In the world of affordable housing, workforce housing may be overlooked by some but it is needed by many. People who hold service-sector jobs, which are necessary but often low-paying, need access to housing they can afford. Teachers, police officers and firefighters often need it as well. Finding money for these types of projects can be difficult, but it's not impossible.
Though developers may not consider them an option, Low-Income Housing Tax Credits (LIHTC) can be used to fund projects that include workforce-priced units, if the conditions are right. Typically, "workforce housing" is generally defined as being rent restricted so that it is accessible for people making between 80 and 120 percent of the area's Annual Median Income (AMI). In some communities, this is not a difficult target to hit, because average residential housing costs are already low. Or they're low enough that building a few lower-priced, rent-restricted units won't prevent a project from being financially viable.
But in more expensive housing markets, a larger disparity between service-sector incomes and the average price of a home can make LIHTCs a viable option. Ten Fifty B, a San Diego project, is one such example. In this case, tax credits were used to build a mixed-use development with apartments priced for people earning below 80 percent of the AMI. Many workforce housing projects in California are priced this way because there's such a significant gap between service-sector incomes and housing prices.
Community Development Block Grants (CDBG) are another option for developers interested in workforce housing projects. Controlled at the state and local levels, CDBG are more flexible, and allow for the development of a wider range of low-income housing products. Similarly, the HOME Investment Partnerships Program also has more flexibility. Though it, like CDBG, has maximum income requirements, workforce housing in more expensive markets could qualify.
Local governments can offer some creative options as well. For example, the space above a library was made available to a developer in Oregon who turned it into 47 workforce housing units. Local and county governments that are committed to offering a variety of housing options are often willing to work with developers to find unique solutions. Some are even willing, or can be convinced, to sell land for deeply discounted prices.
Developers interested in workforce housing projects should refer to HUD's information regarding LIHTC, CDBG and the HOME Investment Partnership Program. Consider contacting local government offices in cities of interest as well.
Though developers may not consider them an option, Low-Income Housing Tax Credits (LIHTC) can be used to fund projects that include workforce-priced units, if the conditions are right. Typically, "workforce housing" is generally defined as being rent restricted so that it is accessible for people making between 80 and 120 percent of the area's Annual Median Income (AMI). In some communities, this is not a difficult target to hit, because average residential housing costs are already low. Or they're low enough that building a few lower-priced, rent-restricted units won't prevent a project from being financially viable.
But in more expensive housing markets, a larger disparity between service-sector incomes and the average price of a home can make LIHTCs a viable option. Ten Fifty B, a San Diego project, is one such example. In this case, tax credits were used to build a mixed-use development with apartments priced for people earning below 80 percent of the AMI. Many workforce housing projects in California are priced this way because there's such a significant gap between service-sector incomes and housing prices.
Community Development Block Grants (CDBG) are another option for developers interested in workforce housing projects. Controlled at the state and local levels, CDBG are more flexible, and allow for the development of a wider range of low-income housing products. Similarly, the HOME Investment Partnerships Program also has more flexibility. Though it, like CDBG, has maximum income requirements, workforce housing in more expensive markets could qualify.
Local governments can offer some creative options as well. For example, the space above a library was made available to a developer in Oregon who turned it into 47 workforce housing units. Local and county governments that are committed to offering a variety of housing options are often willing to work with developers to find unique solutions. Some are even willing, or can be convinced, to sell land for deeply discounted prices.
Developers interested in workforce housing projects should refer to HUD's information regarding LIHTC, CDBG and the HOME Investment Partnership Program. Consider contacting local government offices in cities of interest as well.
