The distributed nature of ADUs—scattered throughout existing neighborhoods rather than concentrated in large developments—helps increase rental supply without dramatically changing neighborhood character. This approach can reduce opposition to new housing while creating opportunities for different generations and income levels to live in the same communities.
Nonprofit Development
Nonprofit housing developers play a crucial role in creating and preserving affordable rental housing. Organizations like community development corporations (CDCs) develop new rental properties and rehabilitate existing buildings with a mission to maintain long-term affordability rather than maximize profits.
The Preservation of Affordable Housing (POAH), based in Boston, has rescued thousands of at-risk affordable apartments across the country by purchasing properties where subsidies were expiring. They renovate buildings, improve management, and maintain affordability for the long term while providing supportive services that help residents achieve greater stability and self-sufficiency.
Some communities have created housing trust funds that provide dedicated funding for nonprofit developers. These funds come from various sources, including real estate transfer taxes, development fees, or general tax revenues, and specifically support affordable housing initiatives that serve those most in need.
Building a Comprehensive Approach
Supply-Side Solutions
Increasing the overall supply of housing remains essential. This means reforming zoning codes to allow more housing types in more locations, streamlining approval processes for new development, and investing in infrastructure that supports housing growth.
At the same time, we need specific mechanisms to ensure that some of this new supply remains affordable to households at various income levels. Inclusionary zoning policies, which require or incentivize developers to include affordable units in market-rate projects, have proven effective in many communities.
Tax incentives, density bonuses, and expedited permitting can offset the cost of providing these affordable units.
Preserving existing affordable housing is equally important. When older rental properties are demolished for upscale redevelopment or renovated into luxury units, affordable housing vanishes from the market. Preservation strategies—including nonprofit acquisition of at-risk properties, rehabilitation subsidies with affordability requirements, and tenant opportunity to purchase provisions—help maintain this crucial housing stock.
Demand-Side Support
While we work to increase affordable housing supply, many households need immediate help to afford current market rents. Expanded rental assistance programs provide this direct support, helping bridge the gap between housing costs and what people can reasonably afford to pay.
Complementary approaches include increasing minimum wages, expanding earned income tax credits, and other policies that boost household incomes. When people earn more, they can better afford housing costs without sacrificing other necessities.
Education and counseling programs help renters understand their rights, manage their finances, build credit, and navigate the housing market. These services equip people with the knowledge and tools to access available housing opportunities and maintain stable tenancy.
Balancing Tenant Protections and Market Function
A healthy rental market requires appropriate protections for both tenants and property owners. Tenants need security from arbitrary eviction, excessive rent increases, and substandard conditions. Landlords need reasonable returns on their investments and the ability to address problem tenancies.