1. Making the Case for Mixed Income and Mixed Use Communities Making The Case FOR MIXED INCOME AND MIXED USE COMMUNITIES: AN EXECUTIVE SUMMARY ATLANTA NEIGHBORHOOD DEVELOPMENT PARTNERSHIP, INC. ANDP, Inc. © Copyright - all rights reserved 2004

2. Making the Case for Mixed Income and Mixed Use Communities To be affordable, housing should cost no more than 30 percent of a households income, according to federal standards. The rapid growth of metropolitan Atlanta has been fueled by: Our position at the nexus of rail, highway, and aviation networks The abundance of low-cost land allowed newcomers to buy homes cheaply The choices in affordable homes are narrowing, especially near job centers. one-third of our families earn a total of $40,000 or less per year: Almost no one is building new housing for them Expanding Choices Solutions to the Emerging Affordability Crisis Introduction Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis

3. Making the Case for Mixed Income and Mixed Use Communities Quality of Life, Competitive Advantage at Risk Why Address this Issue? By insuring housing choice, our region can: Reduce cross-jurisdictional commutes to work Reduce cross-jurisdictional commutes to work Reduce transportation costs Reduce transportation costs Planned infrastructure (transportation, water, air) Planned infrastructure (transportation, water, air) Preserve land Preserve land Preserve and improve our regional competitiveness by aiding in employee recruitment, retention and productivity Preserve and improve our regional competitiveness by aiding in employee recruitment, retention and productivity Introduction Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis

4. Making the Case for Mixed Income and Mixed Use Communities Many are having a nearly impossible time finding housing in the jurisdictions that employ them Demand is driving up housing prices affordable housing will no longer just happen Quality of Life, Competitive Advantage at Risk Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Solutions: High-quality, town-style neighborhoods Governments will need to encourage and assist the private sector Introduction Green Street Properties, LLC

5. Making the Case for Mixed Income and Mixed Use Communities The Emerging Affordability Crisis How We Know It Exists – and Is It Likely to Get Worse? Scope of the Current Problem Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis 63% of the jobs in metro Atlanta pay under $40,000 a year. 1/3 of households earn a total of $40,000 or less. There is over a 185,000 unit shortage of housing units for those at and below this income level Introduction

6. Making the Case for Mixed Income and Mixed Use Communities Who are these Families? Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Recent graduates living on entry-level wages Young families saving for a house Senior citizens living on Social Security Carpenters Electricians Office support Retail staff Janitors, cooks, waiters and waitresses Maintenance workers Healthcare providers Store clerks Child care providers Introduction

7. Making the Case for Mixed Income and Mixed Use Communities Who are these Families? (Continued) Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Housing prices here are well above those of neighboring states and are very close to the national average: Average house price City of Atlanta : $243,000 Metro average: $180,000 One in three renting households were over-paying Over half of those working families spent more than 35 percent on housing. Shortage of more than 185,000 houses and apartments that were within reach of these families (available for $800 or less a month) Some families are making their housing affordable by: Doubling up with others Settling for substandard units Relocating into an undesirable neighborhood. Total shortage in affordable housing at more than 305,000 units. Introduction

8. Making the Case for Mixed Income and Mixed Use Communities Place Matters The Lack of Housing Near Jobs Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis For lower-income workers, jobs can be nearly impossible to get near housing In several districts most of the new condominiums and apartments are well beyond the means of people who work there Introduction The balanced areas in terms of density of jobs vs. density of housing are low. The farther you are from work the more time and money you must spend commuting the less time you have for family and community commitments

9. Making the Case for Mixed Income and Mixed Use Communities Place Matters The Lack of Housing Near Jobs Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis While more than 1 in 10 metro households have income that is 30 percent or less of the median – under $19,000 for a family of four – only 6 percent of the regions housing units are affordable to them The Atlanta region would have to build more housing for households with annual earnings less than $35,000 than for any other category. Introduction

10. Making the Case for Mixed Income and Mixed Use Communities Paying the Price for Distance: The Transportation Cost of Housing Annual traffic delays has more than tripled since 1992 The average number of vehicles per household jumped from 1.75 cars to 2.27 (1990-2001) The average number of vehicles per household increases suburbanizing areas Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Introduction For a working family, the average costs of transportation in an in-town location is $5,446 45 percent higher in suburbanizing areas nearly two-thirds of a family's income is spent on on Housing and transportation costs combined

11. Making the Case for Mixed Income and Mixed Use Communities Paying the Price for Distance: How It Affects the Business Community The disconnect between jobs and housing, and the high cost of transportation has serious implications The disconnect between jobs and housing, and the high cost of transportation has serious implications Over the long term metro Atlantas economic competitiveness could suffer. Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Introduction

12. Making the Case for Mixed Income and Mixed Use Communities Other Factors Driving the Affordability Crunch Rapid Growth Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis In the 1990s metro Atlanta added 1.2 million people 626,000 jobs were added between 1992 and 2002 Rapidly declining supply of buildable land near job centers Introduction Atlanta is the least dense of the nations major metro areas, with only 2.8 people per acre

13. Making the Case for Mixed Income and Mixed Use Communities Regulatory Practices Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Many local governments also impose zoning regulations that lead to income segregation, allowing only houses of a certain price to be built within each development Mandating large minimum lot sizes, driving up the land costs per house Requiring large minimum house sizes Placing moratoria and long-term bans on multifamily construction Requiring fewer homes per acre Mandating exterior finishes Introduction

14. Making the Case for Mixed Income and Mixed Use Communities A Look Ahead Achieving a Vision The Outlook for Atlanta Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis By the year 2030, metro Atlanta is projected to be home to 2.3 million more people Atlantans over age 65 will likely triple Households with children will continue to drop one in three current residents of conventional suburbs would actually prefer to be living in a mixed-use neighborhood Introduction

15. Making the Case for Mixed Income and Mixed Use Communities A Vision for the Future Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis More families need the option of living in a location where transportation costs wont swallow the family budget A complete community: Mixes housing types and prices office and other jobs, places to shop, and walk-to neighborhood schools. It has a place for everyone, at every stage of life – from the high chair to the rocking chair Introduction

16. Making the Case for Mixed Income and Mixed Use Communities Choice Creating Housing Opportunities for all Incomes in Communities for Everyone Reasons for Optimism Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis We can retool regulations and policies so the private sector can serve an enormous, unmet demand We now have a regional transportation agency We start with the advantage of MARTA, Limiting the proportion of our watersheds that are covered with development and hard surfaces Introduction

17. Making the Case for Mixed Income and Mixed Use Communities Location Defining Success Key Principals to Consider Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Housing not only must be affordable to buy or rent, it also must be accessible to jobs, services, and daily needs Mix Mixing uses in walkable neighborhoods can: Allow some people to use a car less often Support high-frequency public transportation service Mixing incomes within jurisdictions can: Make development of more affordable homes economically viable Design Affordable housing doesnt have to look cheap Introduction

18. Making the Case for Mixed Income and Mixed Use Communities Fairness Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Whatever solutions we pursue must not perpetuate those inequities, or create new ones Fairness to individuals: Working families of any race and income deserve a chance to live near their jobs in safe, well planned and cared-for neighborhoods Fairness among jurisdictions: Having localities compete for resources based on how well they plan Introduction

19. Making the Case for Mixed Income and Mixed Use Communities Where Do We Go From Here? Recommendations - Solutions Regional Housing Resource Center Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Compile and analyze existing data and issue periodic reports on progress, or lack thereof Regional Housing Coalition The coalitions goals: Make clear the urgency of the situation Establish a common understanding of the scope of potential solutions Gain a mutual acceptance of responsibility for a share in addressing the issue Create the political will to support the solutions Introduction

20. Making the Case for Mixed Income and Mixed Use Communities Regional Fair-Share Plan Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Combat zoning conditions that lead to economic stratification of housing, limited housing options, jobs-housing imbalances, and traffic congestion. Inclusionary Zoning In return for making 10 –15 percent of the total units affordable, the developer usually gets in return: the right to build more units faster approvals and permits tax or impact fee abatement, or other considerations Connect Housing with Local Land Use Plans Rezoning decisions often do not reflect the comprehensive plans Have local governments change zoning maps and development policies to be consistent with their own plans Introduction

21. Making the Case for Mixed Income and Mixed Use Communities Account for the Transportation Cost of Housing Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis The region must consider the cost effects of transportation Housing Trust Funds for Metropolitan Atlanta At present, there are more than 170 housing trust funds in the United States. Trust funds usually are replenished with a dedicated source of funds, such as a real estate transfer tax Introduction

22. Making the Case for Mixed Income and Mixed Use Communities Place Matters Paying the Price for Distance Other Factors Driving Affordability Crunch A Look Ahead Choice Defining Success Where Do We Go From Here? The Emerging Affordability Crisis Introduction Building a Partnership Model Georgia Department of Community Affairs Workforce Housing in urban and rural Georgia Atlanta Regional Commission Regional Development Plan Policy on Housing Choice for Diverse Incomes Quarterly Housing Forums – focus on affordable Housing City of Atlanta Mayors Housing Task Force Urban Land Institute Analysis of Barriers to Affordable Housing Metro Atlanta Chamber of Commerce Quality Growth Task Force Providing Choice at various price points has been identified as an emerging issue at multiple levels

23. Making the Case for Mixed Income and Mixed Use Communities www.andpi.org