Tie transportation funding to housing production
Recommendation
Congress and the U.S. Department of Transportation (DOT) should tie transportation funding to whether states and municipalities confirm commitments to building additional housing in high-cost, high-demand areas, with clawbacks if jurisdictions fail to meet their commitments. Congress should pass legislation such as the Build More Housing Near Transit Act that revises how the DOT evaluates capital projects to increase the production of affordable housing. The Department of Housing and Urban Development (HUD) should similarly tie competitive grant programs under its jurisdiction to state and local communities that commit to building high-density, single-family and multifamily housing in high-cost areas that have housing shortages.
Background/summary
The United States is facing a severe housing crisis, especially in high-cost, high-demand areas where the supply of housing has not kept up with population and job growth. According to a report by the National Low Income Housing Coalition, there is a shortage of 7.3 million affordable and available rental homes for extremely low-income renters nationwide.[1] The lack of affordable housing negatively impacts the economy, the environment, and the well-being of millions of Americans. One way to address this crisis is to increase the production of housing near transit, which can provide multiple benefits, such as reducing traffic congestion, greenhouse gas emissions, and transportation costs, as well as improving access to jobs, services, and opportunities.[2]
However, many local governments have imposed restrictive zoning and land-use regulations that limit the availability of housing and drive up housing costs, wasting critical resources.[3][4] These local barriers increase homelessness and the number of unsheltered individuals living on the streets, including a disproportionate number of individuals with mental health and substance use disorders (MH/SUDs), leading to worsening health outcomes and criminal legal system involvement. A recent landmark study by the Benioff Homelessness and Housing Initiative at the University of California San Francisco showed that high housing costs and low incomes were the primary factors driving homelessness. Having one or more MH/SUD prior to homelessness was a key contributing risk factor, and individuals’ mental health and substance use worsened after they became homeless, yet they had little access to treatment.[5]
Congress, DOT, and HUD should tie federal transportation and housing funding to housing production to incentivize local governments to reform exclusionary zoning and land-use policies that drive up housing costs, increase homelessness, and disproportionately impact individuals with MH/SUDs who are at significantly higher risk for homelessness, which can cause further deterioration of the conditions.
citations
1. National Low Income Housing Coalition. The GAP. Last Accessed July 31, 2023.
2. Up For Growth. Build More Housing Near Transit Act. Last Accessed July 31, 2023.
3. National Academies of Sciences, Engineering, and Medicine. Consensus Study Report on Permanent Supportive Housing: Evaluating the Evidence for Improving Health Outcomes Among People Experiencing Chronic Homelessness. Last Updated July 11, 2018.
4. Rouse, Cecilia, Jared Bernstein, Helen Knudsen, and Jeffrey Zhang. Exclusionary Zoning: Its Effect on Racial Discrimination in the Housing Market. The White House. Last Updated June 17, 2021.
5. Kushel, Margo, Tiana Moore, et al. Toward a New Understanding: The California Statewide Study of People Experiencing Homelessness. UCSF Benioff Homelessness and Housing Initiative. Last Updated June 2023.