Affordable Housing Impact Statements

AFFORDABLE HOUSING IMPACT STATEMENTS

The Affordable Housing Impact Statement is a tool used in various forms by cities such as San Diego, Austin, and most recently, Atlanta to assess the impact development and planning actions might have on the municipalities’ affordable housing stock. It requires developers to think whether a project would add, change, or remove housing units in their building permit applications for mixed-use projects and instructs government officials to first consider how new development might affect the availability of housing for low-income families. In this way, this proposal mirrors environmental impact statements, which many developers have to complete as part of the process, to describe the positive and negative environmental effects of a proposed development.

Currently, very few cities have regulations requiring the analysis of impacts on affordable housing in their zoning or land use ordinances. In New Orleans, ever since hurricane Katrina hit in 2005, the city has been dealing with poverty and rising living costs. It was in this context that New Orleans became one of the first cities to propose an affordable housing impact statement that includes rethinking ordinances and policies relating to land use, building permits, housing policy, use of private, local, state, and federal funding, as well as any other housing related actions. With the affordable housing impact statement policy in place, the city's future development would have to incorporate affordable units up front. They have projected to create 5,000 new affordable units by 2021.

Others argue that this added requirements would add another layer of paperwork to an already complex zoning and permitting process. However, proponents consider how such policy can serve as an important accountability tool for programs and policies that address affordable housing.

Meanwhile in Pittsburgh, Councilman Ricky Burgess has introduced an affordable housing impact statement to be held for review by the Planning Commission. Although the policy has not been approved yet, the adoption of one is still up for debate pending an Affordable Housing Task Force follow-up for a report with recommendations.

How much does a family pay?
The expense for this statement is incurred by the developer, though some cities include the documentation as part of a building permit application and does not require additional fees. Measuring the impact that a development has on available housing units at various income levels in allows for the collection of data and provides a means for tracking the availability of affordable housing in the city.

Who qualifies?
In New Orleans, an Affordable Housing Impact Statement is required for mixed use developments which include both commercial and residential development, and includes information about whether the development will be adding, modifying, or removing housing units.

How many units?
Proponents state that the key benefit of an Affordable Housing Impact Statement is that its implementation would provide the city, developers, stakeholders, and citizen’s real-time housing data. These data are important for the city and all of the city’s stakeholders to understand the current housing market and to make data-driven informed decisions. As part of a larger housing plan, these impact statements can give officials a unit count of how many units will be impacted by new development.

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Further Reading

AFFORDABLE HOUSING IMPACT STATEMENTS