ARP: Salem, MA Tackles Housing Insecurity

Mayor Kim Driscoll announced in July a comprehensive effort to address housing insecurity in her community. Driscoll invested over $9 million of ARP funds toward affordable housing construction, grants to build accessory dwelling units, energy efficiency improvement projects at affordable housing complexes, and additional investments in the city’s Affordable Housing Trust Fund, including helping the trust purchase and preserve existing affordable units.

 

 

ARP: Manchester, NH to Fund Affordable Housing

Mayor Joyce Craig announced a call for affordable housing proposals to apply for $3.4 million in investments of federal recovery funds (HUD’s HOME-ARP Program and the American Rescue Plan’s State and Local Federal Relief Funds). The latest round of funding can be used for small and large housing projects, including non-congregate shelters, new affordable rental units, and the rehabilitation of existing units for eligible households. This latest effort builds on the $2.7 million of federal HOME funds already used to develop or renovate 152 affordable housing units in the city.

ARP: Eagle CO, Funds Affordable Housing Solutions

Roberts helped develop broad housing goals with fellow lawmakers in Colorado to utilize their ARP funds, specifically the legislature’s Affordable Housing Task Force recommendations to invest in a revolving loan fund, resident-owned communities, and related services. The Affordable Housing Task Force, chaired by Representative Dylan Roberts, successfully turned the task force’s recommendations into action over the summer and had five bills signed into law that will utilize a total of $428 million in ARP funds towards housing solutions.

Representative Roberts’ authored bill creates new grant programs and provides $178 million to help communities invest in affordable housing grant projects and related services and to sustainably develop vacant land. The other bills will encourage new investments in modular, prefabricated, and manufactured homes; expand finance and loan opportunities for affordable housing developers; and provide grants to local governments and nonprofits to buy land and develop affordable housing projects themselves.

ARP: Boise ID, Assists Renter Households

Mayor Lauren McLean approved an additional $6.5 million in federal funds for the Emergency Rental Assistance Program to support more qualifying households to stay in their homes as the city continues to recover from the pandemic. The city has already allocated $15 million in federal assistance to help more than 3,200 households earning 80% of the average income or less.

ARP: New Bedford, MA Supports New Mixed-Income Housing

Mayor Jon Mitchell announced in June more than $11.2 million in funding for new housing developments that will revitalize key sites and create nearly 150 new units. The five grant recipients will receive funds from the ARP-funded Housing Expansion Initiative, which supports large-scale housing projects that are shovel-ready and will directly assist in the creation of new units for people with household incomes at or below the area median income. The awards will support and leverage private investments to fill funding gaps and move the projects toward construction.

Update:

Mayor Mitchell announced the five projects receiving ARP funds which will leverage over $70 million in development cost. The majority of the 149 new units will be income-restricted, for households and earners making various percentages of the area median income.

“These developments will energize neighborhoods and provide much-needed new units,” Mayor Jon Mitchell said. “When we announced the Housing Expansion Initiative, we asked for projects that were shovel-ready and already utilizing other funding sources, but just needed a bit more support to get over the top. Given the current pace of inflation and the intensifying demand for housing, we want to get funds out the door promptly.”

ARP: Austin to End Homelessness in Texas’ Fourth Largest City

ARP funds anchor a half-billion dollar effort by Austin Mayor Steve Adler to end homelessness in the coming years. Adler will invest $107 million of federal funds toward the effort. The funds will provide housing for 3,000 individuals and stabilize housing for an additional 2,300 households. Adler is working with city, county, and state officials, as well as the private sector, to supplement ARP funds with the goal of raising $515 million in three years. The effort is close to achieving the goal, with $400 million in commitments by the end of 2021. “We truly are, I believe, at the cusp of being able to end homelessness in this city,” Adler told the Austin American-Statesman in October 2021. With a population of nearly one million, Austin would be one of the largest cities in the nation to end homelessness.

Update

Mayor Steve Adler has allocated $110 million of Austin’s ARP funding to address housing and homelessness issues in the community. The city’s Homeless Strategy Office obligated $4.75 million of its ARP share to rehabilitate and convert two hotels into permanent supportive housing. The funding is a key component of meeting the Mayor’s goal to house 3,000 people in the next two years.

ARP: A Surge in Construction in New Castle County, Delaware

Thirty million dollars from the American Rescue Plan Act will go towards affordable housing opportunities in New Castle County, DE, County Executive Matt Meyer announced in late 2021. The ARP-funded programs will be modeled after the county’s HOME Investment Partnerships Program (HOME) program for building affordable housing. The funding will focus on both homeownership and affordable rental properties in unincorporated areas of the county. The county’s HOME program normally receives about $900,000 in federal housing aid each year. Meyer declared the 30-fold increase will “do all sorts of things to make life easier for renters, for people right on the cusp of homeownership, and potentially stuff for repairs to homes that would, if not for these resources, send people into homelessness.”

The investment comes as home prices in Delaware – and across the nation – have increased substantially over the past few years. Nationwide, home prices have soared as much as 19 percent, according to the Dallas Federal Reserve. In New Castle County, home prices increased by more than 13 percent from June 2020 to June 202. 

Meyer’s housing investment dovetails with efforts made by state and city officials. In October 2021, Gov. John Carney announced an investment of more than $24 million to complete 350 affordable homes in Wilmington within two years. Further, the City of Wilmington will invest $3.5 million to develop 278 rental units, which includes 20 ADA-accessible units.

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New Home Ownership Program to Help those Affected by Redlining

Problem

In Denver, communities of color have a long history of exclusion, with redlining and other discriminatory practices prohibiting where they could live, impacting employment, education, and homeownership opportunities. Currently, there’s 54% homeownership among white households, while it’s under 41% for households of color.

 

Solution

Denver Mayor Michael Hancock announced a new social equity program to increase homeownership in communities of color. This initiative will assist residents directly impacted by redlining and gentrification with down payment assistance, such as interest-free loans that are forgiven after three years.

ARP: Haverhill MA, Build Generational Wealth Through Homeownership

Problem

Homeownership can lead to intergenerational wealth, yet there is a significant racial gap in homeownership, the Urban Institute found homeownership rates continue to be low among Black and Hispanic households (42% and 48%, respectively, compared to 72% of white households that own a home). Furthermore, they project that the homeownership rate will continue to fall particularly for younger generations.

Solution  

Representative Andy Vargas and the state’s Black and Latino Caucus established CommonWealth Builder. CommonWealth Builder is an innovative program that uses $100 million in recovery funds to provide financial incentives for developers to sell to first-time home buyers and help build intergenerational wealth for qualifying families. This program also supports the construction of affordable single-family homes and condos and focuses on driving production in communities of color.

ARP: Richmond VA, Using ARP Funds to Reinvigorate Public Housing

Problem

Before COVID-19, America’s housing system was far from perfect. The pandemic put a magnifying glass on issues that have been present for years, if not decades: high rents, unattainable housing prices, and insufficient affordable housing stock. As the NewDEAL Forum noted in January 2021, “these problems were especially acute for people of color. Black households are twice as likely to rent as white households, and housing costs account for a heavier cost burden:  Among Black Americans, 55% pay more than 30% of their income toward housing compared to 40% of white Americans.”

Solutions

As part of Richmond’s Equity Agenda, Mayor Stoney will invest over $12 million in ARP funds to renovate and improve two of the city’s public housing complexes. One project will replace 504 existing old units, with up to 700 new apartments and homes for over 500 families. The funds for the other project will allow for the first phase of redevelopment and will ultimately result in 122 new for-sale homes.