Low-Cost Housing Techniques _ eHow

7/30/2019 Low-Cost Housing Techniques _ eHow

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L ow R entU nits

One way to realize low-income housing units is to simplyset rents at affordable rates. The

nationally accepted standard of housing affordability, explains the U.S. Census Bureau, posits

that housing -- rent and utilities -- is affordable when a family does not spend more than 30

percent of its income on it. Generally, it is difficult to merely set rents at affordable levels

without providing private developers with significant incentives. The federal government,

however, absorbs the loss inherent in providing low-rent housing in several ways.According

to HUD's public housing program website, more than 3,300 housing authorities across the

U.S. own and operate public housing units that house approximately 1 .2 million families. In

most cases, public housing residents pay rent equal to no more than 30 percent of theirincome.

V oucherP ay m ent

HUD's long-standing Section 8 initiative, also known as the Housing Choice Voucher

program, provides eligible low-income renters the opportunity to obtain private market rental

housing. Landlords who wish to include some or all of their units in the Section 8 program

can apply with HUD to do so. If their rentals meet HUD's quality standards, they have the

option to rent to Section 8 tenants. When a Section 8 tenant and private market landlord

reach an agreement, the tenant pays the landlord the portion of the rent that equals between

30 and 40 percent of their household income, according to HUD's Housing Choice Voucher

fact sheet. HUD pays the remainder directly to the landlord.

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I nclusionary H ousing

Some cities, particularly those w ith relatively high rental prices, use inclusionary housing as a

technique to realize low-cost housing units. San Francisco, for exam ple, operates the Below

Market Rate program. The city's planning code requires private, for-profit developers to make

15 percent of the units in developments consisting of five or more units affordable for low- to

moderate-income families. The San Francisco Mayor's Office of Housing notes that if a

L ow CostH ousing T echniques

Between the years 2000 and 2010, the fair m arket rent for a two-bedroom unit in the U.S.

increased by about 45 percent, according to data analyzed by the National Low Income

Housing Coalition. To afford a two-bedroom at the 2010 market rate of $959, a federal

minimum wage worker would have to labor 102 hours per week. Governments use several

techniques to bring low-income housing to market for the nation's neediest households.

O therP eopleA reR eading

Low Cost Housing Ideas

R elatedA ds

Hud Housing

Section 8 Housing

Government Housing Grants

Low Income Housing

Housing Assistance

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builder decides to construct the affordable housing off site, he must increase the percentage to

20. New York City uses a similar, yet slightly more complicated scheme. The New York City

Department of City Planning points out that developers can receive m ore square footage for

market-rate units than the planning code allows, if they agree to devote more square footage

to below-market-rate housing in certain city districts.

R entControl

While rent control does not provide low-cost housing across the board, it warrants a mention.

Several expensive rental markets, including San Francisco, use rent control, which essentially

sets limits on the rents that can be charged for at least a segment of a city's housing stock.Most rent-control ordinances, including in San Francisco, allow landlords to charge new

tenants whatever they wish for a rental; however, annual rent increases are typically capped

at a certain level. The San Francisco Rent Board reports that landlords can only raise rent by

0.1 percent between March 1, 2010 and February 28, 2011. Long-time tenants, however,

whose units have been rent-controlled for years or even decades, may enjoy rents that qualify

or would come close to qualifying as low-cost housing.

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R elatedSearches

Hud Housing

Section 8 Housing

Government Housing Grants

Low Income Housing

Housing Assistance

R eferences

HUD: Housing Choice Vouchers Fact Sheet

HUD: HUD's Public Housing Program

Definition of Low-CostHousing

How to Build a Low-CostHouse Alternative

Building a Low Cost Home

Low-Cost-HousingConstruction Techniques

Information for BuildingLow-Cost Housing

Low Cost Housing Grants

Low-Cost Decorating Ideas

How to Calculate Section 8 Rent

How to Apply for Low IncomeApartments

M orefrom eH ow

Housing Market: What the Latest

Reports Reveal(Inv estment Contra rians)

Fourth California BankruptcyComes Knocking (Profit Cofidential )

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Low Cost Housing Ideas

San Francisco Mayor's Office of Housing: Below Market Rate Program

New York City Department of City Planning: Residential Districts: I nclusionary Housing

National Low Income Housing Coalition: Out of Reach, 2010, U.S. Summary Statistics

U.S. Census Bureau: Why the 30 Percent of Income Standard for Housing Affordability

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San Francisco Rent Board: This Year's Annual Allowable Increase

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How to Get Into a Section 8Apartment in Illinois

What Does Stipend Mean forSection 8 Housing?

Information on Low IncomeHousing

How to Get Rental Assistance inPennsylvania

Where to Apply for Section 8 &HUD Housing

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Low-Cost-Housing Construction Techniques. Low-cost housing refers to houses that are

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