After Kathy Hochul's failed New York Housing Compact plan last year, New York State is trying again to tackle its severe housing crisis. According to anonymous sources close to the deal, New York state leaders have reportedly reached a tentative agreement on a legislative plan to tackle the crisis and will be presented to the full Senate and Assembly on Monday. The framework of the deal offers incentives for both developers and tenants. Developers would receive significant tax breaks to develop more affordable units, while tenants would benefit from enhanced protections against eviction in certain cases. Additionally, the agreement would allow landlords of rent-stabilized apartments to raise rents for renovation costs and eliminate size restrictions on new Manhattan apartment buildings, fulfilling long-standing desires of city officials.

Los Angeles Mayor Karen Bass took office in 2022 and since then, has been making a big push to address homelessness, particularly in Venice Beach. Mayor Bass initiated the Inside Safe program to provide motel rooms for homeless residents, resulting in cleaner sidewalks and parks in Venice Beach. However, challenges persist, including budgetary constraints and the need for permanent housing solutions. Critics accuse Bass of prioritizing aesthetics over long-term solutions, while supporters applaud her urgency in tackling the crisis. Despite progress, concerns remain about the sustainability and effectiveness of current efforts, highlighting the complex nature of addressing homelessness in Los Angeles.

In California, state and local governments have allocated substantial funds for affordable housing initiatives. Despite widespread acknowledgment of the need for affordable housing, publicly funded initiatives face challenges such as labor agreements and bureaucratic processes, which can inflate costs and slow down construction. Many private firms are moving away from a reliance on government funds, which according to them, drives up development cost owing to the red tape. Instead, these firms are exploring alternative financing models. 

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For example, SDS Capital Group is raising an impact fund from private investors, to build a 49-unit low-income housing project in South Los Angeles. While privately financed projects may still rely on government support for operation, recent regulatory changes have facilitated approvals and increased profitability for such developments. Concerns linger regarding the long-term maintenance and sustainability of privately funded housing projects, particularly regarding the welfare of residents and the availability of federal funding for rental assistance programs. Nevertheless, advocates see potential in private-equity models to drive down construction costs and inspire government reform in affordable housing initiatives.

There has been an emergence in partnerships between healthcare systems and affordable housing developers, such as the H3C project in New Orleans, aiming to integrate stable housing with better health outcomes. Supported by investments from entities like Aetna and Kaiser Permanente, these initiatives reflect a growing recognition among health organizations of the benefits of addressing housing insecurity. While healthcare systems are not acting as banks, they are bridging gaps in funding for affordable housing, leveraging resources to meet community needs and their own nonprofit requirements. Such collaborations extend beyond traditional housing projects to include specialized care facilities and initiatives targeting populations with the greatest needs. Additionally, healthcare systems are exploring innovative approaches, including utilizing their land assets and collecting data to inform future partnerships and interventions aimed at addressing health and housing disparities.

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Leaders in New York’s State Senate are set to propose sweeping legislation to counter the growing housing crisis in the state of New York. The proposed legislation by leaders in New York’s State Senate aims to address the housing crisis through several key points:

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• Creation of a new public benefit corporation to finance housing construction on state-owned land, inspired by the Mitchell-Lama program.
• Introduction of a new developer tax break with stronger affordability protections than the previous 421a program.
• Inclusion of "good cause eviction" legislation to restrict landlords' ability to evict tenants and justify rent hikes.
• Push for more construction of larger residential buildings in Manhattan and legalization of basement units.
• Requirement for condos and rentals built through the program to be affordable to middle-income households.

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The proposal will be released as part of the One House budget bill, to incentivize significant new development while supporting landlords and tenants. However, its success hinges on gaining support from both houses of the Legislature and the governor, with details such as financial viability and inclusiveness of tenant protections remaining crucial factors.

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Rising rents and reduced working hours during the COVID-19 pandemic have left many U.S. renters struggling to make ends meet, with a record 50% paying over 30% of their income on rent and utilities, per Harvard University's report. The unaffordability trend saw the most significant jump among households earning $30,000 to $74,999 annually, with a third of full-time renters still being heavily cost-burdened. Even lower-income renters, already facing severe challenges, experienced a further increase to 83% being cost-burdened. The report attributes the homelessness surge to a severe housing shortage and rising rent costs, exacerbated by a lack of affordable housing options. Despite a cooling housing market, the cost of construction has hit record highs leading to the construction of predominantly high-end apartments. This is further contributing to a growing affordability gap, with median rents outpacing income growth since 2001. The situation has increased demand for federal housing subsidies, which remain underfunded and insufficient.

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Photo by Levi Meir Clancy on Unsplash

According to a new report by State Comptroller Tom DiNapoli, housing costs in and around New York City have surged by 68% between 2012 and 2022, outpacing other major U.S. metropolitan areas, The average household's housing expenses in New York City and Nassau, Suffolk, Rockland and Westchester counties rose from $18,000 to $30,300 during this period. Across the nation, housing costs make up 34% of average household expenses, whereas for New Yorkers, this has reached a record high of 40%. Over half of New York households are now "rent-burdened," spending at least 30% of income on housing. According to Deputy Comptroller Rahul Jain, the deadly combination of too-little housing production and too-high rent is responsible for increased evictions and a high rate of homelessness. Although he believes that the government is making smart policy choices, he emphasizes on the need to speed up efforts. 

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Chicago is facing criticism from federal investigators for hindering affordable housing by allowing City Council members to reject such developments in their wards, by using their aldermanic prerogative. The U.S. Department of Housing and Urban Development suggests that the aldermanic prerogative gives City Council members too much power to veto affordable housing proposals.

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HUD's Lon Meltesen, regional director of HUD’s Office of Fair Housing and Equal Opportunity wrote, "the department’s investigation indicates that the city affords each of its 50 wards a local veto over proposals to build affordable housing and that many majority-white wards use the local veto to block, deter or downsize such proposals.” He further said that veto “disproportionately harms Black and Hispanic households who are far more likely than white households to need and qualify for affordable housing." The investigation was triggered in November 2018, when a complaint was filed to HUD by the Chicago Area Fair Housing Alliance and nine other advocacy groups, against the City Council members' use of the veto power.

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The law of supply and demand doesn't seem to be working in the context of the U.S. housing market. As prices hit record highs, available homes remain at record lows. We had visualized the demand and supply gap in our Housing Count project, so you can check out the status of this gap in your own counties.

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The recent surge in housing development, particularly in states like Florida and Idaho, marks a notable departure from the housing crisis of 2007. This time around, the boom is characterized by a shift towards apartment buildings and condo complexes. Notably, South Dakota, Colorado, Florida, and Arizona are emerging as leaders in the production of multifamily housing units, with only D.C. surpassing them. Contrastingly, some of the traditional multifamily housing strongholds, including states like Pennsylvania, Illinois, and New York, are lagging behind in housing production. This shift in dynamics suggests a changing landscape in the housing market, with a move away from high-rise-heavy megalopoli towards a more decentralized approach to housing development.

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• Red counties are permitting more housing development than blue counties
• Part of the reasoning for the above could be because these localities are able to build more cheaply and be more responsive to housing needs
• Another reason could be more restrictive zoning, NIMBYism and environmental regulation in blue counties, which can deter housing growth, as we saw in the failure of the NYC Housing Compact case

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Overall, the analysts didn't find any major correlations between a state’s politics and its housing production.

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(Image credits: Stock photos) 

The United States faces a severe housing shortage, and while some state and local leaders are trying to address it through new construction, the article argues that rehabilitating and reusing older and historic buildings should be a crucial part of the solution. Approximately 40% of America's building stock is at least 50 years old, and many such structures are in need of upgrades and repairs. Rehabbing these older buildings for housing is often more cost-effective and environmentally friendly than new construction. The Advisory Council on Historic Preservation is considering a policy that encourages such rehabilitation and adaptation, and it could guide federal, state, local, nonprofit, and individual actions. The aim is to increase affordable housing and align with the Biden administration's housing goals.

According to a recent market study report by Arizent, where the company surveyed professionals across different financial segments such as banking, insurance, mortgage, technology etc, there is a range of different opinions about AI. Most respondents have concerns over job displacement and ethical considerations persist, especially regarding generative AI's accuracy and fairness. The general attitude among mortgage professionals is to be hyper cautious towards adopting generative AI, and they citied uncertainty and budget constraints as top considerations. Some of the main concerns of industry professionals regarding the adoption of AI includes loss of personalized customer interactions and job security. Despite apprehensions, there's acknowledgment of AI's potential to enhance efficiency and job performance, with expectations of AI handling a significant portion of tasks within the next five years. While efficiency gains are anticipated across various industries, banking professionals foresee AI primarily bolstering fraud protection.

In 2024, the rental market is poised for transformation with two key factors: the growing impact of artificial intelligence (AI) tools and heightened competition among the multifamily rental market. A survey by AppFolio indicates that nearly half of property management professionals either use AI or plan to adopt it. Property managers face the challenge of maintaining high occupancy rates amidst a competitive market, with delinquencies identified as a top threat. To thrive in this changing landscape, property managers are leveraging AI to enhance operational efficiency, streamline tasks, and improve employee satisfaction, while also focusing on understanding resident expectations and offering digital services to attract and retain modern renters. A strategic technology approach is crucial for success in 2024 and beyond.

Photo by Towfiqu barbhuiya on Unsplash

In 2021 and 2022, the commercial real estate sector experienced a surge in proptech adoption, leading to increased investment. However, a recent report from the Center for Real Estate Technology and Innovation highlights a slowdown in momentum during 2023, attributed to factors such as inflation and geopolitical uncertainty. Venture capital investment in proptech witnessed a significant decline of 42% in 2023, amounting to $11.38 billion, compared to the previous year's total of $19.75 billion and the peak of $32 billion in 2021. Notably, the multifamily segment is being hailed as resilient, owing to continued robust activity in technologies targeting this space. What remains popular are technologies that help solve consumer problems, like reducing fraud.

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Retail giant Amazon announced on Wednesday the launch of a new pilot program designed to assist moderate-income families in three different U.S. communities with the purchase of up to 800 homes, in partnership with the National Housing Trust (NHT).

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The initiative will include $40 million to assist residents in the Puget Sound, Washington, Arlington, Virginia, and Nashville, Tennessee communities, the company said. Amazon says the investment will “help moderate-income residents in these communities to purchase homes as a path to help build generational wealth.”

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The nonprofit NHT will use the funds from Amazon’s program to acquire and build affordable homes for sale in partnership with a network of local organizations - Habitat for Humanity Seattle-King & Kittitas Counties serving the Puget Sound region; the African Community Housing & Development (ACHD) and Homestead Community Land Trust both serving King County, Wash., the Douglass Community Land Trust in Washington, D.C. and The Housing Fund serving Nashville.

Developers are analyzing how to take advantage of Florida’s new legislation, which will set aside over $700 million in funding, create tax breaks, and provide zoning-related incentives for affordable and workforce housing developments. 

The law could contribute to a new boom in housing development, from entirely affordable buildings to mixed-income towers on commercial sites that developers are now looking to purchase, experts say. The Live Local Act, which Gov. Ron DeSantis signed last week, aims to help fill financing gaps, making more developments economically feasible. What is still crucial, attorneys and developers said, is combining that with incentives on the local level. he new legislation sets aside $259 million in SAIL (State Apartment Incentive Loan) funds. It also promises $252 million in SHIP (State Housing Initiatives Program) funding to incentivize local governments to partner with developers preserving or building new housing. The law goes into effect July 1. Developers are expected to apply for incentives this summer, and receive funds next year. If developers don’t have to pay property taxes (beginning in 2024), they can count on a project generating more net operating income, which means they can borrow more debt. Ultimately, that means they could develop more units, experts said. The huge increase in construction costs — including the price of land, debt, labor and materials — and insurance have contributed to the lack of affordable housing.

The Live Local Act aims to remedy some of that. It will put $100 million in non-recurring funds into a competitive loan program that developers could tap to cover inflation-related cost increases for Florida Housing and Finance Corporation-approved multifamily developments that haven’t broken ground yet.

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Image: Brian Sidman, Keith Poliakoff, J.C. De Ona and Jake Morrow (Source: Getty)

With climate change making severe weather events more common and the area’s housing crisis increasing the number of people who need support, the operation of the shelters is taking an increasing toll on county and city officials and budgets, as well as the community volunteers whose labor the region relies on to run the shelters.

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Image credits - Mika Baumeister/Unsplash

The housing market for buyers in California is becoming increasingly challenging. Prices are soaring while the inventory remains limited. Statistics reveal a stark reality: home prices have surged 9.7% over the past year, with the median home price now at $813,980. Meanwhile, inventory levels have plummeted by 48.3%, exacerbating the affordability crisis. Despite historically low mortgage rates, competition remains fierce, leading to bidding wars and further price escalation. Experts suggest that while the market may stabilize in the long term, immediate relief for buyers appears unlikely.

Currently, the average rate for a 30-year mortgage stands at around 6.9%, a significant decrease from late October when it peaked at nearly 8%. Despite expectations of rates declining later in the year, some buyers are opting to act now due to fears of increased competition. The combination of high mortgage rates and soaring home prices has made affordability a major concern, with many households earning less than what's needed to afford a median-priced home. While economists anticipate mortgage rates easing, uncertainty remains.

Homeownership among Black Americans has consistently trailed behind all others in the country, including by 28% compared to white homeowners. However, according to a new report by the National Association of Realtors (NAR), Black homeownership is expected rise in the future. 

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How? As more Millennials and Gen Z enter into the home buying market, there will be a rise in minority owners. This is because on average, this demographic is more racially and ethnically diverse. 

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Future predictions - 1.5 million Black households will turn the median homebuying age over the next 5 years. Female and millennial buyers have been driving growth in Black homeownership and will continue to do so. Besides Black households, 775,000 Asian households and 2.2 million Hispanic households will also turn the median homebuying age in the next 5 years.

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Challenges remain - Barriers such as rental affordability, student debt, and mortgage denial rates persist, hindering Black Americans' ability to purchase homes and achieve equitable homeownership rates. Addressing these challenges will be crucial to fostering greater inclusivity in the housing market.

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Rising rents and reduced working hours during the COVID-19 pandemic have left many U.S. renters struggling to make ends meet, with a record 50% paying over 30% of their income on rent and utilities, per Harvard University's report. The unaffordability trend saw the most significant jump among households earning $30,000 to $74,999 annually, with a third of full-time renters still being heavily cost-burdened. Even lower-income renters, already facing severe challenges, experienced a further increase to 83% being cost-burdened. The report attributes the homelessness surge to a severe housing shortage and rising rent costs, exacerbated by a lack of affordable housing options. Despite a cooling housing market, the cost of construction has hit record highs leading to the construction of predominantly high-end apartments. This is further contributing to a growing affordability gap, with median rents outpacing income growth since 2001. The situation has increased demand for federal housing subsidies, which remain underfunded and insufficient.

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Photo by Levi Meir Clancy on Unsplash

In recent quarters, US bank loans backed by owner-occupied commercial real estate have outperformed those backed by nonowner-occupied properties. This shift began in 2020 when work-from-home policies impacted nonowner-occupied commercial real estate loans. The delinquency ratio for nonowner-occupied properties surpassed that of owner-occupied ones in 2022 and continued to rise in 2023. The trend suggests that loans on owner-occupied properties carry less risk, reflecting property owners' likelihood to stay current on loans. However, the performance varies based on bank size, with larger banks experiencing worse delinquency ratios for nonowner-occupied loans. Notably, some major lenders like Morgan Stanley and Citigroup focus heavily on nonowner-occupied properties.

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The housing market is undergoing significant challenges, with 2023 expected to see the lowest home sales since 2010. Despite an anticipated increase in activity in 2024, transactions are projected to remain below average. Mortgage rates, after reaching a two-decade high in 2023, are expected to decrease in 2024 but will likely settle between 6% and 6.5%. This shift may attract both buyers and sellers, reshaping market dynamics.

The trajectory of home prices is uncertain and hinges on the timing of buyer and seller reentry. If sellers enter first, early 2024 could witness modest and short-lived price drops. However, markets with affordability challenges, particularly major coastal areas, face higher risks of corrections. Conversely, a resurgence of buyers before sellers could lead to a competitive market with rising prices.

First-time buyers may initially favor the rental market due to attractive deals, but the strong desire for homeownership, especially among millennials, suggests potential shifts as rates drop and inventory increases in 2024. Demographic factors, including delayed home purchases by boomers and the pent-up demand from millennials, are expected to keep inventory low, supporting firm and growing home prices in 2024.

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While there is optimism, potential wildcards, such as the threat of another coronavirus strain, geopolitical risks, economic recession, and political uncertainties, could impact consumer confidence and influence home buying and selling activity in unforeseen ways.

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The housing market in November 2023 is characterized by surging mortgage rates, high home prices, and limited inventory. Mortgage rates have reached a 23-year high of 7.79%, causing a decline in existing-home sales for the fourth consecutive month. The Federal Reserve has paused its rate hikes, but experts are more concerned about the Fed's future plans for rates. A potential government shutdown could further impact housing market activity, particularly if Fannie Mae and Freddie Mac can't participate in the mortgage market. Housing affordability remains a significant challenge, and first-time buyers are finding it increasingly difficult to enter the market. While a housing market crash is unlikely, some areas may see price declines. Foreclosures are not expected to surge in 2023. Experts advise prospective buyers to focus on their own financial readiness rather than trying to time the market. For sellers, proper pricing, preparation, and online listings are crucial strategies.

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(Photo by June on Unsplash)

The National Association of Realtors is facing significant changes as CEO Bob Goldberg resigns earlier than expected, amid ongoing challenges. The association recently lost a federal lawsuit, being held liable for conspiring to artificially inflate commissions in the real estate market, resulting in a $1.78 billion damages award. This verdict may impact real estate agent practices in an environment of rising home prices. The association plans to appeal and seek reduced damages. Additionally, the NAR faced criticism in August when its president, Kenny Parcell, resigned due to sexual harassment claims. Nykia Wright will serve as interim CEO while the association searches for a permanent replacement. Goldberg will continue to offer his expertise as an executive consultant during the transition.

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(Image Credits: NAR website) 

In a recent survey conducted by the National Association of Realtors, 34% of real estate agents' clients who were yet to secure a home, reported that scarcity of affordable properties in the market was their primary obstacle to homeownership. An additional 18% stated that their customers were biding their time for a decrease in interest rates.

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Insufficient availability of affordable homes, especially in larger metropolitan areas, alongside historically high interest rates have emerged as the predominant factors deterring potential homebuyers in the United States. Interestingly, prospective Black, Hispanic, and Asian buyers primarily pointed to home prices themselves as the key deterrent, while white buyers were equally as concerned by mortgage rates.

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As per the Mortgage Bankers Association, the average contract rate for a 30-year fixed-rate mortgage escalated to 7.27% during the week ending September 8, nearly reaching the highest rate observed in over two decades, as seen last month.

Retail giant Amazon announced on Wednesday the launch of a new pilot program designed to assist moderate-income families in three different U.S. communities with the purchase of up to 800 homes, in partnership with the National Housing Trust (NHT).

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The initiative will include $40 million to assist residents in the Puget Sound, Washington, Arlington, Virginia, and Nashville, Tennessee communities, the company said. Amazon says the investment will “help moderate-income residents in these communities to purchase homes as a path to help build generational wealth.”

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The nonprofit NHT will use the funds from Amazon’s program to acquire and build affordable homes for sale in partnership with a network of local organizations - Habitat for Humanity Seattle-King & Kittitas Counties serving the Puget Sound region; the African Community Housing & Development (ACHD) and Homestead Community Land Trust both serving King County, Wash., the Douglass Community Land Trust in Washington, D.C. and The Housing Fund serving Nashville.

There are ongoing bipartisan efforts at various levels of government to address housing supply and pricing challenges in the United States. The importance of local action in addressing these issues, particularly through measures such as accessory dwelling units (ADUs), changes in zoning rules, and reduction of lot sizes, is increasingly becoming evident. Despite political differences, lawmakers in some states are collaborating on bipartisan housing legislation. However, challenges such as NIMBYism hinder progress at the local level, prompting calls for state-level intervention to overcome resistance to housing reforms. 

Los Angeles Mayor Karen Bass took office in 2022 and since then, has been making a big push to address homelessness, particularly in Venice Beach. Mayor Bass initiated the Inside Safe program to provide motel rooms for homeless residents, resulting in cleaner sidewalks and parks in Venice Beach. However, challenges persist, including budgetary constraints and the need for permanent housing solutions. Critics accuse Bass of prioritizing aesthetics over long-term solutions, while supporters applaud her urgency in tackling the crisis. Despite progress, concerns remain about the sustainability and effectiveness of current efforts, highlighting the complex nature of addressing homelessness in Los Angeles.

During the recent legislative session, House Bill 2474, aimed at holding Washington cities accountable for building affordable housing and shelters, gained momentum before dying at the Senate. Championed by Rep. Strom Peterson, the bill was prompted by instances like Kenmore's rejection of a 100-unit affordable housing project, drawing criticism from Governor Inslee for obstructing solutions to homelessness. Evolving over the session, the bill proposed fiscal penalties for non-compliant cities, emphasizing mediation between cities and housing developers before enforcement. Despite setbacks, advocates like Michele Thomas stressed the urgency of addressing homelessness, a critical issue highlighted by over 28,000 homeless individuals counted in Washington during the 2023 Point-in-Time count. With hopes for its return next year, the bill reflects a statewide imperative to bridge the gap in housing needs, projected to exceed 500,000 units for low-income earners over the next two decades.

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Photo by Zhifei Zhou on Unsplash

There has been an emergence in partnerships between healthcare systems and affordable housing developers, such as the H3C project in New Orleans, aiming to integrate stable housing with better health outcomes. Supported by investments from entities like Aetna and Kaiser Permanente, these initiatives reflect a growing recognition among health organizations of the benefits of addressing housing insecurity. While healthcare systems are not acting as banks, they are bridging gaps in funding for affordable housing, leveraging resources to meet community needs and their own nonprofit requirements. Such collaborations extend beyond traditional housing projects to include specialized care facilities and initiatives targeting populations with the greatest needs. Additionally, healthcare systems are exploring innovative approaches, including utilizing their land assets and collecting data to inform future partnerships and interventions aimed at addressing health and housing disparities.

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Photo by Nice Trip on Unsplash

Leaders in New York’s State Senate are set to propose sweeping legislation to counter the growing housing crisis in the state of New York. The proposed legislation by leaders in New York’s State Senate aims to address the housing crisis through several key points:

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• Creation of a new public benefit corporation to finance housing construction on state-owned land, inspired by the Mitchell-Lama program.
• Introduction of a new developer tax break with stronger affordability protections than the previous 421a program.
• Inclusion of "good cause eviction" legislation to restrict landlords' ability to evict tenants and justify rent hikes.
• Push for more construction of larger residential buildings in Manhattan and legalization of basement units.
• Requirement for condos and rentals built through the program to be affordable to middle-income households.

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The proposal will be released as part of the One House budget bill, to incentivize significant new development while supporting landlords and tenants. However, its success hinges on gaining support from both houses of the Legislature and the governor, with details such as financial viability and inclusiveness of tenant protections remaining crucial factors.

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Photo by Jan Folwarczny on Unsplash

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA) announced the allocation of over $14.5 million to public housing agencies (PHAs) nationwide to address veteran homelessness. An estimated distribution of more than 1,400 HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers will be carried out nationwide. Some of the highest concentration of vouchers will go to Tucson, Arizona; Philadelphia; and Spokane, Washington. These vouchers combine rental assistance from HUD with support services, like case management and clinical services provided by VA. The vouchers have contributed to a 4% decrease in veteran homelessness since 2020 and has housed over 46,000 homeless veterans in 2023 alone.

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Photo by Benjamin Faust on Unsplash

The United States is grappling with a housing crisis characterized by a shortage of millions of units and soaring housing costs for renters and buyers alike. To address this, cities are revising zoning rules to allow for more housing development, focusing on measures such as permitting multifamily homes in diverse neighborhoods and streamlining construction processes.

Minneapolis is leading the way with its progressive zoning reforms, adding 12% to its housing stock in just a five-year period. The city has taken measures such as ending single-family zoning and promoting midsize apartment buildings with 20 or more units. In Houston, minimum lot sizes were reduced from 5,000 square feet to 1,400, allowing for more units to be constructed. Milwaukee, New York City and Columbus, Ohio, are other examples of cities undertaking reform of their codes.

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Photo by Nick Night on Unsplash

Modular housing is seen as a solution to housing shortages, offering efficiency, and cost reduction, but many companies like Katerra and Veev have failed to achieve financial viability. What is ailing the manufactured homes market? Experts believe over-regulation by the Government in the form of restrictive zoning laws, hinders industry growth for these companies. They are unable to build at scale and therefore, unable to turn a profit. Perceptions of inferiority and a lack of consistent demand pose challenges as well. The Biden administration has proposed easing regulations but it's still a long road ahead for companies that are working in this space.

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Photo by Blake Wheeler on Unsplash

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In a bold initiative to tackle New York's housing crisis, the city is adopting a novel approach: incentivizing homeowners to convert their garages and attics into additional living spaces by offering to pay them. NYCHPD Commissioner Adolfo Carrion Jr. announced on Nov 21, the launch of a new pilot program called “Plus One ADU”. The pilot program will make available $395,000 in funding through HPD and $2.6 million in grant funding from New York State Homes and Community Renewal (HCR). Applications are now open for qualified homeowners to build “accessory dwelling units,” or ADUs, which have proven to be one of the most effective local solutions to tackle housing affordability and offer additional living space for multi-generational housing.  

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Currently, the program aims at offering 15 owners of single-family homes the funding needed to build detached units or retrofitting basements. Each owner will receive up to $400,000. The eligibility criteria is based on income, and a family of four will have a ceiling of $232,980, with lower-income households being prioritized. The rents in these ADUs will be capped at around $2,600 for a one-bedroom apartment.

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(Image credits: Adobe stock images)

The Federal Housing Administration (FHA) has announced updated appraisal requirements for the valuation of manufactured homes certified under Fannie Mae's MH AdvantageTM and Freddie Mac's CHOICEHome® programs. These updates, unveiled by Federal Housing Commissioner Julia Gordon at a conference in Chicago, align FHA appraisal requirements with industry standards, aiming to enhance the valuation of these homes for borrowers seeking FHA-insured mortgages. The changes support the Biden-Harris Administration's Housing Supply Action Plan and its goal of increasing the availability and affordability of manufactured housing. The updated policy allows appraisers to use appropriate site-built-home comparable sales when there are insufficient comparable sales for certified manufactured homes, removing a roadblock to the effectiveness of FHA programs in serving buyers of these energy-efficient and affordable homes.