Local government leaders will have a lot to learn about at the upcoming International City/County Management Association Annual Conference in Tampa, Fla. Among the most pressing challenges they face: Advancing economic mobility in the face of rising housing costs, widening racial wealth disparities and unequal access to jobs, education and transportation.
Earlier this year, ICMA convened its Economic Mobility Conference in Baltimore, where local officials, practitioners and partners shared models for inclusive growth. The main points from community ownership discussions and housing and workforce development and neighborhood investment sessions became evident.
1. Community ownership functions as a strong method to stop the pattern of disinvestment that affects multiple generations.
The Invest York Road project in Baltimore shows that community ownership leads to major results. The community response emerged as a reaction to decades of redlining practices and economic discrimination which targeted neighborhoods located in the “Black Butterfly” area of the city.
The project enabled residents to stop the foreclosure of their favorite Black-owned restaurant by forming a group to buy commercial properties.
The dual mission of Invest York Road stands out because it creates financial growth while maintaining democratic ownership. The community members who invest in the project gain access to financial returns and also get to decide on the direction of the businesses and properties that the community backs. The initiative has provided financial literacy education to more than 500 residents who acquired the knowledge to become homeowners and establish enduring financial prosperity.
2. The development of housing needs adaptable financial resources together with new institutional approaches.
Baltimore County established a special public investment system through its decision to use $16 million of county capital to create a local housing fund. This fund has been used alongside tax abatements, creative approaches to Community Development Block Grant funding and projects that operate outside the traditional federal and state tax credit system.
The model combines fast permitting with waived fees and special developer assistance, which has already produced successful outcomes. The county preserved 400 affordable units that were at risk of being lost to the private market and converted a vacant hotel into 115 residential units in an underused commercial corridor.
3. Public land stands as an essential yet underutilized resource which should be used to build affordable housing.
Miami-Dade County Commissioner Eileen Higgins described how her administration began by asking a simple question: “What county-owned land is available and where is it?” A thorough public land inventory showed that numerous parcels existed throughout agencies which were located close to public transportation routes.
From there, the county passed zoning reforms to allow transit-oriented development and used long-term ground leases, impact fee waivers and density bonuses to encourage developers to build mixed-income housing. The effort involved transforming an obsolete county community center into a modern development which united 140 residential units with a contemporary public facility.
4. The implementation of mixed-income development brings stability to communities, but developers need to find innovative funding solutions to make it work.
The “housing for all” model of Miami-Dade County allows developers to create neighborhoods which integrate affordable housing units for workers with market-rate properties. The method stops poverty from becoming concentrated while helping people move up the social ladder.
Efforts to fund these projects often encounter a major obstacle. Traditional lending institutions are often unfamiliar with underwriting mixed-income projects. The county staff worked with financial institutions to show how market-rate apartments would reduce the demand for financial assistance, which gained support from stakeholders.
The system operates correctly despite the initial system problems. The development of large projects that unite residential areas with educational facilities, recreational zones and commercial services occurs in areas that have accessible public transportation systems.
5. Local governments must evolve from their current passive regulatory approach to active development because their current state is unsustainable.
Former Housing and Urban Development Secretary Marcia Fudge joined Commissioner Higgins in urging local leaders to act boldly on housing. “We know how to do it. We just don’t have the will,” Fudge said.
She emphasized that communities need to create their housing vision before they can match zoning rules with permitting systems and funding mechanisms. The alignment of Miami-Dade County has resulted in major efficiency improvements because the permitting process for multifamily developments now takes 107 days instead of two years.
Higgins and Fudge’s overall point was that local governments can create communities that provide both present and future quality of life by treating housing as essential infrastructure at the same level as roads and schools and parks.
6. The protection of existing buildings holds equal importance to the development of new buildings.
The preservation of current affordable housing properties proves to be a speedier and less expensive solution than constructing new units. Baltimore and Miami-Dade counties have dedicated funds to protect naturally occurring affordable housing and historic buildings which would otherwise face abandonment or demolition due to speculation.
For example, Dayton Heritage Trust in Miami-Dade County works to restore historic low-income housing through CDBG funding and volunteer architects who help maintain affordable housing for existing residents. The programs work to maintain both affordable housing options and the original residential character of the neighborhood.
7. Housing policy is economic policy.
The foundation of stability in your home environment creates possibilities for success in all other areas of life. The social advancement of people becomes difficult because affordable housing locations remain distant from employment areas and educational facilities and public transportation hubs. People who live in Miami-Dade County need to allocate more than 50 percent of their earnings toward paying for their home and transportation expenses.
The county supports the development of “transit-oriented communities” which unite residential areas with essential services and convenient amenities through pedestrian-friendly neighborhoods.
“Where you live is the number one social determinant of health,” said Fudge.
_______________________________________________________________________________________
For more insight like this, subscribe to ICMA SmartBrief. For a full recap of last year’s ICMA convention, click here.
