HomeMy WebLinkAbout11-12-19 Public Comment - J. DiMarco - Affordable Housing Action PlanFrom:jerrydimarco@mail.com
To:Agenda
Subject:comments on Affordable Housing Action Plan - 1
Date:Tuesday, November 12, 2019 2:15:26 PM
All of the solutions presented for affordable housing address only the supply side of the
problem. There do not appear to be any suggestions that address the demand side of theproblem. However, we must address the demand side because its contribution to the
affordability problem is at least equal to the supply side of the problem. Because Bozeman issuch a hot real estate market, there is a lot of extra money out there competing for housing.
This drives up the cost of housing just as surely as a tight housing supply, and can alsocontribute to the tight housing supply problem.
We need programs that rein in the hot market. We must have something to counter the bigmoney and the promotional hype generated by the local development community. Is it
possible to bar out-of-state ownership, investment buyers, home flippers and speculators? There should also be restrictions on other uses that reduce housing supply such as second
family homes, owning homes that are unoccupied part of the year, owners who do not intendto occupy the unit, short term rentals, and additional homes owned by the same person, family
or group. If these uses cannot be barred, then they should be taxed at a level that makes themunprofitable. Each additional unit should be taxed at a higher rate in a progressive fashion.
The additional funds could be used to purchase land dedicated to affordable housing.
Many of the solutions create the need for a bureaucracy to monitor compliance or results.
Other cities that have created these bureaucracies have had problems keeping them funded andfully staffed because they are subject to political winds, economic downturns and unreliable
funding sources. Too, as the programs they monitor grow, the bureaucracy must grow with it. However, this growth will not necessarily be supported by all administrations. So solutions
that require supporting bureaucracies should be a low priority at best.
Other proposed solutions do not provide permanent affordable housing. Solutions that create
housing that is affordable only to the first buyer, will be sold at the market rate to subsequentbuyers and no longer be affordable housing. We should consider only the solutions that create
housing that remains affordable in perpetuity. Deed restrictions seem to be the best solutionproposed so far.
On the topic of where to build affordable housing, it may be best to have the city acquireland, which then gets dedicated to low income housing such as mobile home parks. Dedicated
taxes seem like a good source of funds for buying land. A sales tax that does not affect lowincome households is an obvious choice. Tourism taxes are also a fair source of funds since
many people move here after visiting here.
The open space bond is a very slow way to preserve open space, and it doesn't prevent urban
sprawl. It is more important to prevent urban sprawl because it is not sustainable. The bestway to do this is with a comprehensive land use plan. So our efforts to manage growth should
be directed toward getting the state legislature to pass a comprehensive land use plan. Insteadof open space bonds, could we pass an affordable housing bond, and use the interest to buy
more land for affordable housing?
If the city is going to acquire land for this use, it is natural to wonder how much land the city
would be willing to dedicate to affordable housing, given that it will negatively impact taxrevenue? Should the city even try to get revenue from land that is dedicated to affordable
housing? I don’t have an answer to this, but am concerned because it could ultimatelylimit land available for affordable housing. However, government has the duty to provide for
the common good. Providing and preserving affordable housing is certainly part of thecommon good.
The gentrifiers have had their way in Bozeman for 50 years, it's time to level the playingfield. We need a strong affordable housing program based on common sense measures that
provide permanent solutions that do not burden us in the future as the program grows.
Thank you for your consideration of these issues.
Jerry DiMarco
Bozeman