“In many ways, the pandemic exacerbated a problem that is already approaching crisis levels; missed work due to illness, joblessness, and wage reductions during the pandemic could drive an estimated 250,000 new people into homelessness,” Davies writes.

Davies proposed these solutions to help increase the affordable housing stock and provide assistance to those truly in need:

1. Reduce regulatory barriers to affordable housing.
2. Maximize land space with greater densities.
3. Incentivize density with tax incentives.
4. Grant rent subsidies – not rent control – to ensure help is given where it’s needed most.

Read the full article here.

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“In the coming weeks, the affordable-housing industry will be hit with the perfect storm,” Davies tells Rental Housing Journal. As unemployment benefits provided under the CARES act are being replaced by an executive memorandum which trims the benefits by one-third, and eviction moratoriums are set to expire in many places across the country, owners and operators of affordable housing also find it difficult to keep their businesses in operation.

Davies proposes a comprehensive approach that includes the following:

1. When necessary, landlords should consider negotiating with tenants, offering alternative payment solutions such as rental assistance, temporary rent subsidies, or rent payback plans.
2. Banks, lenders, municipalities, and utilities can help by extending financial assistance to owners and operators of affordable housing.
3. State and local government leaders can encourage the development of affordable housing closer to population centers by furthering policies that grant more permissive zoning, require less red tape, and promote the creative use of the available land to accommodate more families in less space, such as tiny home communities and high-rise apartment buildings.

“To protect our industry and safeguard low-income housing during our current economic climate requires a multi-faceted solution,” Davies writes in Property Manager Insider. “By employing creative and innovative solutions to increase the affordable housing supply and share the financial burden, we stand a chance.”

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