Increased Innovation Benefits Today’s Affordable Housing
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Suzann D. Silverman, Editorial Director
With affordable housing already in short supply, today’s difficult financing market is presenting yet another hurdle for developers willing to take on a much needed but hard-to-pencil rental sector. The U.S. lost 4.7 million units with monthly rents below $1,000 between 2015 and 2020, according to a recent report from the National Multifamily Housing Council and the National Apartment Association. And the U.S. is short 7.3 million affordable rental units, with just 33 available for every 100 extremely low-income renter households and a deficiency in every state, according to the National Low Income Housing Coalition.
The good news is that states are taking some action and support is building for legislation in both houses of Congress, as Gail Kalinoski discusses in “How Affordable Housing Developers Solve the Funding Puzzle.” In the meantime, in the past few years we’ve observed a growing trend that benefits residents while raising property values: a focus on improved design and amenities, along with sustainability and wellness features.
That trend has been very visible among submissions to our MHN Excellence Awards, specifically in the Development & Design: Affordable Housing category, which saw a significant and enduring uptick in entries two years ago, much to our delight.
Take last year’s Gold winner: Bayshore Villas, a redevelopment of Puerta de Tierra, the first public housing project built in Puerto Rico, in the 1930s. Designed by Alvarez-Diaz & Villalon and developed by McCormack Baron Salazar, the new 174-unit community reconceived a poor design as a beautiful four-story mixed-income, mixed-use, eco-conscious property with storm-resistant features, plenty of green space, indoor and outdoor amenities, and “people-focused” support services including employment and education opportunities and transportation. Underway when Hurricane Maria struck, it was financed to withstand an inability for storm-related losses to be retrieved.
Other winners included The Domain Cos.’s The Exchange SLC, a transit-oriented mixed-income, mixed-use community that revitalized an underutilized corner in downtown Salt Lake City and includes built-in furniture, coworking spaces, a comprehensive technology package including keyless entry, and a locally focused food hall. Then there was Jamboree Housing’s Sierra Fountains, which redeveloped a blighted San Gabriel Water Co. lot in Fontana, Calif., into a 60-unit property with a health and wellness clinic, a community space with a demonstration kitchen; a computer lab; community gardens; free tutoring, health and nutrition classes; and other amenities. Both communities were built sustainably.
The winning submissions weren’t the only ones offering healthful and innovative features previously available only in higher-end properties. Last year’s pool included plenty more, and this year promises a whole new set of tough contenders. It’s great to see continued delivery of new communities featuring design and management innovations, even while successful financing is requiring heightened innovation of a different kind.
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