Affordable Housing in Charlotte

[kermit]

An interesting idea. Particularly if you set the loan amount just below what the city currently spends to create a new affordable unit -- what is that amount in Charlotte?

 

[KJHburg]

^^^^ Charlotte already does something like that through the House Charlotte program.  It is forgivable down payment assistance as long they stay in their homes in certain zip codes for a period of couple of years.

https://www.cmhp.org/homeownership/housecharlotte-program/

[KJHburg]

Learning from other places this time the ATL about co-living apartments could help here with affordability.  These type of apartments are common in student living arrangements here in Charlotte and elsewhere where someone has a private bedroom and bath and share the kitchen and living areas.  In Houston they built a big complex for people like this as an affordable housing project.   We need one of these in Charlotte and maybe even with cheaper rents too.

https://www.bisnow.com/atlanta/news/multifamily/common-co-living-entering-atlanta-with-partnership-in-chosewood-park-100731

[videtur quam contuor]

Affordable for whom? 

This is an article about the divergence of housing permits (not starts) over a few decades. Some cities are trying to keep pace and other not so.

Check the graphic well down the page to see how Charlotte Permits per capita Issued. Charlotte does well as do Orlando, Atlanta, Phoenix. How does the sprawl issue that affects Orlando and Phoenix compare to Charlotte?

https://www.citylab.com/equity/2019/09/affordable-home-jobs-building-employment/595195/

The big coastal cities will never equalize demand and supply.

Edited September 10, 2019 by tarhoosier

[KJHburg]

I agree we need to build more no frills apartment complex decent units but no dog baths, coffee bars,  limited amenities just plain apartments for folks who want a decent place to live without the frills or the costs. 

 

[urbanlover568]

19 minutes ago, KJHburg said:

I agree we need to build more no frills apartment complex decent units but no dog baths, coffee bars,  limited amenities just plain apartments for folks who want a decent place to live without the frills or the costs. 

 

I talked with a architect the other day and he said that developers and communities are socially mandating aesthetically pleasing units and homes.  This means that lower income folks can't buy a home because of heavy city regulations and social standards. They are forced to be lifelong renters if they can squeeze the money together or be on the streets. I think this is a society issue where we live beyond our means and try to impress everyone. I seen people in BMW's go home to ramen and folding chair furniture. We live in a fake society of debt and fake wealth. The line between needs and wants have been erased into all needs.  I would be happy in a apartment with 70's appliances and no luxuries paying half in rent.  

[15895]

2 hours ago, KJHburg said:

I agree we need to build more no frills apartment complex decent units but no dog baths, coffee bars,  limited amenities just plain apartments for folks who want a decent place to live without the frills or the costs. 

 

So the problem with affordable housing is that it’s a very profitable business and a lot of people are getting very rich off of affordable housing - even section 8.  

 I work with affordable housing, low income housing, senior housing among others and i deal with large volumes of them with the GSE’s (since Fannie & Freddie are all about securitizing large pools of loans). 

People are getting way too rich (hundreds of millions) for our affordable housing crisis to ever be solved. 

Section 8 and Government subsidies for affordable units is nothing but a sham to transfer wealth from the tax payers to wealthy Borrowers, Banks, and Fannie/Freddie. 3 entities all who split the profit from the performance of these properties. 

Edited September 11, 2019 by AirNostrumMAD

[EllAyyDub]

Fannie/Freddie are such a racket, the gov should have no hand in the market rate multi business.  Hard to get out now that they are in deep though.  I think they serve a good purpose in the affordable/green slice, however.

[KJHburg]

this is a good start developers beginning to question so many amenities in apartment complexes that drive up rents.  As I said build some basic apartment complexes like some of the newer ones in Plaza Midwood with basically no amenities.    From Atlanta but applies here too. 

https://www.bisnow.com/atlanta/news/multifamily/renters-dont-care-about-amenities-as-much-as-bottom-line-rents-in-apartment-world-100794

[JHart]

 

On 9/10/2019 at 8:15 PM, KJHburg said:

I agree we need to build more no frills apartment complex decent units but no dog baths, coffee bars,  limited amenities just plain apartments for folks who want a decent place to live without the frills or the costs. 

 

Even if you do this they are still new construction apartments that have a higher rental value than older units. People aren't paying an extra $200-300 a month for the pet spa, they're paying it because it is new apartment in a location they want to live in.  

On 9/10/2019 at 10:23 PM, AirNostrumMAD said:

So the problem with affordable housing is that it’s a very profitable business and a lot of people are getting very rich off of affordable housing - even section 8.  

 I work with affordable housing, low income housing, senior housing among others and i deal with large volumes of them with the GSE’s (since Fannie & Freddie are all about securitizing large pools of loans). 

People are getting way too rich (hundreds of millions) for our affordable housing crisis to ever be solved. 

Section 8 and Government subsidies for affordable units is nothing but a sham to transfer wealth from the tax payers to wealthy Borrowers, Banks, and Fannie/Freddie. 3 entities all who split the profit from the performance of these properties. 

Agreed here. But it isn't just that people are making money on the lending side for affordable housing, it is the the way we value land. To be honest there isn't a great solution to affordable housing and it will continue to get worse in every major city across the US and other developed countries as the population continues to grow and cities continue to urbanize. The land close to the urban core in growing cities is very valuable and if you want low income folks to occupy spaces there, you need to subsidize the rent or else they will be forced out of these areas. Developers are only going to price control certain units if there are other economic benefits to doing so.  As long as land is a valuable asset here and not treated like it is in Japan, it is only going to get worse. 

[KJHburg]

1 minute ago, JHart said:

 

Even if you do this they are still new construction apartments that have a higher rental value than older units. People aren't paying an extra $200-300 a month for the pet spa, they're paying it because it is new apartment in a location they want to live in.  

 

I meant basically all  amenities like pools which are expensive, and all the rest of the frills  and  just build apartments.   And land values are one of the biggest contributors as are parking garages for these complexes.  

There is no easy solution but using already government owned land for affordable housing projects is great way to meet affordable housing goals. 

[videtur quam contuor]

If anyone read that article KJ posted just above one comment there leaped out to me: A Miami developer inspected apartments after the first year turnover of his new project and 5% of ovens had been used.

Of course I have no idea how this was  ascertained, but does this ring true to anyone with knowledge of the new apartment residents in hot apartment communities in popular locations such as SouthEnd or uptown?

[urbanlover568]

1 hour ago, JHart said:

 

Even if you do this they are still new construction apartments that have a higher rental value than older units. People aren't paying an extra $200-300 a month for the pet spa, they're paying it because it is new apartment in a location they want to live in.  

Agreed here. But it isn't just that people are making money on the lending side for affordable housing, it is the the way we value land. To be honest there isn't a great solution to affordable housing and it will continue to get worse in every major city across the US and other developed countries as the population continues to grow and cities continue to urbanize. The land close to the urban core in growing cities is very valuable and if you want low income folks to occupy spaces there, you need to subsidize the rent or else they will be forced out of these areas. Developers are only going to price control certain units if there are other economic benefits to doing so.  As long as land is a valuable asset here and not treated like it is in Japan, it is only going to get worse.

I know my apartment upgraded the kitchens in some units and are charging 400 dollars extra per month. Pools and other things have liability, maintenance and insurance costs that get passed down to the renter. Luckily I got the last apartment with non-upgrades. Will be buying a house in the county burbs when my lease is up. 

[kermit]

1 hour ago, tarhoosier said:

If anyone read that article KJ posted just above one comment there leaped out to me: A Miami developer inspected apartments after the first year turnover of his new project and 5% of ovens had been used.

Of course I have no idea how this was  ascertained, but does this ring true to anyone with knowledge of the new apartment residents in hot apartment communities in popular locations such as SouthEnd or uptown?

Its pretty widely held that 'affluent' apartment renters in their 20s cook very little and instead go out, use door dash etc. This is the first stat I have seen on the subject and it does feel shockingly low but I am old.

Is frozen pizza not a thing anymore?

Edited September 13, 2019 by kermit

[DMann]

toaster oven for pizza

[KJHburg]

There are small condos in First Ward without ovens and of course I had someone who wanted a full size oven.  Plus my friend in Richmond who manages a suburban complex there  has a few units without ovens. 

[southslider]

^Many years ago, I bought a Midwood bungalow over a First Ward condo, due in part to the latter lacking an oven, and ironically, far fewer restaurants within walking distance.

[lit]

16 hours ago, DMann said:

toaster oven for pizza

Get an Air Fryer Oven, it’ll change your life!

[KJHburg]

288 affordable housing apartments coming to east Charlotte off Harris Blvd on the old Delta landing strip/airport.   

https://www.charlotteobserver.com/news/business/biz-columns-blogs/development/article234962007.html

[KJHburg]

The county owns the site at old Northpark Mall corner of N Tryon and Eastway and plans to move the Library operations center there and there was talk of affordable housing there.  This site is adjacent to the Old Concord LYNX stop.  I agree we need more affordable housing near transit lines like the LYNX line and there is some privately owned affordable housing apartments being built there now by NPR Group at Old Concord and N Tryon. 

[KJHburg]

This is great news as Brookhill Village will be redeveloped to include more affordable housing and some market rate housing.  (my opinion this is a terrible site for a NFL stadium and is better suited for residential or any kind of mixed use) 

https://ui.uncc.edu/story/brookhill-village-redevelopment-plans

Edited January 8, 2020 by KJHburg

[Urban Cowboy]

I encourage the read: https://www.charlotteagenda.com/194059/1000-people-lined-up-for-129-new-affordable-housing-units-on-freedom-drive-on-monday/

[KJHburg]

interesting article about housing and increasing supply and parking lots.  

https://www.us.jll.com/en/trends-and-insights/cities/are-parking-lots-the-answer-to-the-housing-shortage

[kermit]

^ 

 

[rancenc]

Could this be Charlotte's next hot area??

https://www.bizjournals.com/charlotte/news/2020/01/29/charlotte-home-to-one-of-nations-hottest.html