NHPF Industry Report
NHPF and its mission-based cohorts in affordable housing have long promoted the attributes of partnering with various organizations to prevent crime in the neighborhoods in which they build. Relationships with everyone from local law enforcement to local gardening groups all contribute positively to residents taking more responsibility for their actions and their surroundings. Building affordable housing in resource-rich neighborhoods is another strategy for promoting diversity and combating discrimination. These neighborhoods offer access to better schools, healthcare, and employment opportunities, making them ideal locations for affordable housing developments. In one high-opportunity neighborhood, NHPF has scattered-site housing (housing especially for low-income families built throughout an urban area rather than being concentrated in a single neighborhood), leveling the playing field for residents of different incomes. There we also offer “single-family home rental resiliency” classes where first-time home renters gain home maintenance skills.
Obstacles to Accessing Housing
Our research shows that failure to include on-time rental payments in credit reports resulting in poor or non-existent credit histories is a major obstacle for many individuals seeking affordable housing. NHPF’s 2023 report concluded that alternative credit evaluation methods can promote greater inclusivity in housing markets. As well, residents with improved credit scores due to credit reports including on-time rent payments may also benefit from increased access to lines of credit with better terms. Other factors contributing to housing insecurity noted in the 2024 survey results stem from inadequate legal protection and representation. Navigating the legal system, particularly one that hasn’t solved the ongoing problems of profiling and entrapment in black and brown communities, can be exhausting and fruitless, especially for residents juggling two or three jobs and other hardships. However, recent positive developments include the establishment of right-to-counsel programs in cities like New York and San Francisco, which provide free legal representation for tenants facing eviction, significantly improving their chances of remaining in their homes and ensuring fair treatment in housing disputes. Survey respondents also reported that people with criminal records often face significant stigma that prevents them from securing housing. Providing second chances and breaking the cycle of discrimination is crucial for their reintegration into society. Trust is a major obstacle for formerly incarcerated individuals, who are often viewed as convicts for life. Rebuilding trust in these situations is challenging but necessary. Finally, concerns about income eligibility laws for affordable housing, such as those in Section 8 and LIHTC programs, often discourage tenants from pursuing better-paying jobs due to the risk of losing their housing assistance. This issue, known as the “cliff effect,” can leave families worse off financially after a modest income increase. To address this, some programs are introducing flexible policies like income averaging in LIHTC properties, Earned Income Disregard (EID), and gradual phase-out of benefits, which help tenants increase their earnings without immediately losing their housing support. Advocacy efforts are also underway to reform these income limits, promoting upward mobility while ensuring housing stability.
10 • THE NHP FOUNDATION 2024 SYMPOSIUM: INDUSTRY REPORT
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