult to manage.
Housing for seniors and/or people with disabilities.These provide a safe and secure environment for
those for whom physical mobility can be difficult, and who prefer to know that help is available in an
emergency. Senior housing often includes planned activities, and may offer meals as well. It offers
elders the chance to remain independent, while at the same time being in a protective and
supportive environment.
Co-housing. This is a form of housing in which each household has its own living space (either an
apartment or a detached house), but all share common open space and a common house.
Residents usually help to plan the community, and run it by consensus once its established. The
common house provides an opportunity for such activities as regular community meals (often once
or twice a week), classes, community management meetings, and entertainment. When it works
well, co-housing fosters a community where everyone knows her neighbors, where everyone has a
say in the governance of the community, and where everyone contributes to maintaining both its
physical and social character.
Location of housing. Putting affordable housing in a relatively affluent neighborhood, or locating a
mixed-income development that includes market-rate units in a low-income one can have a
profound effect on both residents and the neighborhood they find themselves in. A well-kept
development that includes upscale residents can make both neighborhood residents and outsiders
see the neighborhood more positively, as can the presence of rehabilitated houses in a blighted
area. It often takes only one or two positive signs brightly-painted houses, a new restaurant, a few
artists studios to start to turn a neighborhood around.

Finding the resources and support for getting it done

Improving the quality of housing often involves policy change, always involves money, and takes the
cooperation of a large number of people. The basic ingredients, which well discuss in much greater detail
in the last part of this section are the commitment of the community and government; incentives for and
limitations on developers; advocacy; and the involvement of everyone concerned, from developers to
potential or actual residents of improved housing.

Why improve the quality of housing?

It sounds like improving the quality of housing can be big job, demanding a lot of organizing and advocacy
in addition to the actual construction or rebuilding work. Why do it?
Everyone wants to live in better housing. Its the reason homeowners buy up to bigger and better houses
as they become more affluent, and the reason renters think about becoming homeowners. Furthermore,
improving housing is almost always seen as a positive by the community, and makes a huge difference in
the lives of people who can move out of an unsafe, deteriorating apartment into a clean, safe,
well-maintained one. There are, in fact, a large number of specific reasons for improving the quality of
housing, a few of which are:
It adds to the physical and social attractiveness of the area. Better housing looks better, and
makes people feel good about moving into the area.
It increases property values. This is good for homeowners who typically have more of their net
worth tied up in their home than anywhere else for developers, who stand to gain more from their
investment, and for the community, which increases its tax base, and can therefore offer more
services.
Improved housing increases pride in the neighborhood for everyone. That attitude often leads
to everyone taking better care of their property, whether they own or rent, and can change the
character of the neighborhood for the better.
Well-built housing is kinder to the environment. If its planned and built in an environmentally
responsible way, improved housing can conserve energy and resources, provide residents with a
healthier and safer place to live, and last indefinitely.
Improving the quality of housing is cheaper for both the developer and the community in the
long run. Planning and building well will reduce maintenance and repair costs, saving the developer
money over time. Improved, well-managed housing is also likely to have social consequences that
save money for the community as well lower violence and vandalism rates, and fewer social
problems in general, as well as eventual neighborhood development and increased tax revenues.
Improved housing can increase the potential or actual workforce in the area. By providing
housing close to area jobs, it increases the number of people available to fill those jobs.
It can preserve open space and/or reuse unused, previously-built space. With the use of
cluster housing and other strategies, improved housing can preserve or create open space for
residents, or even the whole neighborhood, to enjoy. In some cases, it can turn an eyesore into a
community asset.
In Atlanta, the site of the defunct Atlantic Steelworks has been turned into a mixed-income, mixed-use
housing and commercial development. The Atlantic Station project incorporates affordable housing,
environmentally responsible building, brownfield cleanup, a healthy and pedestrian-friendly environment,
and easy access to downtown. It also took a crumbling industrial site and transformed it into an attractive
neighborhood.
It can replace or restore an aging housing stock. Buildings, like people, have a life span, and
when its over, they need to be replaced. Some are still healthy, and simply in need of a makeover.
Others really have reached the end of their useful lives, and should be torn down. In either case,
they can be turned into improved housing, either by restoration or by rebuilding on or near the
original site. This action creates housing that will last through several future generations.
Improving the quality of housing can be part of a plan for anticipating the growth of the
community. Providing more quality housing will both hedge against and attract population growth.
The character of the housing can guide that growth: the affordability, size, and location of housing
can help determine who its residents will be.
Improving the quality of housing is the right thing to do. Everyone has a right to an adequate
weathertight and safe place to live. In most developed countries, the free market will supply those
places for people who can afford them. For those who cant afford them, the society should feel an
obligation to provide basic housing that meets those criteria, so that no child will grow up eating lead
paint, no senior will freeze to death in a cold apartment, and no family will feel threatened in its own
house.
When should you improve the quality of housing?
Improving the quality of housing, as with almost all the topics covered in the Community Tool Box, should
be worked at continually. The lack of decent affordable housing is a problem in most mixed-income
communities in the U.S., especially on the West Coast and in the Northeast. In those and most other areas
of the country, there is enough housing for the population vacancy rates in most places hover between
five and fifteen percent but affordable housing is another story.
Given that general statement, there are still times when its particularly appropriate to work for improved
housing.
When theres a community planning or development effort in progress. This is a perfect time
for housing advocates and other interested parties to push for affordable housing, environmentally
and otherwise responsible design, and positive social impact.
When theres an outcry about the lack of decent housing. Newspaper or TV items about
substandard housing, a building collapse or fire, or simply a growing realization that too many
people dont have fit places to live can fuel a movement to improve the quality of housing in the
community.
When theres a crisis. If people start to notice that there are many more homeless people on the
streets, or that homeless people are freezing to death in the winter, theyll react. The same is true
when stories appear about elderly residents freezing to death, dying of the heat, or being assaulted
in unsafe and poorly maintained apartments. This is a time to work for better housing, both because
the public is ready to support it, and because its desperately needed.
Unfortunately, its all too common that you have to wait until theres a crisis for the public to notice no
matter how loudly and how long you and others may have been telling them that housing (or anything
else) in the community needs improvement. Most people would prefer, subconsciously, to pretend
problems dont exist, because fixing them takes work and money. But since most people are decent at
heart once theyre acknowledged, people will feel an obligation to tend to them. For that reason, its
important to take advantage of the opportunities that arise when the public does let a problem enter its
consciousness. It may be a long while before you get another chance if you don't capitalize quickly on the
one you have.
When theres funding available from a federal, state, or foundation initiative. Such an initiative
may accompany one of the circumstances above, or it may stand alone. In either case, it may be a
great opportunity to build (or create through restoration or rehabilitation of existing buildings) better
housing in your community.

Who should be involved in improving the quality of housing?

If its done properly, developing good-quality affordable (or environmentally responsible) housing takes a
collaborative effort throughout the planning, design, and construction process (and beyond, but thats the
subject of a section in itself). Certainly all those directly affected developers, contractors, lenders or
funders, potential residents should participate, but there are others whose voices are important as well.
A possible list of collaborators:
The developer, especially if he stands to gain by attending to community needs.
The business community, particularly lenders. The question of low-interest loans to low- or
moderate-income homebuyers may be an issue, as may the question of who is a reasonable
borrowing risk and who is not.
Local and state officials. They can offer incentives to and place restrictions on the developer in order
to get the aspects of the project that are most needed or desired. The permitting process has to go
through local and state boards, there may be public funding involved, the housing will have to be
connected to water and sewer lines all these are reasons to have community officials involved
 from the very beginning, to eliminate misunderstandings, to get the development the community
wants, and to make sure the process goes smoothly.
Funders. Given the amount of funding that even a small housing effort requires, funders will
probably want to be party to the process.
Neighbors. By becoming part of the process, neighbors can get their concerns addressed, and dont
feel as if they havent been heard. Furthermore, those who oppose the project can become
supporters if they participate in planning, and can feel ownership of the final product.
Potential renters or buyers. By including the people who are likely to be living in new housing, you
can find out what their needs are, what features they consider important, how the buildings are likely
to be used, what they like and dont like about the proposed site, design , etc. In addition, if they
take part in planning, theyre also taking on a sense of ownership of the finished project, which
means that theyre apt to take pride in and take care of it.
The media. They can help to educate the community about the need, and persuade it to support an
initiative to improve housing.

How do you improve the quality of housing?

Up to now, weve largely been discussing various aspects of building quality housing thats affordable and
beneficial to the community. The real work of improving housing in the community, however, is in making all
the building and renovation possible: thats what well tackle in this part of the section.
How do you convince developers who are usually mainly concerned with how much money theyll make
on a project to build affordable and/or environmentally friendly housing? How do you get housing built
where and how you want it, if you as a community are not paying for it directly? Probably the most effective
action you can take is to offer the developer an incentive i.e. something he wants in return for
something you want. If that doesnt work, or if you dont have anything the developer wants, you might try
restrictions or regulations that get you at least some of what youre looking for. There are a number of
other steps a community can take as well, either alone or with developers, lenders, residents, and others, to
power a high-quality housing effort.
The discussion in this section largely assumes that efforts will be conducted by one or more community
groups, and that readers of this Tool Box section will be members of those groups. But what if youre trying
to start such a group, or are simply interested, as an individual, in helping to further the development of
good-quality affordable housing in your community? There are some things you can do, at least to start
with, that can make you an effective housing activist.
Learn all you can about the current housing situation, about quality housing in general, and about
current and potential incentives and regulations that might relate to the improvement of the housing
stock in your community. The more you know, the better youll understand the situation, and the
more valuable youll be to any housing effort.
Get to know local and state officials (and their aides) who are responsible for, or who can help with,
creating housing policy. Finding an influential champion for improving the quality of housing can go
a long way toward helping you realize your goals.
Do what you can as an individual to highlight the issue and spur others to take action. Write letters
to the Editor, contact the media in other ways, take photos of substandard housing, show officials
examples of quality affordable housing, enlist influential people you know or can meet with. All of
these and similar actions can have an effect on the character of housing in the community.
Most important, find out what other individuals and groups are doing about improving housing. The
chances are that youll be most effective if you join with others who have the same concerns.
Joining an existing group is a great way to learn about housing issues, and gives you a chance to
play a role in determining housing policy. If there isnt an existing group, you could try to form one
with others who want the same results you do.
Well begin with some general guidelines for improving community housing quality.
General guidelines
Conduct an assessment of community housing needs and assets. Where is housing particularly
needed, or where does it need to be significantly improved? What are the drawbacks to that area
(gang activity; truly unsalvageable, but still-standing, buildings; already overbuilt)? What are the
assets available for improving housing (fundamentally solid, but deteriorating or abandoned
buildings; working families; unused empty lots; etc.)? What are the needs of people in the area
(elderly housing; housing for families with young children; single-occupancy units)? The first steps in
improving housing are assessing the current housing situation and finding out what low- and
moderate-income community members see as their needs.
Encourage participation. As we discussed above, housing efforts go better if as many of the
affected people as possible are involved. If the planning process is a collaboration among officials,
the developer, the architect, neighbors, and potential or actual residents, the community is much
more likely to get housing thats not only welcomed, but attractive, functional, livable, well-built,
well-kept-up, and truly affordable. Neighbors, who may initially object to the project, will end up
feeling ownership of it. A participatory process will also give potential residents a chance to meet
and develop relationships with their neighbors before they move in, making it easier to integrate
them into the neighborhood. Furthermore, the more people you can engage in the process, the
more housing advocates there will be when you need them.
Consider diversity. Think carefully about the character of the neighborhood or area in which housing
is located, and about the culture, class, and race or ethnicity of those who are likely to occupy it.
What can the community do to encourage and support diversity? What will be the impact on the
neighborhood of a diverse, or a different, population? What will be the impact on the residents of
new housing of moving into a diverse, or homogeneous, situation? How can the community, the
developer, neighbors, and residents best prepare for changes, and ensure interaction and comfort?
(Heres where a participatory process can pay huge dividends.)
Strive for equity. Plan, design, and build affordable housing with the same consideration that would
be given to upscale development. Affordable houses or apartments may not be as big or as fancy
as those aimed at the affluent, but theres no reason that they cant be as well-designed and livable.
Remember that when you refer to someones net worth, youre referring to the value of her money
and possessions, not her value as a person.
Address the impact, especially of a large development, on the area where its built. If its aimed at
families, are there adequate school facilities available? Is there enough safe play space, and access
to possibilities for family recreation parks, sports fields, movies? Is there shopping, or available
space for new markets and retailers to move into? Is there transportation for elderly residents and
people with disabilities? What will a jump in population mean to the character of the neighborhood,
to vehicle and foot traffic, to the need for more public transportation?
Plan, design, and build housing around the needs of residents, not those of the contractor or
developer (within reasonable cost limits). Especially where funds are limited, consultation with
residents will help determine where to spend it, and whats not necessary. If housing meets tenants
needs, theyre more apt to stay, creating a stable community good for maintenance and upkeep of
the project and also for building social capital among residents and in the neighborhood in general.
Be creative. Turn buildings designed for other purposes into housing, for instance; scatter affordable
housing throughout a neighborhood; put elders and families with children on different sides of a
multi-unit building, with some common space where they can interact; build next to or over a
transportation hub. (These are all actual ideas that have been successfully put into practice, some
of them in several places.) Dont be limited by the conventional view of housing.
Plan for recruiting tenants or buyers. Whom do you want to recruit? What communication channels
will you use to reach potential residents? What kind of screening, if any, will there be? What kinds
of help with applications, loans, etc. will you give people who are interested?
Provide incentives for developers
The kinds of incentives a community can offer are limited only by the law and the communitys and
developers creativity:
Tax breaks. Many communities will offer a developer freedom from property taxes or a reduced
property tax rate for a set number of years after the project is completed. A variation on this is
increasing taxes by a small amount each year until they reach the full rate.
Federal and many state governments may offer tax breaks on environmentally-friendly features, such as
solar water heaters, electricity-producing solar collectors, high-efficiency furnaces, and similar equipment.
Subsidies. Subsidies payments used to help someone pay for something can be offered in a
number of ways. The most familiar to most of us is offering subsidies to renters, which actually get
passed on to landlords. That is, the renter pays only part of the actual rent, and the subsidizer
generally, the local, state, or federal government pays the rest. Another possibility is to offer
subsidies to developers to help pay for projects that the community wants. Still others are to
subsidize landlords (or developers) to fix up housing, a certain portion of which will be affordable; to
subsidize land costs for developers; or to subsidize connections to local services, such as water and
sewer.
Grant funding. A community might help a developer in obtaining a grant to pay for part of a project,
or the two might jointly apply for a grant that would allow them to shape affordable housing in a
particular way.
Free or low-cost public land. Developers can be offered land owned by the community, either solely
as an incentive, or because the community wants housing in that particular place...or both.
Infrastructure support. The community may agree to provide roads, water, electricity, or other
services at its own expense as its contribution to an affordable housing development.
The Georgia Department of Transportation constructed the 830-foot-long, bright yellow 17th Street bridge in
Atlanta specifically to connect Atlantic Station a mixed-income, mixed-use, environmentally-friendly
development to downtown.
A speed-up of the permit process. Typically, development requires a large number of permits from
the community not only building permits, but ones relating to zoning, water, sewer, roads or
driveways, electric lines, etc. Speeding up the process of obtaining these permits can save the
developer a great deal of time and money.
Hand-holding. This term refers to the practice of a community guiding a developer through every
step of the process necessary to get a project under way and built. Its an extension of the incentive
above, but may go as far, in a large city, as assigning an official to work directly with the developer
throughout the life of the process, in order to make it as smooth as possible for both developer and
community.
Waivers of some regulations. A community may grant a waiver permission to do something other
than what the regulation demands for any number of things. One of the most common waivers is
for density: the developer would be allowed to go over the number of units per acre specified in the
zoning regulations. Other waivers could be for building height, setback (how far the building has to
be from the sidewalk or the edge of the lot), number of parking spaces, etc.
Enterprise zones. Enterprise zones are areas designated by the federal government as in need of
economic and other development. Developing affordable housing in those areas gives the
developer a number of specified incentives, often including one or more of those above.

Require returns for incentives

In general, incentives come with strings attached. Sometimes, the only string is the completion of the
project itself, if the developers plans already satisfy community needs. Often, however, incentives are
granted in return for specific actions on the part of the developer.
A short list of possibilities:
 A mixed-income development will set aside a specified percentage or number of units for low- and
moderate-income residents.
The developer promises to meet LEED or other environmental standards.
Leadership in Energy and Environmental Design (LEED) is the Green Building Rating System from the U.S.
Green Building Council. LEED is not the only environmental rating system for buildings, but it is widely
recognized and respected. Some states use it; others set up their own system.
The project will meet agreed-upon construction specifications.
The developer will clean up a brownfields site as part of the development process.
The developer will abide by lower density requirements. This might be required on an
environmentally sensitive site.
A developer enters into a covenant with the community that the units cannot be sold by the original
buyer at a profit or rented at a higher rate (adjusted for inflation) by the developer for a certain
length of time, or forever. This requirement is designed to keep the units affordable for the life of the
development.
A developer builds a certain number of units of affordable housing in one place in return for being
allowed to build an upscale housing development in another. In some cases, the upscale
development may be one that doesnt comply with regulations, and the affordable development is
the price of the communitys waiver of those regulations.
A developer agrees to build in a certain neighborhood or area.
A developer agrees to provide, or provide a connection to, public transportation.
A developer agrees to provide improvements to the area trees, parks, roadway upgrades, parking,
sewer lines, bridges, etc.

Develop and enforce regulations and other limits on developers

Incentives are ideal theyre generally a win-win proposition, and they make everyone happy. If theyre not
enough or not possible, however, regulations and limits can be used instead, or in addition, to improve the
quality of housing.
Many regulations relating to housing already exist in any community. There are usually requirements for
minimum lot size, density (the number of units per acre), building height, construction quality, the number
and types of permits required, waste disposal, etc., etc. Weve already discussed how waivers of some of
these regulations can be used as incentives. There are also ways that requirements in the regulations can
be used to improve housing in the community.
Inclusionary zoning. This practice, used in more and more communities, requires that any new
development include a certain percentage of affordable units.The level of affordability may be the
same for all (say, 10% subsidized, 10% low-income, 10% moderate income), or may be adjusted
depending on a number of factors (the location of the development, the median or maximum rent or
price of units, etc.)
Housing linkage. The linkage here is between the number of units built and the projected cost to the
community in increased school and other services to families occupying those units. The developer
pays a fee per unit to help offset these costs. Another type of linkage regulation charges a fee to
industrial, commercial, and office developments to help pay for the costs of new housing that these
developments will require because of the workers they attract or bring with them. In some cases,
these developers are directly required to supply a certain amount of housing, often at affordable
rates.These linkage requirements may come with incentives as well, in order to make it easier for a
developer to comply.
Taxes or fees on upscale development. A community might impose special taxes or fees on
developers whose units are selling or renting above a certain rate. The money thus collected would
then go toward improving or creating affordable housing.
Developers might be required to meet LEED or other environmentally responsible building
standards.
Secure public financing and/or building of housing
There are a number of ways in which the community, state, or federal government can itself contribute to or
build affordable housing.
Actual publicly-built and -maintained housing. Public housing exists in most large cities. Most was
originally intended as mixed-income or veterans housing after World War II, but over the past three
or four decades, it has largely been left to the poor. The problems with public housing are
well-known much of it is isolated, badly built and maintained, and dangerous. This doesnt have to
be the case, but the construction, management, and maintenance of new developments have to be
monitored carefully to make sure they meet standards. In recent decades, the most successful
public housing has been mixed-income, with middle-income residents more willing to hold
management accountable for lapses.
Community land trusts. A community land trust can be a private non-profit, or can be operated by
the community itself. Its purpose is to buy land for community purposes often for open space
protection, but many land trusts also purchase land for affordable housing. The land can then be
held until an appropriate developer or adequate funding is found. The community may or may not
act as its own developer in this situation.
Use of public land. Building on community-owned land can cut down the price of development. The
community can use public land as an incentive for a developer (who will finance the project himself),
or contract with a developer to have affordable housing built on a community-owned site.

Engage banks and work with low- and moderate-income renters and buyers
Engage banks to provide services to low-income people. Communities can use the Community
Reinvestment Act (CRA), which mandates that banks provide certain services to communities in
which they operate, to obtain low-interest loans for low-income home buyers, or to persuade banks
to make loans to developers for affordable housing.
Help consumers find affordable low-interest mortgages. Homebuyers may be eligible for Farmers
Home Administration (FHA) or other low-interest loans that theyre unaware of.
The U.S. Consumer Credit Protection Act protects borrowers from banks and loan companies that fail to
explain clearly all the costs involved in a mortgage or other housing loan. Some unscrupulous lenders
intentionally make loans to low-income consumers that they know cant be repaid. When the borrower
defaults (fails to make a certain number of payments), the lender can then take the house, and sell it again.
Community- or agency-run housing programs, as part of buyer education, often monitor loans to be sure
theyre affordable for the borrower. If there seems to be deception on the part of the lending organization,
its liable for prosecution under the Act.
Provide buyer/renter education. Some communities educate potential residents of affordable
housing developments on how to use credit, how to decide what they can actually afford to pay for
housing, understanding mortgage rates, what goes into the purchase of a home, etc. The purpose
here is to make sure that once an individual or family takes up residence in an affordable house or
apartment, theyll be able to maintain payments and stay for a long period.
In some cases, this education can also include how to care for your home. Residents of Chicagos
infamous Cabrini-Greene project who were chosen to move into the mixed-income development that
replaced it were asked to attend classes that taught home maintenance, getting along with neighbors,
conflict resolution, and other skills necessary to live comfortably in an environment that wasnt a war zone.
Utilize sweat equity programs. The community can initiate, or work with existing housing agencies to
initiate, programs whereby low-income families can pay for part of the cost of a home with sweat
equity, i.e., their labor. Many of these programs involve a construction supervisor provided and
paid by the agency or community, who works with a team of prospective homeowners to
collaboratively build houses for each of them. The houses are thus built for the cost of materials
alone, except for work that has to be done by a licensed contractor (connecting the house to the
 electric grid, for instance) or that is simply impossible for the team to do on its own (digging a deep
well).
Typically, houses built in this way follow a single or a small number of designs, with plans supplied by the
agency or community. Rather than being built one at a time, the houses usually all go up at the same rate,
with crews switching from one house to the next from week to week. This is to ensure that everyone helps
with all the houses, rather than someone withdrawing when his own house is finished.
A variation here is cooperative housing, involving the rehabilitation or renovation of an existing building into
multi-unit housing, which is then owned by the team that did the work. Unlike sweat equity programs, in
which one team may build houses in several different locations, the cooperative housing team makes a
commitment to live together, or at least in close proximity, when the job is done. Often, rather than each
family owning its unit in the building, the whole building is owned by all the residents as a cooperative. In
this case, there have to be clear agreements about what happens when a resident leaves, how new
residents are selected, etc.