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Tag: affordable housing

  • Minnesotans struggle to find secure housing due to rent spike, new report shows

    Minnesotans struggle to find secure housing due to rent spike, new report shows

    Housing prices have gone up in the Twin Cities


    Housing prices have gone up in the Twin Cities

    01:48

    MINNEAPOLIS — Too many Minnesota families are struggling to put a roof over their heads. A new report from the State of the State Housing found that median rent jumped by 8% in the last year.

    “Housing is a basic human need, everyone needs a place to lay their head at night,” said  Minnesota Housing Partnership Executive Director Anne Mavity.

    According to the report, half of all renting families pay more than they can afford for housing. It also showed that evictions were up 8% over the previous year. That only adds to this tragic number: Close to 20,000 Minnesotans struggling with homelessness on any given night.

    “Across Minnesota we are actually 114,000 units short that are available and affordable to our lowest income community members,” Mavity said.

    Mavity says affordable housing means no more than 30% of your household income.

    “For the folks who are serving us our coffee in the morning for the folks who are taking care of our kids taking care of my mom right now those essential jobs don’t pay enough to afford an average two-bedroom apartment,” Mavity said.

    She says it’s not their fault, the state’s housing system is broken and work is underway to repair it.

    “There is a broad spectrum of need and people who are looking for housing and sometimes that supportive housing and you need case management you need support for addiction and sometimes we just need affordable units,” said the Executive Director of the PERIS Foundation Carla Godwin.

    Lydia Apartment and Anishinaabe Apartments are examples of how organizations are working to fix the problem.

    “The price to build in terms of development is often standing in the way and so we have public and private partners trying to figure out the way forward in those types of situations and try to figure out how to get enough units built, ” Godwin said.

    Reg Chapman


    reg-chapman.png

    Reg Chapman joined WCCO-TV in May of 2009. He came to WCCO from WNBC-TV in New York City where he covered an array of stories for the station including the Coney Island plane crash, the crane collapse on the city’s east side, 50 shots fired at motorist Sean Bell by New York Police, and a lacrosse team assault at Fairfield High School in Connecticut.

    Reg Chapman

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  • Letters: Housing bond | Resolving ambiguities | Harris critique | Get serious | Cruel order | Best hope

    Letters: Housing bond | Resolving ambiguities | Harris critique | Get serious | Cruel order | Best hope

    Submit your letter to the editor via this form. Read more Letters to the Editor.

    $20B housing bond
    should be voted down

    The $20 billion housing bond that will be on the Nov. 5 ballot is like snake oil.

    Only as little as 72% of the $20 billion housing bond will be spent to actually build affordable housing for extremely low-income, very low-income, and low-income households. Ten percent can be spent on grants for “transportation, schools, and parks.” Notably, only 80% of the proceeds of the bond issue need to be spent in the county funding the bonds. Thus, Contra Costa County residents could end up paying for parks in San Mateo County.

    The decision to place the bond on the ballot was made by the MTC, which includes unelected, unaccountable officials and is therefore like taxation without representation. We can and must do better.

    Nick Waranoff
    Orinda

    Critique of Harris
    applies to others

    Re: “Democrats deserved contest, not coronation” (Page A7, July 25).

    In his critique of Kamala Harris, Bret Stephens mentions high staff turnover during her time as vice president and the fact that she failed the bar exam on the first try.

    Regarding turnover, he should have started by looking at the mile-long list of senior and mid-level Trump people who quit or were fired.

    As for the bar exam, Harris is in good company. Others who took the exam more than once include Franklin D. Roosevelt, Michele Obama, John F, Kennedy Jr., and former California Governors Jerry Brown and Pete Wilson.

    He also claims she has been a bad campaigner. He’s entitled to his opinion, but her first speech in Milwaukee looked pretty impressive to me, in contrast to Donald Trump’s 93-minute meandering speech at the Republican convention.

    John Walkmeyer
    San Ramon

    We must get serious
    after record heat

    Re: “Last Sunday was hottest day on Earth in recorded history” (Page A2, July 24)

    That alarming headline was corrected the next day online: “Sunday was hottest day on the planet – no, wait, it’s Monday.” Things are just starting to warm up.

    It is now obvious that the cost of this heat — both in dollars and in human lives — far outstrips the cost of reducing CO2 emissions. Are we going to follow Ben Franklin’s advice: “An ounce of prevention is worth a pound of cure”? Or John Paul Jones, “I have not yet begun to fight”? We need to get serious, folks.

    Cliff Gold
    Fremont

    Newsom’s order to
    sweep camps is cruel

    Re: “Newsom orders sweeps of camps” (Page A1, July 26).

    The scary truth is most Californians are only a few bad breaks away from homelessness. The unlucky blow may come from a wildfire or, worse, an unexpected medical bill. Insurers profit most off denying coverage, that is, if you were fortunate enough to have health insurance in the first place.

    Capitalism turns housing into a scarce commodity and then blames people who lack it. Rather than treating the unhoused as untouchable, we should give them security and more chances. It is the Christian thing to do and a humane imperative.

    Gov. Gavin Newsom’s executive order to sweep away homeless encampments is cruel. It does nothing to solve the systemic problems that cause homelessness in the first place. And by treating other people like trash, the Ggovernor has proven he’s garbage.

    Alan Marling
    Livermore

    Harris win is best hope
    for multiracial society

    I was one of 50,000 Black men on a call for Kamala Harris, a day after 44,000 Black women got together. I haven’t seen this level of excitement since Barack Obama in 2008. Black women and men being this energized is how we will win the fight for a multiracial democracy.

    Letters To The Editor

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  • LIHP to provide 32 new affordable homes to first-time buyers | Long Island Business News

    LIHP to provide 32 new affordable homes to first-time buyers | Long Island Business News

    Listen to this article

    The Long Island Housing Partnership will be providing 32 new single-family, affordable homes in North Bellport, according to an announcement from Brookhaven Supervisor Dan Panico and Councilman Michael Loguercio. 

    Each of the homes will also have a one-bedroom accessory apartment and will be sold to first-time home buyers through LIHP’s Community Land Trust program. The homes will be built on vacant land on Ecke Avenue, according to the statement from the Town of Brookhaven. 

    North Bellport was granted $4.5 million in state funds for downtown improvements through the New York Forward initiative, which aims to accelerate the revitalization of downtowns through the support of projects that will create “vibrant destinations” and serve as catalysts for increased investment. 

    “It’s gratifying to be part of the continuing efforts to revitalize North Bellport. The New York State/ Brookhaven Town and Long Island Housing Partnership public/private partnership is a most effective vehicle to collaborate with the residents of North Bellport to improve their community,” Jim Morgo, New York State co-chair of the New York Forward North Bellport Local Planning Committee, said in the statement. “The tried-and-true method of stabilizing a neighborhood through well-designed safe and affordable home ownership and rental opportunities began in the 1990s and continues to this day with the Ecke Avenue development that creatively combines affordable home ownership and rental options. The revitalization will continue with the New York Forward’s economy-enhancing projects slated to begin in 2025.” 

    Upon receiving state approval, the homes will be connected to the recently completed sewer treatment system built by Levittown-based D&F Development Group, which supports the 70-unit Gleneagle Green rental development that opened two years ago off Atlantic Avenue. 

    “Supervisor Panico and the Town of Brookhaven should be commended for their continuous commitment to the revitalization of North Bellport,” Peter Elkowitz, LIHP president and CEO, said in the statement. “LIHP has partnered with the town for decades to bring quality affordable housing to the neighborhood, resulting in the construction of 68 new homes, 14 rehabilitated homes and another 10 single-family homes in the pre-construction phase. We are all excited to work with the town to develop 32 affordable homes, each with an accessory apartment dwelling unit, on Ecke Avenue – a project that has been in the planning stages for several years.” 

    LIHP is finalizing a request for proposals to find a developer for the North Bellport project. 

    “Once a developer is selected and approved, we will work to finalize subsidies in each home and establish an affordable selling price for the homes,” Elkowitz told LIBN. 

    LIHP is requesting funds from the New York State Affordable Housing Corporation and other grants. Suffolk County will also assist with infrastructure funds and the Brookhaven Town Department of Housing and Community Development will assist by using HOME funds and possibly Community Development Block Grant funds, according to the statement. The affordable housing project will be done in phases and the goal is to begin construction by fall 2025, with completion expected in 2027. 

    “The people of North Bellport have a friend, supporter and advocate in their town supervisor,” Panico said in the statement. “I have made it a priority to help create a better tomorrow and better future for the communities in Brookhaven that have faced substantial issues for far too long. This new housing will complement our past and future efforts and will be by no means our last. Whether it be true transit-oriented development and revitalization in the area, improving the park system, and access to housing, we are making real differences for the people.” 

    David Winzelberg

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  • Gooden family legacy continues with the 900th ‘Habitat’ home dedication

    Gooden family legacy continues with the 900th ‘Habitat’ home dedication

    PINELLAS COUNTY, Fla. — Almost 90 years after the Gooden family initially acquired 10 acres in the historic Ridgecrest community, a new generation of families are achieving first-time homeownership on that same land.

    Three more families have built their dream homes with the help of Habitat for Humanity. 

    What You Need To Know

    • With the help of Habitat for Humanity of Pinellas, more families have built their dream homes

    • The Gooden family invested $800 in the Ridgecrest community in the 1930s to purchase 10 acres of land in order to help the African American community own homes

    • Habitat for Humanity of Pinellas and West Pasco Counties reached a significant milestone with the completion of Jones’ home — it’s the 900th home the chapter has built

    • Habitat for Humanity of Pinellas says they need to build 85 more homes this year


    “Homeownership is the key to generational wealth,” said Elizabeth Helm-Frazier.

    That has been a key factor in Helm-Frazier’s family for decades. She says her maternal grandparents, Chester and Corrine Gooden, initially invested $800 in the Ridgecrest community in the 1930s to purchase 10 acres of land.

    They came from Ocala. Had big dreams, really thinking outside of the box. What they wanted to do is not only build a home, but also a business, because back then, Black people did not have a lot of options,” said Helm-Frazier.

    The couple also sold land to other families, purchased the first fire truck for the volunteer fire department, and donated land to build the first church for the community.

    Gooden Crossing is named in honor of the couple’s legacy.

    A legacy of homeownership that will continue with Xavier Jones.

    “I’m proud of myself. It took a lot of hard work to get here,” he said.

    The single father of three wants to lead by example for his children.

    Habitat for Humanity of Pinellas and West Pasco Counties reached a significant milestone with the completion of Jones’ home. It’s the 900th home the chapter has built.

    The Gooden’s grandchildren sold their last plots of land to make it possible. Helm-Frazier says her family’s lasting contribution to the historic African American community is the gift of homeownership.

    “It not only teaches wealth, but it teaches the children responsibility in taking care of a home, paying the utilities of a home, and most importantly, pride. I am very proud to be a Ridgecrest kid,” said Helm-Frazier.

    Habitat for Humanity’s Mike Sutton says the project will provide other families with the opportunity to experience the same pride.

    “People are getting priced out of our community left and right. They are leaving out region. They are leaving our state. Any opportunity that we have to partner with a family to anchor them in the area is a big day,” said Sutton.

    Habitat for Humanity of Pinellas says they need to build 85 more homes this year.

    Fadia Patterson

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  • Orlando public housing waiting list to open next week. Here’s how to apply

    Orlando public housing waiting list to open next week. Here’s how to apply

    ORLANDO, Fla. – Next week, the Orlando Housing Authority will open up pre-applications online for those who wish to apply for public housing.

    The process will begin on Monday at 12:01 a.m. The waiting list will remain open until Wednesday.

    Those who want to apply can do so online at OrlandoHousing.org. Under the “apply online” tab you will find a link to apply for housing.

    The public housing program provides income-based units that the OHA owns in Orlando and Orange County, Florida.

    WHO IS ELIGIBLE?

    Public housing is limited to low-income families and individuals. To be eligible, the applicant must be:

    • 18 years or older (or emancipated as an adult by court actions)

    • Must be a U.S. citizen or a non-citizen with eligible immigration status.

    HOW DO I APPLY?

    To apply for the public housing program, households may complete a pre-application online at the Orlando Housing Authority’s website when the waiting list is open.

    • Fill out the pre-application entirely and accurately

    • Once the pre-application is complete, the computer will generate a confirmation number to acknowledge the successful submission of the pre-application.

    WHEN WILL THE PRE-APPLICANT BE NOTIFIED?

    Pre-applications go into a computer database. A pre-applicant’s name is drawn from the database once their name reaches the top of the waiting list.

    Information on the pre-application is verified when the pre-applicant’s name reaches the top of the waiting list. The waiting list is maintained by the need for a specific bedroom size. For example, there is a list of households that need a zero-bedroom unit, a one-bedroom unit, etc. The largest number of bedrooms is a six-bedroom unit. The Orlando Housing Authority (OHA) will contact the pre-applicant. If the applicant can apply for housing assistance, their name will be placed on an applicant waiting list.

    OHA shared the most up-to-date data with our News 6 team before the waiting list opens. As of July 9, the Orlando Housing Authority has 77 public housing units available.

    Those already on the waiting list are sorted into groups based on the need for a specific bedroom size. About 1,300 people are waiting for a two-bedroom unit, and only 15 of those units are available, according to the OHA.

    The waiting list will be open again for three days starting Monday. The SHA Section 8/Project Based Voucher (PBV) list will remain closed.

    Contact Florida Relay Service at (800) 955-8771 (TDD) or 711 if you are hearing or speech impaired.

    If you have a disability-related need for accommodation, please get in touch with ohasection504@orl-oha.org or (407) 895-3300 extension 4013.

    Email questions to ohaapplication@orl-oha.org.

    Get today’s headlines in minutes with Your Florida Daily:

    Copyright 2024 by WKMG ClickOrlando – All rights reserved.

    Catherine Silver

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  • City council approves more funding for South St. Pete home repair program

    City council approves more funding for South St. Pete home repair program

    ST. PETERSBURG, Fla. — The St. Petersburg City Council voted unanimously Thursday to boost how much money South St. Pete residents can get through a home improvement program, meant to help residents particularly hard-hit by lack of affordable housing.

    What You Need To Know

    • St. Petersburg City Council approved an increase to the maximum award that can be received for home rehabilitation through the Affordable Single-Family Homeownership Program from $45,000 – $60,000

    • Members also approved the creation of the Rapid Roof Replacement sub-program

    • The programs are available to people who live in the South St. Pete Community Redevelopment Area

    • One resident said she was able to make major changes to her home, including new flooring, a new bathroom, and repaired ceiling – that wouldn’t have been possible without the program


    “This allows them to remain in their home, because home ownership is the way for the American dream. That is one way that people are able to build generational wealth. So, as a result of being able to maintain that, it means something for them and for their heirs in the future,” said George Smith, economic development manager for the South St. Pete Community Redevelopment Agency. 

    The resolution approved by the council increases the maximum award for home rehabilitation through the Affordable Single-Family Homeownership Program from $45,000 to $65,000. It also approved the creation of another sub-program, the Rapid Roof Replacement Program.

    The programs are specifically for homeowners who live within the South St. Pete Community Redevelopment Area and come in the form of zero-interest loans. For the rehabilitation assistance program, households with incomes of up to 120% of the area median income (AMI), or $114,600 for a family of four, can receive a 100% forgivable loan after ten years of occupancy with no monthly payments. Those with incomes between 121% and 140% AMI, or $133,700 for a family of four, will repay 50% of the loan through monthly payments, which will also be forgiven after ten years. The roofing pilot program will focus on owner-occupied homes with active roof code violations. Household income must be 120% AMI or lower. Dr. Avery Slyker, the city’s assistant director for housing and community development, said the programs can be combined to provide relief.

    “So, we go in, and we find out that yes, the roof is in very serious disarray. We need to do some major repairs. The $20,000’s going to be gone, but then what do we do with the ceilings, the walls? Maybe there’s some damage done to the floors because of the leaks. We’re going to be able to assist that with those rehabilitation funds,” Slyker said.

    Both Slyker and Smith said increasing the max award to $60,000 is necessary for the rehab program.

    “The rehab assistance is very, very important. The cost to rehab a home has gone up tremendously,” Smith said.

    “Unfortunately, when we go into a home today to do rehabilitation, it costs much more than the $60,000,” Slyker said. “What we’re having to do is take a list of things that are needed and bare it down to what is absolutely essential for the health and the safety of the homeowner. This gives us a little bit more freedom to do things.”

    One resident who’s experienced the benefits of the home rehabilitation program firsthand is Delores Green. Earlier this year, work began on multiple repairs to her 15th Ave. S home. They included new flooring in several rooms, new windows, and repairs to her bedroom ceiling. Green said the work was badly needed.

    “I did take the opportunity out to buy some covers, and I climbed on a ladder on that side of the room and just covered it,” she said of her bedroom ceiling. “That slowed the rain down. It was literally raining in my room.”

    Green told Spectrum News she’s lived in the home for 25 years. She said she meant to get to repairs sooner, with help from her brother, James.

    “Me and him was going to fix the house together. We was going to do it one room at a time,” Green said.

    But she said James had an aneurysm, and she inherited the house when he passed away. Green said she ultimately turned to the city for financial help and received about $70,000 from programs that included the rehab assistance.

    “It would never have gotten done — not as fast as they got it done,” she said of the importance of that money.

    Green encourages other South St. Pete residents in need to look into the program. She said it helped preserve her brother’s legacy.

    “It’s a Godly home — peaceful, enjoyable,” she said. “I can see that my brother’s looking down. He prepared for me a place to live, and I’m so thankful.”

    Slyker encourages anyone who may have looked into the program before but didn’t meet income requirements to check again, noting they change every year.

    Sarah Blazonis

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  • San Mateo judge dismisses Millbrae housing lawsuit on procedural grounds

    San Mateo judge dismisses Millbrae housing lawsuit on procedural grounds

    A San Mateo County Superior Court judge dismissed Millbrae’s housing lawsuit against San Mateo County on procedural grounds.

    The lawsuit challenged the county’s plan to convert a La Quinta Inn into homes for low-income residents. The dismissal was not based on the merits of the case but on the fact that it was filed prematurely. The city could choose to re-file the case later on.

    In a decision dated June 17, San Mateo Superior Court Judge Nancy Fineman determined that the lawsuit was “not ripe for adjudication” because the language of the county’s resolution authorizing the property acquisition did not amount to an official legal proposal to convert the property to low-income housing using state funds from Project Homekey.

    Since its start in 2020, the $3.75 billion Homekey program has funded the creation of more than 14,600 units of temporary shelter and long-term housing for homeless people. In the core Bay Area, Homekey has put more than $800 million toward 40 projects totaling about 3,500 planned or completed units. There are an estimated 31,000 homeless people in the five-county region.

    However, a review by the Bay Area News Group revealed that certain facilities had habitability and drug issues, and that hundreds of individuals who stayed at these locations in the region ended up back on the street.

    “Additionally, there is no final determination that the property will be used to house people with low incomes,” the decision read. “The reference to low-income residents in the Resolution is in a ‘whereas’ provision… a ‘whereas’ provision is a clause that has no legal effect.”

    Opponents of the project argue that San Mateo County violated Article 34 of the California Constitution, requiring low-income housing to go through a local vote before it can be approved.

    Meanwhile, San Mateo County asserts the project is exempt from Article 34 as it fits under recent updates to state law tweaking the definition of “low-rent housing.”

    The project has been a polarizing issue in Millbrae.

    Residents successfully put a recall measure on the ballot seeking to recall Vice Mayor Maurice Goodman and Council Member Angelina Cahalan due to their opposition to taking action against San Mateo County’s acquisition of La Quinta. Voters have until July 23 to decide on the recall.

    Last month, California lawmakers abandoned a proposal to repeal the controversial state law requiring voter approval of affordable housing projects after it failed to make the November ballot, the Associated Press reported.

    Ryan Macasero

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  • Alliant Constructs Workforce Apartment Complex in Van Nuys

    Alliant Constructs Workforce Apartment Complex in Van Nuys

    Alliant Communities is building a 332-unit workforce and affordable apartment complex in Van Nuys.

    The Calabasas-based developer once known as Alliant Strategic Development is constructing the six-story complex at 7050-7068 North Van Nuys Boulevard and 14431 West Vose Street, Urbanize Los Angeles reported.

    The L-shaped apartment building known as VOSE will include 332 studio, one- and two-bedroom apartments above 4,100-square-feet of shops and restaurants. A parking garage will serve 180 cars.

    Alliant will employ Transit Oriented Communities incentives for a larger building than local zoning rules allow in exchange for 37 affordable apartments for extremely low income households. Those incentives encourage developers to build near bus and train stations across the city of L.A. 

    The remaining units will be set aside as workforce housing for households earning up to 90 percent of area median income. A timeline for construction was not disclosed.

    Last month, Alliant landed $117.2 million in bond financing through the California Housing Financing Agency, according to a news release. The cost of the 246,600-square-foot project is pegged at $160 million, or $649 per square foot. That works out to $481,928 per unit.

    The white and gray complex, designed by Downtown-based AC Martin, will be clad in stucco and include three courtyards and two rooftop decks. The building, with splotches of yellow, will have large windows and exterior balconies, according to a rendering.

    The VOSE apartments will include stainless kitchen appliances, energy-efficient fixtures, central AC, granite and quartz countertops, in-unit washers and dryers and balconies.

    The complex will also have a fitness center, pool and hot tub, sun deck, business lounge, clubhouse, community kitchen, dog run, garage parking with EV chargers, solar panels and extra storage, according to Alliant.

    The 1.4-acre project, proposed in July 2021, was renamed Ardent on Van Nuys, according to Urbanize, while company officials continue to call it VOSE. 

    The project is the largest of four developments from Alliant in the San Fernando Valley which will provide a combination of workforce and extremely low-income housing, according to Urbanize.

    The renamed Alliant Communities, co-founded by Shawn Horwitz, focuses on building affordable and workforce housing, according to its website, with projects in Los Angeles, Moorpark, Menlo Park, Sacramento and Las Vegas, Nevada.

    In 1997, Horwitz helped launch The Alliant Company, the parent company of Alliant Capital. Maryland-based Walker & Dunlop acquired the firm and its subsidiary in 2021 for an enterprise price of $696 million. 

    It’s not clear if Alliant Strategic Development, founded in 2020, or its newly founded successor,  Alliant Communities, which state business records show was launched this year, have any ties to Horwitz’s former firms.

    — Dana Bartholomew

    Read more

    Alliant Strategic plans 332-unit project in Van Nuys


    Strategic’s Edward Lorin and Alliant’s Shawn Horowitz with the property (Linkedin, Alliant, Google Maps)

    Alliant Capital, Strategic Realty propose 148-unit complex in Canoga Park


    Uncommon Developers dunk appeal against 405-unit apartment complex in Van Nuys

    Uncommon Developers dunk appeal against 405-unit apartment complex in Van Nuys


    TRD Staff

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  • Poll finds steady support for Denver’s mayor but suggests new tax increases may face skepticism

    Poll finds steady support for Denver’s mayor but suggests new tax increases may face skepticism

    Denver Mayor Mike Johnston’s popularity is holding steady after 11 months in office, according to a new poll released Wednesday, but its findings suggest a sales tax increase he’s pitching for the November ballot could face some skepticism from voters.

    Johnston remains confident in his tax proposal, unveiled Monday. It would generate an estimated $100 million a year to expand on the city’s affordable housing work, including by preserving or building tens of thousands of units affordable to people now getting priced out of the city. His own internal polling suggests two-thirds of the city would support the tax increase, he said.

    Mayor Mike Johnston, joined by members of the City Council and community leaders, announces a new sales tax proposal to expand affordable housing in Denver on the steps of the City and County Building on July 8, 2024. (Photo by RJ Sangosti/The Denver Post)

    But the June survey of 409 registered Denver voters for the nonprofit Colorado Polling Institute found that a solid majority — 64% — believe the city’s taxes are already high. Among them, 35% said the city’s taxes were “way too high,” while 29% said they were “high but acceptable.”

    Still, it’s been rare for Denver voters to turn down tax increases, and a pollster noted that plenty of voters voiced moderate opinions on the question.

    Those responses were collected before Johnston announced his proposed 0.5% affordable housing sales tax. If the City Council gives its blessing in the weeks ahead, that new tax would share the November ballot with a new 0.34% sales tax being sought to shore up the finances of Denver Health, the city’s safety net hospital.

    If both pass, the city’s effective sales tax rate would increase from 8.81% to 9.65%, making Denver stand out along the Front Range.

    The bipartisan poll, conducted by Democratic polling organization Aspect Strategic and Republican firm New Bridge Strategy, was conducted via a mix of online and phone interviews between June 13 and 18. It has a margin of error of 4.85 percentage points.

    In good news for the mayor, the poll found 48% of voters viewed him favorably. That’s virtually flat compared to the 46% who viewed Johnston favorably in a Colorado Polling Institute poll in August, just his second month on the job.

    But the share viewing Johnston unfavorably climbed significantly, from 22% in August to 38% in June, according to the results.

    That’s due in part to rising familiarity as Johnston has been in the news, including as he’s spearheaded a new homeless strategy and responded to the migrant crisis. Just 11% of voters told pollsters they had no opinion or had never heard of the mayor in June, down from 32% in August.

    His favorability ratings in the new poll contrast with results from a Magellan Strategies survey of 1,595 Denver voters conducted in May. That poll found that 43% approved of his performance — while fully 50% disapproved. The margin of error was 2.45 percentage points.

    The survey was conducted for the council’s central office primarily to gauge support for a potential tightening of term limits. Its contract with Magellan was valued at up to $29,000, council spokesman Robert Austin said. The poll also found that the council’s approval rating was underwater, with approval at 36% and disapproval at 49%.

    Regardless of his own support levels, Johnston is banking that voters will approve his tax request in November.

    On the Colorado Polling Institute survey’s taxes question, Lori Weigel, of New Bridge Strategy, viewed the responses with some nuance. She noted that just about any voter is liable to say they pay too much in taxes, which is why the poll allowed respondents to grade the city’s tax burden by offering several options: way too high, high but acceptable, about right and lower than what one would expect.

    Joe Rubino

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  • City of Denver studying potential of ‘social housing’ model to increase affordable housing access

    City of Denver studying potential of ‘social housing’ model to increase affordable housing access

    DENVER — The City of Denver is studying the potential of a housing program that would decide a resident’s rent based on a percentage of their income rather than setting an income requirement.

    Housing programs in Denver have helped numerous people get into homes, including Central Park homeowner David Kugler. He was able to purchase his home with help through the Department of Housing Stability’s (HOST) Affordable Home Ownership Program. The program provides housing opportunities to low to moderate-income households at a lower price than if the home was on the open market.

    Richard Butler

    Homeowner David Kugler

    “I closed on my home in December 2019. I’ve lived here for about four and a half years, and I love it. I’m not planning on moving anytime soon. I can’t afford anything else in Denver, and so I’m so thankful for this program. I purchased my home for probably about $150,000 less than what it would have appraised at the market rate,” said Kugler.

    While the city currently holds the deed, Kugler will be the sole owner after the house is paid off.

    “There was a market rate appraisal for the purchase of the home, and an inspector came in and gave a market rate appraisal. But the city actually is the one that determined the actual purchase price in order to keep this affordable for people like me,” Kugler explained.

    Denver currently has several affordable housing programs, but Denver City Councilwoman Shontel Lewis hopes to expand housing programs to reach more residents.

    Last year, Lewis introduced a budget amendment to study social housing under the climate justice lens. She wanted to tackle concerns with the climate as well as housing affordability. The study began early this year.

    Denver City Councilwoman Shontel Lewis

    Richard Butler

    District 8 Councilwoman Shontel Lewis

    “It’s really this concept to think about adaptability. How can we provide housing for folks while also thinking about, what are the things that we can intentionally integrate into the building and developing of those housing that may have an impact on our climate? Can we think about the usage of solar panels? Or can we think about how we intentionally incorporate electric versus gas? And things of that nature,” she said

    Similar to low-income housing, social housing removes the income requirement and replaces it with a set percentage of your income that you would pay monthly. Social housing is usually owned by the city and under community control.

    “No matter if you make $200,000 or if you make $20,000, you’re only paying a certain percentage of your income,” said Lewis.

    social housing explainer graphic

    Richard Butler

    The range would be 20 percent to 35 percent of your gross income. For example, non-family households in Denver County have a median income of $67,000, according to census data. That means, after taxes, you would take home an estimated $4,118 per month. Therefore, your rent could be as low as $1,117 and as high as $1,954. At its highest, it would amount to 47 percent of your take-home income.

    “If we decided to put dollars to that as a city, I think you could actually see that as early as 2025, to be honest, because not all social housing buildings have to be things that we are building from the ground up,” Lewis said.

    The study is expected to wrap by the end of summer.

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    What do you want Denver7 to follow up on? Is there a story, topic or issue you want us to revisit? Let us know with the contact form below.

    Richard Butler

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  • Detroit corrects funding failures by renovating low-income apartments

    Detroit corrects funding failures by renovating low-income apartments

    The city of Detroit is rectifying its failure to properly administer federal funding for a program designed to support entrepreneurs by renovating eight lower-income apartment buildings and keeping the units affordable.

    The $6.1 million project is part of an agreement with the U.S. Department of Housing and Urban Development (HUD), which found that the city didn’t comply with spending standards when managing Motor City Match, a program designed to support small businesses. According to the investigation, the city did not maintain sufficient oversight of its spending and failed to adequately keep records, among other things.

    To resolve the problems, the city is using $6.1 million of its own general fund money to renovate six lower-income apartment buildings in the Hubbard Farms and Mexicantown neighborhoods. The additional two buildings still need city council approval.

    Detroiters were at risk of losing nearly 400 affordable housing units if the city didn’t spend the money. Now the lower-income residents will not only maintain their homes, but their apartments will be renovated.

    The owners of the buildings agreed to maintain the affordable rents for another 15 to 25 years in exchange for the city financing the renovations.

    “That level of investment is the reason Detroit is not experiencing tent cities and a homelessness crisis like some other large cities,” Julie Schneider, director of the city’s Housing and Revitalization Department, said in a statement Friday. “It is going to take many more years of sustained investment into affordable housing to meet the need and demand in the city and this $6.1 million investment will be an important part of that.”

    Launched in 2015, Motor City Match was intended to provide federally funded cash grants and additional resources to assist small business startups. Much of the funding came from federal block grants.

    Motor City Match no longer uses community block grants and instead relies on the city’s general fund budget and federal pandemic funds.

    In January 2021, an 18-month investigation by Detroit’s Office of Inspector General alleged that Motor City Match was plagued by excessive spending, poor oversight, inadequate payment controls, and a failure rate of nearly 77% among assisted businesses.

    “While waste is open to interpretation, it is clear that more money was spent on advertising, implementing and administering the programs than on direct assistance to the businesses,” the report stated.

    The report came about two years after HUD announced its concerns with the program.

    Since its inception, Motor City Match has helped 168 businesses open. An additional 104 businesses are under construction, according to the city. Of those businesses, 85% are minority-owned, and 70% are women-owned.

    The program has received a total of $102.7 million in investments so far.

    “We appreciate HUD’s partnership in working through this very complex process,” Schneider said. “This is a fair resolution and we are pleased to finally be able to put the matter to rest. As a result, we will be supporting the preservation of badly needed affordable housing in a way HUD fully supports and that protects our most vulnerable longtime residents.”

    As the prices of housing in Detroit continue to increase, many lower-income residents are having trouble finding affordable options.

    Acknowledging the rising demand for affordable housing, Mayor Mike Duggan’s administration has significantly increased the number of lower-income options. But it’s nowhere near enough to meet the demand, and many Detroiters are finding it difficult to buy a home in the city.

    Steve Neavling

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  • Bay Area receives $14 million in state grants to combat youth homelessness

    Bay Area receives $14 million in state grants to combat youth homelessness

    The Bay Area is receiving $14.3 million from the state to help homeless families with children and unhoused young adults find lasting homes.

    The awards are part of the latest rounds of two statewide grant programs, which Gov. Gavin Newsom announced this week.

    “These grants are critical for helping to connect some of the most vulnerable Californians with access to housing,” Newsom said in a statement. “Many of these young adults don’t have the support of friends or family that most of us take for granted.”

    The money will help local agencies provide housing and services for young adults under 25, prioritizing those currently or formerly in the foster care or probation systems. It will also help add transitional housing beds, bolster job training programs and offer financial assistance for homeless families with children.

    The awards include $5.6 million (two grants) for Santa Clara County, $2.1 million for San Francisco, $1.9 million for Alameda County, $1.8 million for Oakland, $1 million for Sonoma County, $626,040 for Contra Costa County, $280,768 for Livermore, $283,050 for Solano County and $173,160 for San Mateo County.

    In applying for the grants, local governments had to demonstrate a need to help homeless families and young adults into housing. It was not immediately clear why some jurisdictions received more money than others.

    Across the Bay Area, an estimated 37,000 people experience homelessness on a given night.

    In Santa Clara County, the local county with the largest homeless population, there are roughly 360 homeless families with children and about 760 homeless youth under 25, according to the most recent count last year. More than 80% stay in homeless shelters.

    In Oakland, officials plan to use the grant money in part to add 8 beds at the Courage Housing Transitional Home. The home shelters women and children who’ve survived domestic violence, human trafficking and sexual exploitation.

    “The program provides residents with a safe space to heal, grow, and engage in comprehensive services related to professional development and career placement, economic resources, and preparation for permanent housing placement,” Raven Nash in Oakland’s Community Homelessness Services Division wrote in an email.

    Livermore aims to use its grant to add three 4-bedroom transitional housing units for homeless families at the Leahy Square affordable complex east of downtown. Families will receive job training support in finding permanent housing.

    “By leveraging this grant, we can provide stable housing and vital support services to some of Livermore’s most vulnerable families,” Paul Spence, Livermore’s assistant city manager, said in a statement.

    Ethan Varian

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  • Kenya’s urban population is growing. The need for affordable housing is, too

    Kenya’s urban population is growing. The need for affordable housing is, too

    NAIROBI, Kenya — In the heart of the crowded Kibera neighborhood in Kenya’s capital, Jacinter Awino shares a small tin house with her husband and four children. She envies those who have escaped such makeshift homes to more permanent dwellings under the government’s affordable housing plan.

    The 33-year-old housewife and her mason husband are unable to raise the $3,800 purchase price for a one-room government house. Their tin one was constructed for $380 and lacks a toilet and running water.

    “Those government houses are like a dream for us, but our incomes simply don’t allow it,” Awino said.

    The government plans to build 250,000 houses each year, aimed at eventually closing a housing deficit that World Bank data puts at 2 million units. The plan was launched in 2022, but no data is available on the number of houses already completed.

    Kenya’s urban areas are home to a third of the country’s total population of more than 50 million. Of those in urban areas, 70% live in informal settlements marked by a lack of basic infrastructure, according to UN-Habitat.

    Some urban Kenyans have moved into a government housing project on the outskirts of the capital, Nairobi, where one-bedroom units sold for $7,600 last year.

    Felister Muema, a 55-year-old former caterer, paid a deposit of about 10% through a savings plan and is expected to pay off the balance in 25 years.

    “This is where I have started living my life,” she said. “If I do something here, it is permanent. If I plant a flower, no one is going to tell me: ‘Uproot it, I don’t want it there.’ This gives me life.”

    But experts say construction and financing need to change and speed up for Kenya’s housing deficit to be met.

    “We cannot rely on the traditional mortgage route,” said UN-Habitat’s head of East Africa, Ishaku Maitumbi, who recommended a cooperative savings system that is popular with Kenyan businesses.

    For home construction, some are exploring the emerging technology of 3-D printing. A machine layers special mortar to form concrete walls and cuts the building time by several days compared to traditional brick and mortar work.

    A company, 14Trees, has used the technology to build a showcase house in Nairobi and 10 houses in coastal Kilifi County.

    Company CEO Francois Perrot said the technology can help address the huge housing need on the African continent, but it will take time.

    “If we want to clear that backlog, we need to build differently, we need to build at scale, with speed, and with low-carbon materials, and this is what construction 3-D printing makes possible,” Perrot said.

    The company’s homes, like many traditionally built ones, remain beyond the reach of most Kenyans. A two-bedroom house costs $22,000 and a three-bedroom one costs $29,000. But Perrot asserted that acquiring a printer locally and making mortar locally would help bring down costs.

    “People don’t really worry or care about technology. What they care about is the design, the price, the way it is set up, the layout of the building,” he said.

    Nickson Otieno, an architect and founder of Niko Green, a sustainability consulting firm, said such new technology has great potential but remains limited.

    “It will still take a long time for it to compete with brick and mortar,” he said. “Brick and mortar, everybody can build their house anywhere they are. They are able to access the materials, they are able to access the tradesmen who build the house and they can plan the cost.”

    Financing remains a challenge. In June 2023, Kenya’s parliament passed a finance law with a new housing tax of 1.5% on gross income, to be used to build affordable housing. The law is being challenged in court. Critics argue the tax is discriminatory as it applies only to those with formal employment.

    If the tax is rejected, Kenya’s government would need to look elsewhere for funding to build affordable housing.

    The housing tax is one of the issues causing discontent among young people who have organized a series of protests that included the extraordinary storming of parliament on Tuesday. More than 20 people were killed as police opened fire.

    President William Ruto has defended the need for the tax.

    ”We have said that affordable housing, social housing is a right,” he said earlier this year in response to the legal challenge.

    ___

    The Associated Press receives financial support for global health and development coverage in Africa from the Bill & Melinda Gates Foundation Trust. The AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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  • Senate unveils $5.1B housing bond bill

    Senate unveils $5.1B housing bond bill

    BOSTON — Senate Democrats have rolled out a $5.1 billion housing bill that calls for leveraging borrowing, policy changes, tax breaks and other incentives to help boost the development of new homes across the state.

    The proposal, expected to be taken up Thursday, would add more than $1 billion in borrowing to Gov. Maura Healey’s $4.1 billion Affordable Homes Act plan filed in October, and includes a range of tax breaks, changes to state laws, and bond authorization to increase the construction of market rate and affordable homes.

    But the plan doesn’t include Healey’s controversial plan to give communities the authority to add transfer fees from 2% to 5% onto property tax bills to fund affordable housing, which has been criticized by real estate brokers and others.

    Senate President Karen Spilka said the proposal is part of a major effort to ease the state’s housing crunch by authorizing more than $5 billion in borrowing to help spur production and preserve and promote access to affordable homes.

    “This important legislation continues the Senate’s commitment to creating a Commonwealth that is more competitive, affordable and equitable, with a focus on helping lower and middle income residents struggling with high housing costs,” Spilka, an Ashland Democrat, said in a joint statement with other top Senate leaders.

    The proposal calls for diverting $800 million to the state’s Affordable Housing Trust Fund to create and preserve affordable housing for households whose incomes are not more than 110% of area median income.

    At least $2 billion would be devoted to the rehabilitation of more than 43,000 public housing units, with 25% of the money dedicated to preserving housing for those with low incomes.

    The plan also calls for expanding funding for the state’s Community Investment Tax Credit Program, which funds community development corporations that partner with nonprofits to build affordable housing across the state. Donations to community development corporations that qualify are eligible to receive a 50% refundable tax credit.

    The Senate plan calls for making the program permanent and raising the cap on donations that qualify from $12 million to $15 million. Both Healey and the House included that provision in their housing bond bills.

    Policy initiatives in the bill include a proposal to prevent cities and towns from banning or “unreasonably restricting” accessory dwelling units in single-family residential zones. It would also create a Fair Housing Office under the state Executive Office of Housing and Livable Communities to help “correct for decades of racially biased housing policies.” Beacon Hill leaders are trying to incentivize more home building amid a shrinking inventory they say is edging first-time buyers out of the market.

    The prolonged housing crunch is hurting the state’s economic growth, they say, making it much harder to attract new families and companies to invest in the state.

    Massachusetts has some of the highest housing costs and rents in the country. The median price of a single-family home hit a record $560,000 in March, according to real estate industry reports. Meanwhile, single-family home sales were down 7.4% in March versus the same month last year.

    Earlier this month, the House of Representatives approved a $6.5 billion housing bill that included similar provisions and also scrapped Healey’s proposed transfer tax.

    Any differences between the House and Senate versions of the legislation would have to be worked out in negotiations before the measure returns to Healey’s desk for consideration.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

    By Christian M. Wade | Statehouse Reporter

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  • Voters will decide whether to support Denver Health through increase in city’s sales tax

    Voters will decide whether to support Denver Health through increase in city’s sales tax

    Denver voters will be asked in November to consider increasing the city’s sales tax to raise $70 million a year to help stabilize Denver Health, the region’s financially ailing safety-net hospital.

    The Denver City Council voted 12-1 without discussion Monday to send the .34% sales-tax increase — which would add 34 cents to a $100 purchase — to the ballot. The city’s current sales tax is 8.81% and, if this measure is approved by voters, it will increase to 9.15%.

    Councilman Kevin Flynn, who represents District 2, cast the only dissenting vote. He previously had expressed concern about “burdening Denver taxpayers” with tax increases.

    Mayor Mike Johnston is considering asking the council to place a second sales-tax increase — one that would raise money for affordable housing — on the November ballot, administration officials told The Denver Post earlier this month.

    If voters OK the Denver Health tax increase, the health system could only use the money to expand or maintain medical care in the following categories:

    • Emergency and trauma care
    • Primary care
    • Mental health care
    • Addiction treatment and recovery services
    • Pediatric care

    There would be a cap on the administrative costs that could be drawn from the fund, as well.

    Denver Health has struggled financially since 2021 as the cost of uncompensated care rose faster than revenues, with state officials warning earlier this year that, without changes to its business operations, the hospital was at risk of deteriorating into a “death spiral.”

    The system lost about $35 million in 2022, CEO Donna Lynne told a council subcommittee at a meeting earlier this month. The hospital earned a $17 million profit in 2023, though that wasn’t enough to tackle the maintenance that it deferred in recent years, officials said.

    Meg Wingerter, Noelle Phillips

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  • Senate unveils $5.1B housing bond bill

    Senate unveils $5.1B housing bond bill

    BOSTON — Senate Democrats have rolled out a $5.1 billion housing bill that calls for leveraging borrowing, policy changes, tax breaks and other incentives to help boost the development of new homes across the state.

    The proposal, expected to be taken up Thursday, would add more than $1 billion in borrowing to Gov. Maura Healey’s $4.1 billion Affordable Homes Act plan filed in October, and includes a range of tax breaks, changes to state laws, and bond authorization to increase the construction of market rate and affordable homes.

    But the plan doesn’t include Healey’s controversial plan to give communities the authority to add transfer fees from 2% to 5% onto property tax bills to fund affordable housing, which has been criticized by real estate brokers and others.

    Senate President Karen Spilka said the proposal is part of a major effort to ease the state’s housing crunch by authorizing more than $5 billion in borrowing to help spur production and preserve and promote access to affordable homes.

    “This important legislation continues the Senate’s commitment to creating a Commonwealth that is more competitive, affordable and equitable, with a focus on helping lower and middle income residents struggling with high housing costs,” Spilka, an Ashland Democrat, said in a joint statement with other top Senate leaders.

    The proposal calls for diverting $800 million to the state’s Affordable Housing Trust Fund to create and preserve affordable housing for households whose incomes are not more than 110% of area median income.

    At least $2 billion would be devoted to the rehabilitation of more than 43,000 public housing units, with 25% of the money dedicated to preserving housing for those with low incomes.

    The plan also calls for expanding funding for the state’s Community Investment Tax Credit Program, which funds community development corporations that partner with nonprofits to build affordable housing across the state. Donations to community development corporations that qualify are eligible to receive a 50% refundable tax credit.

    The Senate plan calls for making the program permanent and raising the cap on donations that qualify from $12 million to $15 million. Both Healey and the House included that provision in their housing bond bills.

    Policy initiatives in the bill include a proposal to prevent cities and towns from banning or “unreasonably restricting” accessory dwelling units in single-family residential zones. It would also create a Fair Housing Office under the state Executive Office of Housing and Livable Communities to help “correct for decades of racially biased housing policies.”

    Beacon Hill leaders are trying to incentivize more home building amid a shrinking inventory they say is edging first-time buyers out of the market.

    The prolonged housing crunch is hurting the state’s economic growth, they say, making it much harder to attract new families and companies to invest in the state.

    Massachusetts has some of the highest housing costs and rents in the country. The median price of a single-family home hit a record $560,000 in March, according to real estate industry reports. Meanwhile, single-family home sales were down 7.4% in March versus the same month last year.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com

    By Christian M. Wade | Statehouse Reporter

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  • Could a $20 billion bond measure help solve the Bay Area’s affordable housing crisis?

    Could a $20 billion bond measure help solve the Bay Area’s affordable housing crisis?

    This November, Bay Area voters could decide on an unprecedented bond measure to raise up to $20 billion for as many as 90,000 desperately needed affordable homes across the nine-county region.

    Ahead of a crucial vote by a regional agency next week to put the measure on the ballot, the mayors of three of the Bay Area’s largest cities gathered in San Francisco on Thursday to rally support for the proposal.

    “If you’re concerned about homelessness, this is the measure to support,” San Jose Mayor Matt Mahan said. “If you’re concerned about the high cost of housing and the high cost of living, this is the measure to support.”

    San Francisco Mayor London Breed and Berkeley Mayor Jesse Arreguín were also at the event, held at an affordable housing complex near the Chase Center arena in San Francisco’s Mission Bay neighborhood.

    Absent was Oakland Mayor Sheng Thao, who was a no-show after the FBI raided her home early Thursday morning.

    Across the Bay Area, some 1.4 million residents — 23% of all renters — spend more than half their income on rent, according to regional officials. Meanwhile, an estimated 37,000 people in the region are homeless on any given night — more than the entire population of Menlo Park.

    To alleviate the region’s chronic affordable housing shortage, the Bay Area Housing Finance Authority, established by the state legislature in 2019, has worked for years to put the bond measure on the ballot. The measure now needs approval from the finance authority’s board — made up of local elected and appointed officials — on June 26 before going to voters.

    While the board is expected to approve the measure, there remains some uncertainty about the final bond amount. The financing authority has proposed either $10 billion or $20 billion.

    The bond would be funded by a new tax on businesses and homes. For a $20 billion bond, the tax would come to $19 per $100,000, or about $190 a year for a home with an assessed value of $1 million.

    The vote comes as the state is pushing Bay Area cities and counties to approve more than 441,000 new homes by 2031, a roughly 15% increase in the region’s total housing stock. More than half of the new homes must be affordable to low- and middle-income residents.

    On Thursday, Breed said that soaring interest rates and other economic headwinds currently holding back construction underscore the need for more affordable-housing funding.

    “How are we going to get the much-needed affordable housing units done without the financial support?” she asked.

    Some mayors also pointed to the shrinking role the federal government has played in subsidizing affordable housing in recent decades as a reason the measure is needed.

    “Local mayors are right to complain,” U.S. Rep. Ro Khanna, a Democrat representing the South Bay, said in an interview.

    Khanna said he supports the bond measure, adding that if President Joe Biden is reelected, he plans to push the administration to make housing a high priority.

    If approved, a $20 billion bond measure would allocate $4 billion to creating a regional fund to finance affordable projects. The rest would be split among the Bay Area’s nine counties and five of its largest cities to determine how to boost affordable housing.

    Santa Clara County would receive $2.4 billion, San Mateo County $2.1 billion, Alameda County $2 billion and Contra Costa County $1.9 billion. San Francisco would see $2.4 billion, San Jose $2.1 billion and Oakland $765 million.

    A recent report by researchers with the housing nonprofit Enterprise Community Partners found the bond could help build 433 already-approved affordable projects totaling more than 40,000 units, many of which lack enough funding to complete. That includes more than 10,000 units in both Santa Clara and Alameda counties. Officials estimate the bond would also help build tens of thousands more new units.

    Affordable housing is reserved for those earning less than a specified amount, generally a percentage of an area’s median income. That can be as much as 120% of the median income or as low as 15% or 30%. In Santa Clara County, 30% of the median income is $38,750 for a single person, according to the state housing department. Residents typically spend about 30% of their income on housing costs, though the amount can vary.

    Local officials could also use the bond money to help build homeless shelters, including tiny homes, motel conversions, group shelters and managed-encampment sites.

    Earlier this year, San Jose, which under Mahan has made building new shelters the centerpiece of its homelessness response, agreed to spend about 28% of its potential bond money on shelter options. In an interview, Mahan said affordable housing is too expensive and takes too long to build to be the primary strategy to fight homelessness.

    “I’m not going to support an approach that’s only going to support one strategy, especially one that’s the slowest to get people off the streets,” Mahan, a voting member of the finance authority board, said in an interview.

    Ethan Varian

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  • 23% of homebuyers tell pollsters they regret paying too much

    23% of homebuyers tell pollsters they regret paying too much

    Franklin Schneider | Wealth of Geeks

    A new poll shows 23% of recent home buyers say they regret spending too much on their purchase, reports Clever Real Estate.

    Historically high mortgage rates and skyrocketing home prices haven’t discouraged too many Americans from buying homes. However, the high cost of buying and maintaining a home has taken its toll.

    Of 1,000 recent and future home buyers asked, 43% admit it’s a struggle to make their mortgage payment on time.

    Buyers entering the market in 2024 will face many of the same affordability challenges, with an additional obstacle. In August, changes to real estate commission will likely result in buyers having to pay their own agent — adding an additional expense to those who already face challenges in the home buying process.

    Buyers Are Struggling

    The average home in the United States sells for $492,300, but 52% of most recent buyers — those who bought a house in 2023 or the first half of 2024 — spent at least $500,000, Clever reports.

    Consequently, around 38% report overpaying, and 23% regret spending too much.

    As a result of sky-high home prices, many buyers report financial overextension — nearly half say they’ve struggled to make mortgage payments on time, and 44% have taken on additional non-mortgage debt since buying.

    The financial stress has taken its toll, with 60% of buyers saying their finances have not improved since buying a home and 51% saying their overall happiness hasn’t improved, either.

    An estimated 68% of respondents said they’re glad they bought — if only because they think home prices and interest rates will continue to rise.

    Still, 82% of recent homebuyers report at least one regret. Aside from spending too much, 28% of buyers regret their buy requires too much maintenance, 24% regret that their home doesn’t meet all needs, and 23% report dissatisfaction regarding high interest rates.

    Buyer Sentiment Toward Agents

    While most buyers used real estate agents to purchase their homes, not all who did were satisfied. More than half of recent home buyers said their agent cared more about closing the sale than their clients’ best interest. Nearly half (42%) said their agent was less helpful than expected.

    Nearly one in three buyers (29%) had so many real estate agent worries that they opted to bypass them.

    Of those who skipped an agent, 32% said they did so because they don’t trust agents. About 30% said they bought without an agent because it cost them less money, despite the sellers paying both agent commissions under the current system.

    Commission Changes Are Imminent

    Under the present commission system, sellers pay their listing agent and the buyer’s agent. However, in March, the National Association of Realtors (NAR) settled a federal lawsuit by sellers claiming the commission system amounted to illegal price-fixing.

    Under settlement rules, which take effect in August, sellers will pay their agent, and buyers will pay theirs.

    This settlement evoked mixed feelings; while 94% of sellers support this change, only 61% of buyers do. Despite conflicting opinions from consumers, experts believe these changes will improve commission-related flexibility.

    Additionally, these changes will boost transparency, a significant shift considering three in four respondents reported they’d be more inclined to utilize real estate agents if they had detailed cost breakdowns.

    Not all buyers are on board. One-third of upcoming buyers said paying their agent would decrease their desire to work with one, and 50% said they’re considering buying without an agent because of new commission rules.

    More than half of prospective home shoppers (51%) are fast-tracking buys, so sellers are responsible for commission.

    How Far Will Commission Fall?

    The average buyer’s agent commission rate in the U.S. is 2.66% of the final home sale price, but 51% of buyers think a fair commission rate is 2% or less.

    “It’s difficult to predict how much commission will decline,” says Steve Brobeck, a real estate commission expert and senior fellow at the Consumer Federation of America. “Some experts predict they could decline as much as 50% or more. We’re holding to our estimate that commission will decline by 20%-30% — averaging 3%-4% rather than the current 5%-6%.”

    Nearly every industry expert agrees that new commission rules will lower the average rate as buyers negotiate directly with their agents; 70% of potential buyers expressed willingness to negotiate real estate commissions directly.

    Other buyers had a different idea about how to absorb new commission costs. About 27% state they would buy cheaper properties and trim their budget by an average of $13,167.

    The settlement will also provide opportunities for those exploring new compensation models, such as an a la carte option in which buyers only pay for the services they need. With these changes shaking up the real estate market, it could be in for a boom.

    “If commission rates decline, so would consumer costs,” Brobeck explains, “and that should modestly stimulate home sales.”

    This article was produced by Media Decision and syndicated by Wealth of Geeks.

    Associated Press

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  • Housing, Pinellas storm-ready projects among state budget vetoes

    Housing, Pinellas storm-ready projects among state budget vetoes

    PINELLAS COUNTY, Fla. — A number of line items affecting Pinellas County projects didn’t make the cut in Gov. Ron DeSantis’ $116.5 billion state budget.

    What You Need To Know

    • Gov. Ron DeSantis called the 2024-25 budget fiscally conservative

    • Millions of dollars were cut from the budget that would have funded a slew of projects locally, from education to restoration to affordable housing

    • A boardwalk replacement project at Boyd Hill Nature Preserve was also vetoed

    Shortly after signing the budget for the 2024-25 fiscal year, DeSantis called the budget fiscally conservative, saying the state wanted to keep it in a certain parameter. The governor cut millions of dollars from the budget that would have funded a slew of projects locally, from education to restoration to affordable housing.

    Habitat for Humanity of Pinellas and West Pasco counties was denied a $3 million request that would have helped build 105 affordable homes in three subdivisions. The requested funding would have gone specifically to infrastructure, engineering and land acquisition for the new builds.

    Last year, DeSantis approved $2 million in the state budget for the local nonprofit but vetoed this year’s request.

    “We understand Governor DeSantis has some tough decisions to make when signing the budget, and we were unfortunately part of the veto list. As we approach our 900th home celebration next week, we will continue partnering with our community to make affordable homeownership opportunities available in Pinellas, West Pasco, and Hernando Counties,” President and Chief Executive Officer of Habitat for Humanity of Pinellas and West Pasco counties Mike Sutton said in a statement.

    In southern Pinellas County, just more than $1 million was cut for a boardwalk replacement project at Boyd Hill Nature Preserve.

    The Local Funding Initiative request states the existing boardwalk isn’t safe anymore and is important for providing unique access to the area’s different ecosystems. Park staff said they have roughly 90,000 visitors each year.

    Alizza Punzalan-Randle, the St. Pete mayor’s office managing director for communications and community engagement, issued the following statement:

    “Through the state’s appropriations process, the city of St. Petersburg was successful in securing $300,000 towards a St. Pete Fire Rescue ladder truck, which will help meet critical public safety needs in our city. While all of our requests were not funded, St. Pete is fiscally strong and will pursue other resources to complete our projects.

    “We are grateful for the leadership of our delegation members who advocated for our projects. We are also pleased that these city-supported projects were signed into law: USF St. Petersburg’s Office of Veteran’s Success ($10 million); St. Pete College’s Manufacturing Lab ($1 million); and St. Pete College Palladium Theater ($1 million).”

    In an effort to prepare for a major storm, Pinellas County was hoping for just more than $1 million to install power backup systems for sewer pump stations.

    The Local Funding Initiative request states the funding would have been used to provide sewer collection services during power outages to essential infrastructure — including local hospitals, shelters, nursing homes and emergency operations centers.

    Public Information Coordinator Sydney Criteser issued the following statement.

    “The existing generators have been in use from 20 to over 30 years. Some of these generators need to be replaced due to age, while others will be installed at pump stations that do not have permanent generators in place,” the statement said. “Our utilities department is currently reviewing the generator budget for any adjustments now that the supplemental funding request from the state has been vetoed.”

    Other local vetoes included $550,000 for sand erosion and improving water quality at St. Pete’s North Shore Park and another $500,000 for education programs at the Dali Museum.

    Angie Angers

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