Articles

The Housing Affordability Opportunity: Lowering Costs and Expanding Supply

August 31, 2019


>>COULD PEOPLE PLEASE START TAKING THEIR
SEATS? I HAVE A NICE LITTLE STEP BACK HERE, IF I
TOPPLE DOWN, IT WOULD BE A GREAT START TO THE DAY.
GOOD MORNING, EVERY ONE. THANK YOU.
IT’S GREAT TO SEE SO MANY OF YOU HERE IN THE ROOM TODAY AND I KNOW WE HAVE A LARGE NUMBER
OF PEOPLE WATCHING THE WEB CAST. I’M ASSISTANT SECRETARY FOR POLICY RESEARCH
OR PDNR AT HUD AND WE ARE ONE OF THE SPONSORS. I WANT TO THANK OUR COSPONSORS.
HABITAT FOR HUMANITY AND ENTERPRISE PARTNERS. THIS COLLABORATION IS THE PERFECT FOUNDATION
FOR THE CONVERSATION WE HAVE TODAY AND ANY FOLLOWUP WORK BECAUSE IT WILL TAKE JUST THAT,
COLLABORATION ACROSS GROUPS, SILOS AND GEOGRAPHY TO TACKLE THE ISSUES.
IN THAT COLLABORATION IT MIGHT BE GOOD TO UNDERSTAND MORE PDNR.
THE MISSION IS TO DEVELOP POLICY IMPROVEMENT TO IMPROVE LIFE IN AMERICAN COMMUNITIES.
WE DO THIS BY CONDUCTING, SUPPORTING AND SHARING RESEARCH, SURVEYS, DEMONSTRATIONS, PROGRAM
EVALUATIONS AND BEST PRACTICES IN ESSENCE BUILDING KNOWLEDGE AND DISSELLINATION.
WE PAY A CRITICAL ROLE IN ASSESSING WHAT WORKS AND WHAT DOESN’T, ANSWERING QUESTIONS WITH
OBJECTIVE EVIDENCE AND HAVING BEST PRACTICES. LET ME PROVIDE ICON CRETE EXAMPLE ONE THAT
DIRECTS TO TODAY’S TOPIC TO HOUSING AFFORDABILITY, LOWERING COST AND EXPANDING SUPPLY.
PDNR’S LARGEST COLLECTION EFFORT IS THE HOUSING SURVEY, A NATIONAL REPRESENTATIVE PANEL SURVEY
SET ON OCCUPANTS AND UNITS, THE ONLY SOURCE FOR OUR NATION, IT’S USED EXTENSIVELY BY RESEARCHERS
AND POLICY MAKERS AND I PREDICT YOU WILL HEAR MANY STATISTICS BASED ON THAT DATA AND ALSO
FORMS THE BASIS FOR OUR CONGRESSIONALLY MANDATED REPORT ON WORST CASE HOUSING NEEDS.
OUR MOST RECENT WORST CASE REPORT SHOWED IN 2013, 7.7 MILLION HOUSEHOLDS PAID HALF OF
THEIR INCOME IN RENT, LIVED IN SEVERELY SUBSTANDARD HOUSING OR BOTH.
WHILE THAT NUMBER HAS IMPROVED MODESTLY SINCE ITS PEAK TWO YEARS EARLIER IT REMAINS 9% GREATER
THAN 2009 AND 50% GREATER THAN IN 2003. 50%.
THOSE NUMBERS DOCUMENT A CONTINUED HOUSING AFFORDABILITY CRISIS, ONE THAT IS FELT BROADLY
ACROSS THE NATION BUT ONE THAT IS MOST ACUTE FOR THOSE WITH LEAST RESOURCES.
THERE WERE ONLY 39 AFFORDABLE UNITS AVAILABLE FOR EVERY 100 EXTREMELY LOW INCOME REPORTERS
ETHOSE ARE HOUSEHOLD WITH IN COME BELOW 30% OF AREA MEDIAN INCOME.
IT CAN HAVE PROFOUND AFFECTS ON OUR SOCIETY. HOUSING IS OFTEN THE LARGEST EXPENSE FOR FAMILIES,
SO THE INCREASE COST OF HOUSING IS BASICALLY EQUIVALENT TO LOWER REAL EARNINGS IN TERMS
OF HOW FAR A FAMILY’S INCOME CAN GO AND THERE IS EVIDENCE THE HIGH COST OF HOUSING� THE
CRISIS IDENTIFIED NEEDS ADDRESSING FAR BEYOND HUD’S PROGRAMS.
SO THAT IS WHAT WE ARE HERE FOR TODAY. TO DO THAT WE ARE GATHERING EXPERTS AND EVIDENCE
TOGETHER TO INFORM POLICY, TO ASSEMBLE THE BROADER SET OF KNOWLEDGE AND PLAYERS NEEDED,
TO TACKLE THE HOUSING AFFORDABILITY ISSUE AND WITH THAT I’M PLEASED TO TURN THE MICROPHONE
OVER TO OUR LEAD DEPUTY ASSISTANT SECRETARY FOR POLICY DEVELOPMENT LYNN ROSS.
LYNN WILL SHARE MORE DETAILS AND WILL INTRODUCE THE FIRST PANEL.
THANK YOU. [APPLAUSE]
>>GOOD MORNING. COME ON, WE CAN DO BETTER THAN THAT, WE ARE
EXCITED. GOOD MORNING.
MORE LIKE IT. THANK YOU, KATHY, FOR THAT GREAT INTRODUCTION
ALTHOUGH I HAVE TO SAY I’VE NOT BEEN CALLED A MASTERMIND SINCE I WAS A KID AND MY BROTHER
ACCUSED ME OF CHEATING ON MONOPOLY WHICH I WASN’T DOING, WE’VE ALL BEEN THERE.
I WANT TO EXTEND A VERY WARM WELCOME TO ALL OF YOU TODAY, THIS EVENT IS MANY MONTHS IN
THE PLANNING AND I KNOW I SPEAK ON BEHALF OF PDNR AND OUR COSPONSORS HABITAT FOR HUMANITY
AND ENTERPRISE, WE ARE THRILLED TO SEE TODAY COME TO FRUITION AND WE HAVE A FANTASTIC PROGRAM.
IF YOU KNOW PDNR YOU KNOW WE LOVE EVIDENCE. WE ALSO LOVE SEEING THAT EVIDENCE TRANSFORMED
INTO EFFECTIVE POLICY MAKING AND DECISION MAKING SO THAT’S HOW WE HAVE ORGANIZED TODAY’S
PROGRAM. OUR FIRST PANEL WHICH YOU WILL HEAR FROM IN
A FEW MINUTES WILL EXPLORE THE EVIDENCE UNDER PINNING HOUSING AFFORDABILITY.
WHAT DO WE KNOW ABOUT THE DRIVERS OF COST AND HOW ARE THE DRIVERS IMPACTING OUR AFFORDABLE
HOUSING. THIS PANEL WILL LOOK AT THE ISSUE FROM THE
NEIGHBORHOOD AND METRO IN THE U.S. BUT TAKE A GLOBAL LOOK BECAUSE WE KNOW HOUSING AFFORDABILITY
ISSUES ARE NOT JUST HAPPENING IN THE STATES, THEY ARE WORLD WIDE CONCERN.
FOLLOWING THE PANEL WE WILL HAVE A VISIT FROM SECRETARY CASTRO AND VICE PRESIDENT JOE BIDEN,
THEY ARE WELLKNOWN CHAMPIONS OF EXPANDING OPPORTUNITY ACROSS THE NATION AND WE WILL
CLOSE TODAY’S PROGRAM WITH A PANEL FOCUSED ON SOLUTIONS, THAT’S THE TRANSLATION PIECE
MOVING FROM EVIDENCE INTO POLICY AND PRACTICE. SO THAT FINAL PANEL WILL LOOK AT HOW THIS
EVIDENCE, HOW THIS DATA IS INFORMING SOME OF THE MOST PROMISING PRACTICES IN PLACE.
I THINK YOU WILL HEAR SOME REALLY INTERESTING REAL WORLD EXAMPLES FROM A REALLY DIVERSE
AND EXCELLENT PANEL SO I HOPE YOU WILL STAY WITH US THROUGH THE END OF THE PROGRAM.
NOW I JUST HAVE A FEW PROGRAM NOTES TO PASS ALONG BEFORE WE DIG INTO THE MEAT OF THE CONVERSATION.
AS I DO THAT I WILL INVITE OUR FIRST PANEL TO COME UP ON THE STAGE AND GET COMFORTABLE
AND BE SEATED, SO COME ON UP. OUR FIRST PROGRAM NOTE IS THAT WE ARE LIVE
TWEETING THIS EVENT RIGHT NOW, SO YOU CAN FOLLOW OUR UPDATES ON AT PDR EVENTS, WE WILL
TAG ALL OUR UPDATES WITH HOUSING OPPORTUNITY AND WE INVITE YOU TO SHARE YOUR FEEDBACK USING
TWITTER AS WELL. TAG WITH HOUSING OPPORTUNITY.
OUR SECOND PROGRAM NOTE IS THAT WE WANT THIS DISCUSSION TO BE JUST THAT, A DISCUSSION,
AS INTERACTIVE AS POSSIBLE SO FOR THOSE WHO ARE JOINING US IN THE ROOM YOU WILL NOTICE
A MIC IN THE CENTER AISLE, MODERATORS WILL ASK YOU TO STEP UP TO THE MIC AND THOSE WHO
ARE WATCHING, WE ASK YOU TO TWEET YOUR QUESTIONS AND WE WILL READOUT THE QUESTIONS DURING Q
AND A SO YOUR QUESTIONS WILL BE ASKED AS WELL. FINAL PROGRAM NOTE IS YOU ARE ABOUT TO LEARN
ABOUT AMAZING RESEARCH STARTING WITH THIS PANEL AND THROUGHOUT THE DAY FROM THE LIKES
OF ENTERPRISE, URBAN LAND INSTITUTE, MCKENZIE AND MANY OTHERS.
YOU SHOULD KNOW THAT RESEARCH IS AVAILABLE TO YOU ON THE EVENT WEBSITE WHICH IS AT HUD
USER.ORG/HOUSING AFFORDABILITY. WE WILL HAVE RESOURCES OUTSIDE THE ROOM SO
YOU WILL HAVE A CHANCE TO VISIT THE TABLE LATER DURING ONE OF THE BREAKS BUT I KNOW
YOU WILL WANT TO TAKE IT HOME AND USE IT TO INFORM YOUR OWN WORK.
AGAIN I WANT TO THANK YOU FOR JOINING US TODAY, I HAVE TO SAY THIS SET OF ISSUES IS ONE THAT
IS NEAR AND DEAR TO MY HEART. I TOO AM A RESEARCHER AND HAVE DONE WORK IN
THIS SPACE SO I’M PARTICULARLY EXCITED ABOUT TODAY’S CONVERSATION.
WITH THAT I WILL TURN THINGS OVER TO THE VERY CAPABLE HANDS OF STEVEN, HE IS IN CHARGE OF
GLOBAL DESIGN FOR HABITAT FOR HUMANITY AND HE IS OUR FIRST PANEL.
>>I APPRECIATE THE SUPPORT HUD AND THE WHOLE TEAM, KATHY AND LYNN HAS PROVIDED TO MAKE
THIS EVENT AND DAY POSSIBLE. THE THEME FOR THE SYMPOSIUM, ADDRESSING HOUSING
AFFORDABILITY IS A CHALLENGE THAT AFFECTS 1.6 BILLION PEOPLE AROUND THE WORLD.
IT’S INCREASINGLY IMPORTANT WE ADDRESS THIS CHALLENGE NOW.
HOUSING COSTS ARE ON THE RISE WHILE WAGES AND ACCESS TO HOUSING FINANCE FOR LOWER INCOME
FAMILIES REMAINS CONSTRAINED IN THE AFTERMATH OF THE GREAT RECESSION.
OVER ON CAPITOL HILL CONGRESS IS CURRENTLY CONSIDERING FUNDING FOR MULTIPLE HUD PROGRAMS
THAT AFFECTED HOUSING AFFORDABILITY, SECTION 8, HOME AND SHOP PROGRAM THAT LEVERAGES $6
IN HOUSING INVESTMENT. MOTHER’S THAN 1400 HABITAT AFFILIATES IN THE
U.S. AND HABITAT PROGRAMS IN 70 COUNTRIES AROUND THE WORLD WORK TO ADDRESS HOUSING AFFORDABILITY
EVERY DAY. THE SCALE OF THE CHALLENGE IS WHY HABITAT’S
NEW STRATEGIC PLAN DIRECT THE ORGANIZATION TO LOOK BEYOND CONSTRUCTION, TO PROMOTE POLICIES
AND SYSTEMS THAT ADVANCE ACCESS TO ADEQUATE AFFORDABLE HOUSING AND WHY LATER THIS YEAR
HABITAT WILL LAUNCH A GLOBAL CAMPAIGN TO GET ACCESS AROUND THE WORLD.
THIS COINSIDES ON GLOBAL HOUSING ISSUES. WORLD LEADERS WILL APPROVE THE POST 2015 SUSTAINABLE
DEVELOPMENT GOALS. ADVOCATES AROUND THE WORLD INCLUDING HABITAT
ARE WORKING HARD TO ENSURE HOUSING AFFORDABILITY IS INCLUDED IN THE GOALS.
IN OCTOBER OF NEXT YEAR HUD WILL BE LEADING THE U.S. DELEGATION TO THE U.S. SPONSORED
HABITAT TREE CONFERENCE IN SOUTH AMERICA, A GATHERING THAT TAKES PLACE ONCE EVERY 20
YEARS. IT’S KIND OF THE HALEY’S COMMENT OF HOUSING
CONFERENCES. IT’S POSSIBLE TO ADDRESS AFFECTIVE HOUSING
AFFORDABILITY AS SECRETARY CASTRO HAS SAID THROUGH BUILDING FINANCIAL ASSETS THROUGH
PURSUING HOME OWNING OPTION. THE SECOND PANEL WILL EXAMINE SOME OF THE
SOLUTIONS BUT FIRST THIS PANEL WILL DRILL DOWN INTO THE DETAILS OF THE HOUSING AFFORDABILITY
CHALLENGE. IN THE INTEREST OF TIME I WILL INTRODUCE OUR
OUTSTANDING PRESENTERS ONLY BRIEFLY AS THEY BEGIN THEIR REMARKS BUT I ENCOURAGE YOU TO
VISIT THE WEBSITE FOR THIS EVENT WHICH CONTAINS THE MORE COMPLETE BIOGRAPHIES OF EACH PRESENTER
AND YOU WILL BE AS IMPRESSED AS I AM BY THEIR BACKGROUND.
EACH WILL SHARE THEIR PREPARED REMARKS AND THEN WE WILL OPEN IT UP TO QUESTIONS AND ANSWERS
TO ALL OF YOU INCLUDING THOSE WHO ARE WATCHING THE WEB CAST ARRANGED FOR TODAY.
SO LET’S GET STARTED. OUR FIRST PRESENTER IS MIKE SPOTTS FROM ENTERPRISE
COMMUNITY PARTNERS. THE CENTERPIECE OF MICROS REMARKS WILL BE
A REPORT THAT ENTERPRISE RECENTLY RELEASED CALLED BENDING THE COST CURVE.
MICHAEL?>>THANK YOU.
I APPRECIATE THE INTRODUCTION AND I’M VERY EXCITED FOR THE OPPORTUNITY TO PARTICIPATE
IN THIS GREAT PANEL. AT THE RISK OF CONTRIBUTING TO STATISTICAL
OVERLOAD I CAN’T RESIST CITING A FEW MORE STATISTICS ABOUT HOUSING AFFORDABILITY.
ACCORDING TO ENTERPRISE USING HUD AND CENSUS BUREAU DATA THERE ARE 19 MILLION HOUSEHOLDS
IN THE UNITED STATES TODAY THAT ARE HOUSING INSECURE.
BY THAT WE MEAN THAT THEY ARE EITHER HOMELESS OR SPENDING MORE THAN 50% OF THEIR INCOME
ON HOUSING, ALSO KNOWN AS BEING SEVERELY COST BURDEN.
THIS LATTER GROUP WE ESTIMATE TO BE ONE MISSED PAYCHECK AWAY FROM LOSING THEIR HOUSING SITUATION.
AND THIS APPLIES NOT JUST TO PEOPLE THAT ARE STRUGGLING TO FIND WORK IN A TOUGH ECONOMY
OR THOSE THAT ARE ON A FIXED INCOME BECAUSE THEY ARE ELDERLY OR DISABLED.
ACCORDING TO THE CENTER FOR HOUSING POLICIES LATEST HOUSING LANDSCAPE 25% OF WORKING RENTER
HOUSEHOLD AND 17.1% OF WORKING HOMEOWNERS ARE ALSO SEVERELY COST BURDENED AND OVER THE
LAST 15 YEARS THE ABSOLUTE NUMBER OF HOUSEHOLDS IN THIS SITUATION HAS CONTINUED TO INCREASE.
AT THE SAME TIME RESOURCES FOR AFFORDABLE HOUSING HAVE BEEN DIMINISHING.
THE HOME PROGRAM IS AT ITS LOWEST FUNDING LEVEL IN ITS HISTORY AND THERE ARE 67,000
FEWER SECTION 8 VOUCHER SECTION HOUSEHOLD AS A RESULT OF THE SEQUESTRATION CUTS.
WHAT ARE THE DYNAMICS LEADING TO THIS, WAGE GROWTH OR LACK THERE OF IS PART OF IT BUT
IT’S ALSO THE RESULT OF A LACK OF SUPPLY TO KEEP UP WITH THE DEMAND FOR HOUSING, PARTICULARLY
IN HOT ECONOMIC MARKETS. THE ONES THAT ARE DRIVING JOB DECREE ATION
IN THE COUNTRY. JUST TO ILLUSTRATE A COUPLE OF HIGH ECONOMIC
GROWTH MARKETS, WHEN YOU ADD UP THE NUMBER OF BUILDING PERMITS ISSUED IN THE YEAR TO
DATE IN SAN DIEGO, L.A. AND SAN FRANCISCO, YOU DON’T GET TO THE TOTAL NUMBER OF BUILDING
PERMITS ISSUED IN JUST THE HOUSTON MARKET. NOW, THERE ARE DIFFERENCES IN MARKET, POLITICAL
CONTEXT, GEOGRAPHY, ET CETERA, AND EXTRA THINGS WITH THE HOUSTON BUILDING CLIMATE WE WOULDN’T
NECESSARILY WANT TO REPLICATE BUT IT SHOWS WHEN YOU LOOK AT THE RELATIVE AFFORDABILITIES
OF HOUSTON TO CALIFORNIA THAT SUPPLY AND DEMAND DO PLAY A ROLE.
IT’S IN THIS CONTEXT ENTERPRISE JOINED WITH ON BENDING THE COST CURVE INITIATIVE AND OUR
GOAL WAS TO TALK TO AS MANY PEOPLE AND MANY MARKETS AS POSSIBLE, TO FIGURE OUTWEIGHS THAT
WE CAN PROMOTE COST EFFECTIVE AFFORDABLE HOUSING DEVELOPMENT WHILE STILL MAINTAINING QUALITY
AND THAT IS BOTH IN THE DEVELOPMENTS THAT WE BUILD AND IN THE LOCATIONS IN WHICH WE
BUILD SO THAT THERE IS OPPORTUNITY FOR LOW AND MODERATE INCOME HOUSEHOLDS.
AND WHAT WE FOUND WAS THAT THERE IS NO SINGLE SILVER BULLET, THERE IS NO SINGLE INNOVATION
WE CAN DEDICATE OUR TIME AND EFFORTS TOWARD THAT WILL FUNDAMENTALLY CHANGE THE COST DYNAMIC,
RATHER WE HEARD ANTEDOTALLY THIS ONLY ADDS 2 AND 3 AND 34% COST BUT THOSE ADD UP AND
PRESENTS A CHALLENGE BECAUSE WE WILL HAVE TO ADDRESS MULTIPLE LEVERS AT ONCE.
IT IS AN OPPORTUNITY TO EXPERIMENT AND INNOVATE IN MANY DIFFERENT WAYS.
SO I’M JUST GOING TO CLOSE BY TOUCHING ON A COUPLE OF THE BROAD THEMES THAT ARE RECOMMENDATIONS
FROM THE REPORT THAT CAN BE COLLAPSED UNDERNEATH AND ONE IS ADDRESSING THE SUPPLY AND DEMAND
DYNAMIC. WE NEED TO LOOK AT OUR REGULATORY CONTEXT,
OUR ZONING CODES, DENSITY LIMITS AND BUILDING CODES AND FIGURE OUTWEIGHS TO UNLOCK SUPPLY
AND REDUCE THE COST OF WHAT GETS BUILT AND MAKE THE MARKET STRETCH FURTHER AND WILL BENEFIT
THE CREATION OF DEDICATED AFFORDABLE HOMES THROUGH SUBSIDY PROGRAMS AS WELL BECAUSE WE
CAN DO IT MORE COST EFFECTIVELY. WITHIN THAT CONTEXT WE NEED TO LOOK AT FINANCE
AND FIGURE OUTWEIGHS WE CAN FUND INNOVATIVE PROJECTS BOTH THROUGH THE PRIVATE MARKET AND
THROUGH SUBSIDIZED PROGRAMS. YOU CAN’T BUILD WHAT YOU CAN’T FINANCE SO
IF YOU HAVE AN INNOVATIVE IDEA THAT COULD ADDRESS A NICHE SUCH AS MICRO UNITS, ACCESSIBILITIES
UNITS, YOU NEED THE CAPITAL AND PILOT AND SKILL FOR THOSE INNOVATIONS.
THE SECOND IS LOOK AT THE DEDICATED HOUSING PROGRAMS AND FIGURE OUT HOW TO STRETCH SUBSIDY
NEEDS. ONE WAY TO DO THAT IS TO ADOPT INNOVATIONS
WE HIGHLIGHT IN THE REPORT THAT CONSOLIDATE, COORDINATE AND STREAMLINE A VERY FRAGMENTED
SYSTEM. THEN FINALLY, ESPECIALLY IN THE CONTEXT OF
COMPETITIVE FUNDING PROGRAMS WE NEED TO IMPROVE AND ALIGN OUR INCENTIVES SO WE ARE CREATING
INCENTIVES FOR COST CONTROL WHILE AT THE SAME TIME AVOIDING A RACE TO THE BOTTOM IN TERMS
OF QUALITY AND OPPORTUNITY. SO I’M LOOKING FORWARD TO THE REST OF THE
CONVERSATION, HEAR THE REST OF THE PANEL SPEAK AS WELL.
>>MIKE, THANK YOU SO MUCH AND I WOULD HIGHLY RECOMMEND READING THE REPORT THAT ENTERPRISE
AND ULI PUT TOGETHER BENDING THE COST CURVE, IT’S A TERRIFIC REPORT AND PROVIDES GREAT
FOOD FOR THOUGHT. THANK YOU SO MUCH.
OUR NEXT PRESENTER IS JONATHAN WEXEL, HE LED A TEAM FROM MCKENZIE GLOBAL INSTITUTE TO PRODUCE
A REPORT ADDRESSING THE BLUE PRINT FOR AFFORDABLE GLOBAL CHALLENGE.
AS WE WERE PREPARING FOR OUR TIME HERE TODAY JONATHAN AND I WERE DISCUSSING HOW TO LEAD
OFF AND I DO HAVE A QUESTION FOR YOU, JONATHAN. WITH RESPECT TO HOUSING AFFORDABILITY, HOW
DOES THE U.S. STAND COMPARED TO OTHER COUNTRIES? YOU CAN TACKLE THAT NOW OR IN THE CONTEXT
OF YOUR BROADER REMARKS.>>THANK YOU, STEVEN AND I’LL� I’VE GOT
THAT. WE TITLED OUR REPORT A BLUE PRINT FOR THE
AFFORDABLE HOUSING CHALLENGE. I THINK I LIKE TODAY’S SEMINAR TITLE BETTER,
THE HOUSING AFFORDABILITY OPPORTUNITY BECAUSE IT REALLY IS ONE.
AND WE ADDRESS THIS ISSUE PRIMARILY BECAUSE WHEN WE STARTED TO STEP BACK AND SAY WHAT
ARE SOME OF THE BIGGER SORT OF PUBLICPRIVATE CHALLENGES THAT THE WORLD FACES WE CAME RIGHT
SMACK INTO THIS. A HOUSE WE KNOW IS NOT A HOUSE, IT’S A RELATIONSHIP.
RELATIONSHIP TO EMPLOYMENT, TO FAMILY, TO EDUCATION, TO COMMUNITY, IT AFFECTS US ALL.
CITY IS LIFE AND WITHOUT THIS KIND OF SOLUTION WE IMPOVERISH OURSELVES IN SO MANY WAYS, WE
KNEW THIS IS SOMETHING WE HAVE TO TACKLE. IF WE TACKLE IT IT CREATES OPPORTUNITY.
I WON’T REPEAT ALL OF THE NUMBERS, JUST SAY WE ARE ROUGHLY IN THE SAME BALLPARKS, WE THINK
1.5 BILLION PEOPLE GLOBALLY AFFECTED BY THE HOUSING AFFORDABILITY CHALLENGE, 450 MILLION
HOUSEHOLDS BY 2025. AND THE UNITED STATES IS A WORLD LEADER.
THE UNITED STATES DEPENDING ON HOW WE MEASURE ABSOLUTELY RIGHT, SOMEWHERE BETWEEN 19 AND
34 MILLION HOUSEHOLDS THAT ARE AFFECTED BY HOUSING SHORTAGES, HOUSING UNAFFORDABILITY,
LOOKING AT ANYWHERE BETWEEN 1 AND 2% OF THE GDP IN TERMS OF THE GAP BETWEEN INCOME AND
ACTUAL COST. FOR A HOUSE THAT IS ANYWHERE BETWEEN 100 SQUARE
METERS TO 212 SQUARE METERS IS THE AVERAGE SIZE IN THE U.S. IF YOU TAKE 30% OF INCOME
AND LOOK AT 80% OF AMI YOU COME UP WITH ROUGHLY 34 MILLION HOUSEHOLD OR GAP IN TOTAL OF $300
BILLION TO CLOSE THE INCOME AVAILABLE VERSUS THE ACTUAL COST OF THAT HOUSING.
AND, SO, THAT GAP IS THAT $300 BILLION GAP COMPARES TO CHINA AS THE SECOND BIGGEST AT
$180 BILLION. SO WE ARE CLEARLY WORLD LEADER.
NOW, THIS IS SOMETHING THAT IS NOT POTENTIALLY THE RIGHT PLACE TO BE, WE NEED TO CLOSE THIS
GAP, WE NEED TO FIND SOLUTIONS WHICH WOULD TRANSLATE ROUGHLY INTO A 30% REDUCTION IN
SUPPLY COSTS. IF WE CAN REDUCE SUPPLY COSTS BY 30% WE CAN
CLOSE THIS GAP AND MAKE THAT INVESTMENT ECONOMIC. THAT INVESTMENT IN TURN IS AN OPPORTUNITY.
THAT IS, IN FACT, A $10 TRILLION OPPORTUNITY GLOBALLY.
IF WE CAN GLOBALLY REDUCE THE COST OF HOUSING BY 30% THIS BECOMES $10 TRILLION IN INVESTMENT,
THAT’S A BIG NUMBER. THINKING INSTEAD OF BEING A BURDEN, SOMETHING
WE ALL HAVE TO SOMEHOW EXPEND MONEY ON RATHER IF WE CAN JUST BE SMARTER ABOUT THIS, IF WE
CAN THINK OF NEW WAYS, IF WE CAN EMPLOY MARKET MECHANISMS AND OUR TALLENS AND TECHNOLOGY
TO CLOSE THIS GAP THIS CAN BECOME AN OPPORTUNITY, THAT WAS THE IDEA BEHIND OUR REPORTS TO SAY
WHO ARE THE WAYS OF BEING SMARTER? WHAT DO WE DO TO DRAW ON THE BEST PRACTICES
GLOBALLY AND IN OUR LOCAL CONTEXT APPLY THEM. THAT’S THE ESSENTIAL PART OF OUR REPORT SAYING
ARE THERE SUCH OPPORTUNITIES AND WE FIND, OF COURSE, THAT THERE ARE.
I’LL GIVE A VERY, VERY BRIEF� THERE WON’T BE SUE MUCH SURPRISE TO THE EXPERTS IN THE
ROOM, YOU START WITH LAND, WE HAVE TREMENDOUS OPPORTUNITIES TO UNLOCK LAND.
THIS SEEMED TO ME TO BE A TREMENDOUS CONTRADICTION, ON THE ONE HAND WE HAVE HOMELESSNESS AND ON
THE OTHER HAND UNUSED LAND. CLEARLY SOMETHING IS NOT TRANSACTING IN THE
LANDMARK HE AND AS WE KNOW THE LANDMARK HE IS NOTABLY INTRANSPARENT SO HOW DO WE MAKE
IT SHOW SUPPLY BETTER. HOW DO WE UNLOCK LAND, THROUGH INCLUSIONARY
ZONING, THROUGH BETTER POLICIES AROUND LAND VALUE AND RELATIONSHIP TO TAX, SO CAPTURING
THE VALUE OF THE UNUSED LAND WE THINK YOU CAN EASILY REDUCE THE COST BY UP TO 30% ON
A PER SQUARE METER BASIS AND THIS WILL BE THE BIGGEST OPPORTUNITY BUT NOT THE ONLY ONE.
CONSTRUCTION, THE INDUSTRY GLOBALLY HAS NOT IMPROVED PRODUCTIVITY
COMPARED TO PEOPLE WHO MAKE TOOTH PASTE OR
SEMI CONDUCTORS. WHY SHOULD THIS BE THE CASE.
>>WHY SHOULD THE CONSTRUCTION INDUSTRY, WHY DO WE BUILD BUILDINGS MUCH LIKE WE DID 30
OR 40 YEARS AGO? BY EMPLOYING PREFAB OR BETTER DESIGN OR STANDARDIZED
PROCUREMENT, AGAIN ANOTHER 20 TO 30% REDUCTION IN PRODUCTIVITY COST POSSIBLE.
THEN OPERATION AND MAINTENANCE, EASIER TO DO MAINTENANCE ON 10 BUILDINGS THAN ONE BUILDING,
BY GROUPING TOGETHER PROCUREMENT COALITIONS, THERE’S AN OPPORTUNITY THERE AND FINANCE.
MANY TIMES FINANCE FOR THE CONSUMER BUT ALSO FINANCE FOR THE DEVELOPER.
TYPICAL LOW INCOME HOUSING DEVELOPMENT, $20 MILLION PROJECT, YOU FIND SOMEBODY SPENDING
THREE YEARS TO ASSEMBLE 20 DIFFERENT LOANS TO DO THIS PROJECT, IT TAKES THEM AS LONG
TO PUT THE FINANCING TOGETHER AS TO BUILD THE BUILDING.
CREATING FINANCING OPPORTUNITIES FOR LOW INCOME DEVELOPERS CREATES VALUE FOR THE CONSUMER
BUT ALSO ACCESS. SO THOSE FOUR THINGS TOGETHER CREATE THE OPPORTUNITY
TO REDUCE THE COST IN TOTAL 30% CREATE A $10 TRILLION INVESTMENT OPPORTUNITY.
>>THOSE ARE REAL DOLLARS, JONATHAN. AND 30% HERE AND 30% THERE, YOU CAN GET TO
$10 TRILLION QUICKLY. I WOULD ALSO RECOMMEND THE BLUE PRINT REPORT,
IT’S A TERRIFIC, WELL AND BRILLIANTLY REASONED PACKAGE, I WOULD ENCOURAGE YOU TO REVIEW IT.
JONATHAN, THANKS. WE WILL TURN TO MAX, HE’S FROM AFFORDABLE
HOUSING AT NEW YORK’S FURMAN CENTER. HE WILL WALK IS THROUGH ADDITIONAL CHALLENGES
FAMILIES AND COMMUNITIES FACE WHEN AFFORDABLE HUGHESING IS IN SHORT SUPPLY.
>>THANKS, IT’S A PLEASURE TO BE HERE, I’M TRAINED AS A STATISTICIAN SO I WILL ADD A
FEW MORE NUMBERS TO THIS CONVERSATION. I WANT TO TAKE US FROM THE NATIONAL AND GLOBAL
PERSPECTIVE TO TALK ABOUT CITIES AND NEIGHBORHOODS AND THE FIRST POINT I WANT TO MAKE IS THAT
THIS HOUSING AFFORDABILITY CHALLENGE IS NOT JUST AFFECTING THE SUPER STAR CITIES THAT
MAKE HEADLINES LIKE NEW YORK AND SAN FRANCISCO BUT IN FACT THE FURMAN CENTER HAS A FOURTH
COMING REPORT WHERE WE STUDY THE 11 LARGEST CITIES AND FIND ACROSS THE BOARD RENT LEVELS
ARE INCREASING AT RATES FASTER THAN INFLATION AND MUCH FASTER THAN INCOME.
LOW INCOME HOUSEHOLDS ARE ESPECIALLY HARD HIT, WE FIND THAT THREE OUT OF EVERY FIVE
LOW INCOME HOUSEHOLD IN THESE LARGE CITIES ARE PAYING MORE THAN 50% OF THEIR INCOME ON
RENT AND THAT RATE HAS INCREASED IN RECENT YEARS.
WHEN WE LOOK AT POPULATIONS WITH SLIGHTLY HIGHER INCOMES, SO MORE LIKE WHO AN ENTRY
LEVEL TEACHER OR POLICE OFFICER WOULD BE MAKING, WE ALSO FIND THAT THESE RENTERS HAVE BECOME
INCREASINGLY MORE RENT BURDENED SINCE 2006, THE SHARE OF MODERATE INCOME RENTERS FACING
SEVERE RENT BURDENS HAS INCREASED SUBSTANTIALLY IN L.A., MIAMI, PHILADELPHIA AND RIGHT HERE
IN WASHINGTON, D.C. AND THERE ARE REALLY ONLY TWO WAYS THAT A
HOUSEHOLD CAN BECOME LESS RENT BURDENED, EITHER BY MAKING A HIGHER INCOME OR BY MOVING TO
A LOWER RENT UNIT. IT’S PRETTY WELL ESTABLISHED THAT INCOMES
IN THE UNITED STATES HAVE BEEN STAGNANT FOR THE LAST 15 YEARS AND IN THIS REPORT WE ALSO
TRY TO LOOK AT THE SUPPLY OF HOUSING UNITS THAT ARE AFFORDABLE TO MODERATE INCOME HOUSEHOLD
AND FIND THAT THAT STOCK HAS BEEN SHRINKING SINCE 2006.
THEY COULD AFFORD ONETHIRD OF THE UNITS ON THE MARKET AND THE SITUATION IS MUCH DIRE
FOR LOW INCOME HOUSEHOLDS. AND THEN THE SECOND POINT THAT I WANT TO MAKE
IS THAT AFFORDABLE HOUSING IS IMPORTANT BUT HOUSING ISN’T IN A BUBBLE, HOUSING UNITS ARE
LOCATED IN NEIGHBORHOODS SO WHEN DEVELOPING AN AFFORDABLE HOUSING STRATEGY WE MUST THINK
ABOUT THE NEIGHBORHOOD CHARACTERISTICS. ONE OF THE MOST IMPORTANT IS TRANSPORTATION
AND THAT INCLUDE THE COST OF TRANSPORTATION WHETHER CAR OWNERSHIP OR PUBLIC TRANSIT.
THE ACCESSIBILITY AND RELIABILITY OF PUBLIC TRANSIT AND THEN THE CONNECTIVITY OF NEIGHBORHOODS,
WHAT AMENITIES ARE AVAILABLE WITHIN WALKING OR SHORT TRAVELING DISTANCES.
TO THAT END THE CENTER FOR NEIGHBORHOOD TECHNOLOGY HAS A REALLY EXCELLENT HOUSING PLUS TRANSPORTATION
AFFORDABILITY INDEX WHERE THEY TAKE INTO ACCOUNT THE COST OF BOTH DIRECT HOUSING COST AND TRANSIT.
AND BESIDES TRANSPORTATION THERE ARE OTHER NEIGHBORHOOD CHARACTERISTICS THAT ARE REALLY
IMPORTANT, HIGH QUALITY PUBLIC SCHOOLS CAN INCREASE CHILDREN’S EDUCATIONAL ACHIEVEMENT,
THE PRESENCE OF EMPLOYED NEIGHBORS CAN PROVIDE ESSENTIAL SOCIAL NETWORK TO CONNECT RESIDENTS
TO ITS JOB OPPORTUNITIES AND THERE IS A GROWING BODY OF RESEARCH THAT SHOWS NEIGHBORHOOD SAFETY
IS CRITICAL AND THAT EXPOSURE TO VIOLENT CRIME AT A YOUNG AGE CAN IMPEDE CHILDREN’S COGNITIVE
DEVELOPMENT BUT THE CHALLENGE IS THAT THE BEST MIX OF THESE NEIGHBORHOOD APEOPLE ‘TIS
WHERE YOU HAVE ACCESS TO TRANSIT, HIGH QUALITY PUBLIC SCHOOLS, LOW CRIME RATES, THESE TEND
TO BE THE MOST EXPENSIVE NEIGHBORHOODS. AND THESE HIGH HOUSING COSTS MAKE IT DIFFICULT
TO DEVELOP AFFORDABLE HOUSING IN THOSE NEIGHBORHOODS. THE CENTER PUT OUT A REPORT THAT IS OUT ON
THE TABLE OUTSIDE WHERE WE LOOK AT THE LOCATION OF AFFORDABLE HOUSING IN NEW YORK CITY AND
HOW THAT RELATES TO NEIGHBORHOOD CHARACTERISTICS AND WE FIND SUBSIDIZED AFFORDABLE HOUSING
TENDS TO BE IN NEIGHBORHOODS WITH HIGHER VIOLENT CRIME RATE, HIGHER POVERTY, LOWER PERFORMING
PUBLIC SCHOOLS AND WE ALSO LOOK AT THE CHANGE OVER TIME OVER THE LAST DECADE, WE’VE SEEN
THAT AS OWNERS OF AFFORDABLE UNITS IN HIGH OPPORTUNITY NEIGHBORHOODS HAVE THE CHOONS
TO CONVERT THOSE TO MARKET RATE OR LUXURY NEIGHBORHOODS THEY DO, OVER THE LAST DECADE
WE’VE SEEN A CONCENTRATION OF AFFORDABLE UNITS IN LOWER OPPORTUNITY NEIGHBORHOODS BUT OF
COURSE THINKING ABOUT POLICY DEVELOPMENT THERE ARE TRADE OFFS.
TO DEVELOP AN AFFORDABLE UNIT IN A HIGHER QUALITY NEIGHBORHOOD WOULD REQUIRE MORE GOVERNMENT
SUBSIDY SO GOVERNMENT IS FACED WITH FEWER UNITS IN HIGHER OPPORTUNITY NEIGHBORHOODS
OR MORE IN LOWER OPPORTUNITY NEIGHBORHOODS. I DON’T HAVE AN ANSWER BUT I HOPE THAT OPENS
UP DISCUSSION.>>�THANKS SO MUCH GIVING US A SENSE OF
BROADER THAN JUST THE HOUSING UNIT, THE CONTEXT IN WHICH THE HOUSING IS LOCATED.
I SHOULD MENTION TO ADD A LITTLE EVIDENCE TO THE DISCUSSION, MY SON WHO LIVES IN DENVER
CALLED OVER THE WEEKEND, HE SAID MY RENT IS GOING UP 19%.
AND I SAID WHAT ARE YOU GOING TO DO? HE SAID I CALL THE LANDLORD AND I ASKED HIM
WHY ARE YOU RAISING IT 19% AND THE LAPPED LORD SAID: BECAUSE WE CAN.
THERE IS IN CERTAIN MARKETS, DENVER, I DON’T KNOW IF THAT WAS ONE OF THE 11 YOU STUDIED
BUT CERTAINLY A LOT OF AREAS THE PRESSURE ON RENT IS CONSIDERABLE.
THANKS FOR YOUR WONDERFUL PRESENTATION. OUR FINAL PRESENTER, THANKS TO THE WONDERFUL
WORK OF AIR TRAFFIC CONTROLLERS ON THE EAST BOARD IS LISA.
SHE HAS AN EMPHASIS ON HOUSING FINANCE AND THE NECESSITY ALSO OF BRINGING A RIGHTS BASED
APPROACH TO TACKLING THIS PROBLEM. LISA?
>>I WALKED IN JUST IN TIME. I WAS VERY PLEASED, IT’S GREAT TO BE HERE,
THANKS VERY MUCH. I FEEL LIKE THE ODD PERSON OUT, I’M NOT A
STATISTICIAN OR ACADEMIC SO MOST OF WHAT I WILL SHARE COMES FROM THE LAST FIVE YEARS
IN MY EXPERIENCE IN WORKING WITH THE METROPOLITAN OPPORTUNITY PROGRAM AT THE FORD FOUNDATION
AND 10 REGIONS AROUND THE COUNTRY AND INCREASINGLY INTERNATIONALLY AND STEVEN ASKED ME TO TALK
A LITTLE ABOUT PREDATORY LENDING AND THE ROLE THAT FINANCE PLAYS IN AFFORDABILITY AS WELL
AS THINKING ABOUT THE RIGHTS BASED FRAMEWORK. FOR US AT THE FORD FOUNDATION THE RIGHTS BASED
FRAMEWORK IS IMPORTANT, WE DON’T THINK JUST WHAT ARE THE TECHNICAL ASPECTS LEADING TO
AFFORDABLE HOUSING, HOW DO WE BRING DOWN COST AND THINGS LIKE THIS BUT ALSO THE POLITICAL
WILL TO CHANGE THE CIRCUMSTANCES THAT CREATE THE INEQUALITY THAT IS BEHIND THE HOUSING
AFFORDABILITY CRISIS OVER ALL. SO I THINK WE ARE ALL FAIRLY FAMILIAR WITH
THE OUTCOMES OF THE RUN UP IN PREDATORY LENDING IN THE UNITED STATES AND PREDATORY LENDING,
I GUESS I WOULD SAY, IS WHEN CERTAIN GROUPS HAVE TO PAY MORE FOR FINANCING THAN OTHERS
AND IT LEADS TO A PLACE WHERE THEY DON’T HAVE ACCESS TO GOOD CREDIT AND WHERE COSTS ARE
ESCALATING. WE ARE IN A PLACE RIGHT NOW WHERE THE PENDULUM
IN THE U.S. HAS SWUNG THE OTHER DIRECTION, I DON’T KNOW HOW MANY LOOKED AT THE URBAN
INSTITUTE REPORT LAST WEEK WHERE THEIR STUDY INDICATED IN 2014 THERE WAS A MORTGAGE GAP
OF 1.25 MILLION HOUSEHOLDS. IF WE WERE USING 2001 CREDIT STANDARDS THERE
WOULD BE 1.25 MILLION HOUSEHOLDS THAT WON ELIGIBLE FOR MORTGAGES THAT WERE NOT ABLE
TO GET THEM IN 2014. SO IF YOU TAKE THIS OVER TIME THIS MEANS THAT
AN ENTIRE GENERATION IS BEING SHUT OUT OF THE HOMEOWNERSHIP MARKET AND OPPORTUNITIES
FOR A FORM OF AFFORDABLE HOUSING IN THE U.S. THAT GENERALLY REQUIRES LESS SUBSIDY AND BECOMES
MORE AFFORDABLE OVER TIME TO THE FAMILIES THAT STAY THERE.
MOST DISTURBING IS MOST OF THE DECLINE IN THAT CREDIT ACCESS OCCURS NOT AS A RESULT
OF REGULATORY CHANGES, IN OTHER WORDS, THINGS HAPPENING WITH MORTGAGE FINANCE REFORM OR
ADDITIONAL CONSUMER PROTECTION, BUT THEIR HELPEDDER OVERLAYS.
THE DECREASE IN LENDING FOR PEOPLE BETWEEN SOMEONE IN THE AUDIENCE FROM THE URBAN INSTITUTES
CAN GET IT RIGHT BETWEEN A 620 AND 740 CREDIT SCORE, 76% DECREASE IN LOANS AND THAT’S PROBABLY
MOST YOUNG PEOPLE IN THE UNITED STATES, MOST FIRST TIME HOME BUYERS.
WE SEE GIVEN THE DEMOGRAPHIC SHIFT IN THE UNITED STATES WE ARE BECOMING A MAJORITY OF
PEOPLE OF COLOR COUNTRY THAT MOST OF THE LOANS, MOST OF THE DENIALS ARE IN COMMUNITIES OF
COLOR AND WE ARE GOING TO SEE A DISPARITY IN THE ACCESS THIS COUNTRY HAS TO HOMEOWNER
SHIP. GLOBALLY FINANCING IS PARTICULARLY DIFFICULT
FOR THE UNBANKED FOR PEOPLE WHO DON’T HAVE ACCESS TO REGULAR FINANCIAL INSTITUTIONS AND
THE WORLD BANK ESTIMATES THAT’S 2.5 BILLION HOUSEHOLD, HALF THE ADULT POPULATION IN THE
WORLD. THERE’S BEEN A LOT OF PROGRESS AND WE’VE BEEN
INVOLVED IN SOME OF IT AROUND THE GLOBE IN ACCESS TO BANKING, MOBILE BACKING AND DIFFERENT
TECHNOLOGY AND I THINK THAT’S AN INCREASING PLACE FOR HELP.
MAX LISTED A LITTLE OF THAT AS WELL. ONE OF THE WAYS TO ADDRESS PREDATORY LENDING
AND OTHER TYPES OF HOUSING EXCLUSION IS THROUGH THE RIGHTS BASED APPROACH.
WHEN I THINK ABOUT A RIGHTS BASED APPROACH TO HOUSING I THINK ABOUT THREE CATEGORIES,
FIRST IS THE RIGHT TO FINANCING AND PROTECTION TO ENSURE FAIR HOUSING, THE PREDATORY LENDING
DISCUSSION, THE RIGHT TO HOUSING AND THAT GETS TO YOUR POINT, MAX, A RIGHT TO LIVE IN
A PLACE OF ALL THE GOOD THINGS WE WANT FOR OUR FAMILIES.
EACH OF THESE POINTS PROVIDES A LEGAL FRAMEWORK THAT CAN SUPPORT AND ENCOURAGE POLICY DEVELOPMENT
THAT CAN COMPEL LOCAL AND NATIONAL GOVERNMENT TO CREATE AFFORDABLE HOUSING PROGRAMS AND
ALSO PROVIDE AN OPPORTUNITY FOR REDRESS WHEN THE PUBLIC AND PRIVATE SECTORS FAIL TO DELIVER
ON THESE RIGHTS. SO JUST A COUPLE OF EXAMPLES AND I THINK IN
THE NEXT PANEL THEY WILL GET A LOT MORE INTO IMPLEMENTATION, BUT A RIGHT TO FAIR FINANCING,
EXAMPLE OF A REGULATORY FRAMEWORK IS THE CONSUMER FINANCIAL PROTECTION BUREAU AND WE HAVE SEEN
VERY CLEARLY HISTORICALLY THAT PREDATORY LENDING DECREASES WHEN THERE IS ACTUALLY REGULATORY
ENFORCEMENT AND THAT THAT IS AN IMPORTANT TOOL.
THE PROBLEM THAT WE HAVE RIGHT NOW, OF COURSE, IS THE PENDULUM HAS NOT SWUNG THE OTHER WAY
IN TERMS OF TOO MUCH REGULATION BUT THAT THE REGULATION HAS BECOME A WAY FOR LENDERS NOT
TO MAKE THE BUSINESS’ DECISION TO LEND, I THINK IN CASES WHERE YOU HAVE CONSUMER FINANCIAL
PROTECTION REGULATIONS WHICH ARE VERY IMPORTANT, YOU HAVE TO PAIR IT WITH A DUTY TO SERVE,
YOU HAVE TO HAVE A DUTY TO SERVE ALL POPULATIONS AND ALL PEOPLE IN A FINANCING SYSTEM.
THE RIGHT TO HOUSING, SOME EXAMPLES WE HAVE OF THAT INTERNATIONALLY ARE QUITE STRONG,
I THINK PROBABLY THE STRONGEST ONE IS THE CONSTITUTIONAL RIGHT TO HOUSING IN SOUTH AFRICA
AND THAT HAS BEEN A TREMENDOUS TOOL FOR PEOPLE PARTICULARLY IN FORMAL HOUSING SITUATIONS
TO CREATE AFFORDABLE HOUSING. THE ISSUE, OF COURSE, IS BECAUSE� JUST BECAUSE
THERE IS THE RIGHT DOESN’T YET MEAN THERE IS A DELIVERY SYSTEM TO MAKE IT HAPPEN, BUT
I THINK THAT IS CHANGING OVER TIME. ONE OF THE BEST EXAMPLES WE HAVE SEEN OF THAT
IS IN BRAZIL, AND MY HOUSE, MY LIFE PROGRAM IN BRAZIL BY U.S. STANDARDS I THINK HAS CREATED
AN AMAZING AMOUNT OF HOUSING IN A SHORT TIME THAT REALLY WAS MOTIVATED BY SOME OF THE BRAZILIAN
RIGHT TO HOUSING MOVEMENT. I THINK MY STATISTICS MAY BE A LITTLE OLD
BUT I THINK THEY HAVE CREATED 2.5 MILLION UNITS OF HOUSING SINCE IT STARTED IN 2009,
CREATED 1.4 MILLION JOBS IN THE PROCESS. AGAIN, THE ISSUE IS THERE ARE THOUSANDS OF
UNITS SITTING EMPTY BECAUSE IT WAS BUILT IN PLACES THAT WERE NOT ACCESSIBLE TO TRANSPORTATION
AND OPPORTUNITY THAT PEOPLE NEEDED IN ORDER TO MAINTAIN THEIR LIVELIHOOD AND PAY THE RENT
ALTHOUGH AFFORDABLE ON THE HOMES. I THINK WE ALSO ARE SEEING A LOT OF UNINTENDED
CONSEQUENCES TO THE RIGHT TO SHELTER IN NEW YORK CITY WHERE WE STARTED THE DEBLASIO ADMINISTRATION
WITH 53,000 HOMELESS AND NOW UP TO 60,000 LIVING IN THE SHELTER SYSTEM AND WITHOUT AN
OUTLET ON THE OTHER SIDE OF THAT TO CREATE PERMANENT AFFORDABLE HOUSING IT’S A PRETTY
DIFFICULT SITUATION. AND THEN FINALLY THE RIGHT TO HOUSING CHOICE,
SOME PLACE I’VE SPENT A LOT OF TIME IN THE LAST FIVE YEARS REALLY MANIFESTS ITSELF IN
THE U.S. AS FAIR HOUSING AND IN CIVIL RIGHTS AND IN THE U.S. I THINK THERE ARE TWO RIGHTS
WE ADDRESS RIGHTS TO CHOICE OF HOUSING, ONE IS TO PREVENT HOUSING DISCRIMINATION THAT
IS LARGELY PLAYS OUT AS INDIVIDUAL DISCRIMINATION THROUGH HOUSING TESTING, BUT IT ALSO PLAYS
OUT IN THE CONCEPT OF DISPIRIT� WE LOOK AT THE OVERALL UNINTENDED CONSEQUENCES OF
POLICY AND FIND IN MANY CASES AS YOU MENTIONED, AFFORDABLE HOUSING HAS BEEN CONCENTRATED IN
SPECIFIC AREAS WITHOUT GREAT ACCESS TO OPPORTUNITY. THAT DOCTRINE IS IN DANGER AS YOU PROBABLY KNOW, THERE’S A
SUPREME COURT CASE WE PREDICT WILL BE DECIDED IN THE NEXT SIX WEEKS THAT COULD HAVE A VERY
POSITIVE OR VERY NEGATIVE ON THE EFFECT TO CONTINUE TO USE THAT TOOL.
>>LISA, THANK YOU. THANKS TO ALL THE PANELISTS.
IN BARELY HALF A HOUR WE’VE HAD KIND OF A GLOBAL, NATIONAL, LOCAL, COMMUNITY SCAN OF
THE HOUSING CONDITIONS WE ARE FACING AND EXTENT OF THE AFFORDABILITY CHALLENGE SO THANKS FOR
YOUR GREAT PREPARATION AND GREAT COMMENTS. WE WANT TO TURN IT OVER NOW INTO A DIALOGUE
AND WE WANT TO INVITE THE FOLKS VIEWING THE WEB CAST AND ALSO THOSE HERE IN THE AUDITORIUM
TO PREPARE YOUR QUESTIONS AND COME TO SUBMIT THEM.
WE HAVE A MICROPHONE IN THE MIDDLE AISLE SO WE’D INVITE PEOPLE TO PREPARE AND QUE UP BEHIND
THE MICROPHONE AND ANSWER AS MANY QUESTIONS AS TIME ALLOWS.
AS WE GET STARTED AND AS YOU GET THINKING ON YOUR WONDERFUL QUESTIONS I WANT TO THROW
A QUESTION OUT TO THE ENTIRE PANEL AND HAVE YOU CONSIDER GIVEN ALL THE INFORMATION THAT
WAS JUST SHARED, WOULD YOU CHARACTERIZE THE AFFORDABILITY CHALLENGE AS MORE OF A FAILURE
IN THE MARKETPLACE OR MORE OF A FAILURE IN PUBLIC POLICY AND WONDER IF ANY OF YOU MIGHT
HAVE SOME INITIAL THOUGHTS ABOUT THAT.>>MY FIRST THOUGHT WAS IT’S ALMOST IMPOSSIBLE
TO SEPARATE THE TWO BECAUSE POLICY SETS THE RULES UNDER WHICH THE MARKET WORKS, SO, I
THINK YOU NEED TO ADDRESS BOTH FACTORS. IF YOU LOOK AT THE POLICY FRAMEWORK OF A GIVEN
HOUSING MARKET, IF YOU HAVE DENSITY RESTRICTIONS THAT MADE RENTAL HOUSING INFEASIBLE YOU WILL
HAVE A MARK FAILURE IN TERMS OF RENTAL HOUSING. IF YOU LOOK AT YOUR DENSITY RESTRICTIONS,
IF YOU LOOK IN THE SILK FAMILY CONTEXT, SET BACK REQUIREMENTS, BUILDING SIZE REQUIREMENTS,
PARKING REQUIREMENTS, ALL THOSE FACTORS CONTRIBUTE TO WHAT WE WOULD THINK OF AS THE MARKET FAILING
TO REACH THE FULL RANGE OF INCOMES THAT IT IS CAPABLE OF REACHING BUT AT THE SAME TIME,
YOU KNOW, THE HOUSING AFFORDABILITY HAS BEEN MENTIONED A COUPLE TIMES, IT’S A FUNCTION
OF BOTH HOUSING COSTS BUT ALSO WAGES AND IF WAGES AREN’T INTEREST DECREEING, WE CAN DEFINITELY
LOWER THE GAP BETWEEN PRODUCTIVITY AND CONSTRUCTION COSTS AND LOWER THOSE FIGURES BUT THERE’S
ONLY SO FAR DOWN YOU CAN GET. CONCRETE WILL EVENTUALLY COST WHAT CONCRETE
COSTS. WE ARE NOT IN THE BALLPARK WHERE THE MARKET
CAN REACH THE PEOPLE OF THE LOWEST INCOMES WHETHER THEY ARE PEOPLE ON FIXED INCOMES OR
LOW WAGED WORKERS. TO SOME EXTENT PARTICULARLY IN HIGH COST MARKETS,
IF WE WANT TO SAY PEOPLE HAVE A RIGHT TO LIVE WHERE THEY HAVE OPPORTUNITY FOR JOBS, FOR
TRANSIT ACCESS, FOR GOOD SCHOOLS, THE MARKET IS HAVING A HARD TIME REACHING THOSE HOUSEHOLDS
SO THERE NEEDS TO BE PUBLIC POLICY THAT CAN STRENGTHEN THE AFFORDABLE HOUSING NETWORK
IN THOSE COMMUNITIES.>>I AGREE IT’S HARD TO SEPARATE AND I PROBABLY
WOULDN’T MAKE THAT, I WOULD MAKE IT WHO IS FAILING HERE AS MUCH AS HUD WORKS TOGETHER
TO CREATE OPPORTUNITY AND WE ARE RELENT LESS OPTIMISTS, THERE DOESN’T SEEM TO BE ANY POINT
BECAUSE THERE IS SO MUCH OPPORTUNITY WHETHER ON THE PRIVATE SECTOR SIDE BEING MORE EFFICIENT
OR ON THE PUBLIC SECTOR THINKING WHAT IS THE COMMON GOOD, WHAT IS THE SHARED GOOD AND VALUE
WE CREATE. THE CITY IS A PRODUCTIVITY ENGINE AND CITIES
MORE EFFECTIVE INTEGRATING MORE SEGMENTS OF THEIR SOCIETY GROWS FASTERS, THEY CREATE MORE
JOBS, MORE TAX BASIS, AND EVERY ONE GETS RICHER. COMMUNITIES SIMPLY AREN’T WORKING TOGETHER
AND THAT IS WHERE WE CAN MAKE A DIFFERENCE IS BY SHOWING THE OPPORTUNITY TO EVERYBODY
SAYING THIS IS SOMETHING THAT REQUIRES A CONVERSATION, REQUIRES A CONVERSATION BETWEEN THE PEOPLE
WHO ARE THE COMMUNITY, THE LAND HOLDERS, HOPEFULLY THOSE ARE THE SAME PEOPLE WHO ARE GOVERNING
THEM AND HAVE THAT CONVERSATION ABOUT THE BEST USE.
MILTON FREEMAN, THE ONLY TAX HE LIKED WAS LAND TAX BECAUSE WHEN YOU TAX LAND YOU DON’T
GET LESS, YOU ONLY HAVE SO MUCH. HOW WILL WE USE THIS LAND?
IT’S ALL OUR LAND. IT CREATES AS MUCH VALUE AS WE COLLECTIVELY
WANT TO HAVE.>>YOUR POINT, JONATHAN IS WE HAVE TO HAVE
THE COLLECTIVE WILL TO MAKE A DIFFERENCE, TO MAKE HOUSING AND STABLE HOUSING AND AFFORDABLE
U.S.A.ING A PRIORITY� AFFORDABLE HOUSING A PRIORITY AND I’M GUESSING MOST PEOPLE IN
THE ROOM HAVE SOME CONNECTION TO AFFORDABLE HOUSING, WE TEND TO TALK ABOUT IT IN A WAY
THAT IS NOT BROADLY, MASSIVELY APPEALING AND DOESN’T CREATE A WHOLE LOT OF SOCIAL MOVEMENT
ENERGY TO CHANGE THE WAY THINGS ARE SO FUNDAMENTALLY I THINK WE NEED TO LEARN TO TALK ABOUTS WHO
WE DO AND THE OUTCOMES WE ARE LOOKING FOR DIFFERENTLY RATHER THAN JUST UNITS OF AFFORDABLE
HOUSING, IT’S REALLY ABOUT ACCESS, WE KNOW IT’S EVIDENCE ABOUT HEALTH, EDUCATIONAL OUTCOMES,
HOW LONG YOU LIVE AND WHERE YOUR CHILDREN GO TO SCHOOL AND THESE ARE VALUES OF EQUALITY
WE KNOW MOST AMERICANS SHARE AND PEOPLE DON’T SUPPORT THE KIND OF INEQUALITY THEY ARE SEEING
IN THEIR COMMUNITY.>>I WANT TO PICK UNAND POSE A QUESTION TO
MAX, GET READY WITH YOUR COMMENT AND LINEUP AT THE MICROPHONE, BUT TAKING JONATHAN’S KIND
OF BIG PICTURE REFERENCES TO THE $300 BILLION GAP THAT IS NEEDED TO� RESOURCES NEEDED
TO FILL THE GAP IN THE U.S., GIVEN THE KIND OF LOCALLY NUANCED AND SPECIFIC CONTEXT IN
WHICH AFFORDABLE HOUSING HAPPENS, HOW WOULD YOU THINK ABOUT THAT KIND OF LUMP SUM OF MONEY
IF IT WERE TO BE KIND OF RAINED DOWN ON YOU IF YOU HAD ALL THE POWER IN THE WORLD TO APPLY
THAT IN THE LOCAL CONTEXT THAT YOU HAVE STUDIED?>>I THINK THAT’S A GREAT QUESTION, REALLY
FUN QUESTION TO THINK ABOUT, HOW I WOULD FIX NEW YORK CITY AND ALL THESE OTHER HIGH COST
CITIES WITH UNLIMITED FUNDS. BUT I DON’T KNOW HOW REALISTIC THAT IS, SO
I THINK IT’S ALSO IMPORTANT TO THINK WHAT THE MARKET SOLUTIONS ARE AND HOW POLICY CAN
HELP TO REALLY HARNESS THE MARKET TOWARDS THESE SOLUTIONS.
AND THE FURMAN CENTER RELEASED A REPORT TWO WEEKS AGO CALLED CREATING AFFORDABLE HOUSING
OUT OF THIN AIR WHICH ANALYZES SOME INCLUSIONARY ZONING POLICIES.
WE CREATED SOME MOCK PRO FORMAS FOR MARKET RATE, ZONING IN DIFFERENT NEIGHBORHOODS IN
NEW YORK CITY AND FROM THAT REPORT WE FIND THAT INCLUSIONARY ZONING CAN ACTUALLY BE A
REALLY GREAT WAY TO REACH SOME OF THE LOWEST INCOME HOUSEHOLDS FROM A DEVELOPER’S PERSPECTIVE,
REQUIRING A NUMBER OF UNITS TO BE INCOME RESTRICTED. IT’S QUITE COSTLY BUT IF MARKET RUNS ARE HIGH
ENOUGH THEY CAN BALANCE IT UP AND SUBSIDIZE THE UNITS BUT IT DIDN’T MAKE A DIFFERENCE
IN THE PRO FORMAS IF YOU WERE TARGETING A HOUSEHOLD 90%, 60% OR 30% AMI, JUST HAVING
AN AFFORDABLE UNIT IMPACTED IT BUT WHAT INCOME IT REACHES HAS LITTLE EFFECT SO WE THINK THAT
COULD BE AN OPPORTUNITY TO REACH SOME OF THE EXTREMELY LOW INCOME HOUSEHOLDS.
>>THAT’S FASCINATING, THANK YOU FOR THAT. I’D LOVE TO SEE THAT REPORT.
>>I THINK IT’S ON THE TABLE.>>ALL RIGHT.
AND FOR FOLKS IN THE ROOM THERE IS A RESOURCE TABLE OUTSIDE THE MAIN AUDITORIUM WITH QUITE
A NUMBER OF MATERIALS, HABITAT, A REPORT ON ENERGY EFFICIENCY AND IMPORTANT ROLE ENERGY
COSTS IN MAINTAINING AFFORDABLE HOUSING. JONATHAN, ANY THOUGHTS ON THAT?
I KNOW YOU WERE REACTING TO SOME OF THE THOUGHTS MAX WAS SHARING?
>>I THINK THE INCLUSIONARY ZONING IDEA IS VERY APPROPRIATE, YOU HAVE ZONING FIRST OF
ALL, WHAT GOOD IS IT IF YOU DON’T USE IT? HOW DO WE THINK OF THE HIGHEST VALUE OF IT.
THAT’S A PILE OF MONEY THAT’S AN OPPORTUNITY AGAIN, BOTH FROM SUPPLY AND DEMAND.
THE ISSUE IF YOU PUT ALL THE MONEY ON DEMAND SIDE, DO NOTHING ABOUT SUPPLY, YOU GIVE VAST
WEALTH TO THE LANDOWNERS WITHOUT SOLVING PROBLEMS ON THE DEMAND SIDE.
UNLOCKING SUPPLY IS EXPANDING SUPPLY HAS TO BE IT.
I WOULD PUT ALMOST ALL $300 BILLION INTO UNLOCKING.>>I WOULD MENTION THERE ARE LOW COST CITIES
THAT ARE EXPERIENCING AFFORDABILITY HOUSING THAT HAS TO DO WITH IN COME OF PEOPLE LIVING
IN THOSE PLACES AS WELL AS AVAILABILITY OF FINANCING AND THE TYPES AND LOCATIONS OF HOUSING
THAT EXISTS. PLACES LIKE CLEVELAND AND DETROIT AND WHERE
THE POPULATION HAS BEEN MOVING FURTHER AWAY FROM THE CITY CENTER AND INTO THE SUBURBS
WHILE THE REGIONAL WEALTH PICTURE MAY NOT HAVE CHANGED THE WEALTH PICTURE WITHIN THE
CITY HAS DEFINITELY CHANGED MAKING THAT HOUSING AFFORDABILITY EQUATION REALLY UNWORKABLE FOR
A LOT OF PEOPLE EVEN THOUGH THERE IS A SURPLUS OF HOUSING THAT WE MIGHT FROM NEW YORK CITY
AND WASHINGTON, D.C. STANDARDS CONSIDER TO BE AFFORDABLE.
>>THANKS, LISA. WE HAVE A QUESTION, IDENTIFY YOURSELF AND
POSE YOUR QUESTION.>>GOOD MORNING, MY NAME IS JESSE, IS AM NEW
TO HUD CHOICE NEIGHBORHOOD TEAM, ONLY BEEN HERE FOUR WEEKS AND IT’S A HONOR WORKING FOR
HUD. MY BANK GROUND IS PHILANTHROPY.
IN ADDITION TO OUR INTERNAL PHILANTHROPY DEPARTMENT WE HAVE AT HUD, WHAT WOULD BE THE PANEL SUGGEST?
THAT GIVING CHOICE NEIGHBORHOODS MULTI MILLION DOLLAR INVESTMENTS CREATING NEIGHBORHOODS
OF CHOICE, HOW COULD WE LEVERAGE OUR INVESTMENT TO ENGAGE LARGE AND SMALL FOUNDATIONS IN COMMUNITIES
WHERE HUGH IS INVESTING DOLLARS NOT JUST IN CHOICE BUT OTHER NEIGHBORHOODS ACROSS THE
COUNTRY, IT SEEMS PHILANTHROPY AFTER THREE TO FIVE YEARS LOSES INTEREST AND MOVES TO
ANOTHER AREA OF FOCUS, WHAT IS THE BEST WAY WE CAN ENGAGE THE FORDS, ROCKAFELLERS AND
OTHERS TO BECOME ENGAGED IN NEIGHBORHOODS OF CHOICE.
>>I THINK THAT’S MY QUESTION. THANK YOU VERY MUCH FOR THAT.
I HAVE TO SAY THE PARTNERSHIP WE’VE HAD WITH HUD OVER THE YEARS PARTICULARLY AROUND THE
PROGRAMS LIKE CHOICE AND SUSTAINABILITY PROGRAM HAS BEEN TREMENDOUS AND TREMENDOUSLY HELPFUL
FOR US AS A NATIONAL FOUNDATION IN TERMS OF BEING ABLE TO WORK WITH THE KNOWLEDGE AND
FUNDING THAT HUD HAS TO PILOT NEW IDEAS, TEST NEW THINGS.
THE ISSUES FOR US AS A NATIONAL FOUNDATION IS WE ARE TRYING TO FIND WAYS TO TAKE BEST
PRACTICES AND HELP TO SUPPORT REPLICATING THEM IN OTHER PLACES BUT WE CAN’T SUPPORT
THEM IN ALL THE OTHER PLACES WHERE THEY NEED TO GO BECAUSE WE DON’T HAVE ENOUGH MONEY,
I KNOW THAT SOUNDS FUNNY COMING FROM THE FORD FOUNDATION BUT IT’S ACTUALLY TRUE.
THE OLD MODEL IN PHILANTHROPY, YOU PROBABLY KNOW THIS, IS THAT WE WOULD PILOT SOMETHING
OURSELVES IN A LOCAL COMMUNITY AND THEN HOPE GOVERNMENT WOULD TAKE THE PROGRAM UP AND FUND
IT NATIONWIDE AND WE KNOW NOW THAT THAT� THE GOVERNMENT DOESN’T ACTUALLY HAVE ALL THE
MONEY NECESSARY TO DO THAT EITHER SO WE FOUND THE MOST EFFECTIVE PARTNERSHIPS ARE THREEWAY
PARTNERSHIPS BETWEEN THE GOVERNMENT, PHILANTHROPY AND PRIVATE SECTOR AND I CHECK CHOICE NEIGHBORHOODS
HAS A LOT OF EXAMPLES OF THAT SUCCESS. I THINK ALSO THAT LOCAL FOUNDATIONS HAVE A
REALLY IMPORTANT ROLE TO PLAY IN TAKING LESSONS LIKE THE ONES THAT ARE BEING LEARNED FROM
CHOICE NEIGHBORHOODS AND MAKING THEM, TAKING THE BEST PRACTICES AND MAKING THEM A REALITY
IN OTHER PLACES.>>THANK YOU, ANY OTHER COMMENTS?
>>I WOULD ADD, I FULLY AGREE AND I THINK THE POINT OF SUSTAINABILITY, IT’S HARD TO
DIVORCE HOUSING FROM ECONOMIC POLICY. WITHOUT HAVING A THOUGHTFUL APPROACH TO HOW
DO YOU ENGAGE AND DEVELOP JOBS AROUND HOUSING ULTIMATELY THEY BECOME ONE OFF.
I WOULD TRY TO FIND INTEGRATING JOB ENGINE, SUPPORT FOR BUSINESS DISTRICT, ATTRACTION
OF NEW TENANTS BED INVESTORS BASED ON MIXED INCOME MIXED USE, BEING PROACTIVE STARTING
THAT PROCESS AT THE BEGINNING, NOT WAITING TO THE END, THAT I THINK IS A REAL OPPORTUNITY
FOR SUSTAINABILITY.>>AND I WOULD ADD TO THE EXTENT IT COULD
BE BENEFICIAL TO THE EXTENT THAT WE COULD EXPAND THE INVESTOR BASE BEYOND JUST THE FOUNDATION
COMMUNITY OR GOVERNMENT SECTOR OR STRICTLY THE PROFIT DRIVEN ELEMENT, IT COULD BE A SPACE
BETWEEN WHERE YOU HAVE EMERGING FIELD OF IMPACT INVESTING, PAY FOR SUCCESS PARTNERSHIPS WHERE
YOU HAVE PEOPLE THAT EXPECT SOME RETURN ON INVESTMENT BUT ARE ALSO LOOKING TO INVEST
IN A SOCIAL GOOD AND IF YOU CAN BRING THOSE FOLKS TO THE TABLE THAT WILL BE MAYBE A LITTLE
MORE PATIENT, MAYBE ABLE TO ACCEPT A LITTLE LOWER RETURN YOU CAN GREATLY EXPAND YOUR CAPITAL
BASE. THERE IS SOME VERY STRONG POTENTIAL IN THAT
FIELD AS WELL.>>MIKE, THANK YOU.
WE HAVE ANOTHER QUESTION.>>GOOD MORNING, MY NAME IS TERRANCE, I’M
FROM THE CONGRESSIONAL DISTRICT FIFTH DISTRICT OF MARYLAND.
YOU ALL TOUCHED ON IT, ABOUT THE ZONING ISSUE. I THINK HOW DO YOU STRIKE A BALANCE BETWEEN
LOCAL GOVERNMENT, BECAUSE THEY HAVE THE AUTHORITY TO SET THEIR ZONING POLICY AND PLANNING, SO
WHEN THEY ARE PLANNING, THEY ARE BUILDING OUT THESE COMMUNITIES, IT’S EASY, WE ALWAYS
HAVE THE CHALLENGES, HOW DO YOU INCLUDE MORE AFFORDABLE HOUSING.
IN THE SIGMA THAT AFFORDABLE HOUSING IS GETTING WHEN LEADING INTO THE EFFECTS WE DON’T WANT
THOSE TYPE OF HOUSINGS IN OUR COMMUNITY, SO I THINK THE CHALLENGE IS HOW DO YOU HELP LOCAL
GOVERNMENT TO REALLY STRIKE A BALANCE AND BILL QUALITY OF HOUSING WITHOUT WHAT THEY
ARE LOOKING AT IS HOW DO THEY GENERATE REVENUE? HOW DO THEY GENERATE GOODS AND SERVICES TO
ALL RESIDENTS OF A LOCAL TOWN OR COUNTY GOVERNMENT, AND, SO, HAVE THERE BEEN ANY EXAMPLES WHERE
YOU HAVE THIS GOOD PLAY WITH LOCAL GOVERNMENT WHEN YOU SEE IT IN THEIR ZONING POLICY, EVEN
LOOKING OUTLAY YEARS OF FUTURE LAND USE, OF LAND AND, SO, EITHER INTERNATIONALLY OR DOMESTICALLY,
IF YOU COULD DRILL DOWN ON THAT EVEN MORE ABOUT ON THE LOCAL LEVEL IT WOULD BE WELCOME
INSIGHT.>>THANKS FOR THE QUESTION, I WONDER IF I
COULD EMBELLISH IT AND DIRECT IT TO MAX FOR STARTERS TO ASK WHETHER THE RECENT EVIDENCE,
WHETHER THERE IS ANY ADDITIONAL RECENT DATA THAT GETS ASKED THE ISSUE OF THE STIGMA OF
AFFORDABLE HOUSING AND WHETHER THERE’S BEEN SIGNIFICANT� I KNOW THERE HAVE BEEN SOME
SIGNIFICANT STUDIES DONE TO TACKLE THAT OR ADDRESS IT.
I WONDER IF YOU COULD KEY IT UP FOR US A LITTLE BIT?
>>I THINK THAT THERE IS, THERE IS ALWAYS THIS PROBLEM OF NIMBIAS LIKE A PLACE LIKE
NEW YORK CITY WHERE WE HAVE DENSE COMMUNITIES, THERE IS OUT CRY IN THE FARTHER OUT NEIGHBORHOODS
IN QUEENS AND BROOKLYN CURRENT RESIDENTS ARE CONCERNED ABOUT NEW DENSITY IN THEIR NEIGHBORHOODS,
BUT WE HAVE BEEN LOOKING AT SOME OF THE LONG TERM TRENDS IN DENSITY AND FIND MANY PARTS
OF NEW YORK TODAY ARE LESS DENSE THAN THEY WERE 50 OR 100 YEARS AGO, SO THERE IS ROOM
FOR THAT. I THINK WE ARE ALSO SEEING A SHIFT AS SOME
OF THE MILLENNIAL GENERATION GETS A LITTLE OLDER, WANTS TO LIVE IN DENSER ENVIRONMENTS,
WANTS TO BE ABLE TO WALK TO RESTAURANTS AND SCHOOLS AND STORES.
SO I THINK WE MAY BE STARTING TO SEE A SHIFT IN PEOPLE ACCEPTING DENSITY.
>>AND MORE FLEXIBLE ZONING TOO TO REFLECT THAT, DIFFERENT COMBINATIONS OF ZONING CATEGORIES.
>>AND AS JONATHAN WAS TALKING ABOUT THE IMPORTANCE OF MIXED USE DEVELOPMENTS AND I WOULD ASK
TO THAT MIXED INCOME DEVELOPMENTS IN THE HISTORY OF AFFORDABLE HOUSING DEVELOPMENT, WE WERE
LARGELY DEVELOPING PUBLIC HOUSING FOR LOW INCOME POPULATIONS AND THEN THE LOW INCOME
TAXING CREDIT TARGETS 60% OF AMI PRETTY RIGIDLY AND THERE’S A MOVE NOW PEOPLE ARE STARTING
TO APPRECIATE THE NEED FOR MIXED INCOME DEVELOPMENTS AND I THINK THERE IS SOME POLICY LEVERS THERE
WE COULD SHIFT TO ALLOW FOR INCOME AVERAGING EVEN USING LOW INCOME HOUSING TAX CREDIT.
>>INTERESTING, OKAY, THANKS.>>I WAS GOING TO SAY I THINK A LOT OF THIS
DOESN’T REQUIRE CHANGES IN ZONING, YOU CAN DOUBLE THE AFR IN BROOKLYN WITHOUT DOING ANY
ZONING. TWO STORIES MAKE IT TO FOUR STORIES, DON’T
HAVE TO GO TO 10 STORIES, DOUBLE THE HOUSING WITH A 20 MINUTE RIDE TO MANHATTAN.
THERE’S A CHINESE CITY CALLED A 5080 RULE. BASICALLY NO LESS THAN 50% OF THE METERS HAS
TO BE A DEPARTMENT OF 80 LESS APARTMENTS. SMALLER APARTMENTS, 50% HAS TO BE 50.
WHEN THEY AUCTIONED THE LAND THEY HAD A RESERVE AND THEN A CAP.
WE NEED TO GET TO THE CAP. AT THAT POINT WE WILL NOT LET AN USER OR DEVELOPER
TO SPEND ANYMORE MONEY, WE WANT YOU TO MAXIMIZE THE AFFORDABLE HOUSING WHILE COLLECTING A
HUGE UP SIGHT BETWEEN THE DIFFERENCE BETWEEN THE RESERVE AND CAP.
IT’S THAT KIND OF INNOVATION MAKES A DIFFERENCE.>>COOL.
>>POLITICAL OPPOSITION TO AFFORDABLE HOUSING CAN BE� HOW YOU HANDLE IT WILL DEPEND IF
YOU ARE A HOT MARKET, WHAT THE POLITICAL DYNAMICS ARE IN THAT.
IN CALIFORNIA THEY DID A STUDY ON LONG TERM HOUSING TAX CREDIT AND THEY ESTIMATED “NOT
IN MY BACK YARD” HAS INCREASED 5% COST FOR THOSE WITH THAT ATTITUDE.
HOW DO WE COMBAT THAT AND FIRST WE HAVE TO HAVE THE DATA RIGHT, WE NEED TO BE ABLE TO
HAVE THE CONVERSATIONS ABOUT WHAT IS THE APPROPRIATE ZONING, WHAT IS THE APPROPRIATE LEVEL OF DENSITY
AND WHAT ARE THE NEEDS WITHIN THE COMMUNITY AT DIFFERENT INCOME LEVELS.
PART OF IT IS FROM AN ADVOCACY AND MESSAGING PERSPECTIVE.
WE SHOULD POINT OUT PEOPLE HAVE A PERCEPTION OF AFFORDABLE HOUSING IN THEIR HEADS THAT
IS NOT ALWAYS ACCURATE. IF WE CAN POINT OUT SUCCESSFUL AREAS, THEY
FIT IN THE COMMUNITY, THEY ARE HEALTHY STABLE NEIGHBORHOODS.
ANOTHER PIECE IS POINTING OUT THE PEOPLE THAT WOULD BE LIVING IN THE AFFORDABLE HOUSING
DEVELOP HIMS ARE ALREADY IN THE COMMUNITY AND THAT WHEN YOU PUT PEOPLE THAT MAY BE IN
TENUOUS LIVING SITUATIONS, MAYBE BOUNCING FROM HOUSE TO HOUSE BECAUSE OF AFFORDABILITY
CHALLENGES OR HOUSING QUALITY, WHEN YOU PUT THE PEOPLE IN AFFORDABLE HOMES THAT STABLIZE
THEIR CONDITIONS, OUTCOMES ARE BETTER, CHILDREN DO BET NEAR SCHOOL, YOU ARE NOT CHANGING THE
DYNAMIC, JUST IMPROVING THE DYNAMIC IS THE MESSAGE.
THERE ARE OTHER MESSAGES THAT ARE CONTACT SENSITIVE BUT THOSE ARE TWO IMPORTANT PIECES.
>>WE HAVE TIME FOR ONE MORE QUESTION BEFORE WE TRANSITION.
>>MY NAME IS JOHN, I’M A PARTNER AT MCKENZIE, THIS IS NOT A PLANNED QUESTION FOR JONATHAN.
LISA, BUILDING ON THE IDEA SHE PRESENTED BUILDING SHARED VALUES OR COMMON VISION FOR IMPROVEMENT
HERE. WHAT DO YOU OR THE PANEL BELIEVE THE ROLE
OF CORPORATE RESPONSIBILITY, VOLUNTARY CERTIFICATION PROGRAMS OR MICHAEL, YOUR IDEA AROUND INVESTOR
MOVING TOWARD SHARED VALUES IN THE PRIVATE SECTOR.
>>YOU ARE LOOKING FOR SHARED VALUES IN THE PRIVATE SECTOR.
UP THINK THERE’S A LOT OF MOMENTUM BUILDING, PART OF WHAT WE NEED TO DO IS SUBMIT IT MORE
CLOSELY TO BOTH VALUES AND SPECIFIC ACTION. AND, SO, THERE ARE SOME GREAT EXAMPLES OF
THAT, ENTERPRISE HAS A CAMPAIGN THAT THEY ARE WORKING ON CALLED “MAKE ROOM RIGHT NOW”
THAT IS FUNDAMENTALLY ABOUT THE BENEFITS OF ADDRESSING HOUSING INSTABILITIES THAT HAS
A BROAD APPEAL, THERE ARE A NUMBER OF OTHER CAMPAIGNS THAT SOME OF THE LARGER HOUSING
UNITS HAVE BEEN WORKING ON. I THINK ALSO SOME OF IT REALLY COMES DOWN
TO HOW PEOPLE EXPERIENCE THINGS IN THEIR LOCAL COMMUNITY BACK TO THE ISSUE OF NIMBISM.
WE FOUND THE PLACES THAT ARE MOST EFFECTIVE CONFRONTING IT HAVE SEVERAL ELEMENTS, ADVOCACY
IS CERTAINLY IMPORTANT BUT THE ADVOCACY HAS TO BE ACROSS A BROAD DEMOGRAPHIC SPECTRUM,
YOUNG, OLD, BLACK, WHITE, SUBURBAN, URBAN, THOSE TAKE TIME FOR RESOURCES TO BILL.
IT NEEDS TO INVOLVE DEVELOPERS THAT ARE ABLE TO LISTEN, NONPROFITS THAT ARE ABLE TO HEAR
WHEN PEOPLE HAVE LEGITIMATE CONCERNS ABOUT PARTICULAR DEVELOPMENTS AND MAKE ADJUSTMENTS.
AND THEN I THINK THERE IS ALSO JUST A FUNDAMENTAL CHANGE THAT WE ARE STARTING TO GO THROUGH
IN THIS COUNTRY ABOUT THE NARRATIVE AROUND RACE AND CLASS THAT WE HAVE TO ADDRESS HEAD
ON. A LOT OF TIMES PEOPLE SAY IT’S AN ENVIRONMENTAL
PROBLEM, PROBLEM FUNDING SCHOOLS, THE EVIDENCE DOESN’T BARRY OUT.
WHAT PEOPLE ARE REALLY TALKING ABOUT IS FEAR OF NEIGHBORS THAT WILL BE LIVING NEXT TO THEM
AND WE HAVE SEEN CERTAINLY IN THE LAST YEAR SOME VERY DIFFICULT IMPLICATIONS OF THINGS
LIKE IMPLICIT BIAS AND ADDRESSING STILL OUR CONTINUED INABILITY TO ADDRESS RACE IN THIS
COUNTRY AND I THINK WE HAVE TO CONTINUE TO FOCUS ON THOSE ISSUES IN A PRODUCTIVE WAY.
>>WE WILL NEED TO LEAVE, LET LISA HAVE THE LAST WORD ON THAT.
WONDERFUL PANEL, WE SO APPRECIATE ALL YOUR COMMENTS AND HARD WORK LEADING UP TO THIS
CONVERSATION THIS MORNING. PLEASE JOIN ME IN THANKING OUR PANELISTS FOR
A TERRIFIC CONVERSATION ALREADY THIS MORNING. [APPLAUSE]
THANK YOU SO MUCH.>>LADIES AND GENTLEMEN …
>>PLEASE STAND BY. THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>PLEASE STAND BY.
THIS EVENT WILL BEGIN SHORTLY.>>LADIES AND GENTLEMEN, SECRETARY JULIAN
CASTRO AND THE VICE PRESIDENT OF THE UNITED STATES JOE BIDEN.
[APPLAUSE]>>GOOD MORNING.
HOW ARE YOU ALL DOING? ARE YOU ALL READY FOR OUR SPECIAL GUEST?
GOOD. WELL, SO AM I.
BUT BEFORE WE HEAR FROM OUR SPECIAL GUEST I JUST WANT TO QUICKLY THANK ALL OF YOU FOR
PARTICIPATING IN THIS TIMELY AND IMPORTANT CONVERSATION.
EVERY ONE IN THIS ROOM AND WATCHING ONLINE REPRESENT DIFFERENT SECTORS AND DIFFERENT
PERSPECTIVES, BUT WE ARE DRAWN TOGETHER TODAY BY A COMMON BELIEVE IN THE IMPORTANCE OF HOUSING.
QUITE SIMPLY HOUSING IS WHERE EVERYTHING BEGINS AND ENDS.
SUCCESS IN THE WORK PLACE, IN THE CLASSROOM AND IN LIFE OFTEN STARTS WITH THE SECURITY
OF KNOWING THAT YOU HAVE A PLACE TO CALL HOME EVERY NIGHT.
THAT IS WHY AS YOU HAVE BEEN DISCUSSING TODAY WE’VE GOT TO TACKLE THE AFFORDABLE HOUSING
CRISIS THAT IS HURTING TOO MANY OF OUR FAMILIES. CNN RECENTLY DID A PIECE ON A HUSBAND AND
WIFE NAMED RICH AND STACY WHO LIVE IN SAN JOSE, CALIFORNIA.
BOTH WORK, RICH IN CONSTRUCTION AND STACY AS AN OFFICE RECEPTIONIST YET THEY LIVE IN
A HOMELESS SHELTER BECAUSE THEY CAN’T AFFORD THE RENT.
THEY ARE NOT ALONE. RESPONSIBLE FOLKS ARE STRUGGLING TO RENT AND
BUY HOMES. HOMEOWNERSHIP REMAINS THE CORNER STONE OF
THE AMERICAN DREAM AND WE HAVE TO PRESERVE THE DREAM.
WE MUST ACT TODAY TO SHAPE A BETTER TOMORROW. HERE AT HUD WE ARE TACKLING THESE ISSUES BY
MAKING HOME LOANS MORE AFFORDABLE, BY ATTRACTING PRIVATE OWNERSHIP, CONNECTING THE FOLKS WHO
LIVE IN PUBLIC AND SUBSIDIZED HOUSING TO JOBS, SCHOOL AND TRANSIT OPTIONS THEY NEED TO THRIVE.
ULTIMATELY HOUSING AFFORDABILITY REALLY IS ABOUT OPPORTUNITY.
IT’S ABOUT HELPING PARENTS SECURE THE OPPORTUNITY TO PROVIDE FOR THEIR CHILDREN, GIVING THOSE
HOMELESS THE OPPORTUNITY TO GET A FRESH START IN LIFE.
PROVIDING OLDER AMERICANS WITH THE CHANCE TO RETIRE WITH THE DIGNITY AND COMFORT THEY
DESERVE AND SO MUCH MORE. THROUGH THE STRENGTH OF OUR PARTNERSHIP, POWER
OF OUR IDEAS AND OUR HARD WORK WE CAN ALL INSURE THAT THIS OPPORTUNITY IS AVAILABLE
TO AMERICANS FOR GENERATIONS TO COME. AND I KNOW ONE THING FOR SURE, THE MAN STANDING
NEXT TO ME WILL CONTINUE TO HELP LEAD THE WAY.
OVER THE COURSE OF HIS LIFE HE HAS BEEN A CHAMPION FOR EVERY DAY AMERICANS AND THE UNDER
SERVED, HE’S INSURED BLUE COLLAR AMERICANS HAVE A VOICE IN THEIR GOVERNMENT AND BEEN
A FIGHTER ON THE ISSUES THAT BRING US TOGETHER TODAY.
THAT IS WHY IT’S BOTH A PLEASURE AND A PRIVILEGE TO HELP WELCOME HIM TO US TODAY.
PLEASE HELP GIVE A WARM HUD WELCOME TO THE VICE PRESIDENT OF THE UNITED STATES, JOE BIDEN.
[APPLAUSE]>>THANK YOU VERY MUCH, MR.�SECRETARY.
IF I WERE� IF I LEARNED ANYTHING OVER THE YEARS I’VE SERVED IN THE SENATE AS VICE PRESIDENT,
IF I WERE SMART I’D SAY I AGREE AND LEAVE. BECAUSE IT WAS SAID INCREDIBLY WELL BY THE
SECRETARY. I SUSPECT YOU ALL AGREE.
AND THE QUESTION IS GOING TO BE HOW. BY THE WAY, HOW MANY OF YOU ARE DUKE GRADUATES
IN HERE? WELL, CONGRATULATIONS.
WHY DID YOU PULL HIS HAND DOWN. WHAT IS THE DEAL HERE?
ARE YOU FROM WISCONSIN? HOW MANY WISCONSIN GRADUATES HERE.
I DIDN’T SAY FANS, I SAID GRADUATES. IT WAS A HECK OF A GAME, WASN’T IT?
IT WAS A HECK OF A GAME. AND SPEAKING OF BASKETBALL, I COME FROM PHILADELPHIA
IS A SUBURB OF WILLMINGTON, DELAWARE, WHEN I WAS GROWING UP IN THE 60s AND 70s, USED
TO BE THE BIG FIVE IN PHILADELPHIA TEAMS, LASALLE, PENN� ANYWAY, THE FIVE.
AND THEY USED TO PLAY IN A PLACE CALLED THE POLESTRA.
AND THIS REMINDS ME OF THE POLLSTRA BECAUSE TWOTHIRDS ARE BEHIND COLUMNS AND YOU CAN’T
SEE WHAT IS GOING ON. THAT IS WHAT IT WAS LIKE WATCHING THE GAME
FROM THE POLESTRA. YOU WOULD THINK OF ALL PLACES TO MEET WOULD
BE HUD. WHAT A HECK OF A THING TO DO TO YOU.
BUT THOSE WATCHING ONLINE WILL GET A BETTER VIEW OF ALL THIS.
I HAVE HAD THE GREAT PLEASURE OF WORKING WITH HUD MY ENTIRE CAREER SINCE I WAS� GOT ELECTED
AS A 29YEAROLD SENATOR AND IN A SENSE THERE ARE A LOT OF GREAT AGENCIES BUT HUD DELIVERS
ON PEOPLE’S DREAMS AND ASPIRATIONS, I THINK IN A SENSE MORE THAN ALMOST ANY OTHER AGENCY
OUT THERE. AS THE SECRETARY SAID, EVERYTHING IN AMERICA
IS AROUND THE HOME, WHETHER IT’S RENTAL OR OWNERSHIP.
IT IS SECURITY. IT IS SECURITY.
THAT SOUNDS LIKE HYPERBOLE, BUT IT’S ALL OVER AMERICA AND THE WORLD.
PRESIDENT JOHNSON WHEN HE ESTABLISHED HUD 50 YEARS AGO IN HIS OPENING STATEMENT HE SAID
OUR TASK IS TO PUT THE HIGHEST CONCERNS OF OUR PEOPLE AT THE CENTER OF URBAN GROWTH AND
ACTIVITY. IT IS TO CREATE AND PRESERVE THE SENSE OF
COMMUNITY WITH OTHERS WHICH GIVES US SIGNIFICANCE AND SECURITY.
SIGNIFICANCE AND SECURITY. I THINK THAT IS HOW MOST AMERICANS VIEW HOUSING,
VIEW WHERE THEY LIVE. VIEW AND THE DEGREE TO WHICH THEY FEEL A SENSE
OF SECURITY. THAT IS WHAT CONTINUES TO DRIVE, I THINK,
ALL OF YOU TODAY BECAUSE ALL OF YOU ARE INVOLVED IN HOUSING ONE WAY OR THE OTHER WHETHER YOU
WORK FOR HUD OR IN THE PRIVATE SECTOR. I THINK IT DRIVES US ALL TO PRESERVE A SENSE
OF COMMUNITY, PUTTING PEOPLE FIRST. MR.�SECRETARY, WHEN I HAD THE HONOR OF SWEARING
YOU IN LAST SUMMER, I SAID THRIVING CITIES ARE THE BASIS UP ON WHICH THRIVING COUNTRIES
REST. AND FOR COMMUNITIES TO THRIVE THERE HAS TO
BE A SOUL, A CENTER. THERE HAS TO BE A PLACE FOR PEOPLE TO LIVE.
THERE HAS TO BE A PLACE WHERE THEY CAN AFFORD TO LIVE.
THERE HAS TO BE A PLACE THEY CAN CALL HOME. WHERE MEN AND WOMEN AND CHILDREN HAVE THE
OPPORTUNITY TO BE AFFORDED WHAT MY DAD SAID, AND CONSTANTLY WOULD REPEAT, THAT EVERY MAN,
WOMEN AND CHILD ARE ENTITLED TO, A SENSE OF DIGNITY.
I WOULD ADD SECURITY TO DIGNITY. IN MY EARLY CHILDHOOD HOME WAS MY GRANDFATHER,
AMBROSE FINAGAN’S HOME, IT WAS THE ROCK THAT SUSTAINED AND QUITE FRANKLY HELD MY LARGER
FAMILY TOGETHER IN RELATIVELY TOUGH ECONOMIC TIMES FOR MY DAD.
EVEN THOUGH HE WAS LOOKING FOR WORK THERE WASN’T ENOUGH WORK IN SCRANTON.
WE HAD THAT ROCK. WE HAD A HOME.
IT WASN’T MY DAD’S HOME, IT WASN’T OUR HOME, BUT IT WAS A FAMILY HOME.
IT WAS A PLACE WHERE WHEN THINGS FELLOW OH AND YOU DIDN’T EVEN KNOW WHY WHEN YOU WERE
A KID BUT YOU COULD TELL WHEN THE ADULTS DIDN’T FEEL LIKE EVERYTHING WAS GOING RIGHT.
BUT YOU WOULD WALK IN THE DOOR OF MY GRAND POP’S HOME AND YOU HAD A BEDROOM AND A PLACE,
YOU KNEW YOU WERE OKAY. IT’S ALSO� I ALSO KNOW HOW IMPORTANT IT
WAS FOR MY FATHER TO OWN HIS OWN HOME. TO BE ABLE TO PROVIDE ON HIS OWN FOR HIS FAMILY.
TO BRING US DOWN TO DELAWARE SO WE COULD LIVE UNDER ONE ROOF BECAUSE THERE WERE JOBS DOWN
IN DELAWARE. I REMEMBER MY DAD SAYING THAT HE WOULD BE
GONE ABOUT A YEAR, I WAS GOING IN THE FOURTH GRADE, HE SAID WE’D BE GONE A YEAR AND HE
WOULD TRY TO COME HOME EVERY WEEKEND AND IT WAS ONLY 153 MILES, IT SEALED LIKE GOING TO
THE MOON TO ME AT THE TIME, BUT, HONEY, WHEN WE GET SET UP WE WILL HAVE A NICE PLACE TO
LIVE. THE FIRST PLACE WE MOVED TO WAS A PLACE THAT
WAS RENTAL HOUSING, NEWLY BUILT RENTAL HOUSING. I REMEMBER� I REMEMBER EVEN THOUGH IT WAS
NOTHING LIKE THE HOME WE HAD HAD ORIGINALLY, I REMEMBER PULLING UP AND THINKING, MY, THIS
IS GREAT. WE’VE GOT OUR PLACE.
IT’S OUR PLACE. EVERYTHING THAT MY BROTHERS AND MY SISTER
AND I EVER ACCOMPLISHED IN LIFE GREW OUT OF THE FOUR WALLS OF EITHER THE RENTAL HOUSING
OR THE HOME WE EVENTUALLY OWNED SEVERAL YEARS LATER.
THE HOME MY FATHER WAS ULTIMATELY ABLE TO BUY THAT WE LIVED IN FOR OVER 15 YEARS OF
MY LIFE AND AFTER I GOT OUT OF LAW SCHOOL I BOUGHT THAT HOME FOR MY MOM AND DAD.
MANY OF YOU CAN TELL A SIMILAR STORY. I KNOW THIS SOUNDS A LITTLE LIKE HYPERBOLE,
BUT YOU ALL KNOW IT’S ABOUT A LOT MORE THAN BRICK AND MORTAR OR A PIECE OF REAL ESTATE,
IT’S HOME. IT’S A MIDDLE CLASS JOURNEY AND IT STARTS
WITH A SECURE HOME, SO MUCH OF THE LONG TERM WEALTH AND ACCESS TO OPPORTUNITY THAT OCCURS
TO THE MILL CLASS OVER THE LAST 70 YEARS HAS BEEN THE RESULT OF THE FAMILY BEING ABLE TO
OWN THEIR OWN HOME. FAMILIES THAT OWN THEIR HOMES STATISTICALLY
DO BETTER, WE SEE THIS IN ECONOMIC STUDY. WE SEE HOMEOWNER SHIP INCREASES THE CHILD
WILL STAY IN SCHOOL BY UP TO 9% FOR LOW INCOME PEOPLE.
I THINK IT HAS TO DO WITH ALTHOUGH I’M NOT A SOCIOLOGIST AND I’M NOT A SOCIAL WORKER
LIKE MY DAUGHTER, I THINK IT HAS A LOT TO DO WITH THE PARENTS FEELING SECURE AND COMMUNICATING
THAT SENSE OF SECURITY TO THEIR CHILDREN. BUT IT’S NOT JUST THE FAMILY IN THE HOME THAT
DOES BETTER, IT’S THE COMMUNITY THAT DOES BETTER.
WHEN A FAMILY BUYS A HOME, THEY ARE NOT JUST BUYING LAND AND A HOUSE, THEY ARE BUYING A
FINANCIAL STAKE IN THE COMMUNITY. IT’S A DIFFERENT PERSPECTIVE.
WE CARED A LOT ABOUT THE COMMUNITY WE LIVED IN WHEN WE REND, BUT THE COMMUNITY WASN’T
RUSHING OUT TO RAISE MONEY TO PUT FLOWERS IN THE LOCALLY ROTARY.
IT’S DIFFERENT. IT’S THE FINANCIAL STAKE THAT MAKES HOMEOWNERS
MORE INVESTED. THERE ARE 15%� HOMEOWNERS ARE 15% MORE LIKELY
TO VOTE IN ELECTIONS AND 6% MORE LIKELY TO BE ENGAGED IN SOLVING SOCIAL PROBLEMS.
I CAN TELL YOU AS A CANDIDATE IN THE STATE OF DELAWARE I WAS THE HANDS ON CANDIDATE,
I CAMPAIGNED A GREAT DEAL IN MY STATE, I WENT EVERYWHERE IN MY STATE.
BUT TOWARD ELECTION DAY YOU DIDN’T GO TO THE APARTMENTS TO KNOCK ON DOORS TO GET OUT THE
VOTE EXCEPT IN SENIOR HOUSING. YOU WENT TO NEIGHBORHOODS.
THAT DIDN’T MEAN YOU CARED LESS ABOUT PEOPLE IN THE APARTMENT UNITS, BUT YOU KNEW THEY
WERE� IF YOU ONLY HAD SIX HOURS LEFT YOU WOULD GO TO THE PLACES WHERE YOU WERE CONFIDENT
PEOPLE WERE MORE LIKELY TO VOTE. HAVING A STAKE IN YOUR COMMUNITY MATTERS.
SOME PEOPLE SAY AMERICANS HAVE GIVEN UP ON HOMEOWNER SHIP.
I LOOK AT SOME OF THE POLES, I’M REFERRED TO IN WASHINGTON AND OTHER PLACES AS MIDDLE
CLASS JOE. IN WASHINGTON THAT’S NOT MEANT AS A COMPLIMENT,
IT MEANS YOU ARE NOT SOPHISTICATED IF YOU ARE MIDDLE CLASS.
BUT THE TRUTH OF THE MATTER IS IT DOES MATTER. AND I’M TOLD THAT MIDDLE CLASS FOLKS NO LONGER
HAVE THE ASPIRATION TO OWN THEIR OWN HOMES. I’M TOLD IN SOME POEING DATA THAT THE EXPERTS�
POLLING DATA THAT THE EXPERTS COME BRIEF ME ON MIDDLE CLASS HAS A DIFFERENT VIEW, THEY
THINK IT’S MORE RATIONAL TO RENT THAN OWN, THEY DON’T HAVE THE SAME DREAMS TO SEND THEIR
KIDS TO COLLEGE BECAUSE OF THE DEBT INCURRED, SO ON AND SO FORTH.
I DON’T THINK THAT’S A CHOICE. I THINK THAT’S THE OPTION THEY ARE FACED WITH.
THEY DON’T HAVE MANY OTHER OPTIONS. THEY STILL DREAM.
LET ME EXPLAIN WHAT I MEAN BY “MIDDLE CLASS.” MIDDLE CLASS IS BEING ABLE TO OWN YOUR OWN
HOME EVENTUALLY AND NOT JUST RENT. MIDDLE CLASS MEANS BEING ABLE TO SEND YOUR
KID TO THE LOCAL PARK AND KNOW THEY WILL COME HOME SAFELY.
MIDDLE CLASS MEANS SEND YOUR KIDS TO THE LOCAL PUBLIC SCHOOL AND IF THEY DO WELL YOU KNOW
THEY HAVE A SHOT TO GET TO COLLEGE AND IF THEY GET TO COLLEGE YOU WILL FIGURE OUT A
WAY TO BE ABLE TO GET THEM THERE. AND WHEN MOM AND DAD DIES YOU WILL HAVE THE
CAPACITY TO TAKE CARE OF YOUR GERIATRIC PARENT WHO IS LIVING AND MAYBE BRING HIM OR HER HOME
WITH YOU AND HOPE THAT YOU WILL NEVER HAVE TO RELY ON YOUR CHILDREN WHEN YOU REACH THAT
AGE. THAT IS WHAT CLASSICALLY MIDDLE CLASS.
WHEN MIDDLE CLASS DOES WELL, THE WEALTHY DO VERY WELL AND THE POOR HAVE A CHANCE.
THEY HAVE A LADDER UP. THEY HAVE A VEHICLE.
SO WE NEED AFFORDABLE RENTAL HOUSING, WE ALSO NEED ACCESS TO HOMEOWNER SHIP.
RECENT GALLUP POLL SHOWS AMERICANS ARE HAPPY OWNING THEIR OWN HOME OR STRIVING TO OWN A
HOME. IT’S STILL PART OF THE AMERICAN DREAM AND
AS EVERY HOMEOWNER KNOWS IT’S MORE THAN A PLACE TO LIVE, IT PROVIDES YOU PERMANENCY,
GIVES YOU A SENSE OF BEING ROOTED AND BE A VEHICLE TO BUILD WEALTH.
NOT ONLY WEALTH, IN MANY CASES THE ONLY WEALTH MIDDLE CLASS FAMILIES CAN ACCUMULATE.
TODAY LESS THAN HALF AMERICAN HOUSEHOLDS OWN STOCK AND TWOTHIRDS OWN A HOME.
HOMEOWNERSHIP IS HOW MOST MIDDLE CLASS FAMILIES SAVE, HOW MOST MIDDLE CLASS FAMILIES BUILD
ASSETS AND FOR MANY IT’S THE WAIT YOU SEND YOUR KID TO COLLEGE, BORROWING AGAINST IT,
THAT’S HOW I GOT MY CHILDREN TO COLLEGE. NOW I MAKE A LOT OF MONEY AS VICE PRESIDENT.
AS THE PRESIDENT WAS MAKING THE SACRIFICES EVERY ONE MADE AFTER WE GOT INTO OFFICE, HE
SAID EXCEPT FOR JOE, HE’S GETTING A PAY RAISE. BUT FORTUNATELY I DON’T HAVE� I MADE SOME
STRANGE COMMITMENTS WHEN I RAN THE FIRST TIME BECAUSE THERE WAS A LOT OF SCANDAL ABOUT NIXON
AND STOCKS AND THE ELECTION I RAN, I WAS ASKED THE QUESTION IN THE LAST DEBATE WHAT IS MY
POSITION ON STOCK OWNERSHIP. WHAT IS MY POSITION ON SUSTAINING THE LAW
FIRM I FOUNDED AND WHAT ABOUT HONORARY UP. I DIDN’T KNOW WHAT THAT WAS.
FIRST I SAID I WOULD NEVER HAVE A HONORARIUM OR STOCK AND DE BENCHER, I DON’T KNOW WHAT
THAT WAS. DON’T MAKE THE COMMITMENT I MADE, DON’T TELL
THEM WHATEVER SCHOOL THEY CAN GET INTO YOU WILL SEND THEM THERE.
IT’S $68,000 A YEAR COME A LOT OF PRIVATE SCHOOLS NOW.
YOU THINK I’M JOKING BUT I’M NOT. THE WAY A LOT OF MY GENERATION PUT THEIR KIDS
THROUGH SCHOOL, I MADE $4 2,000 WHEN I WAS A SENATOR AND $67,000 WHEN I HAD TWO KID BUT
IT WAS BORROW AGAINST MY HOME. GO OUT AND CHECK WITH PEOPLE IN YOUR NEIGHBORHOOD
IF THEY HAVE COLLEGE AGE KIDS. ASK THEM WHAT THEY MISS MOST WHEN THE BOTTOM
FELL OUT OF THEIR HOME OR LOST THEIR HOME. THAT’S HOW THEY PLANNED ON GETTING THEIR KIDS
TO COLLEGE. HOMEOWNERSHIP IS AWAY TO PUT AWAY MONEY FOR
RETIRE, BUILDUP WEALTH TO LEAVE TO THEIR CHILDREN. I’M THE GUY THAT WROTE WHAT WAS AT THE TIME
FAIRLY CONTROVERSIAL WHEN I WAS A YOUNG SENATOR A REVERSE MORTGAGE PROGRAM.
I REMEMBER GOING TO MY MOM AND DAD SAYING THIS IS A GREAT IDEA, YOU WILL BE ABLE TO
KEEP YOUR HOME AND YOU WILL BE ABLE TO HAVE EXTRA INCOME BECAUSE ALL THEY HAD WAS SOCIAL
SECURITY AND THEIR INCOME AND I REMEMBER MY DAD SAYING BUT IF I DO THAT I WILL HAVE NOTHING
TO LEAVE TO YOU. I WILL HAVE NOTHING TO LEAVE TO YOU.
WE DIDN’T NEED HIM TO LEAVE ANYTHING TO US BUT HIS NOTION WAS ABOUT HOMEOWNERSHIP IS
I WILL HAVE SOMETHING TO LEAVE TO MY CHILDREN. EVERY TIME A HOMEOWNER MAKES A MORTGAGE PAYMENT
AND PAYS DOWN THE PRINCIPAL THERE’S SAVINGS. IT’S NOT LIKE IT WAS IN THE BUBBLE BUT IT’S
AN INVESTMENT. EVERY TIME THE HOUSING VALUE GOES UP A HOMEOWNER
BUILDS WEALTH. EVERY TIME THE HOMEOWNER PAIN THE WALLS OR
REDUCE THE KITCHEN A FAMILY MAKES AN INVESTMENT. TODAY AMERICANS HAVE $20 TRILLION COME WEALTH
IN THEIR HOMES AND OLDER AMERICANS HOUSING WEALTH MAKES UP ONE QUARTER OF THEIR NET WORTH
JUST AS VALUABLE AS COMPANY PENSIONS THROUGH SOCIAL SECURITY AND ALL THIS UNDERSCORES HOUSING’S
CRITICAL ROLE IN OUR SOCIAL FABRIC. SIMPLY PUT HOMEOWNERSHIP IS THE CORNER STONE
OF MIDDLE CLASS PROSPERITY AND ACCESS TO THE POOR.
BUT SIX YEARS AGO THAT CORNER STONE WAS BEING JACKHAMMERED.
IN JANUARY 2009 WHEN THE PRESIDENT AND I WAS BEING SWORN IN THE HOUSING MARKET WAS IN FREE
FALL. HOUSING MARKETS HAD FALLEN 20% AND MUCH MORE
IN MANY PARTS OF THE COUNTRY. NEARLY 3 MILLION HOMES WOULD FALL INTO FORECLOSURE
BEFORE THAT YEAR’S END AND ONE IN FOUR HOMES WOULD BE UNDER WATER, 11 MILLION HOMES IN
TOTAL. AN AWFUL LOT OF INNOCENT PEOPLE WERE HURT
IN THE GREAT RECESSION. APPARENTLY DID EVERYTHING RIGHT, NEVER MISSED
A MORTGAGE PAYMENT, PAID EVERY UTILITY BILL. THOUGH WERE SEEING THE VALUE OF THEIR HOMES
EVICERATED AND AS THEY SAW THE LAWNS ON THE HOMES NEXT TO THEM TURN BROWN BECAUSE THEY
WERE FORECLOSED THEY SAW THE VALUE OF THEIR HOME PLUMMET.
MANY FAMILIES ENDED UP LOSING THEIR HOUSES, THE PLACE THEY HAD THEIR WEALTH.
EVEN THOSE WHO KEPT THEIR HOMES LOST EQUITY SO FAMILIES, AS I SAID, WEREN’T ABLE TO BORROW
OR JUST LOST THAT SENSE OF WEALTH. AND GAVE THEM A SENSE OF WELL BEING, THE WEALTH
FACTOR AS MANY ECONOMISTS WROTE ABOUT. AND SO, PEOPLE BEGAN TO LOSE FAITH BECAUSE
AS THE WEALTH EFFECT SET IN, THE LOSS OF IT, A LOT OF OTHER CONDUCT AND BEHAVIOR CHANGED
IN THE WAY PEOPLE LIVED THEIR LIVES, THE WAY PEOPLE SAVED AND SPENT MONEY, AND, SO, WHEN
WE TOOK OFFICE WE HAD TO TAKE IMMEDIATE ACTION TO STABILIZE NEIGHBORHOODS AND STEM THE TIDE
OF FORECLOSURE WHILE IN THE PROCESS WE LAUNCHED WHAT WERE THEN CONTROVERSIAL PROGRAMS.
WE LAUNCHED MORTGAGE MODIFICATION INITIATIVES THAT HAVE LED TO� THE GOOD NEWS IS THEY
LED TO MORE THAN 8 MILLION HOMEOWNERS GETTING GOVERNMENT OR PRIVATE SECTOR RELIEF.
THE HOME AFFORDABLE REFINANCING PROGRAM AND FHA’S SHORT REFINANCE PROGRAM WAS CREATED,
CREATED OPPORTUNITIES FOR 3.5 MILLION UNDER WATER BORROWERS.
WE ESTABLISHED THE HARDEST HIT INCOME WHICH COMMITTED $7.6 BILLION TO STATES TO DEVELOP
LOCAL PROGRAMS TO DECREASE BLIGHT AND HELP HOMEOWNERS.
THAT HELPED REDUCING PRINCIPAL AND HELPED BRIDGE THE UNEMPLOYMENT THAT THEY WERE GOING
THROUGH FOR THE MOMENT. WE PUT 7 BILLION DOLLARS TO WORK FIXING UP
AND SECURING FORECLOSED OR ABANDONED HOMES IN ENDANGERED NEIGHBORHOODS THROUGH HUD STABILIZATION
PROGRAM. THIS IS LIKE PREACHING TO THE CHOIR, MANY
OF YOU WERE PART OF THIS. I VISITED THESE COMMUNITIES ALL ACROSS THE
NATION. LAST ONE I WAS IN DETROIT.
THE PROGRAM IS PROJECTED TO SUPPORT CLOSE TO 90,000 JOBS AND TREAT OVER 100,000 PROPERTIES
HELPING TO PRESERVE AND CREATE HOMEOWNERSHIP BUT AFFORDABLE RENTAL AS WELL AND HOUSING
REBOUNDED. OVER THE PAST TWO YEARS HOUSING PRICES WERE
UP ALMOST 25%, OVER 5 MILLION HOMEOWNERS ARE NO LONGER UNDER WATER.
FORECLOSURES ARE AT THE LOWEST LEVEL BEFORE THE GREAT RECESSION AND EVEN THOUGH HOUSING
IS BACK WE CONTINUE TO HAVE TO FIGHT FOR HOMEOWNERS BECAUSE A LOT ARE LEFT BEHIND.
A LOT OF PEOPLE GOT KICKED OUT OF THE HOUSING MARKET.
THEY LOST EVERYTHING SO WHEN HOUSING WENT BACK UP THEY WEREN’T PART OF THIS, THAT’S
WHY THE VAST MAJORITY OF THE RECOVER I HAS GONE TO THE TOP 1% NOT BECAUSE THEY ARE BAD
GUYS OR DID ANYTHING WRONG, BUT BECAUSE MOST OF THE MIDDLE CLASS PEOPLE GOT OUT OF THE
STOCK MARKET AND SO MANY OF THEM LOW AND MIDDLE CLASS WORKING PEOPLE LOST THE OTHER VEHICLE
THEY HAD TO ACCUMULATE WEALTH, THEIR HOME AND WEREN’T ABLE TO GET BACK IN AS THINGS
WENT BACK UP. EARLIER THIS YEAR THE PRESIDENT ALONG WITH
ME AND SECRETARY CASTRO REDUCED THE PRICE OF HOMEOWNER SHIP, $900 A YEAR MAKES A DIFFERENCE
IN A LOT OF FAMILIES. WE FORGET THAT, DEMOCRATS AND REPUBLICANS.
MOST OF THE PEOPLE ARE WELL EDUCATED AND MAKE A DECENT LIVING.
$900. WE KNOW THE ANSWER CAN’T BE HOMEOWNER SHIP
ALONE. WE KNOW THE KEY TO PRESERVING OUR HOMES IS
MIDDLE AND WORKING CLASS ALSO RESTS ON WIDELY AVAILABLE HIGH QUALITY AFFORDABLE RENTAL HOUSING.
WHEN THERE’S NOT ENOUGH RENTAL HOUSING TO BE IN THE COMMUNITY EVERYTHING IS VASTLY CHANGE.
DOMESTIC VIOLENCE VICTIMS HAVE NO PLACE TO GO AND AFFORD TO GO.
TO YOUNG PEOPLE BEING HELD BACK FROM STRIKING OUT ON THEIR OWN BECAUSE THEY CAN’T AFFORD
TO GET INTO THEIR OWN HOUSES. MANY FAMILIES CAN BE SAVING UP FOR A DOWN
PAYMENT AND HOME OF THEIR OWN BECAUSE THE RENTAL PRICES DRIVE UP, I MEAN THE HOUSING
PRICES ARE DRIVEN UP. FOR MILLIONS OF PEOPLE HOUSING COSTS ARE SIMPLY
TOO HIGH. IN 2013, 7.7 MILLION FAMILIES WITH LOW INCOME
PAID MORE THAN HALF THEIR INCOME IN RENT, HALF THEIR INCOME IN RENT.
THIS IS DRIVES ENBY A DIRTH OF AFFORDABLE U.S.A.ING.
RIGHT NOW THERE ARE 8 MILLION FAMILIES LOOKING FOR A HOME THAN THERE ARE DECENT HOMES FOR
THEM TO AFFORD. WE NEED TO INCREASE THE STOCK OF AFFORDABLE
HOUSING. ONE WAY TO INCREASE THE SUPPLY, IS FOR THOSE
WHO NEED IT IS TO TAKE A LOOK AT THE POLICIES THAT RIGHT NOW STAND IN THE WAY OF HOME CONSTRUCTION
IN LOCAL COMMUNITIES. I WAS TELLING MY STAFF OF ECONOMISTS AS WE
WERE PREPARING THIS SPEECH THAT ONE OF THE REASONS THAT BROUGHT BACK BAD MEMORIES, ONE
OF THE REASONS WHY I RAN FOR THE UNITED STATES SENATE AS A 29YEAROLD KID WAS I NEVER WANTED
TO ATTEND A ZONING COMMITTEE AGAIN. YOU THINK I’M KIDDING.
WAR AND PEACE IS MORE SOLUBLE THAN TRYING TO PUT IN A PUBLIC HOUSING IN A NEIGHBORHOOD
OR GAS STATION ON A CORNER OR NEW HOUSING PROJECT OR A TRACK HOUSING.
I USED TO BE COUNTY COUNCILMAN, WE DID ZONING. SOME OF THE POLICIES THAT EXIST IN THE COUNTY
AND STATE LEVEL ARE THERE FOR GOOD REASONS BUT THEY CAN HAVE A SERIOUS NEGATIVE IMPACT
WHEN THEY RESTRICT HOUSING FOR LEGITIMATE NEEDS.
THEY REDUCE SKILLS WORKERS ACCESS TO EMPLOYMENT BY RESTRICTING MIGRATION AND REDUCE THE GROWTH
OF OUR ECONOMY BY BLOCKING LABOR MIGRATION. THAT’S WHY IN THE PRESIDENT’S BUDGET WE ARE
PROPOSING $300 MILLION FOR NEW LOCAL GRANT PROGRAM, HELP LOCAL COMMUNITIES TO REFORM
ZONING, PERMITTING PROCESSES AND OTHER LAND USE REGULATION AND CREATE MORE LASTING HOUSING
SUPPLY. THE PRESIDENT’S BUDGET ALSO INCLUDES A PROPOSAL
THAT WOULD ALLOW STATES TO EXPAND LOW INCOME TAX CREDITS.
THE PRIMARY VEHICLE FOR AFFORDABLE HOUSING CONSTRUCTION FOR UP TO 50% BY CONVERTING PRIVATE
ACTIVITY BOND AUTHORITY THAT OFTEN GOES UNUSED. OUR BUDGET INCLUDES FUNDING FOR RENTAL HOUSING
AND ASSISTANCE TO SUPPORT 4.7 MILLION AMERICAN FAMILIES INCLUDING RESTORATION OF 67,000 HOUSING
CHOICE VOUCHERS LOST IN 2013 DUE TO SEE REQUEST RAYTION.
AND, BY THE WAY, I’M SETTING THESE NUMBERS BUT YOU ALL KNOW IT’S ONE FAMILY AT A TIME.
IT’S ONE FAMILY AT A TIME. IT’S THE GAME CHANGER FOR FAMILIES.
AND WE ARE GOING TO CONTINUE TO PRESS FOR GREATER FUNDING FOR AFFORDABLE HOUSING PROGRAMS
LIKE THE HOUSING TRUST AND CAPITAL MANAGEMENT FUNDS.
WE ARE COMMITTED TO SAFE GUARDING SUPPLY OF AFFORDABLE HOUSING DURING FUTURE ECONOMIC
CRISIS THROUGH HUD’S TAX CREDIT ASSISTANCE PROGRAM AND CREDIT EXCHANGE PROGRAM.
NOW, THIS IS LIKE LATIN AND GREEK TO MOST AUDIENCES BUT THIS IS PROBABLY THE ONLY AUDIENCE
THAT WOULD UNDERSTAND ALL THOSE PROGRAMS AND TO THE DEPARTMENT OF TREASURY WE ARE PARTNERING
WITH STATES AND FINANCE AGENCIES FOR THE REHABILITATION OF 40,000 RENTAL UNITS.
IT ALL COMES DOWN TO GIVING PEOPLE IN THIS COUNTRY JUST A SHOT AND THE SINGLE MOST IMPORTANT
SHOT FOR FAMILIES IS A PLACE TO LIVE SECURELY. ORDINARY PEOPLE CAN DO EXTRAORDINARY THINGS
WHEN THEY HAVE A BASE AND FOUNDATION AND OPPORTUNITY. ALL THEY’RE ASKING FOR IS A CHANCE.
A CHANCE TO RAISE THEIR FAMILIES, BUILD THEIR DREAMS, SO IT’S A HONOR TO STAND WITH YOU
ALL AND TO CONTINUE THE FIGHT FOR IN THE WORDS OF ABRAHAM LINCOLN EVERY LIVING HEART AND
HEART STONE BECAUSE THE HEART AND HEARTHSTONE WILL ALWAYS BE THE CORE OF WHO WE ARE AS A
COUNTRY. AND EVERY GENERATION HAS PROVEN TIME AND AGAIN
WHEN GIVEN A DECENT FOUNDATION TO BUILD THEIR DREAMS ON THE AMERICAN PEOPLE NEVER EVER,
EVER, EVER HAVE LET THEIR COUNTRY DOWN BUT THEY’VE GOT TO BE BROUGHT INTO THE DEAL.
THEY HAVE TO LEVEL THE PLAYING FIELD A LITTLE BIT.
GIVE THEM A SHOT AT THE MOST BASIC THING BEYOND A JOB THEY ARE LOOKING FOR.
AND YOU WANT TO MAKE IT WORK. SO REALLY IT’S AN HONOR TO GET TO SPEAK BEFORE
ALL OF YOU. BUT I PROMISE YOU, THE PRESIDENT AND I ARE
WITH YOU. WE’RE COMMITTED TO CONTINUE TO EXPAND THE
OPPORTUNITY FOR AVERAGE AMERICANS, STRUGGLING AMERICANS, TO HAVE A HEARTHSTONE.
BECAUSE Y’ALL KNOW IN YOUR GUT, IT’S THE BASIS UPON WHICH ALMOST EVERYTHING ELSE WAS BUILT
WITH FAMILIES AND WITH INDIVIDUALS. SO I THANK YOU ALL FOR THE WORK YOU DO.
I THINK WE HAVE A GREAT OPPORTUNITY. I JUST CAME FROM A PRAYER BREAKFAST IN THE
WHITE HOUSE, AND I SAID, YOU KNOW, LENT IS OVER, EASTER HAS OCCURRED, PASSOVER IS ABOUT
TO FINISH AND WHAT’S IT ALL ABOUT, ALL OF IT?
IT’S ALL ABOUT HOPE. IT’S ALL ABOUT PROMISE IN BOTH OF THE GREAT
CONFESSIONAL FAITHS. I’M NOT TURNING THIS INTO A SERMON, I PROMISE
YOU. BUT IT REALLY IS ABOUT GIVING PEOPLE A CHANCE.
THIS IS THE BEST CHANCE WE CAN GIVE PEOPLE, OTHER THAN A CHANCE FOR A JOB.
A CHANCE TO BE ABLE TO HAVE A HEARTHSTONE TO REALITY YOUR OWN.
YOU’RE KEY TO IT. I PROMISE YOU’RE IN ON THE DEAL.
THANK YOU FOR LISTENING. MR.�SECRETARY, THANK YOU. �[APPLAUSE]
[INAUDIBLE]>>NOW HAVE A BRIEF PROGRAM BREAK.>>TEST, ONE, TWO.>>WELCOME BACK, EVERYBODY.
I’M LYNN ROSS AGAIN. DEPUTY ASSISTANT SECRETARY FOR POLICY HERE
AT HUD. WE CERTAINLY HAD SOME EXCITEMENT AND WE’RE
GLAD TO SEE SO MANY OF YOU TO STICK WITH US FOR WHAT IS OUR FINAL PANEL, BUT A REALLY
EXCITING PANEL. SO WE’RE IN THE HOME STRETCH OF OUR PROGRAM.
WE’RE JUST ABOUT TO ENJOY OUR MOVING TO SOLUTIONS PANEL.
THIS MORNING WE REALLY DRILLED INTO THE EVIDENCE, REALLY UNDERSTANDING THE DRIVERS ON HOUSING
COSTS AND WHAT IT’S GOING TO TAKE TO EXPAND HOUSING AFFORDABILITY.
SO THIS PANEL IS THAT TRANSLATION. SO WHAT IS THAT EVIDENCE TELLING US?
HOW IS IT WORKING ON THE GROUND? YOU’RE GOING TO HEAR FROM A REALLY FANTASTIC
AND DIVERSE PANEL ABOUT REAL WORLD SOLUTIONS THAT THEY HAVE IN PLACE.
AS YOU CAN SEE, THEY’RE RARING TO GO ALREADY ON STAGE WITH ME.
I’M JUST GOING TO REMIND YOU THAT WE ARE LIVE TWEETING AND SAME FOR YOUR QUESTIONS.
PLEASE TWEET TO PDR EVENTS AND USE THE HASHTAG HOUSING OPPORTUNITY.
WITH THAT, I’M GOING TO TURN THINGS OVER TO BEN HAVOC WHO IS THE PRESIDENT AND CEO OF
LIVING CITIES. TAKE IT AWAY, BEN.
>>THANK YOU. GREAT.
THANK YOU VERY MUCH, LYNN. WE’RE GOING TO TRY TO TAKE A THROUGH LINE
FROM THIS MORNING’S CONVERSATION ABOUT WHAT THE EVIDENCE IS AND TALK TO SOME OF THE FOLKS
WHO ARE WORKING AROUND THE WORLD AND THE U.S. ON HOW ARE THEY SOLVING THE PROBLEMS THAT
ALL OF THAT DATA AND EVIDENCE SHOWS IN NEW, CREATIVE OR OLD AND CREATIVE WAYS, BUT TO
TRY TO REALLY GET TO SCALE. SO LET ME INTRODUCE THE PANELISTS.
THEN WE’RE GOING TO GIVE EACH PANELIST ABOUT FIVE MINUTES TO HIGHLIGHT THE THREE THINGS
THAT THEY THINK ARE THE MOST EXCITING AND ENCOURAGING SOLUTIONS THAT ARE OUT THERE ABOUT
TRANSLATING THAT DATA INTO POLICY AND PRACTICE. FIRST MY ON LEFT IS YON MIsHKA TALKING ABOUT
SOLUTIONS THEY’VE SEEN IN THE REPORT THAT YOU HEARD TO REFERRED TO THIS MORNING AROUND
THE GLOBE TO REALLY TURN THESE PROBLEMS INTO PRACTICE.
THEN WE’RE� SO WE TRIED TO BE MACRO TO MICRO IN A WAY.
THEN WE’LL GO TO THE MAN, ARTHUR JAMISON FOR THE CITY OF DETROIT.
THEN WE’RE GOING TO HEAR FROM CYNTHIA PARKER WHO RUNS ONE OF THE MOST PRODUCTIVE HOUSING
DEVELOPERS THIS THETRY, BRIDGE HOUSING. THE PRESIDENT AND CEO OF BRIDGE HOUSING, CYNTHIA
PARKER. BETSY SPENCER, THE DIRECTOR OF NEIGHBORHOOD
HOUSING AND COMMUNITY DEVELOPMENT FOR ONE OF THE FASTEST GROWING CITIES IN AMERICA,
AUSTIN, TEXAS. THEY’LL BRING TO YOU THE SOLUTIONS MOST PROMISING.
WITH THAT, YON, TO YOU.>>THANK YOU, BEN.
THERE’S NO ONE SIZE FITS ALL ANSWER TO HOUSING. WHEN YOU SEE THINGS BEING APPLIED TO DIFFERENT
PLACES AROUND THE WORLD. FOR BREVITY, LET ME FOCUS ON LAND AND SPECIFICALLY
ACTIVATING IDLE LAND, TRANSIT ORIENTED DEVELOPMENT AND PROPERTY AND/OR LAND VALUE CAPTURE.
WHEN WE LOOK THE CITIES AND AFFORDABILITY GAP, WE SEE THAT THE GAP IS CONCENTRATED ON
150 CITIES WORLDWIDE. THESE CITIES TEND TO BE LARGE, FAST GROWING
AND CONSTRAINED IN THEIR EXPANSION IN SOME WAY.
THAT USUALLY MAKES LAND UP TO 50, 60, 70% OF TOTAL UNIT COST.
WE FIND WAYS TO BRING THAT DOWN TO THE MORE NORMAL 20% OF UNIT COSTS IN MORE AFFORDABLE
PLACES, IT’S VERY DIFFICULT TO LEAVE A MARK ON AFFORDABILITY.
LONDON WOULD MAYBE BE A CASE IN POINT. THE CITY NEEDS 70,000 UNITS PER YEAR, STRUGGLES
TO DELIVER MORE THAN HALF OF THAT RATE BECAUSE IT HAS A GREEN BELT AROUND, FAIRLY MIDLEVEL
DENSITY. IT’S NOT LIVING UP TO THE SCALE THAT IT NEEDS
TO PROVIDE. SOME CITIES HAVE FOUND WAYS TO ACTIVATE IDLE
LAND WITHIN CITY BOUNDARIES. SAUDI, FOR EXAMPLE, FOUR 40 SQUARE KILOMETERS
OF LAND NOW TO BRING TO THE MARKET. ON THE PUBLIC LANDSCAPE TOPIC, ISTANBUL OR
MORE BROADLY TURKEY, HAS IDENTIFIED 40,000KILOMETERS OF UNUSED PUBLIC LAND.
IT’S ALREADY DEVELOPED 500,000 HOMES ON THOSE AND MORE TO COME.
BUT AT SOME STAGE, YOU ALSO NEED TO DEVELOP THE CITY FURTHER AND YOU NEED TO DO SO IN
A TRANSIT ORIENTED WAY BECAUSE LOW INCOME FAMILIES USUALLY DON’T HAVE CARS.
WITHIN CITY BOUNDARIES, IT’S WORTH LOOKING AT CITIES LIKE SEOUL.
SEOUL HAS ACTUALLY VARIED FLOOR AREA RATIOS WITHIN CITY BOUNDARIES IN VERY SMALL VICINITIES
BY FACTOR EIGHT WITHIN PROXIMITY OF TRANSIT HUBS AND MAJOR ROADWAYS.
THAT’S HOW EXTREME IT CAN GET. BEFORE YOU DEVELOP FURTHER OUTSIDE, BRING
IN THE TRANSIT, THE TRAIN LINES AND SO ON. HONG KONG IS THE MOST WELLKNOWN EXAMPLE EXPANDING
INTO THE NEW TERRITORIES AT 140,000 HOMES PER YEAR, BRINGING IN THE RAILROAD INFRASTRUCTURE.
YOU CAN SEE IN MY HOMETOWN ZURICH HAPPENING IN SLOW MOTION OVER THE CENTURIES.
NEW INFRASTRUCTURE BUT ALSO REDEVELOPMENT AND PROVIDING THE AFFORDABLE HOUSING IS EXPENSIVE
AND MANY OF YOU WORKING IN POLICY KNOW THAT PUBLIC BUDGETS AND EVEN MORE SORE CITY BUDGETS
TEND TO BE CONSTRAINED. WE SHOULD NOT FORGET THAT BRINGING IN THIS
INFRASTRUCTURE AND REALLY DEVELOPING CITY AREAS IS AT LEAST AS VALUABLE AS IT IS EXPENSIVE.
THE NEW FRIEND RISE FROM 30 TO 50%. THEY CAN GO UP IF YOU DEVELOP TOO HIGH OF
DENSITIES. ANTICIPATE WELLKNOWN SINGAPORE PURCHASES LAND
FOR REDEVELOPMENT AND SELLS ONLY LEASE OUT CAPTURING THE VALUE FOR THE PUBLIC AT LARGE,
BUT ALSO IN THE WESTERN HEMISPHERE, IF YOU LOOK AT THE CITY OF BARCELONA AND THE MARINA
REDEVELOPMENT INCREASED FLOOR RATIOS FROM ONE TO 2.4.
THAT WAS SUFFICIENT TO GET THE DEVELOPER TO PAY FOR MOST OF THE INFRASTRUCTURE NEEDS,
AS WELL AS PROVIDING 50%, 50 OF UNITS AT SUBMARKET AFFORDABLE RATES.
SO ACTIVATING IDLE LAND, TRANSIT ORIENTED DEVELOPMENT AND CAPTURING THE VALUE ASSOCIATED
WITH IT.>>SUPER.
I’M GLAD YOU FOCUSED ON THE LAND. WHAT I MEANT TO DO AND I GOT CAUGHT UP IN
THE EXCITEMENT OF INTRODUCING EVERYBODY WAS THAT I THINK YOU’LL HEAR SOME THEMES THROUGH
THESE CONVERSATIONS THAT WERE THE SAME THEMES YOU HEARD EARLIER TODAY.
LAND IS ONE OF THEM. HOW DO YOU ACTUALLY GET MORE FROM THE LAND?
YOU’LL HEAR ACROSS THESE FOUR SPEAKERS THE DIFFERENT WAYS THAT THAT’S BEING DONE.
THE OTHER WAY, OF COURSE, IS FINANCING. HOW CAN YOU USE NEW AND DIFFERENT WAYS OF
FINANCING IN ORDER TO GET TO ADDRESS THE CHALLENGES OF SUPPLY.
AND THEN HOW CAN WE REALLY REDUCE THE COST. SOME OF YOU, LIKE ME, WORKED AT ENTERPRISE
WHEN IT WAS CALLED ENTERPRISE FOUNDATION STARTED BY JIM ROUsE.
THOSE OF YOU WHO KNEW HIM EARLY ON, HE WAS ALWAYS WE HAVE TO FIGURE HOW TO DO IT FOR
A LOT LESS COST. WE FOUND THAT WASN’T THE ONLY ANSWER.
BUT IT STILL HAS TO BE PART OF THE SOLUTION. WE’RE GOING TO HEAR PEOPLE TALK ABOUT HOW
CAN WE ADDRESS THE COSTS AND WHAT ARE SOME NEW WAYS TO GET PEOPLE FOCUSED ON GETTING
LARGER NUMBER OF UNITS DONE. CAN WE REALLY MEASURE AND HOLD OURSELVES ACCOUNTABLE
FOR MEASURING AMBITIOUS GOALS IN THIS AREA? YOU’RE GOING TO HEAR THAT FROM MANY OF THESE
SPEAKERS AS WELL. LOOK FOR THOSE AND HOPEFULLY YOU’LL HAVE QUESTIONS
ABOUT THOSE AS WELL. SO ARTHUR WAS THE HEAD OF HOUSING COMMUNITY
DEVELOPMENT FOR THE STATE OF MASSACHUSETTS AND THEN FOR THE LAST SIX MONTHS HAS BEEN
DOING A SIMILAR JOB FOR THE STATE OF DETROIT, MICHIGAN.
SO WE’RE REAL INTERESTED TO HEAR YOUR LEARNINGS FROM THOSE TWO PLACES, ARTHUR.
>>SURE. I’LL GIVE YOU THREE NUMBERS THAT I’LL FOCUS
ON. ONE IS 10,000 MULTIFAMILY HOUSING UNITS.
THE SECOND IS $3,000. THE THIRD ONE IS 250 A WEEK.
10,000 UNITS. IN 2012, DECEMBER GOVERNOR PATRICK ANNOUNCED
OR THEN GOVERNOR PATRICK ANNOUNCED A 10,000 UNIT GOAL FOR PRODUCTION OF MULTIFAMILY HOUSING
AROUND THE STATE. THIS WAS IMPORTANT BECAUSE IT WAS THE PRODUCT
OF A WORKING GROUP I WAS LEADING THAT WAS TRYING TO DEVELOP A MESSAGE THAT WE COULD
SHARE WITH THE LEADERS OF A SERIES OF SMALL AND MEDIUM SIZED CITIES AROUND THE STATE.
WHERE MASSACHUSETTS HAS REALLY STRUGGLED OVER THE YEARS WITH HAVING INAPPROPRIATELY� NOT
HAVING ADEQUATELY APPROPRIATE ZONED LAND FOR THE HOUSING.
IT’S DIFFICULT TO GET THAT HOUSING PRODUCED IN AREAS OF HIGH OPPORTUNITY AROUND THE STATE.
SO THE GOVERNOR AND THE SECRETARY NEEDED A GOAL THAT WOULD HELP US FIGURE OUT WHAT THE
PROBLEMS ARE IN THE DELIVERY SYSTEM OF HOUSING AND GIVE PEOPLE, GIVE DEVELOPERS AND GIVE,
MOST IMPORTANTLY, THE AUDIENCE THAT CONTAINED LOCAL LEADERS THIS STORM OF STIMULUS THEY
NEEDED TO MAKE CHANGES IN THE WAY THEY GOVERNED AND SOLD LAND IN THEIR PORTFOLIOS.
SO THAT GOAL WAS VERY SUCCESSFUL I’M PLEASED TO SAY.
WE WON AN AWARD FOR IT. THE FEW THINGS THAT CAME OUT OF IT THAT WERE
CRITICALLY IMPORTANT. SETTING A METRIC THAT WE WERE ALL FORCED TO
ARE TRY TO DRIVE COMMUNITIES FOR. CREATE A SET OF POSITIVE INCENTIVES.
ONE IT CAUSED EACH OF THE LOCALITIES TO DECIDE, LOOK, THAT’S GREAT.
I DON’T REALLY CARE ABOUT THAT, BUT I WANT A DRIVEWAY TO MY NEW INDUSTRIAL PARK.
YOU’RE NOT GOING TO GET THAT UNLESS YOU’RE PUTTING SOME NUMBERS ON THE BOARD AGAINST
THE 10,000 UNITS. THE SECOND THING IT CAUSES TO DO IS LOOK AT
THE WAY THE CITY IN THE DIFFERENT PARTS OF THE STATE CALCULATED THE PRODUCTION OF HOUSING.
FOR EXAMPLE, ALMOST NO ADAPTIVE REUSED UNITS, SPECIFICALLY THEIR DEVELOPMENTS OF SOME OF
OUR OLD MILL TOWNS WERE BEING COUNTED BECAUSE OF THE WAY ORGANIZATIONS AND THE REVENUE CALCULATORS
LOOKED AT THAT KIND OF HOUSING. SO CREATING A METRIC REALLY DROVE THE PROCESS.
$3,000, ANOTHER INITIATIVE IN THE COMMONWEALTH OF MASSACHUSETTS WAS SOCIAL INNOVATION FINANCIAL
PROJECT THAT THE STATE OFFERED A SERIES OF DOLLARS EFFECTIVELY REFUNDABLE FOR OTHER SOURCES
OF INCOME THAT THE STATE HAS. BY WAY OF EXAMPLE, IT COSTS ABOUT $6,000 IN
MEDICAID TO HAVE A HOMELESS PERSON ON THE STREET.
$3,000 IN STATE CONTRIBUTIONS AND ABOUT $3,000 WORTH OF FEDERAL CONTRIBUTIONS.
A GREAT DATA SOURCE WAS SORT OF HARVESTED BY THE TEAM OVER AT THE HARVARD SIF LAB AND
SAID YOU CAN USE $3,000 TO ADVANCE YOUR CAUSE, WHAT WOULD YOU DO?
WE SELECTED THE MASS HOUSING SHELTER ALLIANCE. THEY CAME UP WITH A SIF PROJECT THAT WAS GOING
TO HOUSE 5 TO 600 OF THE LONGEST STAYERS OF THE CHRONICALLY HOMELESS INDIVIDUAL IN THE
STATE. A PACKAGE THAT INCLUDED THE RELEASE OF SOME
OF THE RESTRICTIONS AROUND THE DEDICATION OF SHELTER MONEY, $3,000 WORTH OF SAVINGS
THAT WERE GENERATED EACH TIME YOU COULD MEASURE THAT A PERSON HAD BEEN OFF THE STREET FOR
A YEAR AND A SMALL NUMBER OF LOCALLY GENERATED VOUCHERS.
MASSACHUSETTS HAD THE VOUCHER SYSTEM LIKE HTV.
THAT PACKAGE OF BENEFITS CAME TOGETHER AND MADE IT POSSIBLE FOR THEM TO GET PRIVATE INVESTMENT
AND, YOU KNOW, IN DECEMBER THAT PROJECT WAS LAUNCHED.
I WAS THE NEGOTIATOR WITH THE DEVELOPMENT TEAM THAT PUT IT TOGETHER.
IF IT HADN’T BEEN FOR DATA, WE WOULD NOT HAVE BEEN ABLE TO GET THE KEY PIECE OF THAT TO
HAPPEN, WHICH WAS CONVINCING THE MANAGED CARE AGENCIES IN THE STATE THAT THIS WAS GOING
TO SAVE THEM MONEY WHILE ALSO PROVIDING BETTER SERVICE TO HOMELESS INDIVIDUALS.
250 IS MY LAST NUMBER. I’M ONLY SIX MONTHS IN IN THE CITY, I’VE GOT
MANY TALES TO TELL. AS I WAS JOKING WITH LYNN, I WOULDN’T HAVE
BEEN INVITED FOR THE WORK I’VE DONE IN DETROIT YET.
JUST TO TALK ABOUT THAT BRIEFLY. 250, OUR MAYOR HAS CABINET MEETINGS EVERY
WEEK DURING WHICH EVERY SINGLE CABINET MEMBER HAS A METRIC OR SERIES OF METRICS THEY HAVE
TO REPORT OUT ON ON A WEEKLY BASIS. YOU GET TO SELECT THEM.
ONCE YOU’VE SELECTED THEM, YOU’RE GOING TO BE HOISTED AT SOME POINT DURING THE TIME.
BUT WHAT’S CRITICAL ABOUT THAT IS EVERY SINGLE WEEK WE’RE TALKING ABOUT HOW LONG IT TAKES
FOR POLICE TO RESPOND, HOW LONG IT TAKES FOR FIRE TO RESPOND, HOW MANY FIRES THERE WERE
AND MORE APPLICABLE TO THIS CONVERSATION IN HAVING A CONVERSATION ABOUT HOW MANY DANGEROUS
AND EXPOSED HOUSES HAVE BEEN DEMOLISHED. WE’RE IN A CONVERSATION ABOUT HOW MANY NEW
AUCTION SALES HAVE TAKEN PLACE AND HOW MANY NEW FINANCINGS HAVE BEEN DONE ON AUCTION HOUSES
OFFERED BY OUR LAND BANK. SO AGAIN, USING METRICS AS A WAY TO DRIVE
THE CONVERSATION AND DRIVE PERFORMANCE IN YOUR STAFF I THINK HAS BEEN WORKING IN GOVERNMENT
AND THE PRIVATE SECTOR AND DEVELOPMENT FOR ABOUT 20 YEARS, I’VE NEVER SEEN QUITE THIS
EMPHASIS ON METRICS. I WILL SAY THAT I THINK IT’S BEGINNING TO
YIELD RESULTS THAT I CAN SEE AND HOPEFULLY RESIDENTS IN THE CITY CAN SEE.>>SUPER.
CYNTHIA.>>SURE.
I THINK I’M GOING TO AGREE WITH WHAT HE SAID EARLIER.
METRICS ARE INCREDIBLY IMPORTANT. FOR BRIDGE, WE SET A GOAL FOR OURSELVES OVER
THE 30 YEARS THAT WE’VE BEEN IN EXISTENCE AS A NONPROFIT.
WE’VE CREATED ABOUT 15,000 UNITS OF AFFORDABLE HOUSING.
AND WE OWN AND MANAGE A LITTLE OVER 10,000 OF THOSE UNITS.
A COUPLE OF YEARS AGO WE SET A GOAL OF DOUBLING THE SIZE OF THE COMPANY OVER A FIVEYEAR PERIOD
AND THIS WAS DURING A PERIOD OF TIME WHEN CALIFORNIA HAD ESSENTIALLY ELIMINATED MOST
OF ITS SUBSIDIES SOURCES THROUGH REDEVELOPMENT. I’M VERY HAPPY TO SAY WE’RE ON TRACK.
RIGHT NOW WE’VE GOT ABOUT 2,000 UNITS UNDER PRODUCTION.
WE’RE EXPECTING TO HAVE WELL OVER 6,000 UNITS AHEAD OF PLAN PRODUCED BY THE TIME THE FIVEYEAR
PERIOD ENDS. BUT WE’RE ALSO WORKING VERY HARD TO COLLABORATE
WITH OTHERS IN OUR NETWORK AND ACROSS THE COUNTRY TO TRY TO EXPAND THE SUPPLY.
WE REALLY NEED TO STOP TREATING AFFORDABLE HOUSING AS A BOUTIQUE INDUSTRY AND DOING THESE
SORT OF 60UNIT, 050UNIT, ALL VERY IMPORTANT BUT IF YOU REALLY WANT TO ATTACK THE PROBLEM,
YOU HAVE TO LOOK AT IT FROM A SCALE PROCESS. SO FROM THE STANDPOINT OF LOOKING AT SOLUTIONS,
I THINK THERE ARE A NUMBER OF THEM. ONE OF THEM IS FINANCING.
BRIDGE HELPED LEAD THE WAY WITH THE HOUSING PARTNERSHIP NETWORK AND CREATED HPET, THE
HOUSING PARTNERSHIP EQUITY TRUST WHICH IS A NONPROFIT REED.
I CHAIR THAT GROUP. WE HAVE ASSEMBLED, THANKS TO SOME OF OUR PARTNERS,
FORD FOUNDATION, AMONGST OTHERS, WE’VE ASSEMBLED ABOUT $150�MILLION IN CAPITAL.
THAT’S NONTAX CREDIT EQUITY THAT’S ALLOWED FOR BOTH EQUITY AND DEBT FINANCING TO ACQUIRE
AFFORDABLE UNITS ACROSS THE UNITED STATES. THUS FAR, WE ARE ABOUT� HERE IS ANOTHER
TWOYEAR, THREEYEAR MARK, WE’VE ACQUIRED ABOUT 1500 UNITS.
SO THIS IS DONE COLLECTIVELY WITH 11 OTHER MEMBERS WHO ARE NONPROFITS WHO ARE ALL MEMBERS
OF THIS TRUST. WE’VE BOUGHT SHARES AND WE’RE HELPING TO PRODUCE
THE UNITS. AND THEN BRIDGE ON ITS OWN HAS ALSO BEEN ACQUIRING
US MARKET EQUITY, IN OTHER WORDS, HIGH NETWORK INDIVIDUALS, FOUNDATIONS TO ALLOW US TO MOVE
IN MORE QUICKLY. PART OF THE PROBLEM WITH AFFORDABLE HOUSING
IS YOU’RE ASSEMBLING ALL THE FINANCING SOURCES AND IT TAKES THREE TIMES THE PERIOD THAT A
NORMAL MARKET RATE DEVELOPER WOULD TAKE. IT ALSO TAKES THE SAME AMOUNT OF TIME AND
YOU LOSE OUT WHEN YOU’RE BIDDING ON LAND, WHEN YOU’RE BIDDING ON EXISTING PRODUCT.
SO FINANCING I THINK IS VERY, VERY IMPORTANT. TO THINK OUTSIDE THE BOX.
THEN SECONDLY, I GUESS I WOULD AGREE ON THE BENDING THE COST CURVE CONCEPT THAT I THINK
ENTERPRISE AND ULI. I WAS ON THAT COMMITTEE AND WE’VE REALLY TAKEN
THAT TO HEART. SO, FOR EXAMPLE, TRYING TO THINK OUTSIDE THE
BOX. WE HAVE NOW AT BRIDGE, WE’RE IN PRODUCTION
DOING OUR FIRST 200UNIT DEVELOPMENT PROJECT AND WE’RE PULLING PERMITS IN THE NEXT TWO
WEEKS FOR ANOTHER 385 UNITS OF MIDRISE MODULAR CONSTRUCTION.
INTERESTINGLY ENOUGH, THESE ARE BOTH PROJECTS THAT HAVE PROJECT LABOR AGREEMENTS IN FORCE.
WE’VE HAD TO WORK WITH LABOR UNIONS TO GET SIGNATORY AUTHORITY IN THE FACTORY.
WE’RE BUILDING THESE UNITS, THEY’RE BOXES. THINKING OUTSIDE THE BOX TO BUILD A BOX.
WE’RE ACTUALLY RAISING THOSE UNITS AND THEY’RE QUITE ATTRACTIVE AND HAVE MET DESIGN REVIEW.
A COUPLE OF EXAMPLES, I THINK VERY IMPORTANT. NOT TO FORGET, NOT TO SAY THIS IS ALSO PART
OF PRODUCTION. COMMUNITY.
I THINK IT’S SO IMPORTANT THAT WE ALSO THINK ABOUT THE RESIDENTS AND THE COMMUNITY IN THE
NEIGHBORHOODS WE’RE TRYING TO CREATE. WE’RE INVOLVED IN A NUMBER OF PUBLIC HOUSING
REDOS THROUGH RAD OR THROUGH CHOICE SELECT, REDEVELOPMENT PROJECTS EVERYWHERE FROM LOS�ANGELES,
SAN�FRANCISCO, OTHER LOCALITIES ON THE WEST COAST.
I THINK WE HAVE FOUND THAT YOU CAN’T REALLY BE SUCCESSFUL UNLESS YOU REALLY MAKE SURE
THAT THE RESIDENTS HAVE THE OPPORTUNITIES TO SUCCESS.
SO MUCH LIKE WHAT THE VICE PRESIDENT SAID THIS MORNING, REALLY THINKING ABOUT HOW DO
WE GIVE OPPORTUNITY THROUGH HOUSING. IT’S NOT JUST THE UNIT.
IT’S ALSO THE COMMUNITY.>>CYNTHIA, I WAS GOING TO WAIT UNTIL ASK
ANYBODY A QUESTION UNTIL EVERYBODY WENT. BUT CAN YOU GIVE US A FIELD OF WHAT YOU’RE
SEEING ON A COST DIFFERENTIAL ON THE MODULAR VERSUS THE NONMODULAR?
ANY WAY TO THINK OF IT?>>ABSOLUTELY.
OUR HEADQUARTERS ARE IN SAN�FRANCISCO. RIGHT NOW WE’RE THE MOST HIGHCOST HOUSING
MARKET IN THE UNITED STATES. SO I COULD TELL YOU, I’M DOING A LOT OF UNITS.
THE AVERAGE COST IN THE CITY OF SAN�FRANCISCO IS ABOUT $660,000 PER UNIT FOR A MULTIFAMILY.
IT’S FAIRLY SHOCKING. THAT’S NEW CONSTRUCTION.
THAT’S THE PERMITTING, THE COST OF THE LAND, YOU KNOW, THE IMPACT FEES, ETC., ET�CETERA.
IT ALL ADDS UP. IT’S HUGE.
WHAT WE WERE ABLE TO DO IN THE BAY AREA WITH OUR FIRST MODULAR PROJECT IS SAVE ABOUT 15%
IN HARD COSTS. SO THAT TRANSLATED TO TAKE OUT LAND, TO TAKE
OUT SOFT COSTS, IT TRANSLATES INTO ABOUT $80,000 A UNIT.
YOU KNOW, WHEN YOU THINK ABOUT THAT, OVER 100UNIT DEVELOPMENT, THAT’S $8�MILLION.
THAT’S A GAP.>>FOR SURE.
>>THAT CAN BE CLOSED QUICKLY WITH THAT COST CURB.
IT COMES FAIRLY DELIVERED. THE SHOWERS ARE IN, THE CABINETS ARE IN, IT’S
ALL DONE. IT’S ONE WAY I THINK OF KIND OF TO ADDRESS
THAT.>>EXCELLENT.
BETSY. IN MANY WAYS YOU’RE GOING TO COVER SOME OF
THE SAME POINTS, BUT IN A VERY LOCAL APPLICATION.>>CORRECT.>>IN AUSTIN.
OBVIOUSLY WE ALSO KNOW YOU WORKED IN SAN�ANTONIO AT A LOCAL LEVEL.
BUT WHAT ARE YOU SEEING AS KIND OF THE KEY THINGS TO DRIVE THESE PRACTICES, THIS DATA
INTO PRACTICE AND POLICY?>>THANKS, SURE.
SO HAVING ACCURATE NEEDS ASSESSED AT A VERY LOCAL LEVEL IS INCREDIBLY IMPORTANT.
AUSTIN IS A VERY ENGAGED COMMUNITY AND SO WE TAKE THE OPPORTUNITY EVERY FIVE YEARS WITH
OUR CONSOLIDATED PLAN PROCESS TO RETAIN A CONSULTANT TO A VERY COMPREHENSIVE HOUSING
MARKET STUDY. IT’S VERY LOCAL, IT’S VERY CURRENT AT THE
TIME. IN 2009, WE HAD A GAP OF 38,000 UNITS THAT
WERE NEEDED FOR VERY LOW INCOME. FAMILIES AND INDIVIDUALS THIS LAST YEAR GREW
TO 48,000. OUR GAP, WHICH IS NOT SURPRISING TO ANYONE
IN THE MARKET THAT AUSTIN IS IN. BUT HAVING THAT VERY CURRENT LOCAL DATA IS
VERY IMPORTANT BECAUSE IT HELPS OUR POLICYMAKERS AND ALL THE ADVOCATES WITH INFORMATION THAT
THEY CAN SHARE TO HELP CREATE BETTER POLICIES. WE ALSO HAVE A VERY STRONG COMMUNITY ENGAGEMENT
PROCESS IN AUSTIN. THIS LAST COMPREHENSIVE HOUSING MARKET STUDY,
WE WERE ABLE TO SURVEY OVER 5,000 FAMILIES OR INDIVIDUALS IN THE CITY ON THEIR HOUSING
CHOICE, WANTS AND NEEDS. AGAIN, THAT’S VERY IMPORTANT.
WE’RE LOSING A LOT OF LOW INCOME FAMILIES TO THE SUBURBS BECAUSE THERE’S JUST NO HOUSING
AVAILABLE TO THEM. TRANSPORTATION IS A BIG ISSUE IN AUSTIN, TEXAS.
WE DON’T HAVE ADEQUATE PUBLIC TRANSPORTATION, SO A LOT OF LOW WAGE JOB EARNERS ARE HAVING
TO LIVE OUTSIDE. SO IT JUST ADD TO THE CONGESTION.
HAVING THE HOUSING MARKET STUDY HAS BEEN A GREAT TOOL TO BE ABLE TO INFORM FOLKS.
A COUPLE OF TOOLS, WE TRY TO EMPLOY EVERY TOOL POSSIBLE AND WE’VE HAD SOME VERY SMART
PEOPLE BEFORE I EVER GOT TO AUSTIN, TEXAS TO REALLY TRY TO HAVE A WIDE VARIETY OF TOOLS
AVAILABLE. ONE TOOL THAT’S BEEN VERY BENEFICIAL IS GENERAL
OBLIGATION BOND FUNDS. IN 2006, THE COMMUNITY PASSED A $55�MILLION
ALLOCATION FOR GENERAL OBLIGATION BOND FUNDS SPECIFICALLY FOR AFFORDABLE HOUSING.
SO IN THAT, WE WERE ABLE TO HELP FINANCE ABOUT 3400 UNITS.
2500 WERE AFFORDABLE. WE PRIORITIZED FOLKS VERY LOW AND LOW INCOME.
ABOUT HALF THE FUNDS GO TO BENEFIT FOLKS THAT ARE 30% BELOW.
ABOUT THE OTHER HALF GO TO 50% AND BELOW. WE TARGET THOSE LONGTERM RESTRICTIONS FOR
VERY LOW AND LOW INCOME FOLKS. INTERESTING, IF AND WHEN YOU’RE GOING TO DO
THAT, WE WERE ABLE TO EMPLOY ANOTHER CONSULTANT TO DO AN ECONOMIC ANALYSIS OF THOSE FUNDS.
OF THE 55�MILLION, WE LEVERAGED ALMOST $200 MILLION OF PRIVATE INVESTMENT.
THAT WAS A TREMENDOUS STORY TO BE ABLE TO TELL THE GENERAL PUBLIC BECAUSE THEY OBVIOUSLY
HAVE TO BE� THE GENERAL ELECTION HAS TO CREATE THOSE.
WITHOUT THAT INFORMATION, IT CAN BE HARD FOR FOLKS TO WANT TO UNDERSTAND WHY THEY WANT
TO INVEST THEIR MONEY. IT ALMOST CREATED ALMOST 3,000 JOBS JUST CONSTRUCTION
WORK DURING THE COURSE OF THAT. THE ANALYSIS INDICATED THAT PROBABLY OVER
TEN YEARS, THE ORIGINAL 55�MILLION WILL LEVERAGE OR GENERATE ALMOST $500 MILLION OF
INVESTMENT TO THE OVERALL COMMUNITY. AGAIN, WHEN YOU CAN TELL THE STORY OF NOT
JUST HOUSING, ALL OF US STRUGGLE WITH THE MB PART.
IT’S NO DIFFERENT IN AUSTIN, TEXAS. WHEN YOU CAN TELL FOLKS YOUR GENERATING JOBS
AND INCOME, THAT WAS A MUCH MORE PALATABLE STORY.
WE WERE FORTUNATE IN 2014 TO GET ANOTHER $65�MILLION ALLOCATION OF GENERAL OBLIGATION BOND FUNDS.
OUR FEDERAL FUNDS ARE OBVIOUSLY LIMITED, SO WHEN THE LOCAL FUNDS DEMONSTRATED TREMENDOUS
COMMITMENT. ANOTHER TOOL OR TOOLS THAT WE UTILIZE, WE
HAVE DEVELOPER INCENTIVES AND DENT AT THIS BONUS PROGRAMS.
WE DO NOT HAVE INCLUSIONARY ZONING IN TEXAS. WE HAVE TO USE DEVELOPER INCENTIVE AND BONUSES
TO INCENTIVIZE PRIVATE DEVELOPERS. IT’S NEVER ENOUGH MONEY TO REALLY BE ABLE
TO DO ALL THE WORK THAT WE NEED TO DO. ADDITIONALLY, WE DON’T REALLY COUNT ON THE
DENSITY BONUS PROGRAMS IN AND OF THEMSELVES. THE TARGET VERY LOW AND LOW INCOME HOUSEHOLDS.
THE DENSITY BONUS PROGRAMS ARE GOING TO PROVIDE AN OPPORTUNITY FOR THE PRIVATE MARKET TO CREATE
THE UNITS FOR MIDDLE INCOME OR THE WORKING FAMILIES.
SO WE’VE BEEN FORTUNATE ACROSS THE BOARD WITH ALL OF OUR DENSITY BONUS PROGRAMS.
WE’VE GENERATED OVER 4,000 UNITS� 400� NO, SORRY, 4,000 AND ABOUT $8�MILLION IN
FEES. WE HAVE A LAUNDRY LIST OF DIFFERENT DEVELOPER
INCENTIVES BASED ON THE AREA AND/OR THE PRIORITY. SOME OF THEM GENERATE FEES, SOME OF THEM HAVE
ONSITE OR BOTH. WE’RE STARTING TO SEE THE COMMUNITIES COME
ONLINE. IT WAS REALLY THE VISION OF FOLKS CLOSER TO
2000, 2005 THAT CREATED A LOT OF THESE PROGRAMS THAT WE’RE NOW REALIZING THE BENEFIT.
THE BIGGEST BENEFIT BEING THAT THE PRIVATE MARKET IS PAYING FOR THESE UNITS.
FINALLY UTILIZING PUBLICLY OWNED LAND. IF ANY OF YOU HAVE BEEN TO AUSTIN, TEXAS,
YOU MAY HAVE SEEN THE MILLER DEVELOPMENT. THAT WAS ORIGINALLY AN AIRPORT.
WHEN THE AIRPORT WAS BEING RELOCATED IT LEFT OVER 700 ACRES OF PUBLICLY OWNED LAND.
SOME MASSIVE REDEVELOPMENT OF A VERY LARGE TRACK OF LAND WHICH ORIGINALLY WAS IN AN AREA
THAT WAS REALLY STRUGGLING. IN LESS THAN TEN YEARS, IT’S AN AMAZING, AWARDWINNING
DEVELOPMENT, REDEVELOPMENT ACTIVITY. AND THE COMMITMENT IN THAT PROJECT IS 25%
OF THE UNITS MUST BE AFFORDABLE, EITHER HOME WORKPLACE OR RENTAL.
THAT HAS BEEN A TREMENDOUS EFFORT OF REDEVELOPMENT OF PUBLICLY OWNED LAND.
WHAT’S COMING NEXT FOR US, WE’RE EXPLORING THINGS LIKE TIF FINANCING.
WE’VE NOT UTILIZED THAT FOR AFFORDABLE HOUSING. WE’RE LOOKING AT THAT DEFINITELY IN THE CONCERT
OF WE HAVE A HOUSING JOB TRANSIT ACTION TEAM. TRANSPORTATION REMAINS A BIG ISSUE FOR US.
OBVIOUSLY EMPLOYMENT. IF WE CAN UTILIZE OUR TIF FUNDS FOR THE INFRASTRUCTURE
EXPENSE, THAT’S OUR BIG TICKET ITEM TO CREATE THESE NODES OF OPPORTUNITY FOR HOUSING JOBS
AND TRANSIT TO BE LOCATED. WE’RE NOT LIKE WASHINGTON, D.C.
WE’RE STILL A LITTLE BIT SPREAD OUT. AGAIN, DENSITY IS AN ISSUE FOR US.
WE’RE GOING THROUGH A LAND DEVELOPMENT CODE REWRITE.
OUR LAND DEVELOPMENT PROCESS IS SOMEWHAT ARDUOUS. SO WE HAVE EMPLOYED A CONSULTANT TO REDO A
LAND DEVELOPMENT CODE. WE’VE GOT TO BE ABLE TO GET BETTER EVEN AT
DENSITY. THE D WORD IS KIND OF SCARY FOR SOME FOLKS
IN AUSTIN, TEXAS. WE’VE GOT TO BE ABLE TO UTILIZE DENSITY TO
DRIVE DOWN SOME OF THE COSTS AND JUST MAKE THE DEVELOPMENT PROCESS EASIER WHICH WILL
REDUCE COSTS AND THEN LOTS OF DIFFERENT ALTERNATIVES. ACCESSORY DWELLING UNITS.
WE’RE TRYING TO SKIN THIS CAT IN EVERY DIFFERENT WAY THAT WE CAN.
WE’RE WORKING WITH GREEN HEALTHY HOMES INITIATIVE. THAT’S REALLY FOR US ON OUR SERVICE DELIVERY.
IF WE CAN STREAMLINE OUR SERVICE DELIVER I ARE TO WHERE WE’RE NOT ALL SERVING FOLKS TEN
DIFFERENT TIMES, AGAIN, WE’RE LOOKING TO SEE IF WE CAN ACHIEVE THE AFFORDABILITY BOTH ON
THE DEVELOPER SIDE AND THEN ON THE HOMEOWNER SIDE.
HOUSEHOLD AFFORDABILITY, LAST YEAR WHEN WE STOPPED SAYING AFFORDABLE HOUSING AND WE STARTED
SAYING HOUSEHOLD AFFORDABILITY AND WE REALLY STARTED LOOKING AT THE COST OF THE TRANSPORTATION
AND THE HOUSING AND THE UTILITIES AND THE MEDICAL BILLS And EVERYTHING ELSE, THAT REALLY
BECAME A CONCEPT OF THE AVERAGE PERSON. EVERYBODY CAN GET A HANDLE ON THAT.>>A CONNECTION TO THE EARLIER CONVERSATION
THIS MORNING ABOUT THE STORE I THINK LISA DAVIS RAISED.
LIKE TELLING A STORY BEYOND THE HOUSING. LET’S TALK ABOUT A COUPLE MORE THINGS AND
OPEN IT UP FOR QUESTIONS. YON TALKED ABOUT IT, JONATHAN EARLIER THIS
MORNING. THE WHOLE THING ECONOMISTS LAST WEEK HAD THE
COVER STORY ABOUT LAND. IT DOES SEEM LIKE THERE IS REALITY THAT IS
SINKING IN, EVEN IN OUR COUNTRY. AS SOMEBODY SAID, WE’LL ALWAYS GET IT RIGHT
AFTER WE’VE TRIED EVERYTHING ELSE. IT SEEMS LIKE YOU ALL ARE INVOLVED IN INTERESTING
WAYS THAT LAND IS BEING USED TO ADDRESS THIS PROBLEM.
YOU TALKED ABOUT AUSTIN. I KNOW CYNTHIA, YOU’VE BEEN INVOLVED IN SOME
LARGESCALE REDEVELOPMENT OR SETTING ASIDE CHUNKS OF LAND TO BE ABLE TO DO THIS.
YOU WANT TO ADD TO ANYTHING TO WHAT YOU’RE SAYING THAT YOU THINK IS A TREND THAT’S ANYTHING
DIFFERENT A THAN THE USE OF LAND?>>I THINK IT’S IMPORTANT TO HAVE THE PUBLIC
SECTOR COMPLETELY COMMITTED TO THIS. THAT’S NOT ALWAYS THE CASE IN EVERY COMMUNITY,
BUT CERTAINLY I THINK WHERE IT IS, IT IS MAKING A DIFFERENCE.
WE’RE SEEING, IN OUR SENSE, WE’RE DOING A LOT OF WORK WITH PUBLIC HOUSING AUTHORITIES
WHERE WE’RE TAKING, YOU KNOW, OLDER PUBLIC HOUSING STOCK THAT NEEDS TO BE REPLACED, THEN
ALSO MIXING INCOMES WITH THAT. VERY SIMILAR TO CHOICE, ALTHOUGH WE KNOW CHOICE
IS A VERY LIMITED RESOURCE. WE’VE GOT A DEVELOPMENT IN LOS�ANGELES THAT’S
81 ACRES WITH THE HOUSING AUTHORITY OF LOS�ANGELES. IN SAN�FRANCISCO, 38 ACRES IN THE CITY,
WHICH IS VERY INTERESTING FROM AN INCOME EQUALITY STANDPOINT WHERE WE HAVE A PUBLIC HOUSING
DEVELOPMENT THAT’S KIND OF BEEN SURROUNDED BY A FENCE, A CHAIN LINK FENCE NEXT TO MULTIMILLION
DOLLAR HOMES ON THE OTHER SIDE OF THAT FENCE. LAND THAT THE CITY DESPERATELY NEEDS.
SO WE’RE ADDING FROM 600 UNITS, MAKING IT 1545 UNITS WHICH WILL BE MIDDLE INCOME AND
MARKET RATE. PLUS THE REPLACEMENT OF THE PUBLIC HOUSING.
YOU KNOW, REALLY TRYING WHEREVER YOU CAN TO UTILIZE THOSE PUBLIC RESOURCES.>>ARE YOU SEEING A LOT OF THAT LED BY YOU
PUSHING THEM OR THEY PULLING YOU, PUBLIC SECTOR PULLING YOU IN OR A COMBINATION OF BOTH?>>IT’S USUALLY A COMBINATION OF BOTH.
IN ALL HONESTY, MOST OF MY DAY IS PUSHING GOVERNMENT AT ONE LEVEL OR ANOTHER.
[�LAUGHING�]. ALL LEVELS.
BUT HONESTLY, I THINK WE HAVE SOME VERY, VERY PROGRESSIVE GOVERNMENTAL PARTNERS WHO ARE
PULLING US INTO SOME OF THESE THINGS.>>AND HOW ABOUT COST REDUCTION?
WE TALKED ABOUT THE MODULAR WORK THAT THEY’RE DOING IN BRIDGE.
EVERYBODY HAS AN IDEA OF HOW THEY’RE GOING TO REBUILD HOUSING IN DETROIT I KNOW.
YOU GUYS OBVIOUSLY ARE WORKING WITH GOVERNMENTS ALL OVER THE WORLD WITH HOW CAN THEY DRIVE
DOWN THE COSTS. WHAT ARE YOU SEEING THAT YOU THINK THE AUDIENCE
WILL FIND PROMISING ON REDUCING THE COST OF THE DEVELOPMENT SIDE?>>I WOULD JUST SAY MAYBE FROM THE MASSACHUSETTS
EXPERIENCE, MORE THAN THE MICHIGAN EXPERIENCE, WE SPEND A LOT OF TIME WORKING WITH MODULAR
HOUSING IN MASSACHUSETTS. ALTHOUGH WE HAVE VERY, VERY HIGH COSTS, ESPECIALLY
IN BOSTON, OUR COSTS DON’T APPROACH YOURS. SO THE NET NUMBER AND DIFFERENTIAL WHEN YOU’VE
GOT THE ACTUAL BOX LANDED AND CONNECTED WASN’T BIG ENOUGH FOR US TO MAKE SOME OF THE INVESTMENTS
THAT WERE BEING REQUESTED, LIKE INVESTING IN A MODULAR PRODUCTION FACILITY OR EXPANDING
OTHER MODULAR FACILITIES IN THE STATE WHICH IS SOMETHING WE LOOKED VERY CLOSELY AT.
THAT WOULD BE THE EXPERIENCE THERE. FOR US BOTH ON THE LAND AND COST STANDPOINT,
DETROIT HAS AN UNUSUAL SITUATION WHERE WE’VE AN ABUNDANT OF LAND AND OUR COSTS ARE NOT
TERRIBLY HIGH COMPARED TO OTHER PLACES. NOW, I THINK AS WAS SAID EARLIER IN THE EARLIER
PANEL, THAT DOESN’T MEAN IT’S AFFORDABLE NECESSARILY TO PEOPLE IN THE CITY.>>MAY I HAVE YOUR ATTENTION, PLEASE.
AS MANY OF YOU IN THE BUILDING ARE AWARE, WE’RE CURRENTLY EXPERIENCING TECHNICAL DIFFICULTIES.
[INAUDIBLE]>>FOR THOSE OF YOU ON THE WEBCAST, THEY’RE
MAKING ANNOUNCEMENT OVER THE SYSTEM. WE’RE WAITING FOR THE ANNOUNCEMENT TO BE OVER.
IT’S ALMOST OVER.>>SOUNDED A LOT LIKE ME.
I WAS WORRIED SO REVERB.>>SOUNDED LIKE VICE�PRESIDENT BIDEN OR
GOD SPEAKING.>>IT DID.>>SORRY ABOUT THAT.
>>SO ANYWAY, AGAIN IN DETROIT I WOULD SAY THE ISSUES ARE DIFFERENT.
WHAT TO DO WITH AREAS OF HIGH VACANCY WHERE THERE’S LITTLE HOUSING AND HOW TO REUSE THOSE
AREAS IN COLLABORATION WITH THE COMMUNITY IS A DIFFERENT KIND OF ISSUE.
THE KIND OF THINGS WE’VE ENCOUNTERED ON THE COST SIDE HAVE TO DO WITH JUST NOT HAVING
A DEEP POOL OF EITHER PROJECTS OR EVEN SORT OF GENERAL CONTRACTORS ARE ABLE TO DO MULTIFAMILY
HOUSING PRODUCT. SO IF A BIG PROJECT IS BOOKED ALL THOSE GREAT
GCs AND THEIR SUB VENDORS, YOU KNOW, YOU DON’T HAVE A DEEP POOL OF PEOPLE READY TO COME IN
AND ABSORB THAT. OTHER MARKETS, I KNOW, THEY HAVE MUCH DEEPER
UNION HALLS AND OTHER RESOURCES AVAILABLE TO SOLVE THAT PROBLEM.
SO WE’RE HAVING A BIT OF A POSITIVE EXPERIENCE NOW WITH SOME NEW HOUSING STARTING.
BUT VENDORS� DEVELOPERS HAVE TALKED A LOT ABOUT CAN’T FIND THE RIGHT GC, THE PRODUCT
GETTING PRICED A LITTLE HIGHER THAN IT SHOULD BE BECAUSE NO ONE HAS DONE THIS PROTECT HERE.
THOSE ARE SOME OF THE ISSUES.>>YON, WHAT ARE YOU SEEING ON THE COST PRODUCTION
SIDE OR LAND INNOVATION.>>YES, MAYBE ON THE COST, WE’VE BEEN SPEAKING
TO CONSTRUCTION COMPANIES, DEVELOPERS AND ALSO CITIES AROUND THE WORLD.
USUALLY THERE’S AN OPPORTUNITY TO SAVE LIKE 20 TO 30% OF COST EVEN WHEN YOU GO FOR HIGH
STANDARDIZATION AND IDEALLY EVEN FULLY MODULAR CONSTRUCTION.
SOME PLACES IN INDIA WHO ARE ACTUALLY NOW TARGETING CONSTRUCTION COSTS AS LOW AS $200
PER SQUARE METER BUILDUP ROOM AREA. THAT MIGHT NOT QUITE BE TO THE LEVEL OF U.S.
STANDARDS, BUT THAT’S HOW FAR YOU CAN PUSH THE BOUNDARY.
THE INTERESTING THING ABOUT IT IS IT USUALLY BECOMES ECONOMICAL FROM 3 TO 5,000 UNITS PER
YEAR WITHIN LIKE A TWO TO THREE HOURS RADIUS WHICH MEANS TWO TRUCKLOADS OF PRODUCT PIER
DAY. THAT’S A SCALE THAT NOT TOO MANY PLACES PROVIDE.
BUT IF YOU DO EITHER ON THE SIDE OF DEVELOPERS CONSOLIDATING BUT ALSO IN THE PUBLIC SECTORS
ACTUALLY HELPING DO THAT, YOU’RE NOT ONLY LOWER THE CONSTRUCTION COSTS BUT YOU COMPRESS
CHARGES. THAT MASSIVELY REDUCES COST.
YOU CAN INTELLIGENTLY PLAY WITH DERISKING DEVELOPMENTS.
YOU CAN SAY NOT ONLY HAVE THE SCALE BUT WE HAVE THE STOCK OF 48,000 PIECES IN AUSTIN.
WE ASKED THE GOVERNMENT CAN ACTUALLY GUARANTEE YOU DEMAND OVER THE NEXT TEN YEARS FOR 4,000
UNITS PER YEAR. HERE ARE THE NAMES AND ADDRESSES OF THE PEOPLE.
SO A LOT OF THINGS THAT YOU CAN DO TO ACTUALLY MASSIVELY BRING DOWN THE RISK OF DEVELOPMENT
WHICH IS THE WAY OF THE COST OF DEVELOPMENT.>>INTERESTING.
ANY QUESTIONS FROM THE AUDIENCE? I THINK WE STILL HAVE A FEW MINUTES.
IF YOU HAVE A QUESTION, COME UP TO THE MIC.>>NOT A QUESTION.>>SURE, PLEASE.
>>THE LADY FROM AUSTIN�>>HOLD ON ONE SECOND.
GET TO THE MIC.>>I WAS HOLDING MY PLACE WHILE I WAS IN MOTION.
THE LADY FROM AUSTIN SPEAKS WELL OF WHAT THEY’VE BEEN ABLE TO DO IN DEVELOPING LOW MOD HOUSING.
30 YEARS AGO, AUSTIN LED THE NATION IN TERMS OF HOW AN OWNER WOULD BE WILLING TO RENT TO
PERSONS OF LOW INCOME BECAUSE THEY DEVELOPED AN ARBITRATION SYSTEM WHEN THE UNIT IS FIRST
AVAILABLE, THE OWNER SELECTS A PERSON TO VIEW THE UNIT.
THE WOULDBE TENANT SELECTS A SECOND PERSON AND THE TWO OF THEM SELECTS A THIRD PERSON
AND THEY HAVE A FORM WHICH THEY GO THROUGH THE APARTMENT OR THE HOUSE AND THEY LOOK AT
ALL THE FACILITIES AND THEY CHECK OFF THE CONDITION BECAUSE THEY OPERATE THE SWITCHES
AND SO FORTH. WHEN THE TENANT LEAVES, THAT SAME COMMITTEE
COMES BACK INTO THE HOUSE TO SEE WHAT THE CONDITION IS AS TIME AND USES REFER.
THAT’S A VERY SIGNIFICANT PROCESS SELDOM DEVELOPED OR USED ELSEWHERE.
BUT, AS YOU KNOW, A BIG ZONING ISSUE IS LOW MOD AND WHAT BECOMES OF MY PROPERTY IF I RENT
TO YOU. SO THE AUSTIN METHOD OR PROCESS IS ONE THAT
I THINK COULD BE USED WIDELY THROUGHOUT THE COUNTRY AND WE’LL TALK ABOUT MILLER ANOTHER
TIME.>>THANK YOU.
ANY OTHER QUESTIONS?>>HELLO.
I’M JANE VINCENT. I’M THE REGIONAL ADMINISTRATOR WITH HUD IN
THE MIDATLANTIC. ONE OF THE THINGS I HEARD ONE OF YOU MENTION
WAS A COMMENT ABOUT NEEDING TO PUT SIGNIFICANT INVESTMENT INTO AFFORDABLE HOUSING AND THAT
SOME OF OUR SMALLER BOUTIQUE PROGRAMS I THINK YOU USED, 50, 60 UNITS IS NOT REALLY GOING
TO MOVE THE NEEDLE VERY FAST. I’M WONDERING IF YOU COULD COMMENT ABOUT THAT
STATEMENT, WHICH IS TRUE IN TERMS OF THE BREADTH OF THE WORK WE NEED TO DO, COMPARED TO THE
MARKETABILITY OF PROJECTS OR AFFORDABLE HOUSING DEVELOPMENTS IN SMALLER COMMUNITIES OR PLACES
WHERE 50 OR 60 UNITS MIGHT BE MORE THAN THE MARKET COULD STAND, SAY LIKE IN A RURAL COMMUNITY.
>>I THINK THAT MIGHT BE ME. I DON’T MEAN TO BELITTLE 50, 60 UNITS.
WORKING ON THE WEST COAST, CALIFORNIA AND OREGON AND WASHINGTON AND WE’RE ENGAGED IN
A VERY SMALL COMMUNITY IN OREGON CALLS CORNELIUS. IT’S A TINY SORT OF SUBURB AND AGRICULTURAL
COMMUNITY AND LOOKING AT A 60 UNIT DEVELOPMENT THAT WILL BE COLLOCATED WITH LIBRARY.
SO WE’RE THINKING QUITE HARD ABOUT WHAT IS THE SATURATION POINT.
BUT KNOWING HOW SIGNIFICANTLY IMPORTANT THAT WILL BE TO THIS DEVELOPMENT BECAUSE THEY’VE
NOT HAD MUCH AFFORDABLE HOUSING DEVELOPMENT. I THINK 60 UNITS CAN BE QUITE IMPACTFUL IN
A LOT OF PLACES. I CAN TELL YOU THE LAST 60UNIT DEVELOPMENT
WE DID IN THE CITY OF SAN�FRANCISCO WHERE OUR HEADQUARTERS WERE, WE BUILT 60 UNITS AS
A SINGLE FREESTANDING DEVELOPMENT PROJECT IN THE TENDERLOIN NEIGHBORHOOD AND HAD 2700
QUALIFIED APPLICANTS WAITING TO GET INTO THAT HOUSING.
EVERYBODY HELPS.>>BUT YOUR POINT IS NOT TO BE SATISFIED WITH
THE 60 IN AN ENVIRONMENT THAT NEEDS 2500. IN CERTAIN SMALL TOWNS, 60 MAY BE OVER SUPPLY.
I THINK WHAT I’M ARE REALIZING, WE NEED A VERY DIFFERENT SYSTEM TO ADDRESS THE PROBLEM.
WHAT IS THE DENOMINATOR OF THE PROBLEM AND HOW FAST CAN WE GET TO IT AS OPPOSED TO LET’S
JUST INCREMENTALLY ADD TO IT AND HOPE THE DENOMINATOR GOES DOWN BY MAGIC.
>>YEAH. IT WON’T.>>ONE THING I FIND VERY INTERESTING IS ALSO
WHAT YOU MENTIONED ABOUT THE METRICS. WE SEE THAT IN A COUPLE, UNFORTUNATELY TOO
FEW CITIES AROUND THE WORLD. IT’S A VERY COMPLEX MULTIFACETED PROBLEM WHERE
YOU DO NEED THE CONSTRUCTION PERMITS, THE LAND, THE FINANCING, LATER ON ELECTRICITY,
MAINTENANCE. ALL OF THOSE THINGS NEED TO COME TOGETHER.
NO SINGLE DEPARTMENT CAN MEANINGFULLY OVERSEE IT INCLUDING ALL THE POLICIES AND SO FORTH
INVOLVED. CREATING A DELIVERY UNIT THAT REPORTS STRAIGHT
TO THE MEDIA. BUT ALSO TARGETED ON VERY HARD NUMBERS.
WHERE IT’S NOT ONLY LIKE YEAH, WE HAVE THIS PROGRAM, THAT PROGRAM AND WE SEE WHAT COMES
OUT. WE ACTUALLY SAY, WE NEED 48,000.
EVERY MONTH WE SEE HOW MANY UNITS HAVE BEEN BUILT MAKES A HUGE DIFFERENCE.>>IT DOES.
WE SEE THAT EVERYWHERE. THAT’S WHAT WAS SO POWERFUL ABOUT THE GOVERNOR
SAYING 10,000. BECAUSE OFTEN TIMES MORE IS THE GOAL AS OPPOSED
TO SOMETHING THAT YOU HOPE IS GOING TO MAKE A MATERIAL DIFFERENCE IN THE PROBLEM.
NEXT QUESTION.>>MY NAME IS BARBARA BURNHAM FROM SEASON
PARTNERS AND A BOSTONIAN. GOOD TO SEE YOU HERE.
YOU’RE IN A CITY NOW THAT IS THE CROWN JEWEL OF VACANT PROPERTY.
RIGHT NOW I’M WORKING WITH THE RHODE�ISLAND FINANCING AGENCY ON VACANT PROPERTY IN PROVIDENCE
WHICH IS THE NEW MAYOR’S TOP PRIORITY TO MOVE IDLE PROPERTY INTO USEFULNESS.
SINCE YOU’RE LOOKING AT LITERALLY NEIGHBORHOODS, VACANT NEIGHBORHOODS RATHER THAN VACANT UNITS,
I WONDER WHAT SUGGESTIONS YOU WOULD GIVE TO ALL OF US OF HOW TO STAGE IN THE VARIOUS WAYS
OF LOOKING AT VACANT PROPERTY. PARTICULARLY IN YOUR CASE, GIVEN THE FACT
THAT THERE’S BEEN SO MUCH FOREIGN INVESTMENT THAT’S COME IN.>>GREAT QUESTION.
>>SURE. I GUESS WHAT I WOULD OFFER IS ONE OF THE REASONS,
PARTICULARLY I THINK, IT’S A GOOD TIME TO BE WORKING IN DETROIT.
WE HAD AN AWARDWINNING PLAN THAT WAS, YOU KNOW, VERY NATIONALLY POPULAR BUT LOCALLY
KIND OF CONTROVERSIAL CALLED THE DETROIT FUTURE CITY PLAN WHICH REALLY ARTICULATED SOME VERY
SPECIFIC WAYS TO GO WITH AREAS OF HIGH VACANCY. I WOULD SAY THAT AFTER WORKING IN GATEWAY
CITIES IN MASSACHUSETTS AND OTHERS, YOU HAVE THESE HIGH VACANCY AREAS.
BUT THERE’S NOTHING REALLY ON THE SCALE OF DETROIT.
THAT SAID, IN DETROIT, IT’S STILL NOT QUITE AS� THE TENURE IS VERY MIXED.
THERE ARE VACANT SITES THAT ARE BROKEN UP INTO MANY, MANY, MANY SMALL PIECES THAT’S
HARD TO REALLY AGGREGATE THEM, ALTHOUGH WE HAVE SOME INSTRUMENTS THAT ARE UNIQUE TO DETROIT
I THINK TO DO THAT. I GUESS WHAT I WOULD SAY THE PLAN HAS SAID
AND WE’RE NOW TRYING TO OPERATIONALIZE IT. TAKE IT THE OLD STEADY WAY AND SAY WHAT’S
THE RIGHT WAY TO TURN THESE PLACES INTO RESOURCES AND PLACES THAT HELP THE OUTLYING AREAS THAT
ARE STRONGER GET STRONGER AND BUILD AROUND. SO THERE ARE A FEW PLACES RIGHT NOW WHERE
WE’RE LOOKING AT, YOU KNOW, ONE AREA WAS VERY HEAVILY AFFECTED BY A RECENT PRESIDENTIALLY
DECLARED DISASTER AREA. THAT NEIGHBORHOOD IS AT A RURAL LEVEL.
THE THOUGHT IS, ARE THERE WAYS TO BUILD FROM THAT AND CREATE A DEVELOPMENT PROJECT?
NOT A RESIDENTIAL, HOUSING OR OFFICE PROJECT BUT A LANDSCAPE PROJECT THAT’S COMBINED LANDSCAPE
WITH STORM WATER AND OTHER THINGS TO SORT OF MAKE THAT AREA BEAUTIFUL.
IT’S NOT THAT FAR FROM THE AREA OF STABILITY WHERE THE CHANCE TO DEVELOP MORE HOUSING.
SO ONE OF THE THINGS WE’RE LOOKING AT IS THERE A LANDSCAPE PROJECT THAT WOULD BE APPROPRIATE?
THE OTHER PLACES ARE LOOKING AT ENERGY GENERATION AS ANOTHER WAY TO TAKE THOSE AREAS OF HIGH
VACANCY, WORK WITH THE COMMUNITY AND TURN THEM INTO AREAS THAT GENERATE ENERGY OR GENERATE
RECREATION OR OTHER THINGS THAT ARE NEEDED IN THE COMMUNITY AND THINK ABOUT HOW TO BUILD
AROUND THEM. THAT WAS THE NOTION I THINK WE WERE TRYING
TO OPERATIONALIZE IT INTO PROJECTS SO PEOPLE IN THE COMMUNITY FEEL LIKE THEY’RE INVESTED
IN THE NEW RECREATIONAL RESOURCE OR OPEN SPACE OR FOREST.
AGAIN, IT PLAYS DIFFERENTLY IN THE COMMUNITY. I THINK PEOPLE ARE VERY, DETROITERS ARE VERY
PROUD OF THEIR CITY, NO MATTER WHAT ANYBODY SAYS ABOUT IT.
AND THAT WE’RE VERY ENAMORED WITH A PARTICULAR KIND OF DEVELOPMENT WHICH IN TODAY’S MARKETPLACE
DOESN’T HAVE THE SAME KIND OF VALUE THAT PLACES WITH DIFFERENT PATTERN OF DEVELOPMENT HAVE.
I DO THINK WE HAVE A CHANCE TO HAVE OUTSTANDING AND SPECIAL NEW AREAS THAT WE CAN RECONCEPTUALIZE
THAT REALLY WILL ANCHOR THE GROWTH WE WOULD LIKE TO SEE IN THE OTHER PARTS OF THE CITY.>>NEXT QUESTION, PLEASE.
>>GOOD AFTERNOON. THANK YOU ALL FOR YOUR COMMENTS AND SHARING
YOUR JUST IMPRESSIVE EXPERIENCES. I AM ASKING THE PANEL TO THINK FORWARD LOOKING
INTO YOUR CRYSTAL BALL. BY THE WAY, MY NAME IS TERRY MONTAGUE, WITH
HUD. AS WE’RE THINKING ABOUT AFFORDABLE HOUSING
PRODUCTION AND EXPANDING SUPPLY, I’M WONDERING, ARE WE DOING ANYTHING NEW AND INNOVATIVE BUILDING
INTO THE NEW PRODUCTION AND EXTENSIVE REHABS THAT HELP US WITH AFFORDABLE HOUSING PRESERVATION
DOWN THE LINE? AS YOU KNOW, FOR MANY YEARS, LIHTC DEALS HAVE
BEEN THE REAL ENGINE AND BRINGING THE PRIVATE SECTOR AND PRIVATE CAPITAL INTO THE PRIVATE
SECTOR. THE 30YEAR INCOME AND USE RESTRICTIONS HANGS
OUT THERE. SO PART OF THE QUESTION, HOW ARE YOU PERCEIVING
THE HORIZON? AND IN WHAT WAYS ARE WE USING ADDITIONAL LAND
STRUCTURES OR DEAL STRUCTURES TO HELP ASSURE THAT WE DON’T HAVE A CRISIS ON THE BACK END
ONCE WE BUILD THESE NEW PROJECTS?>>SUPER.
WHY DON’T WE GIVE EVERYBODY A CHANCE TO ANSWER THAT.
THEN I THINK WE’LL CLOSE OFF THE PANEL WITH THAT.
YOU WANT TO START?>>SURE.
I WOULD SAY, WHEN I CAME TO DETROIT, WE HAVE A PRESERVATION CRISIS IN MASSACHUSETTS.
WHEN I CAME TO DETROIT, I DID NOT EXPECT US TO HAVE A PRESERVATION CRISIS.
PERHAPS I SHOULD HAVE THOUGHT HARDER ABOUT THAT.
WE EXPECT TO LOSE ABOUT 25,000 UNITS OF EITHER WIHTC OR RENTAL ASSISTANCE SUPPORTED UNITS
OVER THE LAST FIVE YEARS. IN THE NEXT TWO YEARS, WE CAN LOSE 5,000 OF
THOSE UNITS. WE HAD THE SECRETARY VISIT THE CITY OF DETROIT
LAST WEEK AND THE MAYOR WAS INTRODUCING THE LOCALLY IMPANELED BOARD FOR THE HOUSING COMMISSION
WHICH IS OUR HOUSING AUTHORITY. HE TALKED PRETTY PASSIONATELY ABOUT HOW IMPORTANT�
OUR NUMBER ONE GOAL WAS TO RETAIN DETROITERS. AND START ATTRACTING PEOPLE TO CAPTURE OUR
PORTFOLIO. THAT PORTFOLIO IS IN SORT OF TWO CATEGORIES.
ONE, YOU KNOW, CLASSIC MULTIFAMILY OF THE ’70S AND ’80S IN PRETTY WELL LOCATED LOCATIONS.
AND B, IT’S WIHTC DEVELOPMENT WHICH ARE IN A WIDE RANGE OF PLACES, A LOT OF SCATTERED
SINGLE FAMILY. AS WE LOOK AT THAT, RECAPITALIZING THAT.
IT’S CRITICAL TO YOU ARE OMISSION. WE DON’T HAVE ANYTHING NOVEL.
I WOULD SAY THAT THINKING� IT’S A HUGE ISSUE FOR US.
WE DON’T HAVE ANYTHING NEW, BUT WE DON’T HAVE THE SAME MARKET DEMANDS AND THREATS TO THAT
HOUSING WOULD BE THE ONLY THING I WOULD SAY YOU MIGHT HAVE IN SAN�FRANCISCO OR BOSTON
WHERE THE MARKETPLACE IS SO STRONG, IT JUST WANTS TO SUBSUME THOSE UNITS.
IT’S NOT QUITE AS BAD THAT WAY FOR US.>>NO.
OF I THINK THAT THAT’S ONE THING WHERE THE FEDERAL GOVERNMENT, HUD, FOR EXAMPLE, COULD
REALLY HELP THE DEVELOPMENT COMMUNITY, THE AFFORDABLE DEVELOPMENT COMMUNITY PRESERVE
HOUSING. WE HAVE TARGETED SPECIFICALLY SPARING YOUTH
PROPERTIES IN THE STATES THAT WE’RE WORKING IN AND HAVE A DATABASE OF EVERY HUD EXPIRING
202, SECTION 8, 236, YOU NAME IT NUMBER AND LIHTC DEAL.
WE’RE ACTUALLY TRYING TO GO IN AND ACQUIRE BEFORE THEY COME TO MARKET.
SO WE’VE INTERNALLY DEVELOPED AN EXPERTISE WITH KIND OF A SWAT TEAM APPROACH, COME IN
AND BE ABLE TO PARACHUTE AND DUE DILIGENCE ON THOSE DEALS.
IT’S TRICKY TO DO. I CAN’T UNDERSCORE THAT ENOUGH.
WE HAD TO REQUARTER OUR GROUP IN ORDER TO GET THEM TO GO IN BECAUSE YOU’RE REALLY LOOKING
AT RESTRUCTURING SOMEBODY ELSE’S VERY COMPLICATED DEAL.
YOU KNOW, IT’S LIKE NO DEAL IS BETTER THAN YOUR DEAL SO HERE IT IS.
IT’S SOMEBODY ELSE’S MESS. AND SO WE’VE REALLY TRIED TO UNDERSTAND THAT
AND BE ABLE TO MOVE QUICKLY AND MOVE IN QUICKLY IS WHAT IT’S ALL ABOUT.
I THINK THE GOVERNMENT COULD HELP TRAIN OTHER DEVELOPERS TO DO THAT, FOCUS ON THAT FOR RESOURCES
FOR THAT. SOMETIMES PART OF THE PROBLEM IS ALSO GETTING
THE AUTHORITIES WHO ARE PART OF THE UNDERLYING DEBT STRUCTURE TO REFIGURE.
I THINK OVER LONGTERM, ALSO BEING ABLE TO PUT THE CAPITAL BACK INTO THE PROPERTY SO
THAT IT CAN EXTEND ITS USEFUL LIFE EVEN FURTHER. SAN�FRANCISCO, I DON’T WANT TO LEAVE EVERYBODY
WITH THE THOUGHT THAT EVERYTHING THAT BRIDGE TOUCHES COSTS $660,000.
THAT’S NEW CONSTRUCTION IN THE CITY OF SAN�FRANCISCO. THAT IS NOT EVERY OTHER MARKET THROUGHOUT
AMERICA OR THE WEST COAST. WE’VE BEEN ABLE TO ACQUIRE UNITS USING THE
PRESERVATION APPROACH FOR MUCH, MUCH LESS, UNDER SIX FIGURES PER UNIT.>>ONE THING I WOULD SAY ABOUT RAD.
I THINK RAD AND RENTAL ASSISTANCE REALLY GENERALLY CATEGORICALLY THAT COULD HELP US� RENTAL
ASSISTANCE IS GENERALLY A CATEGORY THAT COULD HELP US SIGNIFICANTLY RECAPITALIZE THOSE DEALS.
>>AGREED.>>YOU GET A MINUTE AND YOU GET A MINUTE AND
WE’RE DONE.>>VERY GOOD.
OBVIOUSLY IN AUSTIN, PRESERVATION IS HUGE. THE 48,000 UNIT GAP ASSUMES WE DON’T LOSE
ANYTHING WITH WHAT WE’VE GOT. OUR COUNCIL LAST YEAR CREATED OUR NEWEST HOMEWORK
IS PRESERVE 25,000 UNITS OVER 20 YEARS. WE’RE ACTIVELY WORKING ON A STRIKE FUND.
AN ADDITIONAL SOURCE OF FUNDS, I’M HOPING TO SEE THE PRESERVATION STRIKE FUND WITH SOME
OF THE GENERAL OBLIGATION BOND FUNDS. CLEARLY ONE OF OUR BIGGEST CHALLENGES, WE
DON’T HAVE ENOUGH BANKS TO BE HONEST CONTRIBUTING. I HOPE WE CAN GET A PRESERVATION STRIKE FUND
OPERATED BY CDFI. THE GOVERNMENT, WE’RE TERRIBLE AT DOING THINGS
FAST. WE NEED SOMEONE ELSE THAT CAN HAVE THE FUN
AVAILABLE AND BE THERE. THEY CAN’T COMPETE IN THIS MARKET.
YOU CAN’T GET A PROPERTY ON THE MARKET BEFORE IT’S ALREADY PICKED UP AND BOUGHT.
WE’RE PROBABLY ABOUT A YEAR OUT, BUT THAT’S OUR GOAL RIGHT NOW.>>GREAT.
YON, THE LAST WORD.>>THE PRESERVATION AND KIND OF FINANCIAL
IN DEAL TERMS, PRESERVATION AND MAINTENANCE. LET ME FOCUS ON THE LATTER.
IN A LOT OF MARKETS, SOUTHEASTERN MOST NOTABLY HAVE SET UP LOW INCOME OWNERSHIP THAT PEOPLE
MAKE MANDATORY CONTRIBUTIONS TO THE MAINTENANCE AND THE COSTS THAT WILL OCCUR EVENTUALLY.
IT STRIKES ME THAT IN A LOT OF DEVELOPED COUNTRIES, PUBLIC HOUSING, YOU WOULDN’T THINK THAT THE
PUBLIC HAS SOMEHOW GROWN UP. IT SEEMS TO ME THE LAWS WOULD BE WELL TO PUT
ASIDE PRESERVATION. I DON’T THINK THERE’S AN EXCUSE, THERE’S NO
INNOVATION OF JUST MAKING IT HAPPEN. NO EXCUSE.>>PERFECT WAY TO END THE SESSION.
THANK YOU VERY MUCH, EVERYBODY, PART OF THE PANEL. �[APPLAUSE]>>SO THANK YOU SO MUCH.
CAN YOU JOIN ME IN GIVING A BIG ROUND OF APPLAUSE TO THIS PANEL AND TO ALL OF OUR SPEAKERS TODAY. [�APPLAUSE�] i
>>SO WE COVERED A TREMENDOUS AMOUNT OF GROUND. I KNOW I LEARNED A LOT.
SO AS I WAS LISTENING TO THIS LAST PANEL, I WAS TRYING TO DISTILL WHAT I LEARNED IN
FIVE WORDS. EVIDENCE, POLICY, NARRATIVE, PARTNERS AND
ACTION. SO LOTS PACKED BEHIND THAT.
I THINK THOSE ARE SOME KEY THEMES WE HEARD ABOUT THROUGHOUT THE DAY.
I KNOW I’LL BE THINKING ABOUT THAT AS I LEAVE THIS ROOM.
I HOPE YOU WILL BE AS WELL. JUST A REMINDER THAT ALL OF OUR EVENT RESOURCES,
INCLUDING BACKGROUND ON ALL OF THESE GREAT SPEAKERS, IS AVAILABLE RIGHT NOW ON HUD USER.ORG/HOUSING
AFFORDABILITY. THE WEBCAST WILL BE AVAILABLE SHORTLY.
CHECK BACK TO THE WEB FOR THAT. I CAN’T LEAVE HERE WITHOUT SAYING A BIG THANK
YOU TO LOTS AND LOTS OF PEOPLE. IF YOU’VE EVER PLANNED AN EVENT OF ANY SIZE,
YOU KNOW IT TAKES A VILLAGE TO RAISE AN EVENT. IT TRULY TOOK A VILLAGE TO RAISE THIS ONE.
FIRST, I WANT TO THANK ALL OF YOU HERE IN THE ROOM AND OUR VERY LARGE WEBCAST AUDIENCE
FOR JOINING US TODAY AND REALLY BEING PART OF THIS VERY THOUGHTFUL DISCUSSION.
WE KNOW YOU HAVE LOTS OF DEMANDS ON YOUR TIME AND WE’RE DEEPLY APPRECIATIVE YOU CHOSE TO
SPEND YOUR TUESDAY WITH US. WE HOPE WE MADE IT WORTH YOUR WHILE.
I ALSO WANT TO THANK OUR FANTASTIC COSPONSORS. HABITAT FOR HUMANITY INTERNATIONAL AND ENTERPRISE
COMMUNITY PARTNERS FOR THEIR PARTNERSHIP NOT ONLY ON THIS EVENT BUT ALSO THEIR GREAT LEADERSHIP
ON THIS SET OF ISSUES ON A DAILY BASIS. ANOTHER SHOUTOUT TO THE WHITE HOUSE AND THE
POLICY COUNCIL. I DON’T KNOW IF LUKE TATE IS STILL HERE.
JUST WANT TO THANK HIM. HE WAS ANOTHER PARTNER OF OURS THROUGHOUT
THIS PROCESS AND HELPED US IN SECURING OUR SPECIAL GUESTS.
A BIG THANKS TO HIM AS WELL. LAST BUT CERTAINLY NOT LEAST, ALL OF THE HUD
STAFF WHO WERE ENGAGED IN THIS EFFORT. YOU DID NOT SEE MOST OF THEM TODAY, BUT, TRUST
ME, THEY WERE WORKING VERY HARD TO MAKE THIS A REALLY FANTASTIC EVENT.
SO PD&R, A SPECIAL SHOUTOUT TO YOU. BUT ALL THE HUD STAFF WHO WERE CONNECTED TO
THIS EVENT. THANK YOU VERY MUCH.
THIS CONCLUDES OUR PROGRAM.

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