Federal Level Housing Discussion

Collaboration Across Federal Agencies

• Increased Interagency Coordination: The last administration saw the highest level of collaboration across federal agencies to address housing issues.

• Department of Treasury:

  • Treasury is a major housing provider through Low-Income Housing Tax Credits (LIHTC) and capital markets initiatives.

  • HUD worked closely with the Treasury Department to deploy American Rescue Plan (ARP) funds for housing initiatives.

  • Reinvigorated a risk-sharing program that allowed states and cities to finance smaller projects not covered under LIHTC, which led to over 100,000 units being built.

Housing & Public Health Integration

• HUD & Health and Human Services (HHS) collaborated to bridge housing and healthcare in eight states, experimenting with ways to reduce homelessness by using Medicaid funds to:

  • Assist with unit searches for HUD beneficiaries.

  • Provide bridge rental payments to sustain tenancies.

• The goal was to integrate public health and housing to tackle chronic homelessness and improve housing stability.

Eviction Prevention & Housing Crisis Management

• $40 billion in rental assistance was deployed to prevent mass evictions during the pandemic:

  • 4 million renters were able to stay in their homes.

  • 2 million homeowners were helped through HUD’s loss mitigation programs.

• Policy Reflection: Need for rapid deployment of rental assistance in future economic crises to prevent housing displacement.

Disaster Recovery Funding

• HUD provided over $20 billion in disaster relief to rebuild housing in areas affected by hurricanes (Ian, Ida) and wildfires (Maui).

• The program aims to make disaster response funding more efficient and proactive.

Federal Role in Housing & Zoning Policy

• Should the U.S. move toward a more centralized housing policy?

  • Some European countries (e.g., Austria) centralize housing policy for stability.

  • New Jersey courts have intervened to take housing oversight away from localities to increase affordability.

• Cautious about federal overreach: The U.S. is too diverse to apply one-size-fits-all national zoning policies.

  • The federal role should focus on:

    • Providing funding & incentives for local governments to reform zoning.

    • Sharing best practices & model zoning rules for different community types.

    • Enforcing fair housing laws when local zoning restricts affordable housing.

  • Federal “Carrots and Sticks” Approach:

    • HUD provides grants (carrots) to cities implementing pro-housing policies (e.g., $185M “Pro-Housing” fund).

    • Federal enforcement (sticks) when local zoning laws exclude racial minorities, low-income families, or violate housing rights (seen in cases in New York and Texas).

Building Code Reform & Housing Affordability

• Some building codes increase the cost of housing construction, limiting affordability.

• Federal Perspective: Government-imposed standards (e.g., environmental regulations, safety codes) should be matched with financial support to offset higher costs.

• Policy Balance: Prioritizing affordable, resilient, and environmentally friendly housing while avoiding unnecessary cost burdens.

State-Level Housing Discussion (Massachusetts)

The Massachusetts Affordable Homes Act

• $5 billion investment in housing (passed in August).

• 50 policy changes aimed at unlocking more affordable housing.

• Collaboration with Federal Government:

  • $500 million in LIHTC credits assumed in the Affordable Homes Act to develop 65,000 new housing units.

  • Partnerships with HUD on federal public housing programs (Massachusetts has 43,000 state-aided public housing units and 50,000 federally aided units).

Massachusetts' First Statewide Housing Plan: "A Home for Everyone"

• First comprehensive state housing plan ever to coordinate state, local, and federal housing efforts.

• Key Goal: 222,000 new housing units in 10 years to meet demand driven by aging millennials & shrinking household sizes.

• Local Governments’ Role:

  • Need to zone for housing development to expand supply.

  • The state cannot spend its way out of the crisis—land use reform is key.

Addressing Diverse Regional Housing Needs

• 14 regional listening sessions were conducted to understand housing challenges across Massachusetts.

• Rural & Seasonal Communities:

  • Western Massachusetts & Berkshires:

    • Major need for preserving existing affordable housing due to aging infrastructure.

    • High construction costs (Boston-level costs but much lower home values).

  • Cape Cod, Nantucket & Seasonal Areas:

    • Housing crisis caused by short-term rentals (Airbnb) & seasonal workers.

    • Exploring local preference policies to reserve housing for full-time workers.

    • Considering taxing home sales over $1M to fund local affordable housing trust funds.

Zoning Reform & Accessory Dwelling Units (ADUs)

• ADUs legalized statewide (as of Feb 2, 2024).

• Expected to add 10,000 new housing units in five years.

• Benefits include:

  • Housing for seniors aging in place.

  • Providing affordable options for young professionals and small households.

  • Creating rental income opportunities for homeowners.

Corporate Ownership & Housing Affordability

• Massachusetts' approach to corporate-owned housing:

  • Short-term rental tax on Airbnb/VRBO.

  • Local governments can restrict Airbnbs while allowing them in tourism-dependent areas.

  • Exploring anti-speculation measures: Additional fees on corporate-owned properties.

Local-Level Housing Discussion

Challenges of Local Housing Development

• "Grumpy Pilgrims" (NIMBYism) in a local government

  • Strong opposition to housing projects from a vocal minority.

  • Example: A 500-unit housing project at South Shore Plaza was cut to 395 units due to public backlash.

  • Tactics used by opponents:

    • Emotional rhetoric (e.g., calling housing “arsenic” for the community).

    • Intimidation & personal attacks on pro-housing advocates.

    • Public booing of young residents supporting housing.

• Braintree’s Housing Strategy:

  • Framing housing as an economic necessity (e.g., housing funds police, fire departments, schools).

  • Using state mandates (MBTA zoning laws, ADU legalization) as a political cover for reforms.

  • Encouraging pro-housing residents to speak up to counter anti-housing voices.

Navigating State & Federal Funding

• Zoning reform unlocks access to state & federal housing grants.

• Challenges for Local Governments:

  • Legacy zoning codes (1970s-era suburban planning) favor single-family homes.

  • Developers face lengthy approval processes that discourage housing investment.

• Need for Missing Middle Housing:

  • Local policies must support smaller-scale, community-based developers rather than just large corporate landlords.

Final Thoughts & Future Directions

• Urgent Need for Modular & Prefabricated Housing:

  • Can be built faster & cheaper, but local rules need to be updated.

• Ongoing Policy Commitment: Housing policy needs to be continuous, not crisis-driven.

Conclusion

This discussion highlighted federal coordination, state-level housing investment, and local zoning barriers as key areas of focus. Solutions like zoning reform, ADUs, anti-corporate housing policies, and modular housing were proposed to tackle affordability challenges across all government levels.

Disclaimer: This summary is AI-generated based on a recording of the event. While it strives to accurately capture the key points and discussions, there may be minor inaccuracies or omissions. Please refer to official event transcripts or recordings for precise details.