Innumeracy and the affordable housing discussion
The Salt Lake Tribune has an article, "Utah needs 41,000 units of affordable housing. Robert Gehrke explains how the state aims to help," on how the State of Utah is increasing its commitment to addressing the lack of supply of affordable housing, by increasing the amount of tax credits available, from $1 million to $10 million per year, for the next 10 years, totaling $100 million. From the article:
The Legislature significantly expanded a tax credit that has been called the most important source of financing for affordable housing in history
At $200,000 per unit, to build 41,000 units requires $8.2 billion. At $150,000 per unit, $6.15 billion.
In either case, $10 million per year doesn't go very far, especially as demand for affordable housing will continue to increase.
Labels: affordable housing, housing policy and planning, policy research, policy-making
Florida's Senate Bill 102 provides $711 million in funding, tax incentives, and other benefits for affordable housing production.
$259 million for the state’s SAIL (State Apartment Incentive Loan) program, which provides low interest loans to workforce housing projects
$252 million for the SHIP (State Housing Initiatives Program), to incentivize local governments to partner with developers preserving or building new housing. Florida Housing and Finance Corporation administers SAIL and SHIP funds.
$100 million in non-recurring funds for FHFC to put into a competitive loan program that developers could tap to cover inflation-related cost increases for FHFC-approved multifamily developments that haven’t broken ground yet.
$100 million for the Florida Hometown Heroes Housing Program. The homeownership assistance program, which was created last year, allows some buyers to finance home purchases with no-interest loans to reduce their down payment and closing costs. The law would codify the program and expand eligibility to more people, according to the Senate’s analysis. Those buyers include people in law enforcement, military, first responders and teachers.
The Live Local Act also increases the amount of tax credits available through the Community Contribution Tax Credit Program for affordable housing to $25 million annually, from $14.5 million. And it provides up to a $5,000 sales tax refund for building materials used to construct affordable housing units that were funded by FHFC.
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