Lowering Hurdles to Housing : Needed: money, better regulations and compassion

Buying a home is an impossible dream for an increasing number of middle-income families. Finding a decent apartment is also a difficult task for a growing number of low-income Americans who are paying up to half of their incomes for rent. New houses and apartment buildings should be the answer for these families, but the cost is often prohibitive.

The high prices can be blamed, in part, on a maze of federal, state and local regulations that inhibit new construction, according to a report released last week by a bipartisan advisory commission to the federal housing department. The worst barriers are often inspired by an anti-growth and elitist sentiment also known as the “Not In My Back Yard” syndrome.

Based on the commission’s findings, Housing Secretary Jack Kemp attributes up to 30% of the cost of new construction to unnecessary zoning regulations, building codes and permit procedures. Eliminating some hurdles, though not crucial environmental ones, would speed up the process and cut the cost by thousands of dollars per unit. That step wouldn’t reduce the cost of land, materials or labor but it would help to put more houses or apartments within reach of more families.

The report also recommends conditioning the receipt of federal housing funds on removing local barriers to affordable housing. But too many communities would willingly give up the money to keep out affordable housing.

To funnel more money into affordable housing, the commission also endorsed the federal low-income housing tax credit, which has been a strong incentive for corporate investment. Congress should extend that tax credit.

The need for affordable housing isn’t limited to poor Americans who earn the minimum wage, work part-time or depend on government assistance to pay the rent. Middle-income Americans are also finding they can’t afford to buy a home near where they work or in the neighborhood where they grew up.

Easing the housing crisis will take money, better regulations and compassion. Kemp and his commission are on the right track.