The “scalability” of development – financial risk, fixed costs, and land use regulations deter small-scale infill development and encourage large-scale projects outside of developed areas. This helps developers mitigate risk and earn higher short-term profits, but can limit the affordability of a home as a result of higher transportation costs for residents. It also limits the pool of available developers for the region to larger entities with the capacity to complete large developments, at the expense of small-scale developers. 

NEEDS 

  • Enable small-scale, infill development of single homes, duplexes, and other small multi-unit structures. 
  • Patient, goal-oriented capital investment. 

The limitations of tax credits and lack of standardization in financing affordable homes require developers to pursue “gap financing” in order to complete the financial package for a project. The conditions imposed by lenders as part of providing this gap financing can have significant implications for the viability of an affordable housing development. 

NEEDS 

  • Patient, goal-oriented capital investment. 
  • Investment from regional anchor institutions. 

The region presents cross-jurisdictional challenges for lenders and developers, with a regional housing market that covers multiple states and numerous municipalities. This leads to a challenging matrix of state and local regulations and programs that developers must wade through. This can dissuade developers and investors who are less familiar with the region from investing in needed homes, despite significant current and projected demand for homes. 

NEEDS 

  • Patient, goal-oriented capital investment. 
  • Investment from regional anchor institutions. 
  • Consistent developer presence with understanding of local landscape and commitment to region. 

In addition to the costs of construction materials and labor, land prices can greatly increase the overall price of owning a home, particularly in areas with high demand for housing. Expanding access to homeownership allows residents to build equity and can assist with long-term financial stability. 

NEEDS 

  • Programs to expand access to home ownership.