NHPF Industry Report
NHPF, in partnership with NewPoint Real Estate Capital, pioneered a non-LIHTC solution for a property in Washington, DC, through the use of 501(c)3 bonds. The $47.3 million development was funded by a tax-exempt bond, a $23.2 million loan from the Department of Housing and Community Development (DHCD), a $5 million grant from DC Department of Energy & Environment (DOEE) , a $2.25 million low-interest loan from DC Green Bank, and a $1 million United States Department of Housing and Urban Development (HUD) HOME grant. Continuing to restrict risky financial products, such as those targeted by the Dodd-Frank Wall Street Reform and Consumer Protection Act (2010), is also vital for maintaining the housing market. These regulatory measures help protect the industry from the kinds of financial crises that have historically led to widespread housing instability. Conversely, the government is always viewed as being able to do more, such as boosting legal immigration to help increase construction labor as well as pursuing trade deals to cut costs for materials such as lumber . Expanding public transit would make suburban and exurban residential areas more desirable for workers in cities. An idea also making the rounds: elected officials freeing up federal land for housing development.
Addressing Legal and Societal Barriers
Respondents were in close agreement on what constitutes the top barriers to building and managing affordable housing that must be addressed at a civic level. In addition to the high cost of construction and materials, more social justice-related issues such as restrictive zoning and NIMBYism were also seen as issues to be addressed by lobbying or other civic involvement. Survey-takers also voiced that discrimination remains a significant barrier to affordable housing. Current legislative efforts to combat discrimination in affordable housing focus on enhancing the enforcement of the Fair Housing Act, advancing the proposed Equality Act to safeguard LGBTQ+ rights, and implementing local and state anti-discrimination laws. These initiatives aim to provide stronger protections against discrimination based on race, religion, gender, sexual orientation, and income source. Additionally, many organizations are pursuing zoning reforms to reduce racial and economic segregation by promoting affordable housing in diverse neighborhoods, while efforts to improve data collection and transparency on discriminatory housing practices seek to better target and address these issues. As well, certain eviction protections, while a sensitive issue, were also regarded by survey- takers as harmful to owners. A recent report noted that more than 80% of housing properties that have received [Washington] DC funding aren’t bringing in enough rental income to pay their mortgages and maintenance costs, according to the District’s Department of Housing and Community Development . Recommendations were framed as actions that the industry and its partners could take locally as well as through lobbying for federal legislative relief. Building on data NHPF uncovered in a previous report, civic action from community leaders, community not-for-profits, and local coalitions of community organizations is among the most effective means for implementing regulatory and other changes that positively affect housing.
THE NHP FOUNDATION 2024 SYMPOSIUM: INDUSTRY REPORT • 5
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