in community and economic development
Federal Reserve Bank of Atlanta
Volume 10, Number 1
Complex Issues Surround Building and Maintaining Affordable Housing
In This Issue
Single Family Housing
In Lafayette, the results shine.
Mark-to-Market issues explored.
Affordable Housing Preservation
A new non-profit’s efforts to preserve affordable housing.
Capital Investment in Minority Bank
Fannie Mae and Citizens Trust Bank partner to expand housing opportunities.
It’s never easy to decide what meaningful and timely topics should be included in a newsletter. Our community development industry is so full of interesting news and events that frankly, it’s almost overwhelming. And everything is moving so fast that it’s hard to keep up.
This issue is mindful of your needs for current events and background information. For example, Mike Milner’s article on the “mark-to-market” program is a particularly insightful view on HUD-sponsored Section 8 developments. Congress passed the Multifamily Assisted Housing Reform and Affordability Act of 1997 to address the very large amount of HUD subsidies required for multifamily housing. The change has resulted in some affordable multifamily properties “opting-out” of the rental assistance program.
Meeting the need for affordable housing is a constant challenge. It’s hard enough to develop the units, and now with some low-income housing tax credits expiring, combined with neighborhood gentrification, mark-to-market and other factors, the number of affordable units is rapidly declining. And there are no quick fixes, or easy answers.
Another article we’re featuring was prepared by guest authors Kathy Kenny and John Trauth, who present one approach to preserving affordable housing units. They explain the issues and concepts that led to the development of a new national nonprofit, the National Housing Development Corporation. This nonprofit is chartered to serve as an intermediary for local nonprofits who need assistance in buying and preserving our affordable housing stock.
This Partners issue features some news worth celebrating. Keenan Conigland describes a new Fannie Mae initiative that provides substantial support to Citizens Trust Bank in Atlanta, a minority-owned financial institution.
Finally, we are excited about a very fine public/private partnership formed in Lafayette, Louisiana, to provide affordable single family housing in a new development called Bayberry Point. Every now and then we uncover a program that is run by a variety of committed and determined professionals whose intent is noble and whose approach is sound. Lafayette is a prime example of this, and we are pleased to present it in this issue. We hope you find it as interesting as we did.
This Partners features both single and multifamily affordable housing. While we normally try to balance the newsletter with information covering housing, business, and community and economic development programs, sometimes there is just too much news to cover in one issue. We will certainly try to address more issues in the next newsletter. In the meantime, please visit our website, www.frbatlanta.org for more information on selected topics, including a calendar of events that might interest you.