Tuesday, July 20, 2010

Affordability SWOT Analysis

Strengths

  • Quality organizations (both private and non-profit) supporting affordable housing
  • Collaboration and community involvement
  • City and county commitment to affordable housing
  • Overall housing affordability has improved (home prices have fallen)
  • Historically low interest rates
  • Compared to other cities, housing is generally affordable
  • Low base utility rates

Weaknesses

  • Financing for development (especially creative development) is hard to come by
  • Narrower pathway to homeownership than in recent years (decreasing property values, tighter lending standards, etc. = fewer ready buyers)
  • Financial illiteracy
  • No educational requirement tied to affordable housing and/or other rentals & purchases (renter education, first-time home buyer education, etc.)
  • High levels of energy consumption = increased utility costs

Opportunities

  • Consortium of local banks to provide financing for affordable housing
  • Local fund to provide resources fro affordable housing and housing affordability
  • P.A.C.E. Program recently passed at state level, awaiting governor’s signature
  • Utility-based efficiency programs have been well-received; opportunity to expand
  • Utility history disclosures/publishing in a more transparent way (particularly in rentals)
  • Community-wide education on financial literacy and life skills
  • “Qualified Renter” training/certification program; landlords offering incentives on deposits, etc. for certified renters
  • Federal Housing Trust Fund & similar incentives for construction of new affordable housing

Threats

  • Foreclosures / Appraisals / Tighter lending standards, etc. = fewer available buyers
  • Low average wages / few high paying jobs in the area
  • Fees and regulatory costs (especially in new construction) reducing the availability of new housing that people can afford
  • Future utility costs (transport rules, cap & trade, etc.)
  • Mandatory fire sprinklers in new single-family residences
  • Changes (reductions) to tax credit system for construction of affordable housing (MHDC, etc.)
  • Inconsistent code interpretation and enforcement (internally and with surrounding jurisdictions).

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