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).