For decades, homeless people have camped along San Jose’s 140 miles of creeks and rivers. Now, at the direction of state regulators, city officials are devising an ambitious plan to move about a thousand people into shelter by the middle of next year.
On Friday, before a line of tents near Coyote Creek, Mayor Matt Mahan announced the plan in response to a state mandate to clear encampments polluting the city’s watersheds.
“What they’re telling us, which is what I’ve been saying all along, is that the status quo is unacceptable,” Mahan said.
To ensure homeless people have a place to go, the mayor and a handful of City Council members pledged to continue adding shelter space across the city, including a newly proposed group shelter with about 1,000 beds south of downtown.
Officials said the clean-up and shelter effort — which could start in earnest in about six months and must be completed by June 2025 — will cost tens of millions of dollars at a time when the city’s budget is already stretched thin.
But they maintain that the hefty price tag is worth it, not just to meet environmental requirements but to ease the human suffering on the street and ensure that neighbors feel safe visiting city parks and trails.
“We must treat this like the emergency that it is,” Mahan said. “This is going to be hard. It’s going to be challenging, and it’s going to be expensive.”
Pedro Reyes, who lives along the grassy floodplain near Coyote Creek and Tully Road, said he’d be open to accepting a bed at the new shelter. But Reyes, 39, added he’s also comfortable staying outside, despite tending to recent stab wounds after he said he was attacked at his encampment.
Besides, he said he doesn’t think he needs help. And even if he did, he finds it hard to trust people offering support.
“I can’t believe it when people are talking to me, like, sweet,” he said. “I don’t trust anyone.”
On Tuesday, the City Council is set to vote to direct officials to devise plan details, including which areas along waterways across the city need to be prioritized for clean-up and where no-camping zones could be established to prevent homeless people from returning. The city has an estimated 6,340 homeless residents, about 70% of whom are unsheltered.
The agency forcing the city into action is the San Francisco Bay Regional Water Quality Control Board, which has recently ramped up pressure on cities across California to move encampments out of sensitive waterways that often empty into the ocean. It’s threatening San Jose with litigation and tens of thousands of dollars in daily fines if it fails to comply.
The city has long struggled with what to do about encampments along its creeks and rivers, dating back at least 10 years when it took multiple attempts to clear hundreds of people from a massive Coyote Creek encampment known as “The Jungle.”
More recently, the city cleared around 200 people from parts of Coyote Creek to make way for a flood protection project. In February, it set in motion plans to create a no-encampment zone along the downtown stretch of the Guadalupe River after clearing dozens of tents and RVs from the area.
Homeless advocates say clearing camps can be traumatizing for unsheltered people, who can be torn from encampment communities and forced to part with their possessions. Without providing a roof over their heads, advocates say, encampment sweeps do little but push homeless people into new neighborhoods.
“If you’re going to abate, you have to have a place for them to go,” said Todd Langton, founder of the Coalition for the Unhoused of Silicon Valley. “It’s common sense. It’s humanity.”
Under a 2018 federal court ruling, local governments across the Western U.S. are expected to at least offer shelter before clearing encampments. However, after frustrated officials petitioned the U.S. Supreme Court to modify or do away with the mandate, the justices agreed to review the rule later this year.
Mahan, who’s expected to sail to reelection next week, has made adding tiny homes, safe overnight parking spots and other “interim” shelter options with supportive services a centerpiece of his push to end street homelessness.
Critics of that position argue that shelter, while needed, is but a temporary solution that won’t help many people out of homelessness without significantly more investment in permanent affordable and supportive housing. A city report from last year found that about half of the roughly 900 people who stayed in interim shelters in 2022 moved on to permanent housing.
Mahan and his allies on the council respond that faster and more cost-effective solutions are needed because building low-income homes can take years and cost as much as $1 million for a single unit.
“For far too long we have enabled unsafe, inhumane, and dangerous living conditions for the unsheltered by relying on woefully slow and brutally expensive projects,” Councilman Bien Doan said in a statement.
Doan on Friday announced the proposed 1,000-bed group shelter for his district, south of Highway 280 between Highways 101 and 87. Doan’s office declined to give potential locations and did not immediately respond to a question about how much it could cost.
Opening new shelters may cost less than new affordable housing, but keeping them up and running could be expensive in the long run. Earlier this year, the city estimated that if it follows through on plans to add hundreds more shelter units, total operational expenses could soon exceed $70 million annually, about twice the current cost.
Christopher Park and Kristyn Reano relax in their new home in Vallejo, Calif. with their rescue dog Raili, Wednesday, Jan. 31, 2024. (Karl Mondon/Bay Area News Group)
When Christopher Park turned 28 — the age his dad was when he bought his first home — he started to wonder: Could he ever do the same?
Gaining a foothold in his hometown, the waterside city of Benicia in the Bay Area, isn’t as easy today as it was 30 years ago for his parents. They bought their house in 1993 for $205,000, and have seen its value soar to $800,000.
“I knew I would never get to Benicia,” the e-commerce manager at an industrial manufacturer said.
But Park was still set on buying a home in the Bay Area. To save money, he moved in with his parents for a few years. When he finally moved out, it was to live with his girlfriend, in an apartment attached to her parents’ home in Vallejo.
After getting engaged in 2023, Park and his fiancée, Kristyn Reano, a water treatment operator, started to take a more serious look at the housing market.
Homes in Benicia were only getting more expensive, with the median-priced home growing 54% since 2015 to $788,943 from $512,544, according to Zillow.
Nearby cities presented more options within their $500,000 budget. The couple was drawn to Vallejo — not far from Marin County, where Reano had recently taken a job — and the industrial city of Martinez in Contra Costa County.
While Park was open to looking at condos, starter homes for many these days, Reano was adamant that they buy a single-family home. They were also willing to consider places that required a little fixing up, since Reano’s dad, an experienced builder, had offered to help them work on an older home.
Here were their options:
No. 1: A Recently renovated ranch in Vallejo
Christopher Park and Krysta Reano considered this recently renovated ranch in Vallejo.
This three-bedroom home in South Vallejo had recently been fixed up by a home flipper. It was about 1,500 square feet, plus a 400-square-foot finished attic, and sat on the largest plot of land on the street, measuring a quarter acre. The home had just one bathroom, though, and a small kitchen. The asking price was $550,000 (reduced from $650,000).
(Photo courtesy of NavigateRE)
No. 2: Open-concept 3-bedroom in Benicia
While searching for a home they could afford, Christopher Park and his fiancee Kristyn Reano looked at this fixer upper in Benicia, Calif., photographed on Wednesday, Jan. 31, 2024. (Karl Mondon/Bay Area News Group)
This 1,100-square-foot home was in Benicia, not far from Park’s parents. It included one bathroom and three bedrooms, one of which had been converted from a garage space. It was a 20-minute walk from downtown. The home, which had been sitting on the market for several months by the time the couple saw it, was listed at $530,000.
No. 3: A fixer-upper in Martinez
While searching for a home they could afford, Christopher Park and his fiancee Kristyn Reano looked at this home in Martinez, Calif., photographed on Wednesday, Jan. 31, 2024. (Karl Mondon/Bay Area News Group)
This 1,564-square-foot home, built in 1926, was located on a corner lot at the top of a hilly residential street in Martinez. It came with three bedrooms, two baths, and a single garage space — but needed a full interior and exterior renovation. The house was the only one well within their price range, listed at $299,000 — but it was unclear how much renovations would cost.
Christopher Park and Krysta Reano considered this fixer-upper in Martinez, where they would be required to do extensive renovations. (Courtesy Photo / Ron Melvin, Keller Williams)
Here’s what they chose:
The recently renovated 3-bedroom in Vallejo
Kristyn Reano and Christopher Park enjoy their new home in Vallejo, Calif., Wednesday, Jan. 31, 2024. (Karl Mondon/Bay Area News Group)
On their first tour of the house in Vallejo, Reano fell in love with the open-concept living room, where she could imagine her large family congregating for holidays and celebrations.
While the Benicia home was in the ZIP code that Park and Reano wanted, the inspections revealed a major termite issue and an aging roof. “It was enough to scare us away,” Park said. “This was clearly opening up a can of worms.”
Although they love Martinez’s downtown and industrial vibe, the house there would have required extensive renovations, too.
“It felt like far too much work, and we didn’t want to live in a construction zone for the next year,” Park said. “I’m not going to hurt myself with more debt to fix up a house.”
Buying a turn-key property would allow them to move in right away, rather than stressing about a budget for renovations. Noticing that the flipper for the Vallejo home had already reduced the price from $650,000 to $550,000, Park reasoned he might be willing to go even lower. They offered $525,000 — but the seller wouldn’t budge.
Christopher Park and his fiancee Kristyn Reano enjoy their new home in Vallejo, Calif., Wednesday, Jan. 31, 2024. (Karl Mondon/Bay Area News Group)
“I was so determined to beat out the boomers,” Park said. “They were going after this house because they’re trying to downsize — and we are just trying to get into something for the first time.”
The couple submitted an offer for $550,000, putting down 19.5%, which Park received as a gift from his parents. They closed in 20 days.
“I just didn’t want more offers on this house,” Park said.
The down payment gift from Park’s parents allowed the couple to save a small nest egg for home improvement projects. Eventually, they plan to install another bathroom in the back of the house, which could cost around $12,000 — but they’re not rushing to start those projects anytime soon.
The home was slightly out of their budget of $500,000 — and high interest rates also mean higher monthly payments. Park and Reano plan to refinance their mortgage when rates drop, so they can get out of their 7.5% interest rate and $3,800-a-month payment.
Christopher Park and Kristyn Reano enjoy their new home in Vallejo, Calif., Wednesday, Jan. 31, 2024. (Karl Mondon/Bay Area News Group)
Still, the couple says the price is worth it to be so close to family. Reano’s parents are a short 3-minute drive away.
Reano and Park realize how lucky they are to buy a home near their hometown, especially when so many of their friends are still renting, or have had to move out of the area.
“We have this generational guilt,” he said. “I figured I would be renting a room for the rest of my life. Everything else has been a cherry on top.”
Low-income housing programs, like the Housing Choice Voucher Program (Section 8), offer rental assistance to those who meet specific income and eligibility criteria.
I understand that navigating the application process can be daunting, which is why it’s important to know what’s required of you. These programs, primarily funded by the federal government, aim to provide affordable options to those in need.
To begin your journey toward qualifying for low-income housing, you must first determine your eligibility, which typically revolves around your income, family size, and citizenship or eligible immigration status.
Contacting your local public housing authority (PHA) is a smart move, as this agency can provide guidance through the process and inform you about the specific programs available in your area, like the options outlined by HUD’s Public Housing Program.
Key Takeaways
Low-income housing programs, like Section 8 and Public Housing, offer crucial affordable housing options.
Eligibility is based on income limits, family size, and certain priority groups.
Engage with local Public Housing Authorities (PHAs) for application guidance.
Prepare the required documents and understand the application process thoroughly.
Expect long waiting lists due to high demand and limited supply.
Affordable housing aids in improving health, education, and employment outcomes for communities.
Overview
Low-income housing, often associated with programs like Section 8, provides rental assistance to eligible individuals and families with lower incomes. Eligibility criteria typically include income level, family status, and citizenship or immigration status. Various programs are designed to ensure that housing costs do not become prohibitive for those earning significantly less than the area’s median income.
Importance of Affordable Housing
Affordable housing is vital because it supports economic stability and community diversity. By providing access to housing that individuals and families can afford, you can see how it promotes better outcomes in health, education, and employment for community members.
It enables individuals to allocate resources to other essential aspects of life, such as nutrition and healthcare, contributing to the overall well-being of a society.
Income limits are crucial in determining eligibility for low-income housing. Your income must not exceed certain thresholds defined by the Department of Housing and Urban Development (HUD). These limits vary by location and are calculated as percentages of the area median income (AMI). For instance, to be eligible for certain programs, You may need to have an income that is 50% below the AMI.
Family Size Considerations
The size of my family also affects my eligibility for low-income housing. Larger families may have higher income limits, allowing for a fair assessment of housing needs proportional to family size. This ensures that the income criteria accurately reflect the financial resources needed to support all members of my household.
Priority Populations
Certain populations are given priority in the allocation of low-income housing. This can include the elderly, people with disabilities families with young children, or a member who is pregnant. If I belong to one of these populations, I may thus be more likely to qualify for housing assistance and may be given preference in certain housing programs.
Types of Low-Income Programs
Public housing provides affordable apartments for low-income families, the elderly, and persons with disabilities. Administered by local public housing agencies (PHAs), rents in these units are typically based on a percentage of the tenant’s income to ensure affordability. To join the program, interested individuals must contact a PHA in their state.
Section 8 Choice Vouchers
The Section 8 Housing Choice Voucher program empowers very low-income families to choose their housing while receiving governmental assistance to make it affordable according to HUD.gov. Tenants can use these vouchers to cover all or part of their rent in the private market, and the PHA directly pays the landlord the subsidized amount.
Section 202 Supportive for the Elderly
This program specifically caters to seniors, providing housing that not only is affordable but also offers the necessary supportive services to help elderly residents live independently. Housing under Section 202 has income-based rent and might include amenities like transportation and community dining, tailored to older adults’ needs.
Application Process
To apply for low-income housing, precision is crucial. I’ll guide you through collecting the necessary documentation, where to apply, and navigating the lottery system that often determines placement.
Gathering Required Documents
Proof of income (such as pay stubs or tax returns)
Valid identification (like a driver’s license or passport)
Birth certificates for all family members
Social Security cards for each applicant
I keep these documents organized and accessible, knowing that they are essential for a complete application.
Where to Apply
Locate your local Public Housing Agency (PHA) to start the application process. Each agency has its own application process, but you can typically apply for a housing choice voucher online, by mail, or in person at the PHA office. It’s important to apply through the PHA serving the community to ensure my eligibility based on local income limits.
Understanding the Lottery System
Because demand often exceeds supply, many PHAs use a lottery system for their Section 8 voucher program as per the CSR Report. Once my application is in, I’m placed on a lottery or waiting list. It’s critical to know that being selected is not guaranteed, and wait times can vary considerably. If my name is chosen, the PHA will contact me with further instructions on how to proceed.
Waiting List Management
When applying for low-income housing, understanding how waiting list management works is as crucial as meeting the eligibility criteria. The waiting list itself is a critical part of the process that requires consistent attention and accurate estimation of potential wait times.
Estimating Wait Times
The length of the waiting list and the number of applicants play a significant role in determining how long you might wait before receiving assistance. You can get an idea of the timeframe by inquiring with the housing authority about the number of applicants ahead of you and the average wait time each year. Documentation, such as the PHOG Waiting List Chapter, can provide insights into how housing authorities manage these lists.
Role of Public Housing Authorities
In my experience, Public Housing Authorities (PHAs) are key players in administering low-income housing programs. They serve as a bridge between the government’s housing aid and eligible residents, ensuring access to affordable homes.
Navigating Through Local PHA
Local PHAs have the responsibility of determining eligibility for programs like the Public Housing Program. I assess eligibility based on factors including annual gross income, whether applicants qualify as elderly, persons with disabilities, or as families, and their U.S. citizenship or eligible immigration status.
To understand the application process, I work with individuals to ensure they meet these criteria. The process may vary between states, and sometimes, one may need to apply in person. Learning to navigate through your local PHA can be the first step toward securing assistance.
PHA Resources and Assistance
PHAs provide much more than just housing; they offer resources and support that aid residents in maintaining their homes. For instance, the Housing Choice Voucher Program Section 8 empowers very low-income families, the elderly, and the disabled to find decent in the private market. It’s my job to help residents understand the types of support available to them and how to apply for these programs effectively.
Local PHAs, like the Memphis Housing Authority, receive federal aid to manage housing for low-income residents at affordable rents. They also provide technical and professional assistance in planning, developing, and managing these developments, ensuring residents receive quality housing.
Tenant Responsibilities
As a tenant, I am aware that my ability to remain in low-income housing hinges on fulfilling specific obligations, of which the most crucial are adhering to my lease agreements and respecting the property rules set by my landlord or housing authority.
Abiding by Lease Agreements
I ensure that I read and understand my lease agreement thoroughly before signing. The lease is a legally binding document that stipulates my obligations, including rent payments, prompt reporting of maintenance issues, and proper notice before leaving the unit.
Respecting Property Rules
I recognize the importance of abiding by the property rules which may include guidelines on noise levels, pet ownership, waste disposal, and common area maintenance. These rules are in place to maintain a safe and clean living environment for all residents.
Appeals and Grievances
When you face a denial from a low-income program, knowing the steps to challenge the decision is crucial. Each program provides a process for appeals and grievances to ensure fairness.
Handling Denials
If I receive a denial of admission from a housing program, I must receive a written notice specifying the reasons for the decision. This is a standard protocol required for all HUD and USDA housing programs. Importantly, under certain circumstances, I may be eligible to appeal this decision. For instance, on reviewing my denial from the Affordable Housing Online, if the denial was based on incorrect information, I have the right to request a correction and a subsequent review of my application.
Filing for a Hearing
In response to a denial, I have the option to file for a grievance hearing. This formal process allows me to present evidence and argue my case before a neutral party. The steps to initiate this process include requesting the hearing in writing within a specified deadline. The National Housing Law Project outlines that to prepare for the hearing, I can gather relevant documents, seek legal advice, and prepare to make a clear presentation of my case.
Frequently Asked Questions
What are the eligibility requirements for low-income housing assistance?
Eligibility for low-income housing assistance is typically determined by income level, family size, and housing needs. My income must not exceed the income limits set by the Department of Housing and Urban Development (HUD), which are based on the median income in my area.
How can I apply for a Section 8 housing voucher?
To apply for a Section 8 housing voucher, you need to contact the local Public Housing Agency (PHA) and complete an application. Waiting lists can be long, so it’s important to apply as soon as possible.
What documents do I need to submit for the Low-Income Housing Tax Credit program?
For the Low-Income Housing Tax Credit program, you’re usually required to submit proof of income, tax returns, identification, and additional documentation to verify your eligibility. Check the application instructions provided by the housing property or manager for a specific list.
Are there ways to receive immediate housing assistance in case of an emergency?
Yes, immediate housing assistance might be available in an emergency such as job loss or disaster.
How is the income limit for affordable housing determined in various states?
Income limits for affordable housing are determined by HUD and vary by state and county. They are typically set at 50% to 80% of the median income for the area.
What processes are involved in applying through my local Public Housing Agency?
Applying through your local Public Housing Agency involves submitting an application with the required supporting documents, undergoing an eligibility review, and possibly being placed on a waiting list. You will then be contacted when a suitable housing option becomes available.
Final Words
Eligibility largely hinges on income, family size, and citizenship or eligible immigration status, with income limits set in relation to the Area Median Income (AMI).
Applying through your local PHA is crucial for accessing programs tailored to your area’s needs, and understanding the system, including the potential use of a lottery for placement, is key to successfully securing affordable housing.
The process underscores the importance of affordable housing in promoting economic stability, community diversity, and the well-being of individuals and families in need.
If the coast of California is a state asset worth trillions of dollars — and it is — why is the state agency that has successfully protected that asset for 50 years under assault? The answer — “unnecessary permitting delays” — is unfounded. Yet California’s exceptional history of coastal protection is in greater jeopardy today in the halls of our state Capitol than it has been for generations.
Like water flowing downhill, California’s incomparable coast has always been a magnet for development. In 1972, with this in mind, the voters of California overwhelmingly approved Proposition 20, a ballot initiative that set in motion the 1976 California Coastal Act. Unlike South Florida, the Jersey Shore or other coastal regions devoured by privatization, the California coast was by law given special protection: The coastal zone would be developed not as an enclave for the wealthy but for everyone’s use, with provisions for protecting its natural resources and its breathtaking beauty.
The California Coastal Commission was created to enforce the act with a specific charge to balance the needs of the ecosystem with the need for public access and economic development, including affordable housing. It works like this: Local jurisdictions come up with coastal plans that the commission must approve. Once a plan is in place, development permits are handled by the city, town or county, although those decisions can be appealed to and by the commission.
Over the years, the Coastal Commission has successfully defended public access to the beach in Malibu, Half Moon Bay, Carlsbad and other towns. It has helped preserve state parks, open space along the coast and the beach itself — denying permits for oil drilling, more than one luxury resort, an LNG port (in Oxnard) and a toll road (at San Onofre Beach). In 2019, it fined a developer nearly $15.6 million for replacing, without a permit, two low-cost hotels along Ocean Avenue in Santa Monica with a boutique hotel.
Predictably, this process has often been in the bull’s-eye of Coastal Act critics, and while the rationale may vary with the moment, their goal remains the same: To weaken oversight by the commission and return land-use control entirely to local governments.
Today, low affordable housing supply along the coast is the basis for attack. In legislation introduced in January, with a purpose of “resolving unnecessary permitting delays in the disproportionately low-housing Coastal Zone,” state Sen. Scott Wiener (D-San Francisco) has proposed an unprecedented carve out of 23.5% of the coastal zone in San Francisco. Specifically, Senate Bill 951 would delete from commission oversight residential areas on the city’s western edge, as well as a piece of Golden Gate Park. As the first significant coastal zone reduction in more than 40 years, this attack on the commission could set a dangerous precedent that would invite similar carve outs from San Diego to Santa Monica to Crescent City.
Last month, San Francisco’s Board of Supervisors voted overwhelmingly to oppose SB 951, and, one day later, the Coastal Commission, by unanimous vote, did the same.
The existential threat that this legislation poses to the Coastal Act and the entire California coast is undeniable. Among numerous commission responsibilities affected, SB 951 ignores the agency’s essential role in planning for sea-level rise adaptation along San Francisco’s increasingly vulnerable coast. And it seems no mere coincidence that the excluded area includes land proposed for a controversial 50-story condominium and commercial project in the flats of the Outer Sunset neighborhood north of the San Francisco Zoo.
The claim that the Coastal Commission is responsible for housing inequity in the coastal zone, though long on rhetoric, is belied by the historical record. Indeed, when the Coastal Act became law in 1976, it required that “housing for persons of low and moderate income shall be protected, encouraged, and, where feasible, provided.” The commission actively complied, approving or protecting from demolition more than 7,100 affordable units between 1977 and 1981 and collecting an estimated $2 million in “in lieu” fees to support affordable housing.
But in 1981, the state Legislature amended the Coastal Act to remove the commission’s affordable housing authority. Contrary to the claim of “unnecessary permitting delays” on which SB 951 is based — only two coastal development permits in San Francisco have been appealed to the commission in 38 years — it is this amendment, and the fact that developers prefer to build high-end projects, that has produced today’s affordable housing deficit in the coastal zone. As then-Coastal Commission Chair Leonard Grote warned in 1981, “The passage of this bill would make sure that the ability to live near the coast is reserved for the wealthy.” And so it has.
If increasing the supply of affordable housing near California’s coast is actually the goal of SB 951, then restoring, not reducing, the commission’s authority is needed. It was a mistake in 1981 to remove the commission’s power to require that projects it approved included affordable housing, and it’s a mistake in 2024 to expect that diminishing the coastal zone will right that wrong.
The California Coastal Commission has an extraordinary record of success in protecting California’s most valuable environmental and economic resource, and its regulatory role is as essential today as it has ever been. SB 951 would weaken, not promote, equal access to that resource, and it threatens to erode, perhaps irrevocably, the most successful coastal management program in the country.
Joel Reynolds is western director and senior attorney for the Natural Resources Defense Council in Santa Monica. Tom Soto is a former alternate member of the California Coastal Commission and a Natural Resources Defense Council board member.
ST. PETERSBURG, Fla. — According to a study conducted by the National Association of Realtors, Black homeownership still lags behind white homeownership by almost 30%, despite recent increases.
This disparity can be attributed to systemic factors, such as redlining and inequitable access to mortgage credit. To address this, Habitat for Humanity launched the “Advancing Black Homeownership” initiative, which aims to dismantle the bias that has prevented Black families from accessing intergenerational wealth.
What You Need To Know
Childhood friends Nikkita Houston and Marita Harris both experienced homeownership for the first time after going through Habitat’s program
According to a study conducted by the National Association of Realtors, Black homeownership still lags behind white homeownership by almost 30%, despite an increase in Black homeownership
Over the course of its 45-year history, Habitat has worked to help close the homeownership gap
In 2021, 43% of the families who partnered with Habitat to build homes were Black
Childhood friends Nikkita Houston and Marita Harris both experienced homeownership for the first time after going through Habitat’s program.
Over the course of its 45-year history, Habitat has worked to help close the homeownership gap. In 2021, 43% of the families who partnered with Habitat to build homes were Black.
“This is my first time owning a home,” said Houston. “So, being a divorced mom, you know, I didn’t know what was going to be possible.”
Houston is building a home for herself and her two children with the help of Habitat for Humanity.
“I’m so excited about my new space, about my new home, because it’s much more than a house,” said Houston. “Habitat homes are not free. They are a 0% interest loan. So we will have a mortgage, though, but it will be affordable, and that is exciting.”
She says that it’s not only about changing the address, but it’s also about creating a community.
Marita Harris also signed up for Habitat for Humanity with the support of Houston.
“I didn’t really think it was attainable for me just because of the economy that we are in,” said Harris.
The childhood friends found out they were going to be neighbors last May when Habitat for Humanity surprised them with lots beside each other.
“When you’re friends with somebody for so long, you might not talk every day. You might not see each other every day. But we always have that connection,” said Harris. “So for us to come back full circle and be living next to each other as neighbors. Absolutely amazing.”
Both women have invested over 350 hours of sweat equity into building their dream homes. Soon, they will create new memories in their homes.
“It’s really a dream come true,” Houston. “It’s so much bigger than me and Rita and our kids like because we are such dedicated mothers. I know she is a dedicated mother. I know I’m a dedicated mother and the things that we do for our children and to be able to give them everything that they deserve and more.”
As mothers, the two aim to lead by example and provide their children with access to generational wealth.
“When the inevitable happens, and I leave this earth, it’ll be my son’s, and he can have this home, and he can continue the legacy that Habitat has brought us,” said Harris.
They’re grateful to not only stand side by side as friends, but now neighbors as well.
ORANGE COUNTY, Fla. — The City of Orlando’s human relations office is hosting a housing fair for the community to learn more about fair housing protection.
This event is partially funded by the US Department of Housing Urban Development.
City staff say the event advances equity in housing, as well as educating individuals on their rights of fair housing.
“We have two partner agencies in the community,” said Kimberly Rankin, City of Orlando human relations manager. “Florida legal services and community legal services of mid-Florida who are also fair housing initiative programs that they can reach out to attorneys to advocate on their behalf.
“So, we really encourage people if they fell, they have been discriminated against in fair housing please reach out to our offices and seek some help.”
MANATEE COUNTY, Fla. — A new affordable housing complex will be replacing the old Budget Inn on Tamiami Trail in Manatee County.
The $31-million project aims to provide people with disabilities with not just housing but aid in other aspects of life with a first of its kind concept.
The hotel sits at Tamiami Trail and Braden Ave, near the Manatee-Sarasota County line. Manatee commissioners also are supplying more than a million dollars to the construction.
What You Need To Know
A new affordable housing complex will be replacing the old Budget Inn on Tamiami Trail in Manatee County
The $31-million project aims to provide people with disabilities not just housing but aide in other aspects of life with a first of its kind concept
“Right where this part of the building is going to get bulldozed, but there is going to be a four-story building in its place,” he said.
He’s replacing the old budget inn on Tamiami Trail in Manatee County and building a four-story affordable housing complex. It’ll house about 70 people with disabilities earning less than $35,000 dollars a year.
But, there is a twist.
Not only will it provide housing but also employment for residents.
For example, they’ll be able to create and sell art like what you see here being made at Easter Seals of Southwest Florida, which is located nearby.
“The first floor will have amazing store fronts with that are going to be incredible businesses with a pottery shop, an art studio, a market, a coffee shop and other ventures here,” he said.
This is one of the apartments with CASL. Its interior is similar to what you can expect at the new place.
“We want to get people out of their apartments during the day doing things in the community. We want them to live just like everybody else,” he said.
He says there’s a larger need these days to help the disabled due to rent increases.
“The apartment rent is more than double or two and a half times their income,” he said. “You are causing people to be homeless when they become homeless. That’s when other things occur.”
Eller says offering housing and employment resources has been extremely successful.
“We are seeing 90 percent of people thrive and they don’t return to the streets,” he said. “They don’t return to acute care systems jails, etc.”
Eller says the key is asking people what they need and what they want.
“They want to feel like everybody else,” Eller said. “They want a nice place to live.”
After a business meeting in Europe, he came up with a vision for the piazza styled living space.
“The design is to where our folks become part of the community and the community becomes part of them,” he said.
Creating an environment for people with disabilities to live and work in the same space independently.
SAN JOSE — A big affordable housing project in San Jose is pushing ahead with a property purchase and the landing of a crucial money package for the construction of the residences, public documents show.
The affordable residences are part of Stevens Creek Promenade in San Jose, a big mixed-use development that will feature housing, retail and a hotel.
Pacific West Builders, acting through an affiliate, has paid roughly $3.5 million for the site where the affordable homes would be built, according to documents filed on Feb. 21 with the Santa Clara County Recorder’s Office.
Miramar Capital Group, which is the primary developer of the Stevens Creek Promenade complex, sold the site for the affordable housing portion of the project to Idaho-based Pacific West Builders.
In 2020, Santa Monica-based Miramar Capital Group and Machine Investment, acting through affiliate MPG Stevens Creek Owner, paid $54.5 million for the overall development site, including the just-sold affordable homes parcel. The overall development property is located on the south side of Stevens Creek Boulevard between Kiely Boulevard and Palace Road.
The California Housing Financing Agency authorized the issuance of a bond package to enable construction financing for the affordable housing project, according to a staff report prepared for a recent meeting during which the state agency approved bonds and funding for the project.
The affordable residential development would consist of 173 homes. Of these, 171 will be affordable apartments that will be rented to residents belonging to households making 30% to 70% of the area’s median income, according to the state housing agency’s report. Two of the units will be market-rate homes for on-site managers.
The Santa Clara County area median income in 2023 was $181,300 for a four-person household. That would mean the income limits for the affordable homes in this project would range from about $54,390 a year to $126,910.
The total construction package is valued at $125.6 million, according to the agenda materials for the state Housing Finance Agency.
Of that overall amount, Citibank is providing the project with $98.6 million in construction financing through two separate loans. Bonneville Multifamily Capital is providing a third loan of $10 million, according to the California Housing Finance Agency documents.
The 173-unit project will include 44 studio units of 422 square feet each, 37 one-bedroom units ranging in size from 563 to 573 square feet, 45 two-bedroom units of 776 square feet and 47 three-bedroom units of 1,064 square feet. Two of the three-bedroom units will be manager’s homes.
“This is an inclusionary project and will be part of a larger development that will include two market-rate apartment buildings and a 250-room hotel,” the state housing agency documents state.
One of the market-rate apartments will be 191 units and the other will be 216 units.
The market-rate apartments as well as the hotel are expected to be built at some point after the affordable housing is built, or at least under construction. The project is being built in phases in a way to enable the affordable homes to be developed first.
This project is located at 4300 Stevens Creek Boulevard, a short distance from San Jose’s two mega malls, Westfield Valley Fair and Santana Row.
Construction of the affordable apartments is slated to begin within weeks and should take roughly two years to complete and potentially open in 2026, the state agency documents show.
When originally conceived, Stevens Creek Promenade was expected to feature 233,000 to 300,000 square feet of office space, up to 582 apartment units and as much as 22,000 square feet of retail and restaurant space on the ground floor.
In the latest version, the retail component has been trimmed to 10,800 square feet. The developers have scrapped the office component completely in an uncertain market for that type of product as well as fast-rising office vacancies.
Lennar Homes proved that tiny homes could be the answer to an affordable housing shortage in not only San Antonio but also across the nation.
The Miami-based firm has delivered nearly 100 model homes to San Antonio’s East Side, near Converse, nearly a year after embarking on the project, the San Antonio Business Journal reported.
The community, called Elm Trails, features 660-square-foot homes situated on 20-foot lots. That’s roughly half the size of a typical lot in the Alamo City, leaving just enough room for a small backyard. Prices hover around $150,000, a figure that’s practically unheard of in the local housing market, but one which critics say is still too high for the space offered.
Lennar launched the project to ease affordability and housing shortage concerns, while evading rising construction costs. So far, 35 residents have moved into their homes, and another 20 are under contract.
“The fact they’ve sold more than half of the homes planned for that neighborhood is impressive,” Keith Hughes, vice president of sales for housing data firm Zonda, told the outlet. “That tells me there is a market for people who want these small footprint homes on that side of town.”
Given Elm Trails’ success, Lennar is considering similar projects in San Antonio and beyond. After company representatives from multiple markets visited the community, other tiny-home developments are anticipated in South Carolina and Florida, the outlet reported, citing Business Insider.
However, replicating Elm Trails’ success presents challenges. While Lennar benefits from economies of scale and reduced infrastructure costs due to its location outside San Antonio’s city limits, such advantages are not easily attainable elsewhere. Hughes highlighted the difficulty of achieving affordable housing within the city’s urban core, where land prices remain high.
The Florida Senate passed amendments to the Live Local Act, which are expected to be approved by the House next. Let’s break them down.
Live Local, signed into law by Gov. Ron DeSantis last year, created major zoning incentives for developers that set aside housing for people making up to 120 percent of the area median income, and allocated hundreds of millions of dollars for affordable housing.
Senate Bill 328 and the matching House Bill 1239 clarify the state’s preemption of local zoning laws, maximum building heights and tax exemptions. If and when the bills become law, attorneys expect that more developers will file applications for affordable, workforce and mixed-income housing projects.
The legislation creates height protections for single-family neighborhoods, and eliminates parking requirements for some transit-oriented projects filed under Live Local, according to attorney Anthony De Yurre’s analysis.
De Yurre, a partner at Bilzin Sumberg, tells me that the parking requirements are “the biggest challenge to workforce housing.” Requirements would be reduced by 20 percent if a Live Local project is within half a mile of a major transportation hub and parking exists within 600 feet. If the project is within a transit-oriented development area, the requirements would be eliminated.
The latest versions of the bills clarify that properties zoned for industrial projects qualify for Live Local incentives. When proposed in January, the legislation, sponsored by Sen. Alexis Calatayud and Rep. Vicki Lopez, sought to exclude industrial sites. The original amendments also sought to cap heights of Live Local projects up to the height of existing buildings within a quarter mile, but that was nixed. The distance used can be up to 1 mile, with the exception of sites abutting single-family zoning.
The bills require local municipalities to maintain guidelines for administrative approval on their websites. Some municipalities have sought ways around the legislation because it supersedes local zoning and height restrictions.
In terms of clarifying, the bills add a preemption that floor area ratio, also known as the size of a project in relation to the site, can be up to 150 percent of the floor area ratio in that city and county. Municipalities would also be blocked from restricting unit density to the maximum of what is currently allowed in that city and county.
De Yurre, who is working with clients on Live Local projects ranging from 80 units to 2,000 units, said the House could vote on the bill within a couple of weeks. Then it would head to the governor for his signature.
What we’re thinking about: The Justice Department is reportedly investigating New York and South Florida broker Brandon Charnas as part of a larger insider trading probe that could include Fontainebleau Development President Brett Mufson. Do you have any knowledge of the investigation? Send me a note at kk@therealdeal.com.
CLOSING TIME
Residential: Oleg Movchan, CEO of an investment management software company, and Beata Vaynberg sold their waterfront Boca Raton estate at 5001 Egret Point Circle for a record $29 million. The couple sold the nearly 14,900-square-foot mansion, with nine bedrooms, eight bathrooms and two half-bathrooms, to a hidden buyer.
Commercial: Joined Development Partners paid $21.9 million for the Section 8 multifamily complex at 2050 Northwest 64th Street in Miami’s Liberty City. Southport Financial Services sold the 8-acre, 214-unit community.
— Research by Adam Farence
NEW TO THE MARKET
Dawn McKenna Group/Coldwell Banker Realty
The family of late financier John Donahue listed his Naples compound for $295 million, marking the most expensive residential listing in the U.S. The 9-acre estate, known as Gordon Pointe, is on the market with Dawn McKenna of Coldwell Banker in partnership with Leighton Candler of the Corcoran Group and Savills’ Rory McMullen. The property includes three houses, 1,650 feet of waterfront and a 231-foot private yacht basin.
The existing record for residential sales in the country is held by billionaire hedge fund manager Ken Griffin’s $238 million purchase of a Manhattan penthouse in 2019.
A thing we’ve learned
Nickelodeon will broadcast its own version of the Super Bowl. Special guests on the kid-friendly broadcast will include characters from shows such as “SpongeBob SquarePants” and “Dora the Explorer,” according to CBS Sports.
Elsewhere in Florida
The chief justice of Florida’s Supreme Court said he believes Florida voters “aren’t stupid” and would be able to understand a ballot initiative that looks to enshrine abortion protections in the state, Politico reports. Florida’s Attorney General Ashley Moody asked the state to block the proposed amendment. The coalition backing the amendment collected nearly 1 million state-certified signatures, surpassing the requirement to make it on the 2024 ballot.
An energy bill moving through the Florida Legislature would delete most references to climate change in state law, repealing entire sections of existing legislation and reducing regulations on natural gas pipelines, according to the Orlando Sentinel.
A small airplane crashed into a vehicle, killing at least two people. The fiery crash shut down I-75 near Naples on Friday afternoon. The plane was traveling from Ohio State University in Columbus, Ohio to Naples, USA Today reports.
Santa Monica, subject of more than a dozen builder’s remedy housing applications, has won recognition as a “prohousing” city by the state.
Gov. Gavin Newsom announced the beach city earned the designation by accelerating housing approvals and maneuvering around red tape, L.A. Business First reported.
He also named Eureka, Healdsburg, Mountain View, Petaluma, San Luis Obispo and Tulare County among the California jurisdictions supportive of home development.
Officials in each city will work with the state on affordable housing growth.
Prohousing communities, of which 37 have been named, aim to support a state goal of building 2.5 million new homes by 2030 by reducing barriers to construction and relaxing housing policies.
The communities, which include Los Angeles, Long Beach, Riverside, Moreno Valley, Fontana and Needles, are also favored by the Department of Housing and Community Development when it comes to state incentives and infrastructure funding.
Santa Monica has made strides in housing in part through its Affordable Housing Production Program, according to the state.
The program requires developers of market-rate apartment projects to contribute to affordable housing.
Some 30 percent of newly constructed multifamily housing in Santa Monica must be affordable to and occupied by low- and moderate-income households. Restrictions in income are placed on the property for a 55-year period.
Santa Monica was among the first cities where developers took advantage of the builder’s remedy. The loophole in state housing law allows builders to bypass local zoning rules in cities that had failed to certify their housing plans, provided the project includes at least 20 percent affordable housing.
In 2022, Santa Monica-based WS Communities helped kick off a statewide mania — and a local panic — by filing more than a dozen builder’s remedy applications that totalled more than 4,500 units.
Newsom said the state needs to “aggressively build more housing” to support Californians.
“Prohousing cities move to the front of the line when it comes to incentives, funding and other state resources. It’s critical for more communities to join in this distinction and build their fair share of housing,” the governor said in a statement.
The Northgate high-rise, near the Benjamin Franklin Bridge in Camden, New Jersey is set to undergo a massive renovation, with all 321 apartments being refurbished to offer affordable housing for residents with low incomes.
The new owners, Hudson Valley Property Group, unveiled the $130 million project last week aimed at enhancing housing affordability and quality in Camden within two years, the Philadelphia Inquirer reported.
Constructed in 1963 as a luxury tower, Northgate initially offered hope for an economic resurgence in the city. However, over the years, the tower faced declining occupancy and growing maintenance issues. Recent inspections revealed numerous violations, prompting urgent action from both officials and the new ownership.
“We’ve been fighting for this for some time,” Camden Mayor Vic Carstarphen told the outlet. ”I’ve been on every floor of that building. The code violations are incredible. I know [Hudson Valley] is as passionate as I am about changing that environment.”
Hudson Valley Property Group specializes in revitalizing distressed urban rental properties, with previous successful projects such as the nearby Crestbury Apartments, now known as Community Meadows.
The firm’s co-founder and partner, Andrew Cavaluzzi, revealed plans for immediate preliminary work at Northgate, including meetings with tenants to discuss upgrades and operational changes. Renovations of individual units are slated to begin in April, with tenants temporarily relocating during plumbing stack replacements.
Cavaluzzi outlined extensive security measures, community facilities, and refurbished retail and office spaces as part of the renovation plans.
“If you look at where we’ve come from there is a demonstrable difference in the city today from 10 years ago,” the county’s Commissioner Jeffrey Nash recently said. “But we cannot become complacent and forget about the promises we’ve made to the people of Camden.”
The FHFA’s Home Loan bank report is that rare thing you never see in the nation’s capital anymore — a balanced plan on a complex issue that could have lasting impact on a difficult problem, writes Joe Neri.
The average rent for an American has increased by 22% and the average home price has climbed by a whopping46% since late 2019. Both the dream of first-time homeownership and the reality of monthly rent are increasingly unattainable for many young families. As the nationwide housing crisis escalates, the inadequacies of today’s Home Loan Bank System — designed during the Great Depression to make home ownership achievable to more Americans — become even more glaring. It’s time for a change.
The FHFA report offers over 50 specific recommendations to address the system’s shortfalls and is worth serious consideration.
But there’s another reason to act on this report: It’s a policy unicorn. It’s that rare thing you never see in the nation’s capital anymore — a balanced plan on a complex issue that could have lasting impact on a difficult problem with broad public support and no impact on federal spending or taxes.
As the CEO ofIFF, one of the firstCommunity Development Financial Institutions to join the Home Loan Bank System in 2010 after Congress opened the doors to us through legislation, I am both a booster and reformer of the system. I know firsthand how the Home Loan banks’ liquidity can get more capital into communities. But I have also seen CDFIs struggle to access liquidity through opaque, inconsistent and unreasonable collateral requirements.
As the chair of the CDFI-FHLB Working Group, I lead a coalition of 35 non-depository Home Loan bank-member CDFIs working for better access to capital for affordable housing and community development projects. We are active shareholding members of the Home Loan banks — with a stake in the system’s success — but also mission-driven financial institutions deeply committed to building thriving and more equitable communities, not simply to maximizing shareholder profits.
The report delineates a clear path for the FHFA, the Home Loan banks and member CDFIs to collaborate, using the system’s tools and resources in service to our nation’s communities. Rather than get stuck on a few hot-button issues, we see an opportunity to build upon the constructive conversations that led up to the report.
First, let’s start with what we all agree is most important and achievable: clarifying the public mission of the Home Loan Bank System and creating clear metrics of accountability.
Without a clear imperative for how the system should meet its mission, all other recommendations are meaningless. The system presently views its primary mission as providing liquidity to its private institutional members. But the FHFA’s report clearly states that this liquidity must be in service to a public purpose like affordable housing and economic development, not simply private speculation likecryptocurrency investments. For the Home Loan Bank System to work for everyone, we must clarify its mission and how to measure it. The old business adage “what gets measured gets done” holds true here.
Second, let’s immediately move forward on a major point of consensus: directing more of the system’s attention and profits toward affordable housing and community development.
Another key recommendation is for the Home Loan banks to voluntarily increase their Affordable Housing Program (AHP) contributions to at least 20% of their prior year’s net earnings, up from the statutorily required minimum of 10%. The FHFA report makes clear that the Federal Home Loan banks retain substantially more earnings and, thus, could easily contribute more for the benefit of communities. That’s the least they can do in exchange for their tax exemption, which allows them to pay hefty dividends to their members. No legislation is needed for this increase, and the Home Loan banks andthe CEOs of our nation’s largest banks have already agreed to an increase to 15%.
Third, let’s work together to realize the system’s public mission, starting with a “mission-oriented collateral” program that treats CDFIs like community financial institutions.
Home Loan banks still struggle to understand and fairly treat CDFIs’ collateral. To address this, the FHFA report recommends the creation of mission-oriented collateral programs, allowing CDFIs to pledge collateral with a strong connection to the system’s public mission. It calls for the banks to expand voluntary and pilot programs, which help increase the production, rehabilitation and preservation of multifamily housing.
Private banks have long understood that CDFIs can more effectively deploy capital to disinvested communities and borrowers. They invest hundreds of millions of dollars into CDFIs to meet their Community Reinvestment Act obligations. Home Loan banks should similarly model their partnership with CDFI members.
We shouldn’t be surprised by the incredible potential of the FHFA’s report. Its review process was thorough and transparent, includingdozens of public roundtables and listening sessions and hundreds of written comments from a range of stakeholders. The report wasn’t assembled in a smoke-filled room in Washington, D.C., but it’s not without controversy. Any full-fledged review of the Home Loan Bank System — a complex, cooperative network of government-sponsored financial institutions — was bound to touch on a few sensitive issues.
Perhaps most sensitive is the FHFA’s consideration of a new rule requiring most Home Loan bank members to maintain at least 10% of their assets in residential mortgages or other mission assets. Today’s banking and mortgage lending have changed so much that enforcing this requirement is trickier than it might seem. But why focus on the report’s more contentious recommendations when others are so readily achievable to create tangible and lasting impact?
The Home Loan bank presidents have an opportunity for action to help real people in real communities, rather than reaction to maintain the status quo through PR consultants and lobbyists. This public review of the system has shown that the status quo is not sustainable. By implementing the most important recommendations in the report, the Federal Home Loan Bank System can once again be a vital instrument in making housing affordable and communities thriving and stable.
ALBANY, N.Y. (NEWS10) -The Albany community met Thursday evening on short-term rentals as housing has become a point of concern. This includes services such as Airbnb and Vrbo.
The first discussion of short-term rentals welcomed over 50 participants and centered around one question: “What do you think a successful short-term policy looks like?”
Organizers from the City say regulating these rentals has been talked about for almost a year. After a presentation from Neighborhood and Community Services, neighbors paired up to voice their views.
“We don’t have any plans as of right now but we’re contemplating a potential regulatory system and we want to hear what people want to think and what ideas they have,” stated Director of Planning, Brad Glass.
Attendees mentioned trash and noise issues caused by parties and safety issues in shared spaces of short-term and long-term renters. The City is looking into ways to hold landlords, or hosts, accountable and effectively involve police when needed.
“The absentee landlord, the negligent landlord, has been the consistent issue in regards to short-term rentals,” described 7th Ward Councilman, Sergio Adams.
“Hear what the responses are from the host and how the hosts are addressing that. Just from our initial conversation, I think it’s been overwhelmingly positive,” added Host, Joshua Biernat.
Some call short-term rentals affordable tourism while others argue long-term rentals have been evicted to make them. Adams sees Capital Region attractions like the Belmont Stakes and local events such as the New York State Black Latino Caucus as reasonable ways to bring and keep revenue in Albany.
“Right there by the Capitol anyone who is operating an Airbnb is getting money. You have individuals, who are professionals, who are looking for a place that is safe, clean, and convenient.”
When it comes to a lack of affordable housing, Biernat says an owner of four Albany Airbnbs that the issue is not people like him. Instead, he blames the construction of new homes declining around COVID.
“We’ve been playing catch-up. You add the rates, you add the price increases, everything. It’s no wonder we’re in the housing situation we are. It was not created by Airbnb. It was created by bad policies during COVID.”
The Council’s Law Committee will continue to discuss short-term rental legislation on February 7 starting around 6:15 p.m. at City Hall.
A growing number of Americans are ending up homeless as soaring rents in recent years squeeze their budgets.
According to a Jan. 25 report from Harvard’s Joint Center for Housing Studies, roughly 653,000 people reported experiencing homelessness in January of 2023, up roughly 12% from the same time a year prior and 48% from 2015. That marks the largest single-year increase in the country’s unhoused population on record, Harvard researchers said.
Homelessness, long a problem in states such as California and Washington, has also increased in historically more affordable parts of the U.S.. Arizona, Ohio, Tennessee and Texas have seen the largest growths in their unsheltered populations due to rising local housing costs.
That alarming jump in people struggling to keep a roof over their head came amid blistering inflation in 2021 and 2022 and as surging rental prices across the U.S. outpaced worker wage gains. Although a range of factors can cause homelessness, high rents and the expiration of pandemic relief last year contributed to the spike in housing insecurity, the researchers found.
“In the first years of the pandemic, renter protections, income supports and housing assistance helped stave off a considerable rise in homelessness. However, many of these protections ended in 2022, at a time when rents were rising rapidly and increasing numbers of migrants were prohibited from working. As a result, the number of people experiencing homelessness jumped by nearly 71,000 in just one year,” according to the report.
Rent in the U.S. has steadily climbed since 2001. In analyzing Census and real estate data, the Harvard researchers found that half of all U.S. households across income levels spent between 30% and 50% of their monthly pay on housing in 2022, defining them as “cost-burdened.” Some 12 million tenants were severely cost-burdened that year, meaning they spent more than half their monthly pay on rent and utilities, up 14% from pre-pandemic levels.
People earning between $45,000 and $74,999 per year took the biggest hit from rising rents — on average, 41% of their paycheck went toward rent and utilities, the Joint Center for Housing Studies said.
Tenants should generally allocate no more than 30% of their income toward rent, according to the U.S. Department of Housing and Urban Development.
Although the rental market is showing signs of cooling, the median rent in the U.S. was $1,964 in December 2023, up 23% from before the pandemic, according to online housing marketplace Rent. By comparison, inflation-adjusted weekly earnings for the median worker rose 1.7% between 2019 and 2023, government data shows.
“Rapidly rising rents, combined with wage losses in the early stages of the pandemic, have underscored the inadequacy of the existing housing safety net, especially in times of crisis,” the Harvard report stated.
Elizabeth Napolitano is a freelance reporter at CBS MoneyWatch, where she covers business and technology news. She also writes for CoinDesk. Before joining CBS, she interned at NBC News’ BizTech Unit and worked on The Associated Press’ web scraping team.
Millions of Americans are getting a measure of relief when it comes to keeping a roof over their head: After skyrocketing during the pandemic, rent is falling nationwide.
According to a new report from apartment marketplace Rent.com, the national median rent for residential properties fell 0.78% in December of 2023 compared to a year ago — the third consecutive month in which rental prices have fallen across the U.S. The median rent countrywide was $1,964 in December, or $90 less than its peak in August 2022, the report shows.
That modest drop-off comes amid a rise in homes for sale, luring buyers who otherwise would’ve rented back into the residential real estate market. That means less competition for renters, who can leverage the softening market to get better deals, Rent Director Kate Terhune told CBS MoneyWatch.
“It’s the year of the renter… they’re being really choosy right now,” she said. “Property managers aren’t able to fill every unit, and those dollars absolutely count, so we’re seeing some concessions being made.”
Over the last year through December, rent fell particularly sharply in Florida, Idaho and Oregon, where rents fell 9.21%, 5.76% and 5.08%, respectively, the report shows. By contrast, rents surged in cities such as Providence, Rhode Island, where prices soared more than 21%; Columbus, Ohio (11.56%); and San Jose, California (9.48%), according to Terhune.
The rent is expected fall further in many cities when new rental units hit the market, putting pressure on landlords to fill vacant units. In another factor that could weigh on rents, the Federal Reserve has projected multiple interest-rate cuts this. That would lead to lower mortgage costs, spurring homes sales while reducing demand for rentals.
To be sure, despite the recent dip, rents remains unaffordable for many Americans. Overall, rents since the pandemic have jumped 23%, adding an extra $371 per month to households’ rent, Rent.com’s data shows. In 2022, roughly half of renters across the U.S. struggled to afford a roof over their head, according to new research from Harvard University’s Joint Center for Housing Studies.
Elizabeth Napolitano is a freelance reporter at CBS MoneyWatch, where she covers business and technology news. She also writes for CoinDesk. Before joining CBS, she interned at NBC News’ BizTech Unit and worked on The Associated Press’ web scraping team.
JEFFERSON CITY, Mo. — On the first business day of the new year, Missouri Treasurer Vivek Malek began accepting applications for about $120 million of state-subsidized, low-interest loans to small businesses, farmers and affordable housing developers.
Within six hours, Malek had so many requests for the money that he had to cut off applications.
“The demand is huge, and it is real,” Malek said.
Missouri’s situation, though extreme, is not entirely unique. From New York to Illinois to Montana, states have seen surging public interest in little-known programs that use state funds to spur private investment with bargain-priced loans. The programs have taken off after a series of key interest rate hikes by the Federal Reserve made virtually all loans more expansive, whether for farmers purchasing seed or businesses wanting to expand.
To combat inflation in consumer prices, the Fed raised its benchmark interest rate 11 times from March 2022 to last July, setting it at a two-decade high.
Under so-called linked-deposit programs, states deposit money in banks at below-market interest rates. Banks then leverage those funds to provide short-term, low-interest loans to particular borrowers, often in agriculture or small business. The programs can save thousands of dollars for borrowers by reducing their interest rates by an average 2-3 percentage points.
States typically cap the amount of money available for such discounted rates at either a flat dollar amount or a percentage of their total fund balances, because the programs result in less earnings for the state. Many states have built large surpluses from pandemic-era revenues, meaning they have more money available to deposit in banks.
Though most states don’t currently offer such programs, some that shelved them when interest rates were low are now considering whether to revive them to aid financially-strapped businesses and residents.
“I can say in talks with other state treasurers that there is a definite increased interest in treasury money, whether that is through a linked-deposit program or a different vehicle,” said Illinois Treasurer Michael Frerichs, who is president of the National Association of State Treasurers.
Illinois has nearly $950 million of deposits linked to low-interest loans for farmers, businesses and individuals. That’s up substantially from past years. In 2015, Frerichs said, the state’s agricultural investment program had just two low-interest loans. By 2022, that had grown to $51 million of loans. Last year, Illinois made $667 million of low-rate deposits for agricultural loans.
With rising demand, Frerichs recently raised the program’s overall cap from $1 billion to $1.5 billion.
Though smaller in scope, New York’s program also has seen an explosion of applicants.
In 2022, New York had 42 applications for state deposits in financial institutions linked to $20 million in low-interest loans. Last year, that rose to 317 applications linked to more than $220 million of loans, said Rafael Salaberrios, a senior vice president who manages capital access programs at Empire State Development, New York’s economic development agency.
“As the banks see the benefit, they are inundating us with applications — and that’s a good thing,” Salaberrios said. He added: “The linked deposit has allowed for the growth of small businesses to continue even during these high (interest) rate environments.”
Because of rising demand, Missouri’s linked-deposit loan program neared its statutory cap of $800 million last May. After some existing loans expired, the treasurer’s office was able to reopen applications at 10 a.m. on Jan. 2. By 4 p.m. that day, it had approached the cap again — receiving 142 applications totaling over $119 million — and closed the application window.
About half the applications came on behalf of customers of just two financial institutions — OakStar Bank and FCS Financial, a leading agricultural lender. FCS Financial had over 100 additional applications in line to submit when applications were cut off, said Brian Zimmerschied, vice president for its commercial crop lending team.
BTC Bank in rural Bethany, Missouri, had planned to turn in about dozen applications on behalf of its customers. But it missed out entirely because of the quick cutoff, bank CEO Doug Fish said.
Among those left disappointed was Jason Bernard, a farmer near Bethany who had hoped for a low-interest loan to help purchase this year’s supply of seed, fertilizer and chemical spray.
With higher interest rates, “it’s a lot harder to make it, just because your payments,” Bernard said.
The Missouri treasurer’s office is backing legislation to raise the program’s cap from $800 million to $1.2 billion, which would mark a 50% increase in capacity. The expansion could cost the state $12 million of potential earnings, though that could be partly offset by the economic activity generated from those loans, according to a legislative fiscal analysis.
In Montana, lawmakers last year authorized a new program to address a shortage of affordable housing. The Montana Board of Investments launched a linked-deposit loan initiative in October that received $77 million of applications within two months, reaching a self-imposed cap and forcing it to close applications sooner than expected.
Republican state Rep. Mike Hopkins, who sponsored the housing incentive legislation, was thrilled with the response.
“We’re in a bit of a jam in the state of Montana” for affordable housing, Hopkins said, and “we were able to get money out the door as quickly as possible.”
Officials in Iowa, Kansas and Ohio also told the AP they had increased demand for programs that deposit state money in banks to provide low-interest loans. The number of such loan recipients in Kansas tripled from 2022 to 2023. In Ohio, the amount of money provided for those loans rose by two-thirds during that time, to more than $600 million.
Oklahoma’s linked-deposit program has been dormant since 2010 amid low interest rates, but at least two banks recently contacted the treasurer’s office about the possibility of restarting it, said Deputy Treasurer Jordan Harvey.
Texas Agriculture Commissioner Sid Miller said he hadn’t approved any linked deposits for low-interest loans since taking office in 2015 — until last year, when he approved his first two.
“There wasn’t much need because interest rates were cheap,” Miller said.
“But now that the rates are up,” Miller added, “it could be a viable program, and we could help some people.”
Developers of a workforce apartment project in East Patchogue have closed on a package of economic incentives from the Town of Brookhaven Industrial Development Agency.
GGV Grove Apartments LLC, a development group headed by Jericho-based Georgica Green Ventures, is planning to build a $33.75 million three-building rental complex on a 2.78-acre site at 400 E. Main St.
The development, called The Grove, will be located on the southeast corner of East Main Street and Grove Avenue. It will bring 55 apartments, which will be a mix of 21 one-bedroom units, 28 two-bedroom units and six three-bedroom units. The apartments will be available to renters of households earning 50 percent to 90 percent of the area’s average median income, according to an IDA statement.
Monthly rents at the East Patchogue development will range from $1,227 to $2,994, depending on tenant’s income.
Seventeen of the apartments will be set aside for domestic violence victims who will be screened by the Levittown-based social services provider New Ground, which also will provide on-site services.
The project is jointly owned by Georgica Green Ventures, Hauppauge-based Kulka LLC, and Raymond James Affordable Housing Investments, a St. Petersburg, Fla.-based tax-credit investor. It is designed by Melville-based Beatty Harvey Coco Architects.
Located within the town’s East Patchogue Incentive Overlay District, which was enacted in 2020 to assist in revitalizing the Montauk Highway corridor, the project will also include a 1,000-square-foot ground-floor space to be leased to a local nonprofit or small business, according to its IDA application.
The development will create 150 construction jobs and seven permanent positions. Construction is expected to take 18 months.
“These apartments, which will not only replace a blighted site, are in an area of Brookhaven Town that has significant unmet demand for housing for a severely cost-burdened renter population,” Brookhaven IDA Chairman Frederick Braun said in the statement.
The East Patchogue property, once the home of a True Value hardware store that was demolished 12 years ago, was going to the site of a three-story, mixed-use development from Hauppauge-based Northwind Group. In 2018, the developer had planned to bring 80 apartments over retail space to the site, but the project never came to fruition.
Most Americans cannot afford to buy the homes listed for sale in the U.S., real-estate brokerage Redfin said in report on Thursday.
An analysis of listings in 97 of the most populous metropolitan areas in the country found that just 15.5% of homes for sale in 2023 were affordable for the typical U.S. household. That’s a decrease from last year, when Redfin found that 21% of homes listed for sale were affordable for the typical buyer.
Redfin defines affordability based on the estimated mortgage payment equaling 30% or less of the average monthly income of residents in the local county.
Redfin isn’t the only real estate company pointing toward housing affordability troubles. Earlier this year, the National Association of Realtors said that middle-income households, or households with annual earnings of up to $75,000, can afford only 23% of the homes listed for sale in the U.S.
Researchers from real estate data provider ATTOM examined the median home prices for roughly 575 U.S. counties last year and found that home prices in 99% of those areas were out of reach for the average income earner, which ATTOM defined as someone who makes $71,214 a year.
What’s driving affordability issues?
Homes were in short supply this year. In June, Realtor.com said the number of homes for sale in 2023 decreased in 21 of the 50 largest metropolitan areas when compared to the same time period last year.
A surge in mortgage rates this year also led fewer homeowners to list their properties, because they feared that they would have to buy a new home at a rate of 7% or higher — more than double the typical rate during the pandemic, MoneyWatch reported. Slim inventory means that buyers are competing for a limited pool of housing, driving prices upward.
Will homes be more affordable in 2024?
There is some good news heading into next year. Housing inventory rose 7.5% year-over-year in November, according to Realtor.com. With more homes on the market, there’s more competition, which can potentially drive home prices downward.
Mortgage rates are slowly dropping after soaring this fall to their highest level in more than two decades. The 30-year fixed-rate mortgage remained below 7% for the second week in a row, Freddie Mac said Thursday. The downward trend comes after 17 consecutive weeks above 7%.
“Lower rates are bringing potential homebuyers who were previously waiting on the sidelines back into the market and builders already are starting to feel the positive effects,” Freddie Mac said. “A rise in homebuilder confidence, followed by new home construction reaching its highest level since May, signals a response to meet heightened demand as current inventory remains low.”
Aliza Chasan is a digital producer at 60 Minutes and CBSNews.com. She has previously written for outlets including PIX11 News, The New York Daily News, Inside Edition and DNAinfo. Aliza covers trending news, often focusing on crime and politics.
Alliance will leverage the robust capabilities of POSSE PLS and eCheck solutions, giving government agencies the tools needed to fast-track permitting outcomes.
DENVER, December 12, 2023 (Newswire.com)
– Government software solution provider Computronix has formed a strategic partnership with Australian proptech innovator Archistar to integrate the latter’s AI-based eCheck toolset within the POSSE PLS – Permitting and Licensing System. A powerful compliance check technology, eCheck uses AI to make more than 90 complex checks against local building codes and regulations in just seconds. Following its seamless integration with POSSE PLS, Computronix’s end-to-end solution for municipal planning, permitting, inspection, licensing, and code enforcement, eCheck will simplify and streamline the review process for builders, architects, designers, planners, and building surveyors alike — providing rich 3D visual feedback on all pertinent code-compliance checks.
Archistar CEO & Founder, Dr Ben Coorey, said: “Archistar is committed to empowering cities and municipalities worldwide with advanced technology to effectively tackle the global housing supply crisis. We are proud to partner with Computronix, a company renowned for its award-winning, service-centric approach to serving government clients. By harmonizing the strengths of POSSE PLS and eCheck, we are set to revolutionize the way cities assess and approve permits, delivering faster building permits, enhanced transparency and an enriched experience for government officials and submitters alike.”
Gord Meeberg, VP of Business Development for Computronix, adds, “In Archistar, we recognize a corporate culture much like our own: one dedicated to building innovative solutions designed to fundamentally streamline permitting processes for community planners and builders. POSSE PLS with eCheck will leverage the robust capabilities of both award-winning solutions, giving government agencies the leading-edge tools needed to fast-track municipal planning and permitting outcomes, to meet affordable housing targets and exceed economic development objectives.”
In addition to the integration of their complimentary and compatible technologies, Archistar and Computronix have agreed to work together to jointly promote their respective solutions to community development leaders worldwide.
Leveraging artificial intelligence to assess planning rules and restrictions on land plots, eCheck streamlines the plan review process, creating rapid compliance checks that can be used to accelerate the design and building process. In tandem with the award-winning POSSE PLS system, this offering represents a powerful total product solution for government leaders keen to fast-track community development processes to facilitate increased affordable housing supply.
About Computronix: Computronix is a leading provider of transformative software solutions for land management, alcohol beverage control, enterprise licensing, gaming control and workflow management. Winner of 22 national and international awards, including the Smithsonian Institution’s collection of ground-breaking software, our POSSE Platform is a wholly integrated and fully realized product suite. A true service-centric organization, exemplified in our 100% Project Success rate and industry-leading employee retention rate, Computronix is proud to serve major government clients representing over 100 million citizens from Honolulu to Halifax.
About Archistar: Founded by Dr. Benjamin Coorey, a global expert in 3D generative design, Archistar is the world’s leading digital platform for the Property Industry. The platform combines architectural design with artificial intelligence to inform decision-making in property and is used by agents, developers, architects, government planners and homeowners nationwide. Since launching in 2018, Archistar has grown rapidly, listed in the AFR Top 100 fastest-growing companies in Australia for three years in a row, with notable clients including Mirvac, Ernst & Young, Brookfield and JLL.
