Expanding Public-Private Engagement Can Boost Housing Supply
To expand local economies, adding affordable housing supply is key
In November, Capital One joined POLITICO and affordable housing policymakers, thought leaders and practitioners in Washington, DC, for a discussion focused on challenges and solutions to fixing the nationwide housing crisis.
Speakers included Rep. Darin LaHood (R-IL), Rep. Ritchie Torres (D-NY), and Desiree Francis, head of Community Finance at Capital One.
Torres, who represents The Bronx in New York City, said his district is “ground zero for the affordability crisis” and cited the significant gap in affordable units. Beyond this gap, he said nearly 40% of New Yorkers pay more than 30% of their income for housing-related costs, which makes them housing cost-burdened.
Housing affordability impacts households across urban, suburban and rural regions
Francis underscored that housing-related expenses are often an individual or family’s largest expense, and renter households at all income levels have experienced rising cost-burden rates, which impacts their overall financial health.
“We know that when residents have access to safe, stable and affordable housing, it can provide them greater opportunity to save, weather short- and long-term financial hardships, build wealth and achieve financial resilience,” she said.
In addition to contributing to individuals’ and families’ financial success, affordable housing can also expand economic opportunities for communities. In particular, local businesses can benefit from nearby affordable housing that helps attract and retain talent.
For example, in LaHood’s district, a new automaker’s manufacturing plant brought with it more than 8,500 new workers – all of whom needed housing in the suburban area. “In McLean county, we’d typically see roughly 1,200 or 1,300 homes on the market each year,” he said. “That number has shrunk to 300 homes on the market now.”
LaHood said it will take private and public sector cooperation to make housing programs more efficient, effective and accountable. “We have 50 states and 50 programs, so we can see where states have done a terrific job pushing efficiencies in their programs and replicate those successes at the Federal level. Ultimately, our goal is to make it easier for people to get into the housing they need and make the program work better for Americans.”
Torres added that the government needs to reform the procurement process and ensure better, faster and more affordable repairs to affordable housing communities and units. “More needs to be done to improve living conditions for children, seniors and disabled residents.”
Congress can act to create and preserve more affordable housing
Congress will have the opportunity to expand the federal LIHTC program as part of the 2025 tax legislation. As a member of the Affordable Housing Tax Credit Coalition, Capital One has been a leading voice and supporter with Congressional lawmakers on the LIHTC program via the bipartisan Affordable Housing Credit Improvement Act (AHCIA), which now has over 50% of Congress signed on. According to the Affordable Housing Tax Credit Coalition, the AHCIA would help finance the creation or preservation of more than 2 million additional affordable homes over the next 10 years.
“Expanding and strengthening the LIHTC program can help close the affordable gap across the country,” said Francis. “Policymakers representing urban cities and rural America are staring at this problem together, wondering, ‘How can we move the needle to provide safe, quality and affordable housing to those in need?’”