HOW TO HELP 2. Small Landlord Financing. Two thirds of the 60,000+ damaged rental housing are single family dwellings. Financing repairs through insurance or SBA loans goes slowly and causes units to deteriorate. Charities won’t work on investment property and homeowner grants won’t apply unless it is a duplex, half-occupied by the owner. The Go Zone and LIHTC programs generally are not scaled to the single family rental unit, in many cases a locally owned asset. Repairing existing single family rentals would restore community-based affordable housing, help local real estate investors, and lessen strain on utilities and transportation. One solution is a grant/soft mortgage to owners of single family rental units. As a condition of receiving the repair funds, the owner would agree to rent the units for a time proportional to the grant to means-tested tenants. The mortgage would be forgiven if the owner complies, and accelerated if the owner breaches the agreement. Louisiana targets affordable small rental properties in its CDBG plan and Mississippi could streamline and scale the problem to fit our market conditions. As an example, Mississippi could spend $75 million of the CDBG funds to enable 1,500 to 3,000 units to become habitable, using $25,000 per property renting to tenants earning 80% of the Area Median Family Income (AFI), or $50,000 per property renting to earning 60% of AFI. 3. Community Land Trust. Land prices have not soared in historically impoverished communities. Homeowners displaced from one low-income community may find affordable housing elsewhere through a community land trust (CLT). A CLT is a proven mechanism for increasing low-income home ownership and strengthening communities. As described in the Affordable Housing committee report, a CLT “would own the land but not the buildings on the land. Individual residents own the buildings themselves, have a long term lease on the land ,and act as members of the trust. The compelling advantage for CLTs is to ensure that even if surrounding land values rise, home within the trust will remain affordable.” One example is the North Gulfport Community Land Conservancy, founded prior to Hurricane Katrina. This group has pending offers from the Healthy Building Network and Youth Build to construct up to 300 affordable residences in the area. Other community groups formed or revived since Katrina could provide the key local ingredient for success. Adding affordable housing using this model lifts up depressed neighborhoods, raises the tax base, and fits into existing utility and transportation systems. HOW YOU CAN HELP1. Developer Affordability Requirements Urge your legislators to pass laws authorizing them and urge your municipalities to adopt them. 2. Small Landlord Financing Encourage the Mississippi Development Authority and the Governor to secure HUD approval for this proposal. 3. Community Land Trust Explore the possibility of forming a land trust or community development corporation in your neighborhood. Consider development or investment in infill situations in partnership with community land trusts. Contact: Target Donations needed for housing construction Insulation Drywall Electrical Supplies Roofing Kitchens Windows and Doors Gift Cards to Lowes, Home Depot, 84 Lumber, Baileys Lumber Bottled Water |
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