A combination of ineffective funding mechanisms, strict building regulations, and inflation are pushing per-unit construction costs higher.

Writing in Crain’s Chicago Business, Judith Crown explains the various factors behind the high cost of affordable housing construction.
According to Crown, “Costs are driven by the byzantine rules of the federal tax credit system that require builders to assemble a ‘capital stack’ of funders, each with sets of fees and requirements. On top of that comes ever more rigorous government standards for accessibility, sustainability and design.”
Additionally, federal resources dedicated to affordable housing have not kept up with inflation, and the complex tax credit funding system comes with “incredibly high transaction costs.” Some experts say it would cost far less if the federal government directly subsidized affordable housing construction.
Per-unit costs sometimes increase due to the addition of new infrastructure, but improvements such as new sidewalks can help make a housing development a vehicle for broader revitalization in the surrounding neighborhood. Modern affordable housing is also designed to blend in. “Planners want to get away from the institutional design of infamous public housing projects, such as the Robert Taylor Homes and Cabrini-Green. While these 1960s-era buildings aren't directly comparable to today's scaled-down affordable projects, there's a priority to design buildings that look like they're part of the neighborhood, architects say.”
FULL STORY: The high cost of creating affordable housing

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Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

In Urban Planning, AI Prompting Could be the New Design Thinking
Creativity has long been key to great urban design. What if we see AI as our new creative partner?

Dorm-Style Housing: A Solution for DC’s Vacant Office Buildings
Adapting office buildings to dorm-style housing with shared spaces is a much more affordable option than repurposing offices into apartments.

Opinion: LOS has ‘No Redeeming Quality’
The commonly used Level of Service metric that grades intersections based on traffic speed rather than safety is a key contributor to dangerous roadways.

San Francisco Mayor Backtracks on Homelessness Goal
Mayor Dan Lurie ran on a promise to build 1,500 additional shelter beds in the city, complete with supportive services. Now, his office says they are “shifting strategy” to focus on prevention and mental health treatment.
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Gallatin County Department of Planning & Community Development
Heyer Gruel & Associates PA
JM Goldson LLC
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
Jefferson Parish Government
Camden Redevelopment Agency
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