Unraveling the Workforce Housing Conundrum
Missing Middle housing has become something of a Gordian knot. What’s required to untie it at last?
Workforce housing has become something of a Gordian knot. Everyone knows we need to find a way to build more, a variety of solutions have been tried, but it remains a complex problem without a universal means to make development viable.
The latest idea: zoning reform.
That can range from reduced parking requirements to increased height and density allowances or even providing a range of options for exterior finishes, as writer Michele Lerner discusses in the feature article “The Right Zoning Can Solve the Workforce Housing Dilemma. Here’s How.” Essentially, fewer requirements mean reduced costs, which can make it more affordable for developers to build.
That solution, of course, means change happening at the state and local levels. The experts Lerner talked to, in fact, say localized changes can be most effective because they’re tailored to specific circumstances. But that’s also where proposals can get hung up in discussions that can become too costly due to the delays alone. A number of states are stepping in to streamline processes in hopes of reducing such delays.
These are all important steps, but they’re only part of the answer, according to Smart Growth America. The nonprofit organization published a recent paper emphasizing the need for more available financing to make workforce housing development feasible. “Reforms to the broader financing environment will require systemic changes within lending institutions as well as capacity for building for developers who focus on missing middle housing,” wrote SGA director of research Miguel Rodriguez.
Federal actions would also help, including greater accessibility to HUD funding and more incentives like tax credits and development in Opportunity Zones, among other items. Discussions remain hung up in Congress, with the Senate favoring its Road to Housing Act and the U.S. House of Representatives its Housing for the 21st Century Act, although both bills include many such proposals.
They also both recommend establishment of HUD guidelines to help municipalities modernize zoning, which brings us back to the concept of localized zoning changes but within a broader blueprint of considerations to help the process move along.
With so many layers and considerations necessary to achieving a successful workforce housing program, it’s no wonder this Gordian knot has been so difficult to unravel. In this case, the solution requires a team approach.
