Charlotte Affordable Housing - Essay Sample

The U.S has been on the verge of a housing crisis, with most citizens being cost-burdened. Despite the continuous growth of the U.S economy and the housing market, many citizens are unable to pay for houses due to high housing prices. Housing can only be considered affordable only if families spend no more than 30% of their income on housing costs (Affordable Housing). The city of Charlotte is one of the fastest-growing cities in the U.S. The cost of housing in Charlotte has been, for the past few years, been on the rise. Charlotte city has developed a housing framework that seeks to give citizens an opportunity to expand housing units and preserve current units.

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The need for housing units has continuously increased due to the skyrocketing of housing costs. Moreover, the supply of housing units required is less than the demand for housing units. These two challenges have affected the lives of residents in Charlotte. The current affordable housing units are large-scale and are not subsidized, meaning their high costs make them less affordable, especially for low-income earners(Affordable Housing). Besides, the housing market limits homeownership plans for people who earn a low income. Therefore, there is a need to develop strategies that will ease the cost burden of many people and increase the affordability of houses.

Charlotte's affordable housing crisis has continued to become even more severe in the past years. The current house unit's deficit is above 34000, meaning that most families have no access to affordable housing(Pam Kelley ). Housing prices have hiked, with rents increasing by almost 45% since 2010. The high housing cost, low income, and inadequate housing units have fueled serious housing problems in Charlotte. A study done in 2014 revealed that Charlotte ranks last in social mobility.

There are significant impediments that have been associated with the housing crisis. The city has focused more on world-class ambitions rather than reducing poverty. It has continuously failed to implement recommendations given by housing consultants(Pam Kelley). Institutional racism has also been attributed to the crisis due to the racial wealth gap. These problems must be solved to achieve economic equality in Charlotte and solve the housing crisis.

The affordable housing crisis has been evidenced by a large number of people applying for very few subsidized houses. In Charlotte, more than one thousand people lined up to apply for 130 housing units(Brey & Jared). However, many applicants were disappointed that the units had a fixed cost and did not vary on income. The shortage of housing units is very serious, with most residents experiencing much frustration.

Congress made proposals to reduce the housing crisis, which aimed to impose policy changes and developments. The recommendations also focused on increasing funding on housing assistance programs and other initiatives such as renters' tax credit(Brey &Jared). Regulating the housing market and offering subsidy programs would also play a crucial role in solving the crisis.

Permanent supportive housing programs require huge investments due to the costs of setting up adequate units(Ryan et al. 336). Despite the urgency of such programs in alleviating the housing crisis, they have received inadequate support from the government. However, there are programs that have proven very effective in providing affordable housing units for their residents. Such a program is the Rhode -Island Coalition for the Homeless (RICH). RICH focused on building goodwill among the public and promoting incentives to fund affordable housing.

RICH Neighborhood Opportunities Program was highly effective, as indicated by the 1000 units of affordable housing units, which comprised permanent supportive programs. The NOP campaign reduced the burden for most residents of Rhode Island, who spent more than 30% of their income on housing(Ryan et al. 340). The NOP initiative has since 2001 provide more than 1200 affordable and permanent housing units enabling most middle and low-income earners to acquire houses. Therefore, investing in the public will is crucial in any housing program that aims to provide affordable housing.

Implementing a renters' tax credit for low-income Americans would play a crucial role in reducing the cost burden for low-income earners. There is a significant problem because most families spend a large share of their income on housing expenses. Subsidized rental housing initiatives in the U.S., such as the Low Income Housing Tax Credit (LIHTC), have created more than two million rental units since the start of the program (Kimberly et al. 136). The LIHTC is currently the most significant source of revenue for developers. Developers of rental units receive tax credits for new construction projects.

However, the efficiency of these tax credits is limited because the tax credits do not subsidize current housing units. Moreover, LIHTC rental units have fixed rents regardless of the differences in income. On the other hand, the tax credit is advantageous because it overcomes the problems associated with the existing housing programs. There are lower administrative costs associated with seeking assistance. Therefore, to deal with a crisis such as the affordable housing crisis in Charlotte, renter's tax credit should be adopted (Kimberlin et al. 135). The tax credit aims to reduce the gap between rent and 40% of the after-tax income. Therefore, the renter's tax credit is a promising means of solving the affordable housing crisis and has enormous benefits such as low administrative costs, efficient targeting, promote housing stability, and increase living standards.

The Charlotte housing crisis has attracted many shareholders who wish to help in increasing affordable housing. Novant Health, for instance, pledged to donate $6 million to the Charlotte Housing Opportunity Investment Fund (Targeted News Service). Novant Health recognizes the importance of affordable housing in one of the most famous cities in the United States. Novant Health has, for a long time, invested in the public and promoted social and economic mobility.

Novant Health has demonstrated that for affordable housing initiatives to be successful, all stakeholders must work together. Affordable housing requires massive investment due to the inadequacy of housing units for low and middle-income earners. It is therefore crucial that the crisis in Charlotte is solved before amounting to a huger crisis because, as it is expected, the need for housing will continue to increase.

Works Cited

Brey, Jared. "Housing in Brief: 1,000 People Show Up for 129 Affordable Apartments in Charlotte". Next City.org, 31 Jan 2020.

Charlotte NC. Affordable Housing (2020). https://charlottenc.gov/HNS/Housing/Affordable-Housing/Pages/default.aspx

Pam Kelley "From Brooklyn to Ballantyne: The Story behind Charlotte's Affordable Housing Crisis." The Charlotte Observer.17 June 2019. https://www.charlotteobserver.com/news/local/article231622193.html

Kimberlin, Sara, Laura Tach, and Christopher Wimer. "A Renter's Tax Credit to Curtail the Affordable Housing Crisis." RSF: The Russell Sage Foundation Journal of the Social Sciences 4.2 (2018): 131-160. https://doi.org/10.7758/RSF.2018.4.2.07"

Novant Health Pledges $6 Million to Address Charlotte's Affordable Housing Crisis." Targeted News Service; 5 Sep 2019.Washington D.C.

Ryan, C. M., Jeffreys, K., Ryczek, J., & Diaz, J. (2014). Building Public Will: The Battle for Affordable—and Supportive—Housing. Journal of Poverty, 18(3), 335-354. https://www.tandfonline.com/doi/abs/10.1080/10875549.2014.923967