A recent Multifamily Market Commentary from Fannie Mae offers a succinct summary of state and local programs and policies aimed at increasing the supply of affordable housing. It reviews the creation of programs focused on public assets such as government-owned land or funds, as well as changes to local development regulations. It notes that such programs and policies often exchange public assets for long-term rent restrictions.
Drawing on research from the Grounded Solutions Network, the commentary explains how inclusionary housing programs work, typical features of such programs, and their growing prevalence nationwide. The report notes that 75% of inclusionary housing programs in the U.S. have been developed since 2000.
The report also summarizes other development incentives like density bonuses, fee reductions, use of public land, and direct subsidies that can increase the supply of affordable housing. The commentary provides an explanation of how state and city housing trust funds can support the preservation and production of affordable housing.
Finally, the commentary describes Fannie Mae’s involvement in financing multifamily properties with rent restrictions. In 2018, Fannie Mae financed $1.4 billion for properties with rent restrictions for households with incomes between 60% and 80% of area median income. In their 2018 Annual Housing Activities Report, Fannie Mae reports financing 80,990 homes in multifamily properties affordable to very low-income households with incomes at or below 50% of the area median income.
The full commentary can be read at: https://bit.ly/2owRXk4