Affordable housing

what is Affordable housing ?

Affordable housing : is housing which deemed affordable to
those with a median household income or below as rated by
the national government or a local government by a
recognized housing affordability.

This indicator varies from city to city :

Average index :
Evaluates the affordability of housing .

(average house price / gross annual income) (before tax)

United states 30%

Canada 20% - 25% (1950s) – 30% (1980s).
History of Affordable Housing
-Concept of government involvement in
housing arises during Great Depression. As
millions of Americans lose jobs they are unable
to afford rent. In response government passes
legislation in the New Deal, called National
Housing Act of 1934.
Who needs affordable housing?
We all need affordable housing
That includes people:
1. who live on fixed incomes (like seniors and people with disabilities)
2. low-wage working families
3. middle-income families.
Affordable housing is part of the fabric of our community. By ensuring that we have housing affordable to
a variety of income levels, we ensure that world is a place all type of people and households can call home.
Municipalities have an increasingly important role in alleviating
the housing deficit for at least three major reasons:
1. They own urban land: municipalities often have strategically located lands, some that
have been historically transferred by the national government.

2. They control the zoning : municipalities can define the rules of urban land use, which
establish the percentage of land that private and public investors can build and the
intensity of its development.

3. They can better adapt affordable housing solutions : with mixed land uses and higher
densities, more housing can be built for low income families on private land
What kinds of tools do local governments have to
impact affordable housing?
Policy & Planning Tools for Housing:
- Zoning for Housing

( Density Bonus Zoning By laws)

-Incentives for Housing (financial tools that capture capital gains)

- Expedited permitting

-Fee Waivers : waived cost charges, community amenity charges, utility fees and building permit
fees. Waiver of these fees can reduce overall building costs.

-Reducing Transportation Costs

Zoning for Housing
Zoning can be used as a tool to influence how a community changes and grows and to increase
housing affordability.
Zoning is the practice of dividing land into different areas, or zones, according to how the land
can be used

Density bonus zoning : Density bonusing is used as a zoning tool that permits developers to
build more floor space than normally allowed, in exchange for amenities and affordable housing
needed by the community. Here are a few examples:

Mid-Size Community
The City of New Westminster has developed a density bonus zoning system in which 30% of revenues are
allocated towards affordable housing.

Large Community
The City of Abbotsford has a density bonus policy implemented through its zoning bylaw. Bonus
contributions are used for affordable housing, either in the form of affordable units or a cash-in-lieu
payment into a fund.
Map of Density-Bonus-Zoning-Areas
Incentives for Housing
To support the construction of affordable housing for low-income families, municipalities are using financial
tools that capture capital gains from :

1. changes in urban land use

2. upgrades in urban infrastructure by the local or national government

These tools include:

1. Betterment charges : they are payments in cash or kind made by the owners of private land and buildings
to the municipalities or the national government, when developers and owners benefit from an
improvement in the infrastructure made by local or national governments.

2. Development rights or “air rights”: these are charges that the local government can make to private
developers in return for the increase in density in private lands.

3. Tax Increment Financing (TIF): this financial tool consists of a future and temporary increase in property
taxes to private residents who are beneficiaries of infrastructure improvements in a clearly defined urban
neighborhood or sector, which can partially or totally amortize the investment costs of such improvements.
Reducing Transportation Costs
Reducing transportation costs by living near transit, or close to work, and not having to own and
operate a vehicle can significantly improve affordability.

Alternative Transportation and Land Use

There is more walking and cycling when communities provide a mix of the following elements:

1.a broad mix of housing types

2. local shopping and community amenities
3. employment opportunities nearby
4. green spaces
5. appealing routes for walking and cycling

Parking Strategies
Reducing the required number of parking spaces in residential developments lowers construction costs
and can reduce housing unit prices.