Misconceptions to avoid with workforce housing investment – Information from Maxwell Drever

Workforce housing is an affordable housing option provided to individuals and households earning between 60% and 120% of the AMI or the area median income. Workforce housing is ideal for middle-income workers. It includes professionals and workers from various fields of life, including law enforcement personnel, firefighters, healthcare workers, teachers, and retail clerks.

According to Maxwell Drever, it is vital to note that often workforce housing is the only option for specific households looking for shelter. The middle-income groups can neither qualify for the LIHTC (Low-Income Housing Tax Credit program) or the housing choice voucher, previously called Section 8.

If you are a potential stakeholder looking to invest in workforce housing, you must keep a few key details and information in mind. Here are the top misconceptions to avoid while planning to deliver workforce housing.

It is not Section 8

Even though Section 8 vouchers can help obtain workforce housing properties, they aren’t the same options. Section 8 solely refers to government-subsidized vouchers for underprivileged individuals and families. Workforce housing fills the demand gap between affordable and luxury housing options.

It is not affordable housing either

Affordable housing refers to the government-subsidized housing options available in the market specifically for the lowest-earning Americans. Affordable housing, the choice, has broadened its definition and now includes several specific affordable real estate.

Strategies to implement for workforce housing

The economy and the real estate market, on the whole, have recovered since 2017. However, the current real estate market in the U.S. has a high demand for affordable housing options paired with a low supply as the prices have shot upwards and are out of reach of middle-income workers. The situation has required local government bodies, agencies, and policymakers to step in to explore strategies and implement affordable housing options for the vital community workforce.

Here is a list of all the strategies employed to build affordable housing options for median-income households.

• Creation of a dedicated housing trust fund
• Repurposing of vacant land
• Repurposing of underutilized areas, especially retail spaces
• Adoption of inclusionary zoning to create space for new construction
• Creation of a community land trust to avoid future disputes
• Land development code update to encourage development even in urbanized areas
• Allowance to single-family homeowners to build and rent accessory living quarters

As stated in the previous section, there are misconceptions regarding such an option’s affordability, details, and logic. However, the critical step to encourage workforce housing development projects is to start a conversation within all communities which will help with the awareness. Discourse is the best way to start a movement to ensure affordable, safe, and secure home options for every member of society.

It is vital to remember that many individuals, even some of the most crucial components of society, cannot afford homes while not qualifying for any of the government benefits and subsidies. Workforce housing will fill this gap effortlessly.