Expanding and Preserving the Supply of Affordable Rental Homes

Introduction

The United States is facing a quiet but devastating housing crisis. It is not a sudden stock market crash or a single weather event, but a slow, grinding shortage of places to live for the poorest among us. The document, "Expand and Preserve the Supply of Affordable Rental Homes," lays out this problem in stark terms. Across the nation, there is a staggering deficit of 7.3 million homes that are affordable and available to households with extremely low incomes.

This includes seniors on fixed incomes, people with disabilities, and low-wage workers. The core message is urgent: to expand and preserve the supply of affordable rental homes, we need a multi-level strategy involving federal investment, state and local policy reform, and a commitment to racial and social equity.

The Scale of the Shortage: Why We Must Expand and Preserve the Supply of Affordable Rental Homes

The numbers are sobering. For every ten extremely low-income renters, there are fewer than four affordable and available rental homes. No state in America has enough rental homes for its lowest-income residents. This is not an accident of geography or population growth; it is a market failure. The private sector, on its own, cannot build and maintain homes that are affordable to the lowest-income renters without public subsidies. Construction costs, land prices, and required profit margins make it impossible to rent a new unit at a price someone earning minimum wage or disability benefits can pay. Therefore, to truly expand and preserve the supply of affordable rental homes, the public sector must intervene.

The shortage does not affect everyone equally. Because of ongoing racial segregation and structural inequality, Black and Latino children are more likely to live in substandard housing and in disinvested communities lacking good schools, healthcare, and opportunities. People of color are disproportionately harmed by the shortage of affordable homes, as they are more likely to have extremely low incomes and struggle to pay rent. Similarly, people with disabilities face immense barriers because so few rental homes are accessible, forcing them into unsafe situations or institutionalization. If we want to expand and preserve the supply of affordable rental homes, we must address these disparities head-on.

Increasing the supply of deeply affordable housing helps everyone. When millions of lowest-income renters pay more than half their limited income on rent, they have no financial buffer for emergencies, healthcare, or education. By expanding the supply of affordable rental homes for those with the lowest incomes, we free up their original apartments for renters who can better afford them, alleviating rent pressure across the income spectrum.

Federal Solutions: The Backbone of a National Strategy

The document argues that the severe shortage of housing affordable to extremely low-income households is a national crisis that demands a national solution. No city or state can fix this alone. Therefore, federal action is paramount. Two key federal tools are highlighted: the National Housing Trust Fund and Public Housing funding.

National Housing Trust Fund: The Primary Tool to Expand and Preserve the Supply of Affordable Rental Homes

Congress should expand funding for the National Housing Trust Fund to at least $40 billion annually. Why is this fund so critical? It is the only federal program designed specifically to address the market failure that results in a severe shortage of housing supply affordable to people with extremely low incomes.

Unlike other programs that might target middle-income households, the National Housing Trust Fund is laser-focused on the poorest renters. Expanding this fund would allow states and localities to build new deeply affordable units and preserve existing ones. Every dollar invested in the National Housing Trust Fund is a direct step to expand and preserve the supply of affordable rental homes for those who need them most, including seniors, people with disabilities, and families with children.

Public Housing: A Legacy to Preserve

Public housing is another critical source of housing affordable to households with extremely low incomes. However, Congress has long neglected its obligation to maintain these properties. The document calls for at least $90 billion to preserve and rehabilitate the nation's public housing infrastructure, make energy-efficient upgrades, and guarantee full funding for the future. Without this investment, thousands of existing affordable rental homes will be lost to decay, demolition, or conversion to market-rate housing. To truly expand and preserve the supply of affordable rental homes, we cannot afford to lose the public housing stock we already have. Rehabilitating these units is often faster and cheaper than building new ones, and it keeps communities intact.

State and Local Solutions: Reforming the Ground Rules

While federal money is essential, state and local governments control the land use and zoning laws that determine where housing can be built. They are in the best position to reform zoning and land use barriers that restrict the overall supply of housing, including for middle-income households. But to specifically expand and preserve the supply of affordable rental homes for the lowest incomes, state and local housing trust funds are a powerful tool.

Zoning and Land Use Reform

In many communities, zoning laws were written to keep low-income renters out. Single-family-only zoning, minimum lot sizes, and parking requirements make it illegal to build anything other than expensive detached homes. The document notes that some cities and states are beginning to reform these restrictions, allowing higher-density housing through by-right development (meaning if a project meets the rules, it doesn't need endless discretionary hearings).

While critically needed, zoning reforms alone are not sufficient to address the shortage for extremely low-income renters. They can increase overall supply and help middle- and low-income households, but they rarely produce units affordable to someone on SSI or minimum wage. To expand and preserve the supply of affordable rental homes for the very poorest, zoning reform must be paired with federal and state subsidies.

State and Local Housing Trust Funds

More than 800 state and local housing trust funds already exist, funded by dedicated sources like real estate transfer taxes, document recording fees, or general revenues. These funds support the preservation and production of affordable housing. The most effective ones target households with the lowest incomes. A state housing trust fund can provide the small gap financing needed to make a deeply affordable project viable. Local trust funds can respond to neighborhood-specific needs. To dramatically expand and preserve the supply of affordable rental homes, every state should have a well-funded housing trust fund that prioritizes extremely low-income households, people with disabilities, and those experiencing homelessness.

Needed Reforms to Support the Supply of Affordable Rental Homes

Beyond direct funding and zoning, the document lists a series of complementary reforms that are essential to expand and preserve the supply of affordable rental homes effectively and equitably.

1. Transportation and Housing Integration

Use transportation investments to incentivize or require zoning and land use reforms. Transit-oriented development can reverse segregation and increase the supply of market-rate and affordable homes. If we are building a new rail line, we should require affordable rental homes nearby, not just luxury condos.

2. Anti-Displacement Measures

To truly preserve the supply of affordable rental homes, we must prevent displacement. Long-time residents should not be pushed out when a neighborhood improves. Anti-displacement measures include preserving existing affordable housing, stronger renter protections (like just-cause eviction and rent stabilization), creating community land trusts, and other tools. Community land trusts keep land in community ownership, ensuring that homes on that land remain affordable forever. This is a powerful way to preserve the supply of affordable rental homes for generations.

3. Nonprofit and Community Ownership

Prioritize the ownership and management of affordable housing by nonprofit organizations, tenants, local governments, public housing authorities, cooperatives, and community land trusts. Nonprofit owners are less likely to flip properties to market-rate buyers. They are mission-driven. Building the capacity of these organizations—especially those led by Black, Asian, Native American, and Latino communities—is crucial to expand and preserve the supply of affordable rental homes in a way that respects local culture and needs.

4. Fair Housing Enforcement

Provide robust resources to aggressively enforce fair housing and civil rights laws. Housing discrimination has been outlawed for decades, but it continues. Landlords still discriminate against families with children, people of color, people with disabilities, and voucher holders. Greater enforcement must be a top priority. Without enforcement, efforts to expand and preserve the supply of affordable rental homes can be undermined by landlords who refuse to rent to protected classes.

5. Accessibility for People with Disabilities

Ensure homes are built to be accessible. The lack of accessible, affordable rental homes forces many people with disabilities into institutions or homelessness. Creating more accessible homes can help prevent institutionalization. The document also calls for a home modification fund to help people who have been institutionalized or are at risk remain in their homes. Retrofitting existing units with grab bars, ramps, and wider doorways is a cost-effective way to preserve and expand the supply of affordable rental homes for this population.

6. Inclusion Regardless of Immigration Status

Provide resources to all income-eligible households, regardless of immigration status. Mixed-status families are common, and excluding them only increases homelessness and instability. If we want to truly expand and preserve the supply of affordable rental homes, we must serve everyone in need.

7. Fair Access for People with Criminal Histories

End arbitrary screening and eviction policies, including blanket bans and one-strike policies. A past criminal record, especially one unrelated to housing should not be a lifetime ban from safe, affordable rental homes. These policies disproportionately harm Black and Latino men and contribute to homelessness. Ending them is a necessary step to expand and preserve the supply of affordable rental homes for all.

8. Homeless System Transformation

Convert the congregate homeless shelter system (large, barracks-style shelters) into one focused on permanent, affordable housing. Shelters are a temporary fix; permanent housing is the solution. Resources should flow to "Housing First" models that provide a stable, affordable rental home without preconditions like sobriety or employment.

9. Repeal the Faircloth Amendment

Repeal the Faircloth Amendment, which effectively bans the construction of new public housing units using federal funds. This 1998 amendment limits the total number of public housing units an agency can have to its 1999 level. Repealing it would allow us to build new public housing for the first time in decades. It also ensures that any lost public housing is replaced. This is a direct, legal step to expand and preserve the supply of affordable rental homes.

10. Racial Equity Analysis

Analyze housing, transportation, environmental, and disaster recovery programs for how each exacerbates, ignores, or ameliorates racial inequities. Enact legislation to ensure all programs advance racial equity. Because the shortage disproportionately harms people of color, solutions must be measured by their impact on racial equity. This ensures that when we expand and preserve the supply of affordable rental homes, we are not simply repeating past mistakes of building affordable housing only in poor, segregated neighborhoods.

Did You Know? Key Facts on the Supply of Affordable Rental Homes

The document ends with powerful "did you know" facts that underscore why action is urgent:

• Racial disparities: The shortage of affordable homes disproportionately impacts Black people, Native Americans, and Latinos, who are more likely than white households to have extremely low incomes, pay more than half of their income on rent, or experience homelessness.

• Structural racism: Decades of structural racism and ongoing discrimination have created racial disparities in housing, which contribute to inequities in wealth, education, health, and more. Housing segregation was designed through intentional public policy.

• Disability access: People with disabilities face significant barriers to affordable housing because of the lack of accessibility or locations far from critical services.

Conclusion: A Call to Action

The document makes one thing clear: to expand and preserve the supply of affordable rental homes, we cannot rely on half-measures. We need the National Housing Trust Fund funded at $40billionannually\mathrm{.}Weneed$90 billion for public housing repairs. We need zoning reform, anti-displacement measures, fair housing enforcement, and accessibility mandates. And we need all of it now.

The shortage of 7.3 million homes for extremely low-income renters is not a natural disaster; it is a policy choice. For decades, we have chosen to underfund affordable housing, to write exclusionary zoning codes, and to neglect public housing. We can choose differently. By combining federal investment, state and local reform, and a commitment to equity, we can expand and preserve the supply of affordable rental homes for every American, regardless of income, race, or disability status. The cost of inaction is measured in evictions, homelessness, institutionalization, and lost human potential. The time to act is now.

Also Read: 14th Annual Demographia International Housing Affordability Survey: 2018