Policy Proposals
Housing is unaffordable for 46% of all Lincoln renters.
An estimated 21,200 Lincoln households are cost-burdened by their housing. About 86% of extremely low-income families in Lincoln spend more than one-third of their income on rent. Lincoln must address these issues.
Lincoln can lead in housing affordability reform.
If implemented in Lincoln, the following policy proposals would increase our city’s affordable housing stock and/or the resources to increase housing affordability for low-income families.
Feasibility study of inclusionary housing
- Inclusionary housing is a powerful tool that can be used to create more affordable housing in Lincoln. Inclusionary zoning provides incentives and benefits to housing developers in exchange for setting aside a set number of housing units in the development for low-income families. One way to determine how to develop an inclusionary housing policy that works best for Lincoln is to conduct a feasibility study.
- Feasibility studies look to previous housing developments within the city to develop pro formas and create models that allow for a requirement of affordable units, often in exchange for developmental incentives to ensure that development remains profitable. There are several considerations to make when deciding how to implement an inclusionary housing ordinance. A feasibility study ensures that those decisions are made to maintain the profitability of housing development.
- A full analysis is important. Nationwide, inclusionary housing programs are proven and effective at creating affordable units.
Source of Income (SOI) anti-discrimination protections
- Rental assistance, such as housing vouchers, is essential for many Lincolnites to make ends meet. It is one of the biggest tools we have to make housing more affordable for low-paid Lincolnites. Particularly now, as many lost work or have been otherwise affected by the pandemic, we have seen many additional households become eligible for and receive emergency housing assistance.
- However, renters can be denied housing solely because they would pay rent with a voucher or other form of housing assistance. In Lincoln, voucher success rates from the Lincoln Housing Authority are currently running at about 74 percent. That is, 26 percent of voucher recipients in Lincoln are unsuccessful in finding housing that will accept their voucher.
- Additionally, renters receiving emergency COVID-19 rental assistance rely on the active cooperation of their landlords, without which renters may be unable to receive rental assistance. We recommend the city require each landlord to accept all legal sources of income as payment of rent as an additional strategy to ensure that Lincolnites with housing vouchers or other forms of rental assistance are able to use them.
LEARN MORE ABOUT SOURCE OF INCOME
Internal, periodic rental inspections
- Our current code enforcement mechanism involves self-policing among landlords. This has failed many of our residents. A proactive interior inspection model requiring periodic inspections of the interior of rental units could reward those landlords with units that are up to code and could give more attention to those not in compliance.
- This would more fully ensure that building and safety codes are properly enforced. Regular inspections of rental units help protect the limited number of existing affordable units in Lincoln from deteriorating to the point of condemnation and destruction, while simultaneously protecting lower-paid Lincolnites from life-threatening violations of health and safety codes.
Varied income access plan
- New housing residential developments above a certain size must either:
Set aside a percentage of affordable units to be rented out below market rate to low-income residents at a rate proportional to their income, or
Contribute to an affordable housing fund that the city uses for the development of affordable housing, or
Build affordable units in an off-site development. - In return, developers receive incentives such as expedited plan or permit processing, density bonuses, fee waivers, parking reductions, tax abatements, or other similar benefits.
Tax Increment Financing (TIF) reform
- TIF is a public subsidy given to developers to help finance redevelopment projects. Because these projects are publicly subsidized, taxpayers should get more than market-rate development in exchange when TIF is used for housing development. TIF can be reformed by ensuring that housing developments subsidized by TIF dollars either:
Set aside a percentage of affordable units to be rented out below market rate to low-income residents at a rate proportional to their income, or
Contribute to an affordable housing fund that the city uses for the development of affordable housing, or
Build affordable units in an off-site development.
Reform Proposals
Proposals for Reform in Lincoln
Collective Impact Lincoln has identified the following policy changes which, if implemented in Lincoln, would increase the affordable housing stock and/or the resources to increase housing affordability for low-income families.
Sources: National Low Income Housing Coalition, 2019 Advocates Guide (2019); Estimates from 2012-2016 HUD CHAS data, available from the Office of Policy Development and Research (PD&R) website. Unaffordability is defined as having a cost burden, which means spending more than 30% of income on rent.
Varied Income Access Plan
New housing residential developments above a certain size must either:
- Set aside a percentage of affordable units to be rented out below market rate to low-income tenants at a rate proportional to their income, or
- Contribute money to an affordable housing fund that the city uses for the development of affordable housing, or
- Build affordable units in an off-site development.
- In return, developers receive incentives such as expedited plan or permit processing, density bonuses, fee waivers, parking reductions, tax abatements or other similar benefits.
Tax Increment Financing (TIF) Reform
TIF is a public subsidy given to developers to help finance redevelopment projects. Because these projects are publicly subsidized, taxpayers should get more than market-rate development in exchange when TIF is used for housing development. TIF can be reformed by ensuring that housing developments subsidized by TIF dollars either:
- Set aside a percentage of affordable units to be rented out below market rate to low-income tenants at a rate proportional to their income, or
- Contribute money to an affordable housing fund that the city uses for the development of affordable housing, or
- Build affordable units in an off-site development.
Reform Proposals
Proposals for Reform in Lincoln
Collective Impact Lincoln has identified the following policy changes which, if implemented in Lincoln, would increase the affordable housing stock and/or the resources to increase housing affordability for low-income families.
Sources: National Low Income Housing Coalition, 2019 Advocates Guide (2019); Estimates from 2012-2016 HUD CHAS data, available from the Office of Policy Development and Research (PD&R) website. Unaffordability is defined as having a cost burden, which means spending more than 30% of income on rent.
Varied Income Access Plan
New housing residential developments above a certain size must either:
- Set aside a percentage of affordable units to be rented out below market rate to low-income tenants at a rate proportional to their income, or
- Contribute money to an affordable housing fund that the city uses for the development of affordable housing, or
- Build affordable units in an off-site development.
- In return, developers receive incentives such as expedited plan or permit processing, density bonuses, fee waivers, parking reductions, tax abatements or other similar benefits.
Tax Increment Financing (TIF) Reform
TIF is a public subsidy given to developers to help finance redevelopment projects. Because these projects are publicly subsidized, taxpayers should get more than market-rate development in exchange when TIF is used for housing development. TIF can be reformed by ensuring that housing developments subsidized by TIF dollars either:
- Set aside a percentage of affordable units to be rented out below market rate to low-income tenants at a rate proportional to their income, or
- Contribute money to an affordable housing fund that the city uses for the development of affordable housing, or
- Build affordable units in an off-site development.
