Understanding Affordable Housing through Service Learning Teacher s Guide

Transcription

1 Understanding Affordable Housing through Service Learning Teacher s Guide Citizens Housing and Planning Association and Education Development Center, Inc.

2 Understanding Affordable Housing through Service Learning Teacher s Guide Program developed by: Citizens Housing and Planning Association 18 Tremont Street, Suite 401 Boston, MA Phone/TTY: Executive Director, Aaron Gornstein Program Manager, Melissa Quirk Education Development Center, Inc. 55 Chapel St. Newton, MA Phone: Project directors, Chris Miara and Leslie Hergert Funded by Bank of America and Eastern Bank September 1, 2006 EDC/ CHAPA 2

3 Table of Contents Introduction: Before You Get Started Introduction Handouts and Teacher Resources Handout # A 1: Affordable Housing/Service Learning Pre/Post Test: Teacher s and Student s Versions Teacher Resource # A 2: Glossary of Housing Terms Teacher Resource # A 3: Frequently Asked Questions about Affordable Housing Handout # A 4: Local and State Partners Handout # A 5: Possible Community Projects Class 1: Housing as a Community Issue Class 1 Handouts and Teacher Resources Teacher Resource # 1 1: Continuum of Beliefs about Housing Teacher Resource # 1 2: Commonly Expressed Beliefs about Housing Teacher Resource # 1 3: History of Affordable Housing Initiatives Teacher Resource # 1 4: PowerPoint on Affordable Housing Teacher Resource # 1 5: Information on Zoning Teacher Resource # 1 6: Local Zoning Map Class 2: The Problem: Income vs. Housing Costs Class 2 Handouts and Teacher Resources Handout # 2 1: Community Resident Cards Handout # 2 2: Calculating Housing Payments Handout # 2 3: Inventory of Subsidized Housing Handout # 2 4: Money in the Bank Cards Class 3: Affordable Housing Solutions in Massachusetts Class 3 Handouts and Teacher Resources Handout # 3 1: Strategies to Create Affordable Housing Handout # 3 2: Local Case Studies Class 4: A Local Example of Affordable Housing Class 5: Reflections on Learnings and Planning Service Reflection Activities Supplemental Reading EDC/ CHAPA 3

4 Introduction: Before you get started Background For many people in the United States, finding safe, decent, and appropriate housing in a location that suits their needs at a price they can afford is a problem. This problem affects not just poor people, but many households with moderate incomes. Often, when people look for housing they can afford, the housing they find is located far from their workplace, not near public transportation, or in a different community from their children s schools, their family and friends. Location and quality of housing affects the ability to maintain steady employment, the quality of children s educations, and expenses for transportation and other living costs amongst other critical concerns. Housing costs are a growing concern for residents of Massachusetts, a state ranked as the third least affordable market for renters in the U.S. Even knowing those factors, lawmakers, politicians, and Massachusetts residents do not always fully understand the challenges faced by low to middleincome families in finding and maintaining housing that is affordable. It is critical for students to understand how widespread housing difficulties are in this state and the extensive impact of housing affordability on not just individual households, but also communities. Education Development Center, Inc. (EDC) and the Massachusetts based Citizens Housing and Planning Association (CHAPA) with funding from Bank of America and Eastern Bank have developed this curriculum unit to introduce high school students to the issues surrounding this problem. This unit provides students with information about the economic, political, legal, and social factors that contribute to, and result from, the current shortage of affordable housing and presents strategies to ameliorate the situation. It also engages students in actively exploring these problems and solutions, both in the classroom and in the community. Local community partners provide their expertise and opportunities for community service linked to the curriculum. Students identify their own promising solutions and work with government agencies and community groups to address local problems. Overview of Curriculum This curriculum unit explores four general questions: 1. What is affordable housing? Focus: To define affordable housing and to examine how the definition has changed over the past decades. 2. How does housing fit into the context of a community? Focus: To identify typical and new types of land use patterns, costs, and availability of housing in the local community. 3. Why is housing affordability a problem? Focus: To explore the gap between what many people in a city or town can afford and the price of housing. 4. How can municipalities create affordable housing? Focus: To gain an understanding of the primary strategies used by Massachusetts cities and towns to maintain and increase affordable housing. EDC/ CHAPA 4

5 The unit includes five lessons. We planned each lesson to take approximately 55 minutes, and each lesson includes the following elements: Objectives connect to government and economics standards. Preparation Activities cover what you need to do before you teach the lesson. Possible Speakers include community officials and housing experts. Learning Activities provide step by step descriptions of the lesson, with approximate times for each step. Handouts include in class exercises for students. Teacher Resources provide background reading that can be used to prepare lectures or draw on in class discussions. Additional Activities support students in extending their learning into the community or provide opportunities for the class to do additional work on a given topic. Homework includes extra assignments to enrich students learning; not all lessons include homework. You might choose to use more time to allow for more discussion and optional activities. We also provide Reflection Activities. You can use these activities all together in a culminating lesson, or you can use them singly at the end of each lesson, to encourage students to reflect on their learning from the lessons and their community experience. Finally, we provide a Supplemental Reading List that includes Web sites and fiction and nonfiction books. You and your students might want to use these resources to supplement in class work. Advance Preparation 1. Review the standards for your class or subject matter. For example, Economics and American Government cover the following related standards: Economics (Grade 12 Elective) includes supply and demand, property rights, role of government, public goods and services. American Government (Grade 12 Elective) includes the nature of government, civic, political, and private life, common good, current state and local legislative issues, and the roles of citizens. Students analyze a public policy issue and practice civic skills. 2. Review the lessons and background material. As you read, you will get a sense of the whole unit and the information you will impart. You will also be able to decide which lectures you want to provide and which you want to ask a community person to present. First, review the Handouts and Teacher Resources that follow this Introduction. You will use these materials throughout the unit. Handout # A 1: Affordable Housing/Service Learning Pre/Post Test gauges students knowledge of housing issues to use at the beginning and end of the unit; we include an answer sheet with the test. EDC/ CHAPA 5

6 Teacher Resource # A 2: Glossary of Housing Terms and Teacher Resource # A 3: Frequently Asked Questions about Affordable Housing can be used when students raise questions about terminology or concepts during discussions. Handout # A 4: Local and State Partners will help you identify organizations to collaborate with in teaching the curriculum (see #3 below). Handout # A 5: Possible Community Projects provides a list of options to consider. 3. Meet with your community partner to plan how you will work together. Handout # A 4: Local and State Partners is a list of potential community partners. The community partner can work with the class in several ways: Provide expertise on housing issues in general and specifically in your community Serve as a guest speaker for some or all classes Suggest service projects that would meet a community need Provide opportunities and support for student service projects and suggest other organizations in the community with whom students might work Ideally, you should meet with your partner before the unit begins to agree on roles and to develop plans for speakers, community actions, and service opportunities. 4. Decide when you want to bring in speakers. In addition to your community partner, you might want to invite other guest speakers experts on a topic such as mortgages or local officials. We have provided suggestions for guest speakers, but they are suggestions only. If you invite a speaker, you can use the Teacher Resources to let speakers know the type of issues you hope s/he will cover. 5. Decide whether you want to use any of the Additional Activities. Several classes have options for community activities and extensions. These include visits to local affordable housing units and participation in town meetings. Before you begin to teach the curriculum, decide which of the Additional Activities you want to use and arrange needed transportation and other logistics. You can use some of the activities as options for students to do on their own; others may be for in school or after school time. 6. Plan service opportunities for your students. Service learning is a teaching and learning approach that integrates community service with academic study to enrich learning, teach civic responsibility, and strengthen communities (National Commission on Service Learning, 2001). We developed this curriculum unit as a service learning opportunity, with students working in the community on issues related to what they learn in class. Many of the Additional Activities included in each lesson involve students, either as individuals or small groups, in the community and can be done as a homework assignment. The last class provides time for students to plan a service activity that allows students to act on what they have learned. To involve students in a service learning takes careful planning. KIDS Consortium, one of the leading service learning organizations in the country, describes the following stages: 1. Research the problem 2. Investigate solutions 3. Decide on a project EDC/ CHAPA 6

7 4. Design the project 5. Implement the project 6. Evaluate the project While this may seem like a lot of work to complete in a five class unit, the first two stages are already included in the unit itself. You will need to make time for some stages in class, and students will implement their projects outside of class. We have allotted time in Class 5, after students learn about affordable housing, for students to consider and choose service activities (Stage 3), and to plan their projects (Stage 4). You will need to plan early with your community partner how you will organize this part of the unit. Handout # A 5: Possible Community Projects provides a list of possible projects. Here are some options for organizing: Offer one day of service, with several projects for students to choose among. For example, a day working on a Habitat for Humanity building project, or a day of community surveys with small groups organized on different topics. Offer a select number of projects, so students can work on them in groups of four to five. Projects might all come from and help your community partner, or they might involve several different groups in the community. This could involve inviting sponsor organizations to Class 5 to offer projects and time in that class for students to choose and shape the projects. Allow students to create their own service projects to do on their own time. We suggest that you have other options (e.g., a final paper) for students who choose not to volunteer to work on a project. EDC/ CHAPA 7

8 Handout # A 1: Student Pre/Post Test Your Name: Class: Date: 1. Cities and towns are zoned for various uses. Name at least two types of zones one finds in a typical city or town. 1) 2) 2. Name at least two ways the federal government has helped people afford housing over the last 50 years. 1) 2) 3. True or false: At this time, the federal government is building a lot of new affordable housing in my city. True False 4. Approximately what percent of your income is considered the maximum you should pay for housing each month in order not to be rent burdened? 5. Do you agree or disagree with the following statement: There are no longer people in my city who have trouble affording a house or apartment. Agree Disagree Don t know 6. What is at least one strategy a community group could use to build affordable housing in your city? 7. What types of buildings are currently being created as affordable housing in your city? 8. Most municipalities have one or more community organizations that help people find and afford housing. Name at least one way people can help those organizations do their work. EDC/ CHAPA 8

9 Handout # A 1: Student Pre/Post Test Teachers Answer Sheet NOT for COPYING 1. Cities and towns are zoned for various uses. Name at least two types of zones one finds in a typical city or town. 1) 2) Answers: Residential Commercial or retail Industrial or manufacturing Conservation, open space, or recreational Institutional 2. Name at least two ways the federal government has helped people afford housing over the last 50 years. 1) 2) Answers: Build housing specifically for people below a certain income level. Allow people to reduce their federal taxes if they pay a mortgage. Help people afford a mortgage to buy a home. Give people below a certain income level a voucher to help them pay rent. 3. True or false: At this time, the federal government is building a lot of new affordable housing in my city. True Answer: False False 4. Approximately what percent of your income is considered the maximum you should pay for housing each month in order to not be rent burdened? Answer: 30% 5. Do you agree or disagree with the following statement: There are no longer people in my city who have trouble affording a house or apartment. Agree Disagree Don t know EDC/ CHAPA 9

10 6. What is at least one strategy a community group could use to build affordable housing in your city? Answers: Use state or federal government funds for this purpose. Ask the city for funds from the Community Preservation Act. Raise private funds. Build in a part of the city that is zoned to encourage affordable housing. Reuse an old building or lot. 7. What type of buildings are currently being created as affordable housing in your city? Answers: Town houses Single family homes Ownership units (condominiums) in mixed income buildings Incorrect: Large rental apartment buildings for extremely low income households. Most municipalities have one or more community organizations that help people find and afford housing. Name at least one way people can help those organizations do their work. Answers: Many answers are possible here. You can decide what is acceptable. EDC/ CHAPA 10

11 Teacher Resource # A 2: Glossary of Housing Terms Affordability of housing: According to HUD, the generally accepted definition of affordability is for a household to pay no more than 30 percent of its annual income on housing. Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care (for more information, visit An array of economic and social factors have created the current situation in Massachusetts, in which many people no longer earn enough to be able to rent or buy a home. A variety of public and private initiatives seeks to reduce the cost of housing to people who could not otherwise afford it. Affordable housing: This is housing for ownership or rent that the government restricts by deed or by maximum rent level to remain affordable over the long term to households earning below a certain income level. These units are available only to households that earn below a certain figure of the Area Median Income (AMI). For ownership units, the maximum allowable earnings are usually 80% of AMI while for rental, the maximum earnings range from 30% AMI to 50% AMI up to 80% AMI. Area Median Income (AMI): This is a figure established by the federal Department of Housing and Urban Development agency (HUD). Half the incomes in the area are above this amount, and half below. HUD uses the median income for families in metropolitan and non metropolitan areas to calculate income limits for eligibility in a variety of housing programs. HUD estimates the median family income for an area in the current year and adjusts that amount for different household sizes so that household incomes may be expressed as a percentage of the area median income. For example, a household s income may equal 80 percent of the area median income, a common maximum income level for participation in HUD programs. HUD defines 80% AMI as low income, 50% AMI as very low income, and 30% AMI as extremely low income. Chapter 40B Comprehensive Permit: 40B is a state law that has led to the development of much of the new affordable housing in recent years. If less than 10% of a town s housing stock is affordable (according to state guidelines), developers can apply for a comprehensive permit under the 40B statute to circumvent existing zoning regulations, typically by building more houses or apartments per acre than would be allowed otherwise. The developers must make at least 25% of the new units affordable to people below 80% AMI for the region (as defined by the federal government). For example, in an area where developers must build houses on an acre, a developer can use a comprehensive permit to build a 12 unit ownership building with three units available at an affordable price. Towns that do not have the state mandated 10% of affordable housing available to households below 80% AMI primarily use 40B. Worcester and Boston generally do not use 40B because more than 10% of their housing is already affordable to households below 80% of AMI. Community Preservation Act (CPA) funds: Individual towns and cities can vote to add a surcharge to their local property taxes, which is put into the town s CPA fund. The state government then contributes additional money to this fund. A town or city must use at least 10% of the money in the CPA fund for affordable housing. Housing Choice Vouchers (also know as Section 8, MRVP or AHVP vouchers): Federal funds pay a portion of the rent for a household earning below a certain income. A tenant with a voucher pays 30% of their income towards their rent and the government pays the difference between the EDC/ CHAPA 11

12 market rent and the tenant s portion. Tenants with vouchers must rent apartments that cost less than the maximum amount set by the U.S. Department of Housing and Urban Development (HUD). Public housing: Massachusetts has both state and federal funded housing. Public housing provides rental housing for eligible low income families, the elderly, and persons with disabilities. It varies from scattered single family houses to high rise apartments for elderly individuals. The U.S. Department of Housing and Urban Development (HUD) administers federal aid to local public housing authorities (PHAs) that manage the housing for low income residents at rents they can afford. In Massachusetts, the Department of Housing and Community Development administers state aid to the PHAs. Smart Growth: A relatively new concept in urban planning, Smart Growth refers to the addition of housing, stores, and recreational facilities in areas that are already developed such as town centers and are near public transportation rather than in open space. As a result, there is less sprawl, the natural environment is preserved, and residents can walk and bike, rather than having to drive every place. Since many of the apartments and condominiums that developers create in these Smart Growth areas tend to be expensive, the state government and local planners are encouraging cities and towns to make some of the housing affordable. In fact, there is new state funding to encourage this type of development. For more information, visit: EDC/ CHAPA 12

13 Teacher Resource # A 3: Frequently Asked Questions about Affordable Housing What is the difference between affordable housing, public housing, and subsidized housing? Affordable is a general term for housing that costs 30% or less of one s income and is either rental or ownership housing. Both public housing and subsidized housing are affordable. Public housing is built and/or supported by the state or federal government and is usually rental. Subsidized housing is either public housing or private rental or ownership housing that companies or organizations develop using government funds, tax incentives, etc. How does someone qualify for subsidized housing? Typically, their income must be below 80% of the Area Median Income. (For a definition of Area Median Income, see Teacher Resource # A 2.) For rental housing, a household applies to a local housing authority or a private development with subsidized units and joins a waiting list if there are no units available. For ownership units, a household applies to the developer s agent. Then, the state agency funding the units the local housing authority or the private monitoring agent, often a local nonprofit organization designated by the town reviews the household s income. How do you make sure a unit that sells at below market rate to a low income buyer stays affordable for the next buyer? The deed is restricted. Typically, the seller can make a certain percent of profit, but the unit must still be affordable to someone who qualifies under the guidelines described above. If there are no houses in the range deemed affordable for workers making a certain income, how is it possible that there are workers in that category living in the town? Households moved in many years earlier, households share residences, or households have several incomes. Does low income housing lower the value of property in the neighborhood? The MIT Center for Real Estate completed an analysis of property values related to seven specific large, dense, multifamily 40B rental developments in six different communities in April There was no statistically significant difference in the change in values between the homes in the 40B impact area and the homes in the remainder of the community. The research reviewed the change in value of single family homes in the 40B impact area (defined as abutters and immediate neighbors) with the change in value of dwelling units in the remainder of the community, over a period of five to 15 years depending on the year in which the 40B project was developed. For the full report, visit: EDC/ CHAPA 13

14 Handout # A 4: Local and State Partners The following organizations have additional information or service opportunities for your class. For contact information for community based organizations involved with affordable housing issues contact CHAPA at or Government Agencies Massachusetts Department of Education is responsible for ensuring improved teaching and learning in all of the Commonwealth s public schools. The department has a Homeless Education Coordinator. Massachusetts Department of Housing and Community Development makes state and federal funds and technical assistance available to strengthen communities and help them plan new developments, encourage economic development, revitalize older areas, improve local government management, build and manage public housing, stimulate affordable housing through the private sector, and respond to the needs of low income people. Local town and city planning and development offices, which in some cases are a single designated person, coordinate the municipality's approach to development. Search for the town Web site to find information about the municipality s planning function. The Massachusetts Chapter of the American Planning Association can provide background on planning and connect you with your city or town s office. Local housing authorities, at the municipal or regional level, operate government funded public housing and distribute housing vouchers. Local elected officials (e.g., city councilors, mayor, planning board members, zoning or housing board members) all have influence in decisions made around affordable housing development and preservation. Search your city s or town s Web site for more information. Non Governmental Organizations Local community housing advocacy organizations, alliances, trusts, and committees Housing developers and housing management companies Local nonprofit human service providers Temporary Shelters Your city or town may have shelters designated to serve specific groups of people (e.g., battered women, teenagers, single men, families). Shelters may also provide opportunities for service. As mentioned earlier, shelters provide an indication of lack of and need for affordable housing in a municipality. EDC/ CHAPA 14

15 Handout # A 5: Possible Community Projects 1. Develop graphic presentations (charts, PowerPoints, fact sheets) of housing costs and affordability for an organization to use or to make presentations to community groups. Consider including community housing costs, down payment and monthly payments on mortgages for these homes, incomes required to pay these mortgages, number of residents and town employees below this income, and affordable housing options in the town. Partners: Planning office, realtors, banks, town demographer, town clerk, mayor s office 2. Conduct a survey of the housing needs of specific populations in the community (e.g., seniors, town employees) for a community organization or city/town office. Partners: Office of elder affairs, school department (for school employees), town or city hall, IT department (to run the numbers) 3. Create a user friendly catalog of affordable housing in the community that includes the number of units, who is served, and whether the housing is private or public. Partners: Housing authority, planning office, nonprofit housing development organizations 4. Create a report or a PowerPoint about the actions the town and private developers have taken to increase affordable housing in the past 10 years: funding, zoning, incentives, 40B. Partners: Nonprofit housing development organizations, planning office, housing authority 5. Write an op ed and/or letter to the editor about the issues described above. Partners: Local newspaper, others listed previously 6. Create a local cable TV show about the issues described above, have guests with various points of view. Partners: Local TV, others listed previously 7. Develop a media campaign and materials (e.g., brochures, fact sheets, newspaper articles) on the issues described above. Partners: Nonprofit housing development organizations, housing advocacy groups, media/ communications firms, communications departments of colleges, League of Women Voters, local paper 8. Work with local organizations and agencies to convene a forum bringing together diverse interests. Partners: League of Women Voters, nonprofit housing development organizations, housing advocacy groups, planning office, housing authority, mayor s office, selectmen EDC/ CHAPA 15

16 Class 1: Housing as a Community Issue Objectives Students will understand housing as a critical issue for their community. Students will be able to identify different approaches the government has used to help low and middle income people afford housing. Students will be able to describe the purpose of zoning and types of zones frequently used by cities and towns. Preparation Read Teacher Resource # 1 1: Continuum of Beliefs about Housing and decide which items you want to use. Teacher Resource # 1 2: Commonly Expressed Beliefs about Housing as background information. Teacher Resource # 1 3: History of Affordable Housing Initiatives as input for a lecture. Teacher Resource # 1 5: Information on Zoning as input for a lecture. Review Teacher Resource # 1 4: PowerPoint on Affordable Housing Copy Handout #A 1: Student Pre Test for each student in the class Obtain Equipment to show Teacher Resource # 1 4: PowerPoint on Affordable Housing Teacher Resource # 1 6: Local Zoning Map. Get a zoning map from the local Planning Office, either by calling the office or by going to the municipal Web site. Either post it on the wall or turn it into an overhead or PowerPoint. (To locate your planning office, see Handout # A 4.) Decide whether you will present the lectures on affordable housing and zoning or get a guest speaker Possible Speakers City/town managers or planners can describe local zoning, land use, and development issues. Staff from the local housing authority or housing organization can describe subsidized housing in the community, and they can explain how people access subsidized housing. Learning Activities 1. Introduce the issue of housing and have students complete the Pre Test. (5 10 minutes) Link the issue to the context of the class (e.g., Economics, Government). EDC/ CHAPA 16

17 2. Engage students in discussing the Continuum of Beliefs about Housing. (15 minutes) Students explore their initial beliefs about housing by lining up in the room according to their beliefs on issues you read aloud. You will read aloud from Teacher Resource # 1 1: Continuum of Beliefs about Housing. Each statement will take approximately one to two minutes to move and discuss, so you may want to choose a limited number of the statements. Identify a place in the room or in the hall where students can stand in a line. Tell them, I will read a statement. If you totally agree with this statement, go to my right (or designate a place). If you totally disagree with it, go to the left (or designate a place opposite the first place). Or, you can choose a place on the continuum between these two points that identifies approximately where your beliefs are on the continuum. When students have chosen their places, ask them to share briefly with those around them why they chose to stand there. If you do not have room in your class for students to stand comfortably and without crowding, choose one of these alternatives: Pose each statement as a simple agree/disagree statement and have the students who agree stand up, then sit down. Follow the same process for the students who disagree. Ask students to jot down their reasons for answering as they did. Then, ask for a few comments on both sides of the issue. Have students go to opposite corners of the room for agree/disagree. Ask groups to discuss their answers and then ask each group to report out. If you want to keep students in their seats, write on the board a Lickert scale of five points from Strongly Agree to Strongly Disagree. Read each statement and ask students to write their answers and reasoning on a piece of paper. Then, lead a group discussion on their responses. When you elicit students answers whether on each item or in a group discussion at the end make sure to accept all answers. Do not argue with students or try to teach information; you will cover these issues in upcoming lessons. Here you just want to gauge students initial knowledge and attitudes about the topic. Ask students to talk about why they think something and explain their rationales, and then ask whether anyone else has a different opinion. You might want to take notes on students comments, so you can follow up on them later and see whether there are changes at the end of the unit. You can use this exercise as a warm up activity to engage students in thinking about the issue, and it is up to you to decide how long to let it go on. Wrap up by telling students that they will continue to explore these issues in the course of this unit. 3. Present information about affordable housing. (10 minutes) You or a guest speaker will present a short lecture on affordable housing. It should include the following points: A definition of affordable housing A history of affordable housing how it began and how it has evolved Who is eligible for affordable housing today and how they get access to it How affordable housing is developed today EDC/ CHAPA 17

18 See Teacher Resource # 1 3: History of Affordable Housing Initiatives for an outline of a possible lecture. In order to give students a visual image of the many different kinds of affordable housing that exist in the state, show Teacher Resource # 1 4: PowerPoint on Affordable Housing. 4. Explain land use and zoning. (20 minutes) As zoning affects the kinds of housing that are available in a town or city and where that housing is located, it is important to give students some background information on zoning. Use Teacher Resource # 1 5: Information on Zoning as the basis of a short presentation to students on zoning. You can do this yourself, or you might want to invite a local government official to present the information. Point out that rules on things like lot size and water supply will affect where you can build housing and how expensive the housing will be. After the presentation and questions from students, show students the local zoning map (Teacher Resource # 1 6) and note the categories on the map of their city/town: Residential: single family Residential: multi family Business/commercial; industrial/manufacturing Conservation/flood plain Institutional Open space/recreational Discuss with the whole class: Which districts are the largest? If you are in a suburban town: Are there multi family residences? Are residences allowed in business areas? Are there residential areas near transportation? Do people need a car to get around in your community? If you are in an urban area: Are there industrial areas? Is there housing near industrial areas? Are there residences near transportation? Do people need a car to get around and live in your community? Is there open space? Can you think of areas in your community that are examples of Smart Growth (see Handout # A 2 for a definition)? Additional Activities Ask students to map the community by taking a bus or walking tour. What do students notice? EDC/ CHAPA 18

19 Teacher Resource # 1 1: Continuum of Beliefs about Housing 1. Housing is a right. 2. People who work in a community should be able to live there. 3. Communities are improved by having residents from diverse backgrounds. 4. Housing is a private market matter. Government should not be involved. 5. People who have worked hard to move to a city or town shouldn t have to subsidize housing for others. 6. Once city neighborhoods get fixed up, the people living there can t afford to stay. 7. Affordable housing brings poor people into a community. 8. Everyone can find an affordable place to live someplace in Massachusetts. 9. Assuming only one or the other is possible, I d rather have more parks than houses in my neighborhood. 10. Cities have done enough to create affordable housing; the suburbs haven t done their fair share. 11. Lack of affordable housing for people with special needs (mental, physical, and psychological) is a big problem. 12. Buying a home is better than renting. 13. Poor people get plenty of resources from the government already so subsidized housing is too much assistance. 14. Affordable housing looks bad and hurts property values. EDC/ CHAPA 19

20 Teacher Resource # 1 2: Commonly Expressed Beliefs about Housing The following questions often arise during discussions about affordable housing. We used them to create Teacher Resource # 1 1: Continuum of Beliefs about Housing. According to CHAPA, community members frequently articulate the points of view listed under each question during meetings and hearings on affordable housing. Your students may hold these and other opinions. Use this resource to help you stimulate discussion and debate on these topics. 1. Is housing a right? Yes: Housing is a necessity of life; shelter is similar to water and food. Housing is a key component to success in society and everyone has a right to have a home. No: Housing is primarily an investment and a market commodity. In a capitalist market, there are no rights to purchase certain items. 2. Should people who work in a community be able to live there? Yes: People who serve a community through their labor should have the opportunity to participate in the benefits of that community. Businesses are most interested in cities and towns in which their employees can afford to live. Government workers such as teachers, firefighters, and police will be more effective if they live in the community they serve. No: You should live where you can afford to live. Local municipal workers and employees of local businesses who live in a town do not bring outside investment into a community. Residents of towns and cities already pay the salaries of their municipal employees; we should not expect them to pay for their housing, too. 3. Is increased diversity a compelling reason to increase affordable housing? Yes: A more diverse community including economic, ethnic, racial, and cultural diversity is a more vital community. No matter what your economic status, you can learn from people who earn at all economic levels. No: It is important to preserve the economic, racial, and ethnic character of a community by restricting demographic change. You can seek diverse experiences outside of the town in which you live. 4. Should government have a role in creating housing? Yes: Housing is a necessity, so government should ensure everyone has access to it. EDC/ CHAPA 20

21 The housing market is rising faster than incomes, making housing unaffordable for some people, regardless of how hard they work. Government should provide (temporary or permanent) assistance to people who are not able to afford their own housing at a particular time. People with low incomes already receive a disproportionately small amount of our society s and government s resources. No: The private sector is much more efficient at producing housing than is government. Housing is primarily an investment and market commodity; efforts to intervene in an important element of the market economy cannot succeed. Supporting people economically reduces their incentive to earn more money. There is a limit to how much individuals and the government can help people in need. 5. Should we ask people who have worked hard to move to a particular location to subsidize housing for others? Yes: People with low incomes often work very hard and long hours, but they do not earn as much money as others for a variety of reasons, including lack of access to quality education and job opportunities as well as discrimination. People share a responsibility for taking care of others, and that includes subsidizing opportunities for others. Some people are not able to shift jobs to a new area when housing costs increase. People should be able to remain in their communities, despite rising housing costs. No: Everyone in the U.S. has equal opportunity and differences in income are due to people s willingness to work. The government should not levy taxes for services to others. People who say they need affordable housing in certain communities are being picky about where they want to live. People should choose where to live based on their income, rather than the community or location. 6. Are low and moderate income residents of city neighborhoods displaced when the city or developers fix up the area in which they live? Yes: Reinvestment attracts wealthier people, and people who are willing and have the means to pay higher rents. Neighborhood reinvestment strategies focus on building communities that will attract people with more wealth. No: Neighborhood reinvestment does not guarantee that rents and the cost of living will rise and drive away current residents. Neighborhood attractiveness does not mean wealth will follow. There are ways to preserve the affordability of some housing in a neighborhood. EDC/ CHAPA 21

22 7. Is buying a home better than renting? Yes: Owning provides stability to families and individuals. The opportunity to receive a tax incentive for owning property is a financial advantage. Paying equity towards property instead of rent to a landlord is a financial advantage. Owning provides the opportunity to have a growing investment. No: Owning a home can be a financial burden. Owning a home has increased responsibilities that some people do not want. Owning a home puts you at financial risk and restricts your mobility. 8. Does affordable housing hurt property values? Yes: Developers build affordable housing without care for aesthetics or neighborhood character. People who rent have less at stake in maintaining their property than those who own. No: Some new affordable housing structures are better looking than the older existing neighborhood housing. Cities and towns can work with developers to create attractive affordable units. Studies show that in Massachusetts property values do not decrease in areas with new affordable development. EDC/ CHAPA 22

23 Teacher Resource # 1 3: History of Affordable Housing Initiatives In the United States, the government has developed programs to help both low income and middleincome households afford housing. These initiatives have changed over time in response to different philosophies and problems. A definition of affordable housing In general, experts consider housing affordable if a household pays no more than 30% of its income for it. Unless otherwise noted, this curriculum refers to affordable housing as housing that is restricted to people with incomes below an amount set by the federal government. The government or other sources subsidize the cost. A history of affordable housing how it began and how it has evolved Government assisted affordable housing was initially proposed in the first part of the 20 th century, in response to the overcrowding, deterioration of buildings, and homelessness that the Great Depression caused in the nation s cities. The federal government began a public housing program to alleviate unemployment and eliminate unsafe and unsanitary conditions. It funded the construction of large scale high rise apartment buildings in many cities, and soon municipalities began to create cities within cities. In the late 1940s and 1950s, federally funded housing programs were developed for middle class Americans initially for the returning World War II and Korean War veterans, and then for others. The government initiated two programs: government backed mortgage insurance through FHA and a secondary mortgage market that enabled families to purchase their homes over a 30 year period, making mortgage payments (and, therefore, the homes themselves) affordable to tens of thousands. Secondly, it created tax benefits for homebuyers in allowing mortgage interest deductions when filing federal personal income tax returns. Massachusetts s state government also created subsidized housing in the middle of the 20 th century. In addition to developing housing for elderly, the state turned over to cities and towns housing that the government initially built for returning World War II veterans and required that low income families live in the housing. Housing assistance programs for lower income households changed dramatically again in the 1970s when President Nixon created a market based program known as Section 8 Rental Assistance. Eligible families receive Section 8 vouchers to subsidize rent in locations of their choice, thus increasing the prospect of de concentrating poverty and reducing many problems associated with the large scale, high rise public housing in urban areas. Affordable housing today Today, one can classify subsidized housing in Massachusetts according to who manages it and how it is financed. 1) Government managed (public housing): While the federal and state governments no longer build large scale housing for people with low incomes, much of this housing still exists. Each city and town s housing authority which is a government agency manages the housing. EDC/ CHAPA 23

24 How it s financed: Residents generally pay 30% of their income for rent. Federal and state governments pay the remainder of the costs of these developments. Who lives there: The government designates some of this housing for families, some for elderly people, and some for people with disabilities. All must be below certain incomes. Housing authorities also manage government subsidized rental vouchers (known as Section 8 or Housing Choice Vouchers), available to people who are below certain incomes. Residents pay 30% of their income to rent the units. 2) Private: Today, private for profit and nonprofit developers are creating the only new affordable housing for rent and purchase and various private organizations and companies manage this housing. To obtain subsidies, developers must ensure that the units will remain affordable to subsequent renters or owners. How it s financed: Developers use some or all of the following means to create housing at below market rates: Obtain financing from the state s housing finance agency, Mass Housing. Apply for a variety of funds or tax breaks from the state government. Seek donations or grants from foundations or other private sources. Units must remain affordable, even if they are re sold or rented. Who lives there: Most of the housing built by these groups has some units for households with low income, and the rest for households with higher incomes (called mixed income development). Developers design some of these units for elderly people, some for families, and some for people with disabilities. As with public housing, residents with low incomes pay 30% of their income to rent or buy these units at below market rate levels. EDC/ CHAPA 24

25 Teacher Resource # 1 5: Information on Zoning A community s vision for the type of city or town it wants to be influences its zoning decisions how it will use land, what kinds of buildings developers can build, and where developers can build. Many of the obvious differences among cities, towns, and suburbs relate to their zoning regulations and land use decisions. In cities, residential and business uses are close together and most neighborhoods include a mixture of both. Suburbs and towns tend to separate housing from business use and to have distinct areas of open space. Zoning ordinances consist of two parts: a map and text describing rules and regulations. The zoning map shows how the government divides the community into different use districts or zones. Zoning began as a public health measure to separate housing from industry. Common districts today include: Residential, often with separate districts for single family and multifamily Commercial, often with separate districts for downtowns and other uses, light and heavy industry Conservation, often with flood plains indicated Recreational/open space/parkland Agricultural Zoning rules and regulations typically establish a list of land uses permitted in each district plus a series of specific standards governing lot size (e.g., in some areas of town, single family residences must have at least ¼ acre, in other areas houses must be on at least one acre lots), building height, and other requirements. There may be separate sections for related issues such as parking standards, sign regulations, landscaping, water supply, historic preservation standards, and various environmental criteria (such as requirements for tree plantings in new developments). The text also usually describes the responsible government bodies (e.g., zoning administrator, planning commission, board of zoning appeals) and procedures for administering and applying the zoning ordinance. In addition to separate districts for specific uses, most cities and towns also have mixed use districts. For many years, the preferred pattern outside of cities was to segregate housing from business areas, building new housing developments in areas that were previously open space, with new roads and shopping malls replacing town centers. This pattern led to what is now called sprawl. Many urban planners currently recommend a concept called Smart Growth, which includes the following aspects: Mixing land uses, such as stores, office buildings, and apartments Mixing houses of different sizes and prices in the same area Developing new businesses and houses in areas that are already built up or reusing vacant buildings for new purposes Putting housing near public transportation Urban planners view Smart Growth as a way to reduce traffic by encouraging people to walk and take public transportation, to revitalize the business areas because people live as well as work there to maintain open space for recreation, and to build a sense of community. EDC/ CHAPA 25

26 Class 2: The Problem: Income vs. Housing Costs Objectives Students will be able to calculate the amount renters or buyers can pay for housing, based on their incomes. Students will be able to determine the income needed to purchase or rent housing in their communities. Preparation Bring Multiple copies of the newspaper or free real estate booklets, making sure to include ads for both sales and rentals. Copy Handout # 2 1: Community Resident Cards onto cardstock and prepare them for students. Decide how many you will use and which ones. Ideally, students will work in pairs, but this will depend on the number of students in the class and other factors. Decide whether you will assign pairings and roles, let students draw roles at random, etc. Cut out cards and place in a container from which students can draw a card. Handout # 2 2: Calculating Housing Payments for students. Completed Handout # 2 3: Inventory of Subsidized Housing. Contact the local housing authority office (see Handout # A 4 for contact information) for a list of public housing and the length of the waiting list for each type. We have provided information on three cities as examples. Handout # 2 4: Money in the Bank Cards onto cardstock and prepare them for students. Decide whether to invite a speaker. Possible Speakers Realtors can describe the kinds of housing available and their costs. Bankers can describe the process of applying for a mortgage and the bank s criteria for granting one. Learning Activities 1. Describe housing options and budgeting. (10 minutes) Briefly describe housing options: rental and purchase; apartments, condominiums, and houses. When renting an apartment, the renter typically makes a security deposit (often first and last months rents) and then pays rent to the owner on a monthly basis. When purchasing a condominium or house, the buyer typically makes a down payment (for example, 5 10% of the entire price) and borrows the remainder from a lending institution. The amount borrowed is the mortgage. The owner makes monthly mortgage payments, which include interest on the loan, to the lending institution. Obviously, the more expensive the house is that you buy, the higher the monthly payment. Explain that most experts recommend that people, whether renters or homeowners, should pay approximately one third of their gross (pre tax) income for housing. If you plan to rent a home, take one third of your monthly income to determine the amount of monthly rent you can afford. If you want to purchase a house or condominium, your monthly mortgage payment should be approximately one third of your monthly income. EDC/ CHAPA 26

27 Subsidized housing is available to people who earn below a certain amount. This means that they are able to pay one third of their income and afford a house or apartment, when otherwise they would not be able to do so. Give students a short amount of time to review the ads you have brought in. 2. Lead students in a simulation of residents housing needs. (30 minutes) Give each student a Community Resident Card, a copy of Handout # 2 2: Calculating Housing Payments, and Handout # 2 3: Inventory of Subsidized Housing. Explain that they will take on the roles assigned and look for housing for this person or family. What can you afford? Students will use Handout # 2 2: Calculating Housing Payments to calculate the cost of an apartment they can rent or a house or condominium they can purchase. Ask them to begin by thinking about the following questions: What kind of housing do you need/want (number of bedrooms, access to schools, etc.)? Do you want to buy or rent a home? What can you afford to pay monthly? Are you eligible for subsidized housing? What housing is available? Students will then look through the ads to locate apartments or houses that fit their needs and incomes. If they determine they are eligible for subsidized housing, have them identify available apartments or houses and note the waiting list. What other resources are required? While students have calculated how much rent they can afford to pay or the price of a house they can afford, they will need a lump sum of money up front to pay the security deposit on an apartment or the down payment on a house. Tell students to draw a Money in the Bank Card to see whether they have this up front money. 3. Discuss results of the activity. (15 minutes) Use the following questions to engage students in a discussion of the activity: Who could find a place to live? Who had trouble? Do you think the community workforce (e.g., teachers, sanitation workers, police, firefighters, hospital staff, small business owners) can afford to live in or near your town/city? If not, is that a problem? Why or why not? What does it mean for your community if people who work for and in the town can t afford to live there? Homework If students need more time to find housing for their residents, ask them to look in the newspaper or on line. Instruct them to submit the ad they find to you, along with a written explanation of why they chose the home, how it fits their resident s needs, and what compromises they had to make, if any. If they cannot find a home, ask students to write about the problems they encountered. Additional Activities Ask students to survey a sample of people in town about their thoughts about housing costs and affordability. Do they think the government should help people afford housing here? EDC/ CHAPA 27

28 Handout # 2 1: Community Resident Cards Teacher 40 year old, divorced two children, ages 10 and 8 Family Income: $52,000 Owner of Small Dry Cleaning Company 45 year old, married, husband works in the business, 3 teens Family Income: $80, year old, single Income: $45,000 Fire Fighter Sanitarian 35 year old, married, two children, ages 1 and 3 Family Income: $35,000 Department of Public Works Foreman 40 year old, divorced, three teen aged children Family Income: $38,000 Bank Vice President 50 year old, married, wife is a dentist, two teen aged children Family Income: $300,000 Department of Public Works Superintendent 45 year old, married, three teen aged children Family Income: $62,000 Associate Professor, State College 65 year old, married, husband is a freelance artist Family Income: $70,000 EDC/ CHAPA 28

29 Nurse 40 year old, single, adopted one toddler Family Income: $52,000 Administrative Assistant 35 year old, single Income: $32,000 Part time Social Worker 35 year old, married to a teacher, two children Family income: $75,000 Waitress 35 year old, married, husband has permanent disability and is unemployed, Two children Family Income: $35,000 Hairdresser 40 year old, single, Income: $45,000 Retired Bus Driver 70 year old, married, wife is retired Family Income: $30,000 Teacher s Aide 30 year old, married to an electrician, no children Family Income: $50,000 Fence Installer 55 year old, married, elderly parents live with them, wife cares for them Family Income: $40,000 EDC/ CHAPA 29

30 Handout # 2 2: Calculating Housing Payments You are: Family members: Total household income: How many bedrooms do you want? Do you want to rent or purchase a home? How much can you afford? If you want to rent: The calculations below assume that a household can spend up to 30% of their income on rent, but keep in mind this is the maximum amount some people can pay, rather than what they can easily manage. Your annual salary Your monthly salary (divide annual salary by 12) The amount you can afford per month for rent (Multiply your monthly salary by.30) If you want to buy: Calculating the price you can afford involves many factors, including your salary, the current interest rate, and the number of years you will take to pay back the loan. For this exercise, assume interest rates are 6% and you have a 30 year mortgage. Your annual salary Your monthly salary (divide annual salary by 12) The amount you can afford per month for mortgage payment (Multiply your monthly salary by.30) Maximum price of a house you can afford = (Divide your maximum monthly mortgage payment by 30 year factor below.) Is there housing you can afford in your city/town or nearby? Interest Rate 30 Year Factor How many apartments or houses are listed that you can afford? 6.0% EDC/ CHAPA 30

31 Are you eligible for affordable housing (according to government guidelines)? Number of people living in your house Maximum income to qualify for affordable housing in Boston and Newton One $46,300 $39,700 Two $52,950 $45,400 Three $59,550 $51,050 Four $66,150 $56,700 Five $71,450 $61,250 Six $76,750 $65,800 Seven $82,050 $70,350 Eight $87,350 $74,850 For cities and towns outside the cities listed above, see: Maximum income to qualify for affordable housing in Worcester Is there affordable housing in your community? (Circle one) YES NO If so, how long is the waiting list? EDC/ CHAPA 31

32 Handout # 2 3: Inventory of Subsidized Housing BOSTON Family Other: elderly/ disabled/special needs Public federally funded 7,558 3,735 Public state funded 2, Private rental 21,785 12,181 Total rental units 31,720 16,312 Private homeownership units 668 Waiting list for units 2 10 years Waiting list for Section 8 vouchers Closed. No new ones are available. WORCESTER Total rental units 9258 Total homeownership 164 Waiting list for elderly units 6 months 1 year Waiting list for family units 1 2 years Waiting list for Section 8 vouchers Closed. No new ones are available. NEWTON Total homeownership units 11 Total rental units 2111 Waiting list for elderly units 5 years Waiting list for Family units 20 years Waiting list for Section 8 vouchers Closed. No new ones are available. EDC/ CHAPA 32

33 Handout # 2 4: Money in the Bank Cards CONGRATULATIONS! You have been saving money for a place of your own for a long time and have enough for either a down payment or a deposit on an apartment. CONGRATULATIONS! You have enough money for a down payment or a deposit on an apartment. Your grandmother died and left you the money. OOPS! You don t have any money for a down payment or for first and last month s deposit on a rental. What will you do? OOPS! You will need money for a down payment or for first and last month s deposit on a rental. You had some money saved up, but used it to buy a new TV. What will you do? BAD NEWS, GOOD NEWS! You don t have money for a mortgage down payment or for the first and last month s rent required as a deposit on an apartment. But, you do have a relative you could ask for a loan. How will you repay the loan? GOOD NEWS, BAD NEWS! You have saved some money that you had hoped to use for a down payment or for first and last month s deposit on a rental. However, last week, you had a car accident, and had to use some of it for that. What will you do? EDC/ CHAPA 33

34 Class 3: Affordable Housing Solutions in Massachusetts Objective Students will be able to describe four strategies for increasing the stock of affordable housing in Massachusetts. Preparation Review Handout # 3 1: Strategies to Create Affordable Housing to prepare a lecture and/or to make copies to distribute. Invite A community or state organization involved in affordable housing to speak to the class. Obtain and Copy From your community partner or the newspaper archives a description of a local affordable housing project for students to read as homework in preparation for the next class. OR, select and copy one of the three case studies provided in Handout # 3 2: Local Case Studies. Possible Speakers A representative from a local community affordable housing organization or group can give students valuable insights into the topic. Learning Activities 1. Review the problem. (10 minutes) Ask students to share what they found when looking for housing for their assignment. Who could find housing? Who could not find any? List on the board the key issues raised: Many working people are unable to afford an apartment or house in the area. Many people who work for a city or town cannot afford to live there. Even if people are qualified for affordable housing, the supply is limited and the waiting lists are long. 2. Brainstorm solutions. (5 minutes) Engage students in a brainstorming session to solicit ideas to address the issues noted above. Tell them that the idea is to generate as many solutions to these problems as they can in three minutes. They do not have to be good solutions. Emphasize that all ideas are welcome, because brainstorming is only a first step in identifying solutions. Encourage them to share all of their ideas; in a brainstorming session, all ideas, no matter how crazy or unfeasible, are acceptable. Remind students of the rules of brainstorming: 1. Come up with as many ideas as you can. All ideas are welcome. 2. You can piggyback on another person s idea. 3. Never judge or evaluate an idea during a brainstorm. (You are looking for quantity and not quality.) Write students ideas on the board or large newsprint, so all can see them. EDC/ CHAPA 34

35 3. Present commonly used strategies to create affordable housing. (15 minutes) Distribute Handout # 3 1: Strategies to Create Affordable Housing. Describe the four major strategies used to increase the supply of affordable housing: (1) Subsidize the development of new affordable rental and ownership housing. (2) Make changes in zoning and land use regulations to build affordable units. (3) Reuse land or rehabilitate existing buildings for affordable housing. (4) Expand access to existing homeownership and rental opportunities. 4. Discuss the various strategies. (20 minutes) Encourage students to ask questions about the strategies, and use the following questions to initiate and guide a discussion of the strategies: What are the pros and cons of each strategy? What arguments have you heard against any of these strategies? Can you think of competing interests for any of these solutions, for example for changing zoning (people want an acre of land around each house) or reusing land or buildings (land could be used for private development, buildings have historic value)? What kinds of solution would you support? What would you not support? Why? End by comparing the four strategies to the solutions students generated in their brainstorm. Did they cover all four? Did they come up with any solutions that are outside these categories? If so, are their solutions feasible why or why not? Which level of government has influence over which solutions? Homework Ask students to read about an example of a local affordable housing project. They can choose to read about a project in their community, or they can read one of the examples provided in Handout # 3 2: Case Studies. EDC/ CHAPA 35

36 Handout # 3 1: Strategies to Create Affordable Housing Governments, nonprofit organizations, and private developers increase the supply of affordable housing primarily by using the following four major strategies: 1. Subsidize the development of new affordable rental and ownership housing. 2. Make changes in zoning and land use regulations to build affordable units. 3. Reuse land or rehabilitate existing buildings for affordable housing. 4. Expand access to existing homeownership and rental opportunities. 1. Subsidize the development of new affordable rental and ownership housing. Governments at different levels and nonprofit organizations can find funds to encourage the development of affordable housing. Federal and state grants and incentives: State and federal governments recognize that new affordable housing is necessary, but that building any housing is expensive, especially in states like Massachusetts where development costs are very high. Private nonprofit and forprofit developers often cannot offer units with affordable rents or purchase prices. Therefore, government agencies offer these developers various types of funds to build affordable housing. Community Preservation Act (CPA) funds: Individual towns and cities can vote to add a surcharge to their local property taxes, which is put into the town s CPA fund. The state government then contributes additional money to this fund. At least 10% of the money in the CPA fund must be used for affordable housing. Private fundraising by nonprofit, community based, and faith based groups. Nonprofit groups, including faith based organizations such as Habitat for Humanity, often work within their communities to raise money to subsidize the construction of affordable homes. 2. Make changes in land use and zoning regulations to build affordable units Cities and towns can change their zoning and other land use rules to encourage affordable housing development where they want it. 40B: A state law that has led to the development of much of the new affordable housing in recent years is known as 40B. If less than 10% of a town s housing stock is affordable (according to state guidelines), developers can circumvent existing zoning regulations, typically by building more houses or apartments per acre than would be allowed otherwise. The developers must make at least 25% of the new units affordable to people below a certain income (as defined by the federal government). For example, in an area of town in which houses must be built on an acre, a developer can use 40B to build a 12 unit condominium, with 3 units available at an affordable price. 40B is not relevant in cities such as Worcester and Boston because more than 10% of their housing is already affordable. Smart Growth: Cities and town can change their zoning and other land use rules to encourage development where they want it, rather than leaving the decisions entirely to developers. An example of such a strategy is a relatively new concept in urban planning EDC/ CHAPA 36

37 known as Smart Growth. It refers to the addition of housing, stores, and recreational facilities in areas that are already developed such as town centers and near public transportation rather than in open space. As a result, there is less sprawl, the natural environment is preserved, and residents can walk and bike, rather than having to drive everyplace. Since many of the apartments and condominiums that are created in these Smart Growth areas tend to be very expensive, the state government and local planners are encouraging cities and towns to make some of the housing affordable. In fact, there is new state funding to encourage this type of development. For more information, see: Inclusionary and incentive zoning: Developers must create a certain amount of affordable housing as part of market rate developments. (Usually this is required in order to get permission to build developments with more units per acre than would be allowed otherwise.) [Newton, Acton, and Boston have adopted inclusionary zoning.] Multifamily housing in single family zones: Allow multifamily housing to be built in areas otherwise zoned for single family units or in all residential areas. [Acton and Newton have done this.] Accessory apartments in existing single family homes: Allow accessory apartments in single family homes where this is currently prohibited. Limited development: Land owners protect open space of property, with one small portion of it allocated to affordable housing. This encourages collaboration between conservationists and housing advocates. 3. Reuse land or rehabilitate existing buildings for affordable housing. When towns are disinterested or resistant to building new housing that includes affordable units, there may be more support for affordable housing on land or in buildings that are currently not in use. The following are examples: Publicly owned land: State and/or local governments can donate or sell land at below market value for affordable housing. [Newton acquired land from the Mass Turnpike Authority for affordable housing.] Brownfields reclamation: Former commercial or industrial properties that are contaminated can be cleaned and reused for housing. There is state funding for this purpose. This encourages collaboration between environmental and housing advocates. Adaptive reuse: Governments can encourage developers to use vacant buildings for housing, through tax or other incentives. This can promote collaboration between historic preservation and housing advocates. 4. Expand access to existing homeownership and rental opportunities. Another way to increase affordable housing is to make it possible for people who earn less than a certain income to purchase or rent market rate housing that already exists. Homebuyer counseling and education: Consumer information helps potential first time homebuyers learn how to apply for a mortgage, manage finances, etc. EDC/ CHAPA 37

38 Down payment and mortgage assistance programs: These programs are usually partnerships among local governments, lenders, and nonprofit organizations. Purchase of existing units by a nonprofit organizations: Resales include affordability restrictions. Self help housing: Homeowner and volunteers contribute sweat equity to manage the costs. Habitat for Humanity is an example. Federally subsidized rent vouchers (also known as Section 8, MRVP or AHVP vouchers): these pay for a portion of the rent of qualified renters. A tenant with a voucher pays 30% of their income towards their rent and the government pays the difference between the market rent and the portion the tenant pays. Tenants with vouchers must rent apartments that cost less than the maximum amount set by the U.S. Department of Housing and Urban Development (HUD). EDC/ CHAPA 38

39 Handout # 3 2: Local Case Study Boston Davenport Commons* Description of the development Davenport Commons is the first development of its kind in the United States. It combines 125 units of housing for 595 Northeastern University students and 15 faculty; 75 owner occupied townhouses for low and moderate income residents; and 2100 square feet of retail space. The project was built on city owned vacant land in Roxbury, bordering the Northeastern campus. Northeastern worked with a development team called Madison Development Partners (MDP), comprised of Madison Park Development Corporation, a local community organization; and Housing Investments and Trinity Financial, Boston based real estate developers and consultants that specialize in affordable housing. The process Use of vacant publicly owned land: The land on which Davenport Commons was built had been cleared many years earlier to construct an interstate highway, a plan which was subsequently abandoned. Many proposals had been made over the years for use of the property, but none were implemented. Boston put out a bid for the property in 1996, with Madison Development Partners the winning applicant. Land use/zoning: When the city asked for bids from people interested in purchasing the property, they wrote the request in a way that would favor developers of affordable and student housing. In addition, once the Madison Park Partners bought the property, the city approved the lots as a Planned Development Area, which meant it was easier for the developers to get various zoning approvals as they moved forward. Funding: The funding for this large project was complex. The Mass Housing Finance Agency, the state s affordable housing bank, provided low interest loans. Northeastern paid nearly $2M. Various other federal and local government grants were used. The sale of the townhouses made up the remaining funds. Expanding homeownership opportunities: One of the partners, Madison Park Development Corporation, provided the buyers of the townhouses with assistance in the purchasing process and with first time homebuyer education. Community interests During the process of planning and developing Davenport Commons, city officials, the university, and community members expressed a variety of concerns. While there was a great deal of opposition along the way, ultimately many community needs were met through this project, and today it is used as a model for other areas of the city and other states. Some of the interests that were addressed include: EDC/ CHAPA 39

40 The need for student housing: In 1998, of the 135,000 university students living in Boston only 20% were living in university supplied housing. Many experts think the large numbers of students living in city apartments creates unstable neighborhoods, drives up the cost of housing, and contributes to the city s scarcity of affordable rental housing for low and moderate income residents. The mayor called on universities to create more housing for its students. Northeastern used Davenport Commons as a chance to create student apartments, as well as affordable housing for the community. Lack of homeownership options: The initial plan, in addition to the student housing, was to develop 40 rental units and 20 homeownership units. However many in the community felt they already had a large enough share of the city s subsidized apartments and wanted home ownership opportunities to help stabilize the neighborhood. As a result, instead of rental units, all 60 units were made into townhouses for sale. In addition, a smaller piece of land was purchased partway through the process, and used for an additional 15 townhouses. Some townhouses were priced for families whose incomes meet the government definition of low income, and others for what is defined as moderate income. All were priced below the market rate for the area. The right of community residents to have input into developments in their neighborhood: Because this piece of property had initially been cleared to make way for an interstate, an idea unpopular with the community, and had then sat vacant for many years, the community felt its interests had been ignored. As the proposal for Davenport Commons became known, residents again felt they had been left out of the process. They worried that Northeastern would use all the units for their students, did not like early designs, the number of rental units, etc. To address this issue, the mayor urged the formation of a working group of primarily African American civic leaders to reach a solution satisfactory to the community. This group worked very hard to bring together residents in the community and to negotiate changes with the developers and the university and city. In addition, both the mayor and the university president stayed committed to reaching a solution that was satisfactory to all the players. The need for a cohesive neighborhood: Preliminary plans called for intermingling of student and ownership units. However, neighborhood residents wanted a clearly defined area for owners. As a result, the two developments are separated, and the amount of retail space was increased for the convenience of the residents. * This information is extracted from No such thing as vacant land: A case study of Northeastern University and the Davenport Commons, A. Calder, G. Grant, and H Muson, Joint Center for Housing Studies, Harvard University, Cambridge, MA and Housing Investments, Inc., Boston, MA EDC/ CHAPA 40

41 Handout # 3 2: Local Case Study Newton Linden Green Homes Description of the development Currently under construction, Linden Green Homes will be two buildings with a total of five condominiums on a half acre site in the Newton Upper Falls Historic District. CAN DO a community based, nonprofit developer of affordable homes purchased an historic house on the site in December CAN DO is working with architect and community resident, Deborah Crossley, to rehabilitate the Greek Revival style home, which was originally built in CAN DO is also replacing a garage, which was on the property, with a duplex. When the renovation is complete, the original building will have three condominiums: two with two bedrooms and one with one bedroom. The new duplex will have two, three bedroom condos. Three of the units (two in the original building and one in the new building) will be sold to people who qualify for affordable housing. The other two will be sold at market rates. The process Reuse of an existing building: Linden Green Homes is an example of reusing an existing building. The building had been used as a multi family home for many years, but had been left vacant for several years at the time CAN DO purchased it. Funding: CAN DO used a Community Development Block Grant, Community Preservation Funds, and low interest bank loans for the purchase and development. They are also using some of these funds to help buy down the mortgage. Zoning: The district in which the house is situated is zoned for two family homes. CAN DO wanted to build five units. Under local zoning laws, this would not be allowed in this area. However, because some of the units were to be affordable, CAN DO could go to the Newton Zoning Board of Appeals (ZBA) and ask for a waiver of the regulations. The board has to consider the proposal, under the state s 40B law, designed to promote affordable housing. Ultimately, the ZBA approved the proposal. Opponents of the project filed an appeal to the State Housing Appeals Board, which can reconsider local decisions. The appeal was dropped shortly before a hearing, and the ZBA decision stood. Other approvals: To build the kind of housing it wanted, CAN DO needed to get the approval of several other boards and organizations in Newton. Community Preservation Committee (CPC): To help with the cost of the development, CAN DO applied for money from the Community Preservation Fund (generated from a surcharge on Newton s property tax). This money is distributed by the CPC to support open space and recreation, historic preservation, and affordable housing. The CPC only gives funds to groups that have demonstrated community support for a project. Therefore, CAN DO solicited support for the project citywide, and held a series of neighborhood meetings including the ward 5 alderman, and modified the design to meet some of the neighbors concerns primarily around parking. EDC/ CHAPA 41

42 Local Historic District Commission: Because the house is in a local Historic District, CAN DO sought the approval of the local commission. This was also another way to demonstrate to the CPC that they had obtained neighborhood support for the project. Once the local commission approved the project, the city historic commission also approved it. CAN DO worked closely with the City Planning Department and Engineering department to assure site plan approval, particularly to satisfy parking, curb cut, and site drainage requirements. This was a collaborative process, and determined the report recommending the project to the ZBA. The ZBA approved the proposal unanimously at the first hearing, contingent only on meeting the requirements of the above departments. Community interests The following lists community concerns that often conflict with proposals for new affordable housing, and describes how the developer addressed these issues. Sprawl: Many city planners and residents are increasingly looking for ways to preserve open space, encourage use of public transportation and walking, and strengthen business areas. One way to do this is Smart Growth (i.e., developing housing in areas that are already developed, near business centers and public transportation). Linden Green homes are a good example of Smart Growth. The homes are located in a thickly settled, residential area within a block of the Newton Upper Falls commercial district, which has shops, restaurants, offices, and a bus line. Density: Although Smart Growth concepts have many advocates, residents of many neighborhoods value the existing character of their community and feel that new multi family houses can possibly result in changes in the appearance of the neighborhood and the amount of traffic. At five units per half acre, Linden Green is designed at slightly below the area density, and less than the allowable square footage for this size site. However, it adds three units to the area. Opponents of the Linden Green project cited increased density as their major objection and requested a number of meetings and hearings based on this issue. Their appeal of the ZBA approval to the State Housing Appeals Board resulted in a delay of approximately five months. Traffic: Adding housing units to a lot is likely to increase the traffic, and in the case of Linden Green homes, could cause a hazard with people backing out of the drive onto a busy street. To address this concern, the Elliot Street driveway is designed with a turn around, so that people can drive straight out onto Elliot St, rather than backing out. In addition, the new building has its driveway off a side street. The number of parking spaces is limited to the number of units, plus two. The design provides an area to construct up to two additional spaces, if the reduced parking is shown to have an adverse effect on the neighborhood. Losing historic buildings: Many communities want to preserve the historic buildings in their city. In the case of the Linden Green homes, the original house is being preserved, rather than torn down. The architect researched the property using records and pictures from the Newton History Museum and is maintaining the basic structure and restoring the facades of the house to their original condition. She is even restoring the fluted columns that hold up the porch. Inside, the building was in poor condition from years of neglect and water damage. However, two of the original stairwells EDC/ CHAPA 42

43 and a good deal of the original flooring is being salvaged and restored. The new building is designed to be compatible in appearance with the scale of the original structure and the neighborhood. Preserving all details of historic structures is very expensive. Some of the funds provided from the Community Preservation fund are specifically for the historic restoration costs. CAN DO is also applying for a national historic preservation grant, but these are very competitive so they aren t optimistic. Negative impacts on the environment: If more families are housed on a lot, there can be increased stress on the environment. More water is needed, and less green space around houses can mean more water runoff into local streams and rivers. There will be increased demands for energy. The Green in Linden Green Homes reflects the commitment of the developer and architect to creating housing that reduces the negative environmental impact. Newton has a requirement that all new construction must recapture rainwater, preventing it from flowing in sudden bursts into the Charles River. While most developers install an underground concrete tank, because the Linden Green lot is on ledge, installation would have required blasting. Instead, a bioretention area, or rain garden is being installed: a shallow depression in the yard which collects water and in which plants that thrive in wet environments are grown. All new plantings will be indigenous or native species requiring low maintenance. Further, rather than asphalt, a porous pavement similar in permeability to a lawn is used, allowing rain water to percolate. It also does not absorb as much heat as asphalt, so it s cooler on the feet! The materials and appliances used in the construction of the house are also energy efficient. All mechanical systems, lighting and appliances are high efficiency, and approved by the Energy STAR program. Building insulation is to be a high density damp spray cellulose a very good insulator with a boron based fire retardant. Cellulose is made of natural plant fibers, like paper, and sometimes even old jeans! And, the boron treatment is non toxic, but discouraging to pests and mold. The siding for the new building is a composite of wood fiber and cement, which is environmentally friendly, comes factory painted with a 15 year warranty, and is fire retardant. Interior doors are also composite or pressed wood fibers. In addition to being good for the environment, many of these factors also make the house more affordable to maintain in the long run. EDC/ CHAPA 43

44 Handout # 3 2: Local Case Study Worcester One through Seven Piedmont Description of the development One through Seven Piedmont will be a three story building, with four retail spaces on the first floor and 12 apartments on the top two floors. It is currently under development by Worcester Common Ground (WCG), a nonprofit, locally based Community Development Corporation. The building will replace an empty residential building, which collapsed shortly before WCG purchased the property. It is located in a commercial/industrial area of Worcester with a significant crime problem. The area abuts a district that is beginning to draw artists. WCG is hoping to attract artists to its new building, by creating 12 one bedroom lofts, with open floor plans, and by seeking retail businesses that cater to artists and musicians. All of the units will be reserved for people who qualify for affordable housing. The units will rent for approximately $570 to $700. WCG has also purchased a lot across the street for parking. The process Reuse of an existing building: While WCG could not reuse the original building, it did reuse a space that had housed 12 apartments for 12 new apartments. Funding: WCG purchased the property from a prior owner for $1.00 and then spent $65,000 to remove asbestos and demolish the buildings. It then obtained the following funds to develop the building: HOME funds provided to the city by the federal government s Agency of Housing and Urban Development (HUD) Mass Housing Partnership funds money from banks that must be used to increase affordable housing The Affordable Housing Trust Fund money the state legislature appropriated for affordable housing Zoning: WCG wanted to change the way the building was used. The previous building had been exclusively residential, but WCG wanted to have stores on the first floor of the new building. Therefore, they asked the ZBA for approval of this change. The board granted its approval. Community interests The following lists community concerns that often conflict with proposals for new affordable housing in cities, and describes how the developer addressed these issues. Economic development/increased safety: Many city planners are increasingly looking for ways to revitalize urban areas by encouraging people to live there, thereby creating a demand for stores, restaurants and public transportation. This often increases safety as well, as the neighborhood becomes busier, with more eyes on the street. One through Seven Piedmont is an example of creating apartments and retail businesses in an area that is primarily commercial. It is trying to attract artists in particular; a group that often has moderate incomes but needs large workspaces. EDC/ CHAPA 44

45 Neighbors in the area, including a school, were very supportive of WCG s proposal, as they saw it as a way to bring residents into the area and increase the vitality and safety of the neighborhood. A conflicting economic interest arose when this project was proposed. The owner of a neighboring building was planning to sell the building, and knew that having a parking lot would add to its marketability. Therefore, he wanted to purchase the vacant land to use for parking. Traffic and parking: Twelve tenants in the new building will need a place to park. The building takes up the entire lot, leaving no room for a parking lot on site. Underground parking is prohibitively expensive. On street parking is feasible but not desirable. WCG addressed this problem by purchasing an empty lot across the street, which will be used for parking. Negative impacts on the environment: New residents can create increased needs for water and energy. WCG uses a variety of strategies to create housing that is energy efficient. They use renewable building materials brick, metal, and hardy plank. In addition, they use the most efficient heating systems available, with enhanced insulation materials, low flow toilets and flow limiters on sinks and showerheads, and efficient light bulbs (provided by Energy Star through NSTAR). EDC/ CHAPA 45

46 Class 4: A Local Example of Affordable Housing Objective Students will learn about a local example of affordable housing and be able to identify which of the strategies were used in its development. Preparation Work with the community partner to arrange a presentation with visuals (e.g., slides, posters, news clippings) or site visit to a local affordable housing development. If you plan to take students to the site, arrange transportation, call the residents or property manager, etc. Learning Activities 1. Engage students in a discussion of their initial questions about Handout # 3 2. (10 minutes) Use the following series of questions to engage students in a discussion about their reading (write student questions on the board or chart paper): Did you talk with your family or others about the project? What would you like to know about this housing project and how it came to be? 2. Learn about a local development project. (20 minutes) Students should be able to see a local example of affordable housing; it would also be ideal for them to be able to talk with people who live there and with people who helped create this solution. Choose one of the following three options: (1) Ask your community partner to present a slide show about an affordable housing solution that includes information about its development. (2) Arrange a field trip for students to visit the site. (3) Arrange a panel of current residents, people who made the housing happen, and/or local officials. 3. Discuss the local example. (20 minutes) Based on the written local case study and/or a presentation by the community partner, discuss the following points: Description of the housing: Is it a house or an apartment building? Do they think it is a good location for the residents who live there? How many units does it have? Who is eligible to live there? The process of developing the housing: Which of the strategies discussed in Class 3 did developers use in this project? What local and state agencies were involved, and what were their roles (e.g., funders, approvals)? What was the role of nonprofit groups? Community interests: Did it receive much opposition and if so, from whom and why? What other interests (e.g., environmental, safety, economic) did the developers need to address? How were oppositions and/or interests incorporated into the final project? Homework Ask students to research news coverage of a local project during the time it was proposed and being developed. EDC/ CHAPA 46

47 Class 5: Reflection on Learnings and Planning Service Objectives Students will connect the topic to the overall objectives of the course. Students will integrate information on housing and articulate their own values related to the issue. Students will be able to describe the service activities they will implement outside of class. Preparation Review Handout # A 5: Possible Community Projects. If students choose their own projects, make copies to distribute. Plan How you will organize the community service aspect of the course (see Introduction). Identify the options for service you will provide students and how you will organize this part of the class to help students choose and plan their service. If it is part of your plan, invite community organizations (see below) to speak to the class about service opportunities. Make sure you have an option for students who choose not to participate in a service project. Possible Speakers Community partners Other local community organizations, city or town housing officials, or citizen groups Learning Activities 1. Hand out the Post Survey for students to complete. (10 minutes) 2. Facilitate one of two activities related to beliefs about affordable housing. 2a. Review Continuum of Beliefs about Housing. (15 minutes) Take out the Continuum used in the first class and repeat the activity. Ask students: Have you changed your position about anything on the continuum? If so, what have you changed? What made you change your position? 2b. Conduct a debate on one of the issues. (15 minutes) Select a team of three students on each side of one issue. Give them time to prepare points to argue and hold a debate. Use Teacher Resource # 1 2: Commonly Expressed Beliefs about Housing to stimulate their thinking. 3. Organize the class to choose service projects. (20 minutes) Present options for service that you and the community partner have identified. Ask students if they have other ideas that they would be interested in exploring. Plan the 20 minute period to allow students to choose what they are most interested in and plan when and how they will do their projects. Support groups of students and individuals if they get stuck in their plans. If there is time, have groups share their plans. Then, tell students when you will schedule time for them to report on their student community projects and to share and reflect on their experiences. EDC/ CHAPA 47

48 Reflection Activities Reflection is an essential part of a curriculum such as this, which touches on values, content connected to students lives, and community action. Reflection can take place at the end of each class or at the end of the unit. Here are suggestions for many ways you can promote students reflecting on their experiences and learning and support them in making meaning for themselves. Written Reflection Ask students to write in a journal throughout the unit. Have students write a letter to their parents or your class s community partner, summarizing what they have learned and raising questions that remain. Assign students to compose a Letter to the Editor that they may or may not send that advocates for some action related to housing. Ask students to write a culminating essay about one of the following: the community s housing needs and what should be done about them; what the student has learned and plans to do; an essay about their service, whether and how it made a difference, and how it could be improved. The following worksheets provide a structured format for reflection: (1) Four Square Reflection Tool (from C.B. Kaye) What happened? How do I feel? Ideas? Questions? (2) three things I learned, two things I wonder about, 1 thing I plan to do Oral Reflection Ask students to respond to a prompt, one at a time. If the group is large, do this in two to four small groups. You might want to use the following prompts or come up with your own: 1) Did anything in this unit surprise you? 2) Did you change your mind about affordable housing? If so, how did you change your mind? 3) Did you learn something new about your community? Describe what you learned. 4) Did you make a difference? How? 5) Do you think you will remember this unit in five years? Why or why not? Lead a class discussion on one or more of the above questions. Ask students to identify a reflection question to discuss, and have a student lead the discussion. In groups of three to four, have students create skits on housing in your community. Group Reflection Chalk Talk: This is a silent, written group reflection. You write a question in the middle of the board with a circle around it (e.g., What did you learn about affordable housing? ), and you provide several pieces of chalk for students to use. As they are moved to do so, students write comments on the board, connecting them to the question and/or to other students comments, without talking. You can connect comments, also, or you can write another question next to a comment, also in silence. Give it about 15 minutes, or until writing seems to have stopped. Sometimes, it takes a little time for students to warm up. EDC/ CHAPA 48

49 Supplemental Reading Service Learning Resources The Complete Guide to Service Learning. Cathryn Berger Kaye. Minneapolis, MN: Free Spirit Publishing Inc., Kids as Planners. KIDS Consortium. Lewiston, Maine: KIDS Consortium, The Youth Power Guide: How to Make Your Community Better. El Arco Iris Youth. Amherst, MA: University of Massachusetts Extension, National Service Learning Clearinghouse, What Kids Can Do, Inc., Readings on Homelessness The Death and Life of Great American Cities. Jane Jacobs. New York: Random House. 1961, reissued1993. How the Other Half Lives. Jacob Riis. New York: Charles Scribner, (Available on line) Nickel and Dimed: On (Not) Getting By in America. Barbara Ehrenreich. New York: Metropolitan Books, 2001 Rachel and Her Children: Homeless Families in America. Jonathan Kozol. New York: Ballantine Books, EDC/ CHAPA 49