How and Why Local Governments Should Support Affordable Housing

The views expressed are those of the author and do not necessarily reflect the views of ASPA as an organization.

By James Flick
April 28, 2025

As a former economic development director and current local government consultant, I have been involved with affordable housing development throughout my career, whether working directly with developers to move projects forward or with local municipalities to streamline and expedite the approval process. In my experience, it is clear that affordable housing development is essential for community well-being, economic vitality and equitable growth.

According to the U.S. Department of Housing and Urban Development, affordable housing is housing that the occupant pays, at most, 30 percent of gross income for, including utilities. However, numerous studies have shown that housing costs are rising faster than wages, increasing pressure on local governments to promote affordable housing development. Some jurisdictions are more equipped to do so than others. Still, no matter their tools, each local government should have the same goal: to prioritize affordable housing development as a strategic investment in a community’s long-term resilience.

Why Affordable Housing Matters

Stable and affordable housing can lead to better health outcomes, higher educational attainment and improved economic mobility for families. Affordable housing can also help reduce unhoused populations, support workforce stability, alleviate pressure on emergency and health services and foster diverse, inclusive neighborhoods.

Additionally, supporting affordable housing is a matter of equity. Real estate prices in communities around the country are skyrocketing, increasingly pricing out low and moderate-income residents, many of whom have deep ties to their neighborhoods, as their families have been there for generations. When these residents are forced to move away, the impacts are felt throughout the community.

What Local Governments Can Do

No universal solution exists to increasing affordable housing development. However, local governments have several options for promoting and supporting it. The most successful approaches integrate policy, finance, planning and community engagement in a coordinated effort across various departments. Here are five key strategies:

1. Using resources strategically to fill funding gaps

Local governments can use property tax incentives, sales tax incentives, infrastructure support, and leverage publicly owned land to help lower affordable housing development costs. These local funds are often crucial for attracting additional state, federal and philanthropic funding that can further fill critical funding gaps for developers.

2. Integrating Housing Goals into Core Policy Frameworks

Affordable housing must be integrated into comprehensive plans, strategic goals and land use policies. Local government officials can facilitate this integration by:

• Removing regulatory barriers
• Streamlining development review and permitting processes
• Adopting zoning codes that promote higher-density or mixed-income development
• Permitting accessory dwelling units (ADUs)
• Allowing for the adaptive reuse of underutilized buildings

Regardless of the strategies pursued, local government leaders can adapt and refine them by establishing trackable performance metrics, monitoring long-term affordability and assessing the community impact. These insights enhance accountability and facilitate communication of impact to elected officials, stakeholders and the public. Effective data collection and reporting can also position jurisdictions for future funding opportunities.

3. Championing Public-Private Partnerships

Effective partnerships with nonprofits, housing authorities, private developers and community groups can enhance local capabilities. Local governments can serve as conveners, coordinators and facilitators by providing land, coordinating infrastructure improvements, issuing letters of support for outside funding and assisting community partners in navigating the permitting and compliance processes.

4. Facilitating Community Engagement and Education

Local governments should prioritize transparency and ongoing engagement with the community around affordable housing development. This engagement can include forums to listen to concerns, clarify facts about what affordable housing means and what it does not, and build community trust. This proactive outreach can help reduce resistance and promote a shared sense of ownership in the community’s growth.

5. Inclusionary Housing Ordinance

Local governments can directly integrate affordable housing units into market-rate development by implementing an inclusionary housing ordinance. Such an ordinance requires or incentivizes market-rate developers to set aside a percentage of housing units to be sold or rented below market rates. In some cases, the developers can opt out of these requirements by making an in-lieu payment into a local affordable housing trust fund that can be utilized to support other developments in the community.

Leading Through Collaboration

While local governments have varying capacities to address the affordable housing crisis, they are uniquely positioned to lead collaborative solutions. Staff in planning, economic development, housing, finance and municipal management are crucial in bridging policy intentions with real-world implementation.

By prioritizing affordable housing, local governments demonstrate both compassion and competence. They create conditions that foster economic growth, enhance community stability and offer generational opportunities. Additionally, they reinforce public trust by demonstrating that the government can respond decisively and inclusively to pressing needs.

Ultimately, supporting affordable housing development is not a luxury but a necessity. It represents a defining opportunity for public administrators to lead systemic change that delivers tangible and lasting benefits to their communities.

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Author: James Flick received his Master of Public Administration from Northern Kentucky University, where he also serves as an Adjunct Instructor. He is currently a Senior Consultant with Raftelis, a local government and utility management consulting firm, and serves as the President of ASPA’s Greater Cincinnati Chapter. 

 

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