Making housing affordable has become an emphasis for cities to maintain and attract middle-income jobs and opportunities. Growing cities like Denver that are attracting millennials at a record pace need to build and preserve moderate priced rental and for sale housing in order to maintain a reputation as one of the best places to live.
Mayor Michael Hancock, the Housing Task Force and community members recently came together to announce Housing Denver, a five-year plan for the future economic growth and development of Denver. Engagement with the community, nonprofits, finance experts, neighborhood advocates, and service providers has made this a unique, comprehensive plan that puts Denver on a path to strengthen the infrastructure that will enable all individuals and families in the Denver area to have access to affordable housing.
It is clear that the plan’s architects recognize the importance of the links between affordable housing and economic development. When localities recognize that a range of housing types and a mix of housing prices contribute to a vibrant and balanced economy, there’s more predictability for business growth, expansion, and startups.
One of the priorities of the plan is to provide greater opportunities for homeownership in the Denver area. Owning a home can lead to improved health and school outcomes for children; increased civic engagement and volunteerism; reduced crime; and higher lifetime wealth. The FHA recently launched a pilot program that will allow homeowners who commit to housing counseling to qualify for reduced mortgage insurance premiums.
Federal, state and local stakeholders are increasingly focusing on the development, rehabilitation and preservation of affordable housing for extremely low-income families as a policy priority. To combat our nation’s rental housing crisis, the National Housing Trust Fund aims to provide communities with funds to build, preserve and rehabilitate rental homes that are affordable for very low-income households. But government can’t address these problems alone; progress begins from the ground up.
The plan emphasizes proximity to transit and green building standards that promote energy efficiency and water conservation, which provides people of all ages and incomes with improved access to transportation and housing choices. Reducing transportation costs mitigates impacts of automobile travel on the environment and the economy. Developing along transit corridors can serve as a catalyst for the growth of quality, affordable housing.
A recent Harvard/Berkeley study on economic mobility provides further evidence that location matters: where you live factors a great deal into your life prospects. Having a job far from where you live imposes a set of costs on individuals and families that limit their economic prospects and upward mobility.
The Denver Plan is about strategic partnerships with private, non-profit and other state and federal finance sources to create and build affordable housing that supports individuals and families whose income is at 80 percent of the Denver area median income ($61,350 for a family of four). Despite cuts in federal funding, by building partnerships, communities will have the tools they need to be smarter, more effective and more strategic about how they use HUD federal dollars to leverage private dollars than ever before.
I look forward to contributing to the shared vision for safe, decent, affordable housing to make Denver a strong, thriving community.
Rick Garcia is the HUD Rocky Mountain regional administrator and a former Denver City Council member.
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