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Developers and housing nonprofits urge FRAC to expand tools and subsidies for affordable housing
Summary
Speakers from Habitat for Humanity, Community Housing Network and Community Better Builders told the committee that construction costs, predevelopment risk, and federal funding uncertainty are constraining affordable housing production and asked for local financing tools and policy changes.
Affordable housing developers and nonprofits told the Funding Review Advisory Committee that rising construction costs, predevelopment risk and changes in federal funding threaten the region’s ability to build and preserve affordable housing.
Brandy Alisa, president and CEO of Habitat for Humanity Mid-Ohio, described a widening gap between demand and supply: Habitat received thousands of applications but delivered a small number of homes last year, and rising material and labor costs — she said roughly a 40% increase over five years for her organization — make the “affordable housing math” harder to close. Brandy Alisa reported an approximate direct cost to build a modest home at about $250,000 and said Habitat sells those homes at about $180,000 with 0% mortgages, covering the difference with public and philanthropic subsidies.
Ryan Castle of Community Housing Network and Bill Downing of Community Better Builders stressed the importance of permanent supportive housing and preservation financing. Castle warned that proposed federal changes to HUD funding could shift large amounts of rent subsidy and service dollars away from permanent supportive housing nationally, and he said local leaders may need to step in to fill any funding void. Bill Downing urged tools such as dedicated predevelopment financing, streamlined abatements or as-of-right incentives for affordable housing, public guarantees or credit enhancements, and expanded community development financial institution (CDFI) lending.
Speakers recommended a range of local tools to accelerate production: dedicated predevelopment funds to reduce developer risk, workforce development for the building trades, property conveyance fees or other local revenue sources to seed trust funds, pilot streamlined tax abatements for affordable projects, and continued support for municipal affordable housing bond packages.
No formal votes were taken. The FRAC will consider these recommendations alongside other stakeholder input when shaping final proposals for elected officials.
