Workforce Housing - A Critical Problem

A Critical Problem

Today there exists a policy gap to fund workforce housing development. Federal programs through HUD or state governments are geared towards low income programs designed for people that make less than 60% of Area Median Income (AMI). One program is the Low-Income Housing Tax Credit which mainly spurs development of rental properties. Workforce housing is designed for people that make 50% to 120% of AMI—an income strata that is largely unserved and unaddressed by both Federal and State programs aside from FHA loans. Affordable housing for the working and middle classes is largely left to individual municipalities and counties to deal with.

Families that fall into this income category have found it difficult to purchase a home that is located in the area in which they work, and that is adequate for their needs. In response, many families have taken to "driving for affordability", or "drive till you qualify" to own a decent home with quality schools and a low crime rate. This set of circumstances has caused average commuting time to expand. It often necessitates ownership of a car which creates an added financial burden as gas prices rise. This trend has also caused congestion and the need to enlarge the highway system at huge costs. This trend has fueled homebuilding, but some municipalities have found it is difficult or impossible to generate enough new revenue from development to sustain or expand the infrastructure needed for this type of growth, which has come to be referred to as sprawl. Critics of suburbia describe a host of social costs stemming from these settlement patterns characterized by single-family homes, residential and commercial districts separated by zoning, and the lack of transportation alternatives to the personal vehicle in order to access employment, recreation, services and education. Bowling Alone is one such critique.

An alternative to commuting is to locate housing close to the workplace. This option can be limited by price. An overall loss of affordable housing units to redevelopment and gentrification has contributed to the shortage in most cities. Remaining urban housing options are often undesirable due to issues of quality. Since the 1950s America's urban centers have suffered from pervasive social problems, exacerbated by the loss of working and middle class households, creating concentrations of extreme wealth and poverty. Urban redevelopment has enhanced the economic base of cities like with new office buildings and entertainment venues, hotels and tourist areas, and upscale apartment buildings. But without successful schools, safe playgrounds and neighborhoods, and other basic amenities, cities have failed to compete with neighboring suburbs to attract and retain moderate income residents. Issues such as crime, unstable property values, low quality rental stock, and high concentrations of poverty created by low-income housing projects, further deter people from choosing to live near work.