Your article “Affordable Housing Crisis worsens” cited several affordable housing advocates in advancing legitimate concerns about an affordable housing crisis. Often these very same advocates are not aware of the real problems owners face, and thus have no realistic solutions.
Creating and maintaining affordable housing must be centered around understanding the problems faced by ownership and management. The ideas advanced by advocacy groups in our area involve rent control, a rental registry, limiting owner rights, dictating affordability in new development and intervention in legitimate enforcement of leases. None of these ideas work, and they will reduce the supply of affordable housing.
It might be a good idea to talk with some apartment owners about their real problems.
Everyone is aware that insurance is a big issue, but very few people seem to understand the impact on affordable housing owners. They have limited ability to increase rents set by government programs. How do these owners handle a 300% increase in insurance cost over the last two years? How do they handle a 15% policy deductible if there is a storm this season? The quick answer is that they don’t.
What about the problems created by inflation and lack of skilled workers? Ask an owner what it costs to hire property maintenance staff or a good manager. Many owners report these salaries are up 50% over the last three years.
Have you seen the interest rates on multifamily properties lately? Good luck financing any new development. Properties with short-term or maturing loans are at high risk of default.
It is time for advocacy groups to stop being adversaries of ownership and management. They need to understand owners’ problems before they propose solutions. They need to work with owners to achieve meaningful progress.
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