HomeMy WebLinkAbout2-2-2020 Public Comment - A. Lewendal - Community HousingFrom:Michael Wallner
To:Agenda
Subject:FW: affordable housing
Date:Sunday, February 2, 2020 3:52:48 PM
FYI for Agenda
From: Anders Lewendal [anders@lewendal.com]Sent: Sunday, February 02, 2020 3:48 PMTo: Terry Cunningham; Michael WallnerSubject: affordable housing
Terry:
I read your opinion piece in the Chronicle this morning. I agree that leadership is the key tocreating more housing and keeping the cost of shelter down. Here are a couple thoughts:
You may have noticed or heard from landlords recently that vacancy rates are noticeably up. Why? Because of a large increase in the supply of new rentals available. If we want tocontinue this trend that will help lower the cost of shelter in Bozeman, you might considerhow best to increase the supply. Here are a few statistics and rules of thumb, most of whichyou already know:
We need more rental housing units. What can you do to incentivize this?
Home ownership increases the cost of all housing. When people move into owner occupiedhomes, they are motivated to have their investments increase in value. The result isNIMBYism. With increased regulation and new restrictions on density and resistance to newlow cost rental properties, the cost of housing will increase.
Home ownership reduces social mobility. When you help, with our tax dollars, HRDC toprovide downpayments for low cost homes, you discourage those new owners from takingnew better paying jobs outside of Bozeman. The cost of maintenance may very well makeownership more expensive in the long run than renting.
Renting is not unAmerican. Switzerland creates twice as many new housing units per capitathan America does. Their crime rate is lower and their happiness index is higher. Switzerlands ownership rate is about half of the US rate. It is our federal tax code thatencourages home ownership. I am not sure Bozeman should be in the business of creating orencouraging home ownership. Affordable housing is different.
Finally, we need more affordable rentals. How can you incentivize me or other youngbuilders to help accomplish this? Consider designing and making plans and permits availableat no cost to builders who agree to rent those units indefinitely for a reasonable return. Everyone wins. Yes, large businesses may take you up on this idea too. Currently, it is veryrisky for most builders to build affordable or low cost housing. You (city) will have to createthe right incentives. I do not know of any significant ones today.
Best Regards:
Anders
Anders Lewendal Construction, Inc.
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