Archive for the ‘affordable housing’ Category

Affordable Housing: What’s the Big Deal?

September 11, 2014

14Sep08 New Pix

(Image Credit: Google Images – geography.org.uk)

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DESPITE THE EFFORTS OF VARIOUS ARMS OF GOVERNMENT as well as an assortment of nonprofit and other groups to enlighten the public about affordable housing (also known as worker class housing, among other terms), some folks think they know what it is. But a municipal meeting we attended shows too many still don’t truly understand it or recognize the importance of its role. Mention it in an open forum, as happened at that meeting, and you may be confronted with mutterings of stereotypical misperceptions that affordable housing is just another name for absentee landlords, rundown tenements and slums.

Naturally, undesirable outcomes are possible. Yet they are possible in virtually any developed district. Should economic reversals, infrastructure deterioration and/or other troublesome conditions arise they are apt to detrimentally transform the value and character of any affected area … be it a commercial or industrial zone, worker class housing or an upscale neighborhood.

For this reason jumping to a conclusion that affordable housing is synonymous with rundown residences would be neither an accurate nor complete picture since many of those projects are attractive and properly maintained. Moreover, in some situations competent professional property management may be able to prevent or reverse the effects of harmful events when they are internal to the affordable facility, and it might be capable of slowing the effects of those that are external to the facility, such as the loss of major regional employers.

So if its not necessarily crumbling housing, what is affordable or worker class housing? While various groups and agencies may have differing spins on the definition, in general we see it as any type of legal and decent housing structure or dwelling that is an affordable option for a household earning no more than eighty percent (80%) of the median income for the area (often called “area median income” or “AMI”). Interestingly, as income disparities seem to widen, some entities appear to be giving more attention to housing opportunities for low income households earning no more than fifty percent (50%) AMI.

To be sure, our definition is likely no big surprise. But what may astonish many is the importance of affordable housing as an influential ingredient in the economic mix of a viable community. Not only does it provide housing opportunities to lower income workers, it also has been shown to encourage economic growth. Furthermore, the possibilities of affordable home purchases aid in the increase of the overall home ownership rate, which can, in turn, provide noteworthy benefits for the community, an often overlooked element in the discourse on home ownership.

The bottom line is affordable housing opportunities, particularly affordable home ownership, help produce stable communities; a belief we have consistently held for properly operated and maintained affordable home projects. And from our viewpoint, that is a big deal.

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Need consulting, coaching or problem troubleshooting regarding this or other single-family or multi-family housing issues? We’ll be pleased to help you. Visit us at the Inhouse Corporation website or contact us at inhouseco@aol.com

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Blog Terms of Use and Disclaimer: The purpose of this blog is to promote awareness and general discussion of the presented topic. Use of this blog shall be the reader’s agreement this blog is not a substitute for the advice of a qualified professional and each action that may be taken shall be under the specific guidance and oversight and/or performance of a professional qualified in the subject matter. If you have a question or want assistance with a featured or related matter please contact us at InhouseCo@aol.com (include the blog article title on the subject line). Links, references and credits in this blog are for convenience only and are not endorsements by the author or Inhouse Corporation. Statements and/or opinions of guest authors may or may not reflect those of Inhouse Corporation.

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Affordable Home Ownership: Keep It Affordable

August 18, 2014

14Aug18 New Pix

(Image Credit: Google Images – en.wikipedia.org)

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DURING A PRESENTATION WE WERE MAKING ON AFFORDABLE HOUSING (also known as worker class housing) attendee questions caused the discussion to drift into the realm of government involvement with housing programs. Since we see affordable housing, particularly affordable home ownership, as a key ingredient for stabilizing communities, limited government participation (such as tax credits) that jump-starts such activity can be helpful.

Moreover, in conjunction with federal/ state funds, some municipalities may, among other things, occasionally establish affordable home programs whereby contractors compete in a bidding procedure to construct a number of homes. When built, those homes will become available to an equal number of pre-qualified first-time buyers who are usually selected through a lottery-style process and generally have incomes that do not exceed eighty percent (80%) of the median household income for the municipality’s respective jurisdiction. Then the municipality ensures the new home prices are brought down to the affordable price range by utilizing public funds to reduce the cost of each said home.

In return for the reduced home price, each buyer commits to keeping his/ her home in the affordable home program for a required period of years during which he/ she lives in the house or, if it is resold, agrees the sale’s price to the next purchaser will be in the affordable range. At the end of the commitment period the home frequently is able to be sold at market value.

While other formats may exist, this is the type of affordable homeownership program we’ve seen implemented at the local level. No doubt well-intentioned, a home ownership program fashioned in this way tends to inadvertently create certain not-so-attractive by-products. First, it sets up a situation for the first buyer, who purchased at an affordable price, but may, after the commitment period ends, sell at market value, thereby pocketing the difference. Second, those houses only remain affordable for the length of the commitment period, meaning the municipality’s affordable housing stock could be back to where it was before that housing was built. Third, only the selected few are served; those not selected do without. Forth, this type of affordable home ownership program becomes a temporary fix to a growing problem.

This is not intended to find fault with any municipality because affordable home funding typically comes with many strings attached. Still, and for the reasons stated, we believe these homes, once built, should perpetually stay affordable and should be taxed accordingly. The ability to do so should not be very complicated and should not require scraping existing programs — proper redesign and modification should be sufficient. Over time this arrangement should consistently increase affordable home ownership opportunities. Isn’t this the way it should work?

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Need consulting, coaching or problem troubleshooting regarding other single-family or multi-family housing issues? We’ll be pleased to help you. Visit us at the Inhouse Corporation website or contact us at inhouseco@aol.com

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Blog Terms of Use and Disclaimer: The purpose of this blog is to promote awareness and general discussion of the presented topic. Use of this blog shall be the reader’s agreement this blog is not a substitute for the advice of a qualified professional and each action that may be taken shall be under the specific guidance and oversight and/or performance of a professional qualified in the subject matter. If you have a question or want assistance with a featured or related matter please contact us at InhouseCo@aol.com (include the blog article title on the subject line). Links, references and credits in this blog are for convenience only and are not endorsements by the author or Inhouse Corporation. Statements and/or opinions of guest authors may or may not reflect those of Inhouse Corporation.

Inhouse Corporation: Our 25th Year

July 28, 2014

Celebrating  25 Years of Service

(Image Credit: Inhouse Corporation)

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AS WE ENTER OUR TWENTY-FIFTH YEAR OF SERVICE we are proud to look back at our accomplishments. Its a track record that includes non-subsidized affordable homeownership, manufactured/ modular homes, real estate broker services, multi-family/ commercial property management as well as the creation and operation of residential cooperatives for modest income households.

Among the entities we’ve assisted are municipalities, government agencies, investors, landlords and residents/ tenants with administrative services, management, consulting, research, training and mentoring for all sorts of issues, problems, questions and day-to-day routines as they relate to housing and income properties.

Although New York is our home state, as internet technology has grown over the years so too has our ability to render many of our services online to virtually all corners of the state. And we’ve even taken assignments in other areas on a case-by-case basis. Yet our philosophy remains the same — we don’t try gaining business by cutting friendly personal attention, reducing value or sacrificing quality to our existing clients. We build our firm one client at a time. Its probably one reason many remain clients for years.

Many thanks to all our friends, clients and business associates who helped us to reach this point.

We look forward to working with you and making new friends and clients during the next twenty-five years.

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Need consulting, coaching or problem troubleshooting regarding other single-family or multi-family housing issues? We’ll be pleased to help you. Visit us at the Inhouse Corporation website or contact us at inhouseco@aol.com

***************************

Blog Terms of Use and Disclaimer: The purpose of this blog is to promote awareness and general discussion of the presented topic. Use of this blog shall be the reader’s agreement this blog is not a substitute for the advice of a qualified professional and each action that may be taken shall be under the specific guidance and oversight and/or performance of a professional qualified in the subject matter. If you have a question or want assistance with a featured or related matter please contact us at InhouseCo@aol.com (include the blog article title on the subject line). Links, references and credits in this blog are for convenience only and are not endorsements by the author or Inhouse Corporation. Statements and/or opinions of guest authors may or may not reflect those of Inhouse Corporation.