In the last issue of this newsletter, I wrote about what went wrong with public housing in the United States — how it didn’t necessarily fail, but was routinely undermined by poor policy choices that contributed to neglect and mismanagement. So this week, I want to look at what successful public housing might look like.
Often, when looking for models to emulate, many Americans look abroad for answers — Austria, DenmarkAnd SingaporeFor example, often referred to as a place of learning. But one of the problems with moving to other countries is that their politics and governments are fundamentally different, and simply copying them isn’t always an option.
That’s why I’m particularly interested in seeing examples of public housing models that have worked quite well here in the United States After all, if one American city or county can pull off an ambitious program, what’s stopping others from doing the same?
What we can learn from the DC suburbs
Earlier this year, my colleague Rachel Cohen highlighted a place where local leaders are expanding public housing: Montgomery County, Maryland.
Montgomery County has long made affordable housing a priority. For example, developers At least 15 percent should do New housing project units available to people making less than two-thirds of the area median income.
But the county has been creative in how it can provide public housing: It has set aside a fund to finance and develop housing projects. And when the county partners with private developers, its investment makes it the majority owner of a given project. as The New York Times puts itThe county, as an owner, “is the kind of benevolent investor that trades profit for low rent.”
For background, the county’s Housing Opportunity Commission (HOC) is not only a public housing authority but also a housing finance agency and public developer. “We have these three different elements that ultimately work together to help us advance a really aggressive development strategy that we’ve put in place for over 50 years,” said HOC Executive Director Chelsea Andrews.
Historically, public housing projects in the United States have only been available to people with very low incomes. This is by design: In 1936, the federal government set income limits for eligibility. While this might seem to make sense – shouldn’t public housing units be available to those who need them most? — The reality is that this rule limits housing authorities’ ability to raise revenue by charging near-market-rate rents to middle- or high-income earners. As a result, public housing projects have become over-reliant on government subsidies and Persistently underfunded.
But Montgomery County is addressing that problem by opening up public housing to mixed-income tenants.
“Mixed income achieves many goals,” Andrews said. “This allows housing authorities to ensure they are creating inclusive communities. It takes away the concentration of poverty.”
Andrews added that mixed-income housing doesn’t discourage people from advancing in their careers because they don’t have to worry about losing eligibility to live in an HOC property. And by making the developments mixed-income, local governments can use some tenants to subsidize others and keep the buildings in good condition.
In many ways, this model is a rebrand. “They’re very clear about not calling it ‘public housing’: to help distinguish these projects from the typical stigmatized, income-restricted, and underfunded model, leaders call the ‘publicly produced mixed-income concept ‘social housing.’ Developer,'” Cohen wrote. But in practice, the model is still publicly owned units being rented out to residents at subsidized rates.
Montgomery County has seen a lot of success. The Laureate, one such development in suburban Washington, D.C., had 97 percent of its 268 units leased within a year of opening in 2023.
It’s not just Montgomery County
Across the country, housing advocates and local governments have taken note of Montgomery County’s example and are eager to try it for themselves.
In Massachusetts, state representative Mike Conley Enacted Laws Last year to create a $100 million fund to fund social housing projects. Although that specific law has not yet been passed, recently Gov Signed a housing bond bill That includes funding for one Social Housing Pilot Programme.
“We’ve got a lot of enthusiasm and support around us now working to map out what these initial projects will look like This will likely result in one or two local, mixed-income social housing-type projects in the coming years,” Connolly said. “If we can develop something and build it, people will see it and then we can point it out and see it expand. And, of course, Montgomery County, Maryland, is the contemporary national leader here.
As local governments struggle to cope with rising housing costs, this model is providing a better solution both by building more units (which are sorely needed) and by offering below-market-rate rents. And with more and more lawmakers approving these projects, America may be on the brink of a new era of public housing — and this time, it might actually be a success.
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