There is a growing demand for affordable housing, but its supply is meager. Renters on a large scale and a considerable section of homeowners spend a vast part of their income paying the housing rent says Maxwell Drever. It has resulted in jeopardized human health and extreme burden on these individuals. The lack of federal policies and local budgets has contributed to this crisis.
In such a scenario, citizens from different sectors of society are showing up in various meetings while demanding proactive action on the part of the government. Cities have fostered a boost in affordable housing projects that are gaining ground in recent times. Maxwell Drever has come forward to offer a solution to this pressing problem.
Create housing trusts
Funds are of immense significance when undertaking any project. The housing trust fund provides noteworthy help to developers and investors undertaking the construction. Apart from this, government and state-level agencies have to introduce policies and laws for establishing these housing units. State money has become a sole avenue of funding because of the increase in demand and reduction in the supply. Several governments have recently announced plans for funding state-level housing projects, which has encouraged investors and real estate owners to try their luck in this sector. Apart from this, various non-profit organizations create jobs; generate tax revenues and affordable homes.
Tax breaks and incentives
Another viable solution for the pressing problem of affordable housing is supplemental federal taxes. By issuing credit and state incentives, developers may rehabilitate or construct rental housing projects at a low cost. Incentive programs may further encourage private developers to improve their supply of affordable housing units, explains Maxwell Drever. It will result in economic development in the urban centers. More so, when the supply of reasonable housing units increases, the median income group gets to stay in and around their job location. It reduces their expenses on traveling and other related areas.
Develop rules and relax zoning
Zoning regulations often block the construction of affordable and multifamily housing. New programs are implemented by governments for waiving off specific zoning rules and regulations, like density and height restriction, minimum parking requirement, and others. Along with this, governments have to come forward to help low-income groups get their cost-effective dwelling within their reach. By reducing restrictions on the builders of affordable housing units, the government can positively impact the process. Remember that it is an advantage not only for the low-income group but also for the employers.
Further, by speeding up the zone permitting process, allowing developers to undertake these projects, and easing the building restriction, the process of land zoning can be made less costly. Governmental policies must target developers and incentivize them to undertake these projects and accomplish them within the due date. When real estate players and investors engage with big tech firms, they get smooth funds along with detailed project reports. Various multinational corporations invest in these philanthropic projects to reshape their reputation in the world market. Hence, developers can grab this opportunity for their benefit.