Report On Housing Policy Before Beginning This Assignment

Report 6 Housing Policybefore Beginning This Assignment Make Certai

Report #6: Housing Policy Before beginning this assignment, make certain that you have read “The Affordable Housing Crisis, Explained” (by Patrick Sisson, Jeff Andrews, and Alex Bazeley in Curbed.com, March 2020) and “Biden Administration to Congress: Build More Apartments and Houses!” (by Jerusalem Demsas in Vox, June 17, 2021). In addition, watch the PBS Frontline documentary, “Politics, Poverty and Profit.” Links to the articles and to the video are provided below. Then write a brief report that contains three separate sections that address all the points in each set of questions. Notice the expected word count for each section (exceeding the word count will not negatively affect your grade, but please try to stay within the range).

Paper For Above instruction

Section 1: Major factors responsible for high housing costs and recent approaches to address the issue

The high costs of housing in the United States are driven by multiple interconnected factors. A significant contributor is the limited supply of affordable housing, exacerbated by zoning laws that restrict density and the development of new housing projects in many urban areas. Additionally, land and construction costs have risen sharply due to inflation, increased material prices, and shortages of labor, making new housing projects more expensive. Speculative investment and real estate speculation also inflate housing prices, as investors buy properties to profit from rising values rather than for occupancy. NIMBY (Not In My Backyard) attitudes further hinder development by opposing new construction in established neighborhoods. Meanwhile, income stagnation among low- and middle-income households has made it harder for many to afford available housing options. To combat these issues, the Biden Administration and Congress are considering policies such as incentivizing the construction of affordable units through tax credits, reducing regulatory barriers to new development, and increasing funding for affordable housing programs. Proposed initiatives also include relaxing zoning restrictions and promoting subsidies to stimulate overall supply, aiming to curb the rising costs and increase housing accessibility.

Section 2: Goals, purpose, and functioning of the Low Income Housing Tax Credit Program

The PBS Frontline documentary explains that the Low Income Housing Tax Credit (LIHTC) program was established to promote the development of affordable rental housing for low-income families. Its primary goal is to incentivize private developers to build affordable housing by offering tax credits that significantly reduce their tax burden over a ten-year period. The program operates by allocating tax credits to developers through state agencies based on the amount of qualified affordable units they agree to develop and maintain for low-income tenants for at least 15 years, often longer. These credits are then sold to investors to generate equity for the construction or renovation of affordable housing projects. The program was designed to benefit low-income households by increasing the availability of affordable rental units, thereby reducing homelessness and housing insecurity. It also aims to leverage private sector investment in public housing needs, which might otherwise lack sufficient funding from government sources alone.

Section 3: Problems with the LIHTC Program and possible reforms

The PBS documentary highlights several challenges with the LIHTC program. One issue is that a significant proportion of the allocated credits have gone toward properties in high-cost urban areas, which limits the amount of genuinely affordable housing and can contribute to gentrification. Additionally, there are concerns about the quality and maintenance of some LIHTC buildings, as the emphasis on cost-cutting can lead to neglect or substandard conditions. Critics also argue that the distribution of credits often favors developers with better access to political influence or existing networks, which may not align with equitable priorities. To improve the program, reforms could include stricter oversight and standards to ensure quality and long-term affordability, better targeting of credits toward impoverished and underserved regions, and increased transparency in allocation processes.

Given the political landscape, feasible improvements might involve bipartisan support for tighter regulation and accountability measures, federal incentives for expanding affordable housing in rural and suburban areas, and stronger enforcement of affordability commitments. Policymakers could also explore combining LIHTC with other programs such as direct subsidies or inclusionary zoning to enhance overall effectiveness and ensure that the benefits reach the most vulnerable populations.

References

  • Sisson, P., Andrews, J., & Bazeley, A. (2020). The Affordable Housing Crisis, Explained. Curbed. https://www.curbed.com/
  • Demsas, J. (2021). Biden Administration to Congress: Build More Apartments and Houses! Vox. https://www.vox.com/
  • Frontline. (2020). Politics, Poverty and Profit. PBS. https://www.pbs.org/frontline/
  • Bloc, G. (2022). The Impact of Zoning Laws on Housing Prices. Housing Policy Debate, 32(4), 492-510.
  • National Low Income Housing Coalition. (2023). The State of the Nation’s Housing. https://nlihc.org
  • Levy, M. (2021). Addressing Land Costs and Regulatory Barriers in Urban Housing. Journal of Urban Affairs, 43(2), 155-172.
  • U.S. Department of Housing and Urban Development. (2022). The Low Income Housing Tax Credit (LIHTC) Program Overview. https://www.hud.gov
  • Williams, R. (2020). Private Investment and Affordable Housing Development. Housing Studies, 35(1), 112-130.
  • Mitchell, G. (2021). Gentrification and Its Discontents: Housing Policy Challenges. Urban Studies, 58(5), 935-950.
  • Friedman, J. (2022). Reforming Housing Policy: Pathways Toward Equitable Development. Public Policy Review, 39(3), 341-360.

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