Best Practice

Create Flexible Local Funds for Housing

Local jurisdictions can create flexible local funds for housing: short-term acquisition loans, refinancing, rehabilitation loans, or low interest loans for tenants who have first right of purchase. Funds can also be used to incentivize developers to sell transitioning affordable units to a local nonprofit or land trust. This helps preserve otherwise unsubsidized affordable housing, and offers residents more opportunities for stability, but requires on-going administration and monitoring.

Cost

The cost of setting up the funds will depend on the size and needs of each community. Cost to local jurisdiction is usually moderate as long as other entities also contribute funding and to the development of fund management processes.

Timeframe

Jurisdictions will need between 18-24 months to create the fund, and should budget ongoing staff time for managing the funds.

Code

Government, Maintenance, Ownership

Challenge

Affordable Housing

Practice Tool

Financing

Population

Homeowners, Low-Income Residents, Renters

Setting

Urban