Section 3. Providing Affordable Housing for All

Access to safe, stable, and affordable housing is a major community issue in the United States and around the world. Housing costs affect whether people can remain in their communities and whether households have enough resources for food, health care, transportation, childcare, education, and other needs.

Housing also plays an important role in sustainable communities. Sustainable Development Goal #11: Sustainable Cities and Communities includes access to adequate, safe, and affordable housing among its priorities.

This section of the Community Tool Box discusses affordable housing as a community issue. It explains what affordable housing means, why it matters, describes several forms affordable housing can take, and outlines ways residents, community organizations, housing providers, businesses, financial institutions, planners, and governments can participate in creating and preserving housing that people can afford.

What is affordable housing?

In U.S. housing policy and research, housing costs greater than 30 percent of household income are commonly used as an indicator of housing-cost burden. The 30 percent measure is useful, but affordability also depends on household income, family size, utilities, transportation, childcare, health expenses, and other costs.

Affordable housing therefore means more than simply having a low rent or mortgage payment. Housing should also be safe, stable, accessible, appropriately maintained, and reasonably connected with employment, education, transportation, health care, food, recreation, and other community resources.

Why should affordable housing be a concern?

Housing affordability affects people differently. Some households have enough income and housing choices to absorb rising costs, while others may have to spend a large share of their resources on housing, move frequently, live farther from employment or services, share housing because of cost, or experience housing instability or homelessness.

Affordable housing is important for several reasons:

• Housing supports health and safety. Housing conditions can affect exposure to lead, mold, pests, extreme temperatures, environmental hazards, injury risks, and other health concerns.
• Housing stability can support children's learning and family stability. Frequent or involuntary moves can disrupt school attendance, relationships, transportation, childcare, and access to services.
• Housing costs affect household economic security. When housing takes a large share of household income, less money remains for food, health care, transportation, savings, education, childcare, and other necessities.
• Housing location affects access to opportunity. Where people live can influence access to employment, schools, transportation, health care, recreation, and other community resources.
• A range of housing options can support an inclusive community. Communities function better when people with different incomes, occupations, household types, ages, and abilities have realistic opportunities to live there.
• Housing affects the local economy. Employers may have difficulty recruiting or retaining workers when housing near employment is unavailable or unaffordable.
• Stable housing can strengthen community connection. People who are able to remain in their communities can maintain relationships with neighbors, schools, organizations, businesses, faith communities, and other sources of support.

What do we know about affordable housing needs?

Housing conditions and affordability change over time and differ considerably among communities. National statistics can help describe broad patterns, but local housing assessments are also important because rent, home prices, wages, vacancy rates, housing condition, transportation, and population needs differ from place to place.

Current housing research continues to identify serious affordability challenges among renters with very low incomes. Communities should use recent data rather than relying on statistics from earlier decades when assessing their housing needs.

Useful sources of information may include:

• U.S. Department of Housing and Urban Development data and reports
• U.S. Census Bureau and American Community Survey data
• Local housing authorities and planning departments
• Regional housing studies
• Homelessness and housing-instability data
• Local rent, home-price, vacancy, eviction, and housing-condition data
• Surveys, interviews, listening sessions, and other input from residents

When reviewing housing data, consider who is most affected, where needs are concentrated, what types of housing are unavailable, what barriers people encounter, and how conditions have changed over time.

What types of affordable housing exist?

Affordable housing can take many forms. It may be publicly, privately, cooperatively, or nonprofit owned, and affordability may be created through the cost of the housing itself, public or private assistance, financing arrangements, ownership models, or a combination of approaches.

Examples include:

• Newly constructed housing designed to remain affordable to households within specified income ranges
• Affordable homes included within mixed-income developments
• Existing homes or buildings that are rehabilitated or converted for residential use
• Existing affordable housing that is preserved so that it remains available over time
• Publicly supported rental housing
• Rental housing supported by vouchers or other forms of rental assistance
• Affordable homeownership programs
• Community land trusts and other shared-equity homeownership models

Other housing models may include:

• Cooperative housing. Residents collectively own or govern a housing property and share responsibility for decisions about finances, maintenance, and community spaces.
• Transitional housing. Time-limited housing may be paired with voluntary supportive services for people moving from homelessness, institutional settings, domestic violence, recovery programs, or other circumstances into more permanent housing.
• Housing designed for particular needs or stages of life. Examples may include housing for older adults, people with disabilities, survivors of domestic violence, students, veterans, or households that benefit from particular accessibility or supportive-service features.
• Supportive housing. Affordable housing may be paired with voluntary services related to health, behavioral health, independent living, employment, or other participant-identified goals.
• Accessory dwelling units and smaller housing options. Additional units on existing residential property or smaller homes may expand the range of housing available in some communities.

Financial arrangements also vary. Affordable housing may be supported through public funding, nonprofit organizations, private investment, grants, loans, tax incentives, rental assistance, land contributions, shared-equity models, or combinations of these resources.

How do affordable housing programs take shape in practice?

Affordable housing can be created through several organizational and ownership models. The examples below describe common approaches rather than prescribing a single model.

Cooperative housing

In a housing cooperative, residents usually own shares in or membership interests in the organization that owns the property rather than individually owning their unit. Residents may participate in governance, budgeting, maintenance decisions, shared activities, or other aspects of the community.

Cooperative arrangements differ widely. Some are designed primarily to preserve affordability, some emphasize shared community life, and others resemble conventional homeownership more closely.

Community land trusts (CLTs)

Community land trusts are nonprofit or community-based organizations that acquire and hold land for long-term community benefit. In housing programs, the land trust may retain ownership of the land while a resident owns or rents the home located on it.

Shared-equity arrangements can reduce initial housing costs and help preserve affordability for future residents while allowing homeowners to build an agreed-upon amount of equity.

Community land trusts may also support rental housing, cooperative housing, community facilities, open space, or other locally identified priorities.

Community development organizations

Community development corporations and other nonprofit housing organizations may develop, rehabilitate, own, manage, or preserve affordable housing. They may also provide homebuyer education, financial counseling, repair assistance, rental support, community development, or other related services.

These organizations often combine public, philanthropic, nonprofit, and private resources and may work closely with residents and neighborhood organizations.

Self-help and partnership-based housing

Some housing organizations involve future residents, volunteers, community organizations, contractors, and donors in constructing or rehabilitating homes.

Participant labor may reduce some construction costs or contribute to a homeownership program, but programs should provide alternatives or reasonable accommodations for people who cannot perform construction work because of disability, health, age, caregiving responsibilities, work schedules, or other circumstances.

How can communities create and preserve affordable housing?

Creating affordable housing is a complex community-development task. Housing projects may involve land, financing, zoning, infrastructure, building codes, accessibility, environmental review, construction, property management, public funding, long-term affordability requirements, and resident participation.

Many different participants may therefore be involved:

• Current and prospective residents
• Neighborhood and resident-led organizations
• Housing nonprofits and community development organizations
• Developers
• Architects, engineers, planners, and contractors
• Financial institutions and lenders
• Local housing authorities and public agencies
• Local and state governments
• Employers and business organizations
• Foundations and other funders
• Disability and accessibility organizations
• Tenant organizations
• Faith communities and other community institutions

These participants may have different responsibilities, priorities, and interests. A productive process identifies those differences openly and develops housing strategies through evidence, community participation, financial analysis, and clear decision-making procedures.

There is no single strategy that works in every community. The appropriate approach will depend on existing housing supply, land availability, market conditions, community priorities, public resources, state and local law, infrastructure, and the needs of current and prospective residents.

Actions community members and community organizations can take

Getting started:

• Learn about the types of affordable housing available and examine examples from communities with similar circumstances.
• Participate in a local housing organization, neighborhood association, tenant group, planning process, or other community effort related to housing.
• If no appropriate group exists, consider bringing together people who are interested in understanding and addressing local housing needs.
• Connect with organizations whose work intersects with housing, such as:
  • Fair housing and civil rights organizations
  • Community development organizations
  • Tenant and resident organizations
  • Human rights and disability organizations
  • Organizations representing communities that have experienced housing discrimination or barriers
  • Organizations addressing homelessness, economic security, transportation, health, or other issues connected with housing

Working with others can bring together different forms of knowledge and make it easier to understand the housing system as a whole.

Possible community activities include:

• Meet with current and prospective residents to understand housing needs, priorities, preferences, and barriers. Review existing studies first when possible so people are not repeatedly asked for information that has already been collected.
• Meet with neighborhood groups and nearby residents to understand how potential housing development may affect transportation, infrastructure, schools, public space, accessibility, local businesses, and other community conditions.
• Consult housing, planning, design, financial, environmental, accessibility, and legal professionals when specialized knowledge is needed.
• Use housing assessments and community planning to establish measurable housing goals and monitor progress toward them.
• Examine inclusionary housing, affordability requirements, incentives, or other locally available approaches for incorporating affordable homes into new development.
• Examine whether development fees or other legally available funding mechanisms could contribute to affordable housing.
• Participate in established local budgeting, grant, planning, or housing processes where public funding for affordable housing is being considered.
• Review zoning and land-use rules to identify whether they unnecessarily limit housing options or whether changes could support additional housing while addressing health, safety, infrastructure, accessibility, and environmental concerns.
• Explore long-term affordability agreements and other tools that can preserve affordable rents or ownership opportunities when public resources support development.
• Support appropriate housing options for people who benefit from shared living arrangements, accessibility features, or supportive services while respecting fair-housing requirements and residents' right to participate in community life.

Preserve existing affordable housing

Creating new housing is only one part of addressing affordability. Preserving existing homes can prevent the loss of affordable units and help residents remain in their communities.

Possible approaches include:

• Reviewing locally available policies intended to limit displacement or excessive housing-cost increases
• Examining property-tax relief or assistance for qualifying homeowners who may otherwise face displacement
• Providing renters with accessible, current information about their rights and available housing resources
• Supporting tenant organizations and other resident-led efforts that allow renters to represent their own interests
• Making information about affordable-housing opportunities available through accessible and widely used communication channels
• Supporting rehabilitation of existing affordable homes
• Preserving subsidized or income-restricted properties when affordability requirements are scheduled to expire
• Exploring acquisition by nonprofit organizations, cooperatives, community land trusts, public agencies, or other mission-oriented owners when affordable properties are at risk of being lost

Actions local governments can consider

Local governments play an important role because they may have responsibility for land use, zoning, permitting, infrastructure, building standards, public land, local funding, and housing programs.

Depending on local and state law, possible approaches include:

• Establishing a housing plan or housing advisory body to examine community needs and track progress
• Maintaining fair-housing, nondiscrimination, accessibility, and other applicable civil-rights protections
• Including residents from a range of income levels, neighborhoods, housing situations, ages, abilities, and backgrounds in housing planning
• Establishing housing funds or other dedicated financing mechanisms where authorized
• Using legally available tax incentives or financial assistance to support qualifying affordable-housing development or preservation
• Providing clear and accessible property-tax relief information for qualifying residents
• Maintaining and enforcing fair-housing and nondiscrimination requirements
• Evaluating whether vacant or publicly acquired properties can be responsibly reused for affordable housing
• Seeking appropriate state, federal, philanthropic, or other funding opportunities
• Reviewing zoning, parking, density, lot-size, accessory-dwelling-unit, and other land-use rules to understand how they affect housing supply and affordability
• Using publicly owned land for housing where doing so is consistent with community plans and applicable public processes
• Supporting rehabilitation and preservation of existing affordable housing

Different approaches may have different effects on housing production, affordability, public revenue, infrastructure, neighborhood conditions, and property owners. Communities should examine those tradeoffs rather than assuming that one policy will work equally well everywhere.

Actions community and human-service organizations can take

Organizations that do not primarily develop housing can still help people find and maintain stable housing and can participate in broader housing partnerships.

Possible activities include:

• Maintain an accurate and accessible directory of local housing resources and affordable-housing opportunities when feasible
• Make housing information available online and through community locations used by people seeking assistance
• Evaluate whether housing referrals are connecting people with appropriate options and identify recurring barriers
• Provide current information about renter rights and available housing resources
• Provide information in accessible formats and relevant languages
• Offer voluntary housing education or navigation services
• Offer technical assistance to resident and tenant organizations
• Provide homebuyer counseling or connect prospective buyers with qualified housing-counseling resources
• Connect residents who want them with services related to employment, transportation, childcare, health, disability, behavioral health, legal assistance, or other needs

Supportive services should respond to residents' goals rather than treating people who live in affordable housing as inherently in need of correction or supervision. Many residents need only affordable, stable housing; others may choose additional services that help them pursue their own goals.

Actions faith communities and other community institutions can take

Faith communities, educational institutions, health systems, nonprofit organizations, and other community institutions may participate in affordable-housing efforts when housing aligns with their mission and resources.

Possible roles include:

• Participating in local housing partnerships
• Providing meeting space or community outreach
• Contributing land or facilities where appropriate
• Providing grants, loans, or other resources
• Partnering with experienced housing organizations
• Helping residents obtain reliable information about housing resources

Actions community planners can take

Community planners can examine how housing connects with transportation, employment, commercial activity, infrastructure, schools, parks, environmental conditions, and public services.

Possible planning approaches include:

• Planning mixed-use areas where housing, businesses, services, and community facilities can be located near one another
• Examining whether a range of housing densities and housing types could expand local housing choices
• Planning safe walking, bicycling, and public-transportation connections
• Considering accessibility and universal design
• Examining risks of displacement when public or private investment increases property values
• Involving residents early in neighborhood and housing planning

Actions financial institutions and lenders can take

• Maintain fair-lending and nondiscrimination practices and review lending patterns for potential barriers or disparities
• Participate in financing affordable-housing development and preservation where appropriate
• Explore responsible ways to make foreclosed or institution-owned properties available for affordable-housing or community-development purposes
• Provide clear financial information and support financial education or housing-counseling partnerships

Actions landlords and property managers can take

• Participate in programs that preserve or create affordable rental homes
• Maintain properties, communicate rent and fee policies clearly, and follow applicable affordability agreements and tenant-protection requirements
• Make reasonable accessibility improvements and accommodations as required and appropriate
• Provide residents with clear information about maintenance, repairs, emergency procedures, and property-management contacts

Actions real estate professionals can take

• Learn about affordable housing and homeownership programs available in the community
• Help prospective renters and buyers locate housing options for which they may qualify
• Provide clear and accurate information about available properties and housing resources
• Participate in community housing partnerships when appropriate
• Work with housing organizations, lenders, and public agencies to understand programs that expand access to housing

Actions businesses and employers can take

Housing affordability can affect workforce recruitment, retention, commuting, and employee stability. Employers may therefore have an interest in understanding local housing conditions.

Possible activities include:

• Participating in community housing partnerships
• Sharing information with other employers about local workforce-housing needs
• Providing financing, grants, land, or other resources for housing initiatives when aligned with organizational goals
• Partnering with experienced housing organizations when directly supporting housing development
• Providing employees with information about available housing programs or relocation assistance

Actions labor organizations can take

Labor organizations may participate in housing partnerships, share information about workers' housing needs, support housing-related benefits, contribute investment resources where appropriate, or participate in community planning.

Workers involved in affordable-housing construction should continue to receive compensation and protections consistent with applicable law, contracts, and labor standards. Affordable housing should not depend on workers being expected to accept below-standard compensation.

Actions foundations and other funders can take

• Include housing within grantmaking or community-investment priorities when it aligns with the funder's mission
• Collaborate with community organizations, residents, housing providers, governments, and other funders
• Provide grants, loans, guarantees, planning support, capacity-building resources, or other appropriate assistance for housing initiatives
• Support resident participation, evaluation, technical assistance, and long-term preservation in addition to construction

State-level approaches

States influence housing through funding, tax policy, land-use law, housing finance, infrastructure, building standards, tenant and homeowner protections, and administration of state and federal housing programs.

Depending on state law and priorities, approaches may include:

• Supporting affordable-housing development and preservation through state housing programs
• Providing grants, loans, tax incentives, or housing-finance programs
• Supporting local housing planning and technical assistance
• Establishing or enforcing fair-housing and nondiscrimination protections
• Supporting infrastructure connected with housing development
• Providing property-tax relief or other assistance to qualifying households
• Supporting accessibility, energy efficiency, rehabilitation, and preservation of existing housing
• Maintaining accessible statewide information about housing programs and resources

Specific state housing policies vary widely and change over time. Communities should consult current state statutes, regulations, housing agencies, and program guidance when considering these approaches.

Federal housing resources

The federal government plays a major role in U.S. housing through rental assistance, public and assisted housing, housing finance, community development, fair-housing enforcement, grants, tax policy, and support for state and local housing programs.

Federal housing programs and funding levels change over time. Communities and organizations should use current information from federal agencies and other official sources rather than relying on program descriptions or funding information from earlier decades.

In Summary

Affordable housing is not one particular type of building or program. It can include rental housing, homeownership, public or privately owned housing, cooperatives, community land trusts, mixed-income developments, supportive housing, rehabilitation of existing buildings, and other approaches.

Successful housing strategies usually depend on several factors:

• Resources. Housing requires land, financing, construction, maintenance, infrastructure, and long-term operating resources. Public, private, nonprofit, philanthropic, and community resources may all contribute.
• Adaptability. Communities can consider rehabilitation, adaptive reuse, community land trusts, cooperatives, mixed-use development, infill, accessory dwelling units, shared-equity models, and other approaches that fit local conditions.
• Partnership. Residents, housing organizations, governments, developers, lenders, businesses, planners, funders, and other institutions often need to coordinate their work.
• Resident participation. People who live in or need affordable housing should have meaningful opportunities to shape housing priorities, design, services, and evaluation.
• Preservation. Maintaining existing affordable housing can be as important as constructing new units.
• Accessibility and inclusion. Housing should accommodate people with different abilities, ages, household structures, languages, and circumstances.
• Long-term affordability. When public or charitable resources are invested in housing, communities should consider how affordability will be maintained over time.
• Evaluation. Housing strategies should be reviewed to determine who is benefiting, whether affordability is being maintained, whether residents are experiencing barriers, and whether conditions have changed.

Creating affordable housing is complex because housing is connected with land, financing, transportation, employment, health, education, infrastructure, environmental conditions, and community development.

The goal is not simply to build more units. It is to expand and preserve meaningful housing choices so that people with different incomes, household structures, ages, and abilities can live in safe, stable, accessible, and affordable homes within communities where they have opportunities to participate and thrive.