There is a great interview up this week on Shelterforce with HUD Secretary Julián Castro.
I think the parts of the interview that dive into some of the details about the solutions for low-income housing problems, and the different levels of government seeking to address those problems, is particularly interesting. As I wrote last year, one beauty of our system of government is that it “invites a chorus of actors, [and] rewards strategy and diligence.”
Miriam Axel-Lute: You mentioned different places have different things going on, different markets, and we want people to have access not only to new areas of opportunity, but we don’t want them to be priced out of places where they live now that are improving. There are a number of places, including New Orleans, as you mentioned, where many people are being priced out of the neighborhoods that they have lived in for a long time. In markets like that, what can HUD do to help people keep their homes?
Julián Castro: We need to focus on creating as much stock of affordable housing as possible. That’s why, for instance, we’ve joined with Treasury in suggesting in the past that we look at enhancing the Low Income Housing Tax Credit by up to 50 percent by allowing states to substitute unused tax credit capacity from other types of tax credits and use that instead for the Low Income Housing Tax Credit so that we can create more affordable housing opportunities out there. That’s one thing.
Another thing are traditional investments, like the HOME funds. As you all probably know, the Senate has proposed cutting HOME by 93 percent. We’re going to fight that. We can use our traditional dollars, like CDBG and HOME, as well as creative ways to spur more affordable housing, and then work with communities to adopt ordinances that provide more affordable housing opportunities.
Minneapolis, for instance, just revised an ordinance so they don’t require as much parking set aside. They already had done this in the downtown area, but outside of the downtown area they relaxed the parking set-aside requirement, which will help drive down the cost of development and make affordable housing a little bit more possible.
We’ve got to attack it from all angles. Obviously there are nonprofits, as well, that are doing good work out there, and we’re willing to partner up with anybody to meet the need, because it doesn’t matter if you’re in New Orleans or Portland or Chicago or here in D.C. The one common thing is there’s a rental affordability crisis out there. And we’re determined to use all the tools that we have and collaborate with local communities to use their tools to create more housing.
Miriam Axel-Lute: One of those tools that’s gaining a lot of interest in many parts of the country is permanently affordable housing, such as community land trusts, inclusionary programs with long-term deed restrictions, other programs that really ensure that the affordability in any unit lasts for a long time, which is a more fiscally responsible use of public money than having to keep putting it in over and over. How can and will HUD support these forms of housing?
Julián Castro: That’s a great question. What I like about that model is, of course, that it maintains affordability for a long period of time. We see challenges, for instance, with the sunsetting of some affordability arrangements. We look forward to being supporting of communities that are coming up with creative ways to maintain affordability.
One of the ways that we’ve done this recently is through RAD 2 [Rental Assistance Demonstration 2], which is helping units out there that otherwise would sunset in terms of their affordability, to stay affordable. And we’ll continue to work with local communities to come up with creative ways to maintain affordable units and create more.
The whole interview is worth checking out.