Houston’s Housing Affordability – An Action Plan for 2023 and Beyond

 INTRODUCTION

 

Since the 2015 publication of the initial white paper titled “Maintaining Houston’s Affordability for Working Class Families”, which took a comprehensive look at the state of the housing market of one of the most affordable of America’s largest cities. Prior to the 2008 financial crisis, Houston was for a long time regarded as a hidden gem for housing stock and affordability and the region was recognized consistently in national and international rankings of best places to live. In contrast to the economic malaise that hung above most of the United States, the improvement in horizontal drilling/fracking technology in the country led to a major boom in the oil and gas sector, a significant driver of Houston’s economy.

 The rapid recovery of Houston’s economy post financial crisis in 2010-2015 led to a steep climb in the local real estate market as thousands of families fled California, New York and other economically challenged regions for the greener hydrocarbon-fueled pastures of Texas. Neighborhoods in Houston and other major cities in Texas characterized by long-term owner residents gave way to new buyers offering above list price for homes, and newer ever more grand multifamily apartments were being constructed within Houston’s urban core, middle region, and suburban outskirts to meet the growing demand. This unabating demand from new residents led to a real estate building spike, which drove up land and rent prices seemed to only attract more new entrants. Then we experienced the crude oil crash of 2015, which unwittingly demonstrated just how resilient and diversified Houston’s economy had become.

Coinciding with these shifts in Houston’s economic fate, were changes in lifestyle and generational tapestry of Houston’s residents, many of whom increasingly became interested in living in urban environments characterized by denser more walkable neighborhoods within close proximity to retail and other urban amenities. Around the same time, Houston initiated the Downtown Living Initiative that provided a $15,000 per housing unit incentive for construction of multifamily housing in the eastern half of Downtown Houston, with the result being a boom in housing construction in the area stretching from Buffalo Bayou to Highway 45 between Main Street and Interstate 69. Additionally, the city made a determined commitment to invest in its pedestrian infrastructure embarked on the ambitious Bayou Greenways project, which led to construction of the longest intra-city bike network system in America, a 190-mile trail of connections along the city’s system of ubiquitous bayous.

The market response to the shifts in desires of urban dwellers, led to a frenzy of redevelopment and new development activity and rising rent rates within the urban core that resulted in the displacement of long-term residents of communities dispersed throughout the urban core and within proximity of Houston’s major employment centers. This displacement forced residents to seek housing in far-flung areas of the region, increasing the pressure on housing rents in suburban communities at or around the boundaries of the city limits. 

In our original paper, we cited important statistics about population, households, income, and real estate market data for Houston, which represented the conditions as they existed in 2015 (the “base year). For purposes of this update to the white paper, you will see terms such as ‘base year’, ‘original paper’, ‘initial white paper’, and 2015, where the reference being made is to data captured in the initial white paper the author penned in 2015. This paper updates those statistics for 2022 and examines the governmental actions needed to create a workable solution to the affordable housing market in Houston.

HOUSEHOLDS, INCOME, AND HOUSING NUMBERS

The 2020 census recorded Houston’s population at 2.304 million residents, representing a 4.75% increase from 2015, though lower than what was projected to be a 1.36% annual growth rate that would have resulted in a 6.33% increase in the population. A demographic phenomenon that took hold since 2015 has been a reduction in the average household size decreasing from 2.70 persons to 2.61 persons per household. During the same period the percentage of owner-occupied dwellings decreased from 45% to 42.9%, continuing a trend of a decline in homeownership rates for Houstonians.¹ The percentage of homeownership not only stands out for being low when compared to other major American cities, it is abysmal in the context of a nation that prides itself on the idea of the ‘American Dream’ with a homeownership rate of 65.5% across the United States.²

Our original white paper recorded the US Census estimated the 2015 area median income for the Houston area at $48,258, a number which as of 2020 has risen to $53,600, representing an approximate 11% increase in income.¹ In its June 2022 report, the Houston Association of Realtors’ monthly housing report indicated that the median home sold in the Houston Metropolitan Statistical Area (MSA) was priced at $354,440, which when compared to the base year figure of $223,000 in August 2015 represented a 59.42% increase. The August 2022 median home value retreated to $341,950 in the aftermath of aggressive repeated rate hikes by the Federal Reserve Bank. That number still represents a 10.8 percent increase from the same month in 2021.³ It is also worth noting that the average price of a single-family home in the Houston area is now reportedly at a historic high of $411,671. ³ The combination of those two factors greatly impacts the affordability index for Houston.

A quick analysis of the data reveals a staggering divergence from the base year to 2022 in the growth trends of income as compared to housing values, a fact underpins what has become a tipping point crisis for the Houston housing market. What you we observe is the growth in housing values outpacing the growth in incomes by a factor of five, which is simply unsustainable in the long run for a region that has long attracted people and industry based on its reputation as a place with a highly attractive affordable cost of living.

The conventional measure of housing affordability has historically stipulated that households should spend no more than 30% of their income on their total housing expenses. A study conducted by Rice University’s Shell Center for Sustainability in 2013 indicated that in five of Houston’s 11 city council districts, 31% of households spent in excess of 30% of their income on housing.⁴ The study further ranked Houston 26^th on the list of top 50 U.S. cities for affordability when transportation costs were factored in, a fact best appreciated by suburban residents most familiar with Houston’s traffic. In a separate report by the Harvard Joint Center for Housing Studies, 45.5% of rental households in the Houston MSA spent more than 30% of their income on housing.⁵

The rental market in Houston has fared considerably better when compared to the homeownership market, though finding affordable rental housing opportunities is increasingly out of reach for even more families. According to reporting on Houston-based Apartment Data Services, the average rent for all apartment types in Houston had risen to $1,188 per month as of 2021, with Class A apartments averaging $1,675 per month, and the forecast for a 5% rental rate growth in 2022 for the Greater Houston area.⁶  In its report of comprehensive tracking of apartment rental information the Apartment List revealed that the average rent for a one-bedroom apartment within the Houston MSA is now $1,092 per month and $1,301 per month for the average two-bedroom.⁷  

In its 2022 State of Housing Report Rice University’s Kinder Institute illustrates how the median home value within the city of Houston and Harris County have nearly doubled over the last decade, with the sharpest increases occurring in the intervals between 2012-2014 and more profoundly between 2020-2022.⁸ The same report reveals that the median lease price per square foot of single-family homes rented within Houston and Harris County has grown a more modest 9% and 22% respectively from 2015 to 2022. 

When the growth in median income from the base year to the current year is compared with the increase in median home sold, a picture emerges of a stark divergence in the average family’s ability to purchase a home within the Houston market. Based on the current rate for a 30-year mortgage and depending on how much they have for a down payment, the average family looking to purchase a median priced home would need an income above $130,000 to qualify for a mortgage. For an individual earning the median income, the maximum mortgage their income will allow them to afford is a home at or below $125,000, a home that would be a rare find anywhere in the market given the current housing situation. 

When we consider the decline in homeownership rates the dynamics within the rental housing market holds greater significance as a greater percent of the population and a larger total number of households are now reliant on the rental market for housing. As the cost of homeownership has exploded over the last several years, a less acute spike has occurred in the rental market though the cost of renting a home has grown continually in every housing sector over that time span. The outlook for homeownership has been even more bleak for millennials and Gen Zers who continue to bear the brunt of the inequities in the housing market with less than 25% of that population segment being homeowners according to metrics cited by various national organizations.

Many within that age group are trapped in between the stagnation of slow growing incomes and the rapidly increasing housing costs, especially during the Covid-19 pandemic, causing many to revert to moving back home with parents, while others sought out alternative arrangements such as roommates’ co-occupancy or short-term guests as a means of relieving the housing costs burden. The student loan relief executive order issued by the current administration, when enacted is expected to relieve some of the burden faced by those with student debt, however, the student loan relief affects only a fraction of that populace and will not go far enough to provide housing relief for many who owe a greater amount in student loans than the act covers.

It is worth noting that our original paper cited that many within that age segment, who were otherwise able to purchase a home, were opting to rent to be closer to work or the inner city, as was confirmed by a national survey conducted in 2015 where majority of millennials planned to put off buying a home till 2018 and beyond. Now the additional pressures have made homeownership almost impossible.

POVERTY NUMBERS

The results of the 2020 US Census revealed that the City of Houston had an overall poverty rate of 19.6%, which is just below the average for the State of Texas and represents approximately 452,368 persons or 173,321 households. At a broader scale, the concentration of poverty in particular communities continued throughout the United States over the last several years. While poverty prior to the 2008 recession was concentrated in distressed neighborhoods within the urban core of most cities and in rural areas, many of these hotspots have now expanded to suburban and other areas a trend that has grown in the aftermath of the Covid-19 pandemic.⁹

According to a 2017 report by the Brookings Institute poverty which had historically been a problem associated with large urban centers and rural communities, grew at pace double of that seen in smaller metropolitan areas, with suburbs in the country’s largest metropolitan areas experienced the number of residents living below the poverty line grow by 57 percent from 2000 to 2015.¹⁰ A 2014 analysis of the American Communities Survey (2008-2012) affirmed the impact concentration of families living in poverty had in instigating challenges similar to those faced by disadvantaged neighborhoods – namely escalating crime rates, failing schools, poorer health outcomes, and fewer employment opportunities — making it harder for families to break the cycle of poverty.¹¹ The report further cited that the number of distressed neighborhoods, census tracts where poverty rates exceed 40 percent, rose by 75% during the early 2000’s, and nearly every major metropolitan area witnessed the growth of suburban poverty during the same time period.

Figure 1.

HOUSTON’S HOUSING SITUATION

In 2015, Houston was sliding towards an era, where the average family could no longer enjoy the abundant availability of moderately priced housing for rent or homeownership. The reality at the time, though concerning, was still largely within the grasp of policymakers to redress and implement a decisive plan of action to stem the tide of what was to come. A series of successive natural disaster events, the Memorial Day flood of 2015, the ‘Tax Day’ flood of 2016, and Hurricane Harvey in August 2017, introduced a highly destabilized housing environment with internally displaced residents needing to fend for themselves, while externally displaced persons (a la Louisiana and other parts of Texas) sought refuge within the existing housing in the Houston region.

Despite significant efforts by private sector non-profit and for-profit developers, Houston has not been able to build enough housing units to replace the number of affordable units (statutory and “naturally occurring”) that were lost to this string of disasters. While grappling with a housing market facing significant upward pricing pressure, emergence of the COVID-19 public health crisis led to even further disruptions within the housing market and construction industries, then Winter Storm Uri in February 2021 introduced the term “fix the grid” into our Texan lexicon as families were confronted with a different type of disaster than previously encountered.

In the aftermath of the aforementioned period capped off by the COVID-19 endemic, the Houston MSA experienced an increase in the ‘Relative Property Value’ both within the Urban and Suburban submarkets, that applied additional pressure on both market segments, unlike in other comparable major MSA’s that witnessed a divergence with a much more significant impact on property values in suburban as compared to urban areas.¹² This bifurcated effect has rendered futile any current efforts by families to flee to the outlying areas and surrounding counties of Houston in search of lower cost housing. That is an issue further complicated by the rise in transportation costs reflected in the cost of automobiles, vehicle maintenance, and gasoline prices.

The difficult reality of the challenges surrounding around affordable housing have only accelerated since the 2015 base year and created a further chasm between what working families need –- a balanced housing market with an adequate number of affordable options for renters and homeowners –- and what the market offers. Data from the Texas Department of Housing and Community Affairs indicated that in 2015, 46,261 affordable housing units available in the Houston from the state’s Housing Tax Credit programs.¹³ The most recent report from July 2022 revealed that the total number of affordable housing units available in Houston grew to 56,438 units, representing a 22% increase or a total increase of 10,177 units the equivalent of a 1,454 increase in the number of units delivered annually.

The Houston Housing Authority publicly reports that the agency currently owns 5,700 housing units in 25 housing developments and administers a Housing Choice Voucher program that serves over 17,000 families for a combined total of approximately 23,000 housing units serving about 60,000 low-income Houstonians and serves an additional 40,000 individuals via its Public Facilities Corporation’s involvement in multifamily developments. Combining data from both agencies, we can approximate that affordable/rent-restricted housing units for Houston’s low to moderate income families, earning between $16,000 and $57,000 or 30% to 80% of Area Median Income (AMI), totals approximately 80,000 housing units. It is important to note that with a decline in the average number of persons per household (-3.3%), the number of households needing affordable housing has also increased by the corresponding factor to the decrease in household size. 

The analysis of the household and population data from the 2020 American Communities Survey indicates that there are approximately 833,000 households within the city of Houston or a total of 1,437,000 within Harris County. The Harris County ‘My Home Is Here’ report indicated that the 2020 median household income for Houston and Harris County were approximately $61,900 and $73,000 respectively.¹⁴ The income data coupled with the low level of homeownership in Houston reveals the difficulty of homeownership as a viable option for most of Houston’s families, leaving over 700,000 Houston area households with rental housing as their primary option. Considering other socioeconomic factors such as credit, employment stability, and upward mobility, you find that most of those residents simply are unable to leverage homeownership as a tool to climb up the economic ladder.

The same Harris County report indicated that there are approximately 315,000 naturally occurring affordable housing (NOAH) units in Harris County or about 22% of the total households. With the high number of renters, and such low levels of rent-restricted affordable units, nearly 400,000 households must rely on market supply for affordable housing options. Though the market does supply housing for some within that gap, the reality is those options can often be limited to substandard dwelling units. Further, many of the neighborhoods characterized by naturally occurring affordable housing in Houston usually result from housing units built four or more decades ago. The aging housing supply in these areas are sometimes surrounded by declining neighborhoods or areas attracting throngs of investors rehabilitating some of the older housing units to flip for a profit or put back on the market at much higher rents. All told, over 500,000 households within Harris County were reported to be spending above the recommended 30% of their income on housing costs, leaving less for other living expenses including transportation.¹⁴

In its ‘The State of 2022 Housing in Harris County and Houston’ report, the Kinder Institute at Rice University observed that the Houston region was short 160,000 housing units affordable for households earning less than $20,000 a year.¹⁵ In October 2022, of the 5,706 homes with a Houston address on the Houston Association of Realtors website, only 1,660 (29%) were priced below $292,000 (City of Houston’s 2022 affordability threshold for single family), and 302 two-plus bedroom Townhouse/Condominiums priced at or below $200,000. Most “would be homeowners” nationally cite affordability challenges tied to soaring home prices and higher mortgage rates as significant barriers to homeownership.¹⁶ When a full accounting of the facts and statistics is taken into consideration, we are left with the unmistakable conclusion that homeownership has become unattainable for a significant majority of Houston’s families who do not already own a home.

 

RECOMMENDATIONS: A PATHWAY FORWARD

The City of Houston’s embrace of higher density policies has facilitated construction of more dense housing initially within the 610 Loop and now inside the Beltway 8 loop, which contributes significantly to more Houstonians having access to housing units that are comparatively more affordable. More recently, revisions to parking requirements along transit corridors and greater flexibility in allowable housing types and materials have been positive steps in the right direction. Furthermore, the City’s establishment of the Houston Community Land Trust and the reinvigoration of the Houston Land Bank during the current administration have equally been important advancements towards addressing and protecting long-term housing affordability for Houston’s families.

The City’s planning commission, however, has in recent times implemented major revisions to the development code that impacts and stands to counter so many of the gains that have been achieved in terms of policies promoting housing affordability. One example is the revision of the building setback that extends the necessity for a fire-rated exterior wall for structures from within three feet of a property’s boundary threshold to within five feet of the property boundary line. The revisions were ostensibly approved as a means of reducing fire hazards for adjacent property owners. However, the potential dollar value in fire damage it would reduce pales in comparison to the cumulative increase in housing costs that will result from this change alone. To put it succinctly, the average 5,000 square feet single family lot, which spans 50 feet wide by 100 feet deep, has effectively had development curtailed across 400 square feet (both sides from boundary line) or 8% of its coverage area or would force developers have to develop within those areas at a higher cost. 

If Houston is to stem the tide of its housing crisis, the urgency of the moment must come into focus, and Houston and Harris County will need to apply every tool at their disposal in hopes of mitigating the imminent housing catastrophe. Small incremental steps are no longer sufficient and relying on federal dollars is wholly unsustainable as those dollars will only flow after another disaster has wreaked havoc on the already anemic supply of affordable units. Policymakers need to go BIG in the development of solutions to improve access to affordable housing, both from a funding and public policy perspective. Houston needs a Comprehensive Housing Plan and a statutorily codified implementation plan to bring the plan to fruition.

In addition to the Comprehensive Housing Plan, new financial priorities must be established to provide significant funding for implementation of the plan. The City and County need to pursue housing bond referenda that will raise no less than a combined $500 million to be committed to the preservation and production of affordable housing over the next ten years. Additionally, significant budgetary resources need to be committed to housing by both entities, particularly given the positive impact that access to safe quality housing has on other social determinants of health and life outcomes. To put it another way, making considerable investments in affordable and mixed-income housing will arguably significantly reduce the resources that will have to be spent on healthcare, incarceration, and social benefits in the long run.

The City of Houston must continue to pursue revisions to its Development Code to promote the reduction of costs associated with building new multifamily and single-family housing. To achieve this action, an advisory board of external stakeholders, including industry professionals and neighborhood organizations, should be established to provide periodic recommendations for the planning commission for discussion and action. Policies to be routinely reviewed include should include parking requirements, setback regulations, the development ordinance, and streamlining of the permitting process. Finally, to achieve its long-term aims, the City of Houston needs to collaborate with key stakeholders including developers, non-profit organizations, real estate professionals, quasi-public agencies, and neighborhood organizations, many of whom comprise the recently formed Houston Housing Collaborative, to generate a workable needs and market driven comprehensive plan for housing affordability.

In the initial white paper published in 2015, we outlined specific recommendations for actions the City of Houston administration needed to take and most of those same recommendations are being restated below since action on them has not occurred:
(The following italicized segments restate verbatim recommendations from the initial 2015 white paper)

The City of Houston should take action to implement the following:

-                  Adopt and implement a Comprehensive Housing Plan.

-                  Replicate the $15,000 per door incentive program used to drive development of residential units in the eastern half of Downtown during the Parker administration, by offering abatements to developers whose projects incorporate at least 60% of the units restricted to below market rents for residents within 30–80% AMI.

-                  Leverage existing HOME and CDBG funds with State 4% Tax Exempt Bonds and 9% Housing Tax Credits to drive development of affordable housing in target areas.

-                  Utilize CIP spending to drive infrastructural improvements in target areas spelled out in the Comprehensive Housing Plan, and apply housing dollars from TIRZ’s, and development incentives such as tax abatements and lower permit fees to accelerate workforce housing development

-                  Implement a standard reimbursement for builders who tear down structures cited as dangerous buildings by the City of Houston, provided they construct affordable housing in its place within three years

-                  Establish a policy that stipulates that in the event the City of Houston funds are expended towards a development or on City-owned land, there is a requirement that between 10 - 25% of affordable housing units be included within the project.

-                  Incorporate fast-track permitting for “affordable” housing to facilitate faster delivery of housing units.

-                  Fast-track the Planning Department approval process for affordable housing developers with an established track record with the City.

Homeownership

The goal of achieving development of affordable homes within the urban core must focus on overcoming the significant barriers of high cost of land, scarcity of assembled large contiguous tracts, lack of qualified buyers, tightened mortgage requirements, higher interest rates, and the unfavorable risk/reward ratio that drives most builders to respond to the needs of the higher end of the market. The City of Houston needs to rebuild and rebrand its homeownership incentive program to make it more robust, flexible, and accommodating to the development of affordable single-family homes within the urban core. Some of the proposed goals for City’s single-family program should include: 

-                  Achieve a 40% annual conversion rate of Houston Land Bank owned lots into development of single-family dwelling units from 2023 – 2025.

-                  Facilitate construction of 10,000 single family homes for working class families between 2023 – 2028.

-                  Partner with developers and offer reimbursements for infrastructural improvements (sidewalks, lighting, pocket parks) in communities needing revitalization.

Rental Housing

Using its internal data, the City of Houston should identify target goals for affordable rental housing units to be developed over the next ten years within its boundaries. Furthermore, the City should establish targets for development of housing in certain opportunistic areas with good schools that are within proximity of major employment centers including: Downtown, Texas Medical Center, NRG Stadium, Westwood/Sharpstown, Energy Corridor, and NASA/Clear Lake. (Galleria, Greenway Plaza, and City Center/Town & Country have been deleted as those areas have largely become closed off to affordable rental and homeownership opportunities)
 

CONCLUSION

The City of Houston needs to commission a Comprehensive Housing Market Analysis, which would measure income and households against housing options available that fit within the 30 percent income test. This study would help the city better understand the shortages in affordable housing, identify areas of greatest need, and offer a defined basis on which to prioritize affordable housing development. The study should quantify the percent of current dwelling units that are substandard housing, and those that need to be rebuilt or rehabilitated to extend their useful life. Quantitative data from this study should be evaluated against the aforementioned recommendations to ascertain whether the suggested actions go far enough in helping the City meet its long-term affordable housing needs.

Given the Comprehensive Study data available, the City’s Housing and Community Development Department can work with the Planning Department and community stakeholders to apply necessary revisions to the goal of completing affordable housing units within the five-year span from 2023 to 2028. The data can also help establish a more comprehensive decade-long forecast. This longitudinal forecast can then be incorporated into a prioritization chart, where housing development numbers are targeted by geographic area, type (family or elderly), and category (rental or owner occupied). Lastly, the action plan should be integrated within the City’s Neighborhoods and Public Works & Engineering Departments, so that they can be part of the process of improving target neighborhoods, and prioritizing capital improvement spending.

A few other factors that will affect the trajectory of the Houston region over the next decade include the so-called doughnut hole effect, where the suburban areas within Harris County continue to outpace the rate of growth within the City, a trend further exacerbated by the shifts in the housing preferences of millennials.¹⁷ The continued undersupply of the Houston housing market will also continue to render consequential effects as the region’s population growth continues to outpace the growth in its housing stock.¹⁸ Houston’s diversity, geography, and dynamic economy will for the foreseeable future continue to foster vibrancy of the region, but the housing challenges it faces could become intransigent over time leading it on an intractable path to unaffordability. It is safe to assume that housing unaffordability will remain a malignant problem in Houston for the foreseeable future absent an aggressive housing action plan backed by government policy.

 

*         *        *

Laolu Davies-Yemitan is principal of Five Woods Realty, a real estate development firm focused on developing affordable multifamily and urban in-fill residential development. (Contact: Linkedin.com/in/laolu).

 

REFERENCES

 

        1. US Census Bureau: https://www.census.gov/quickfacts/houstoncitytexas

        2. FRED Economic Data: https://fred.stlouisfed.org/series/RHORUSQ156N

          

        3. HAR (September 2022): https://www.harconnect.com/houston-housing-remains-robust-in-august-as-the-market-cooldown-continues/

 

         4. Rice University Shell Center for Sustainability (2013) - http://news.rice.edu/2013/09/23/affordable-housing-and-flooding-among-sustainability-issues-to-address-in-houston-2/; https://shellcenter.rice.edu/uploadedFiles/Shell_Center/Indicators/HSISocial2013sml.pdf

 

         5.  Harvard Joint Center for Housing Studies - http://www.jchs.harvard.edu/sites/jchs.harvard.edu/files/jchs-sonhr-2015-ch5.pdf 

 

         6. Houston-area apartment affordability has ‘left the building,’ apartment data analyst says, Houston Business Journal (2022) - https://www.bizjournals.com/houston/news/2022/02/07/houston-apartment-state-of-the-industry-2022.html

 

         7. Apartment List (2022) - https://www.apartmentlist.com/research/category/data-rent-estimates

 

         8. The 2022 State of Housing in Harris County and Houston (2022) - https://kinder.rice.edu/research/2022-state-housing-harris-county-and-houston

 

         9. American Poverty is moving from the cities to the Suburbs, The Economist (2019) – https://www.economist.com/special-report/2019/09/26/american-poverty-is-moving-from-the-cities-to-the-suburbs

 

        10. The changing geography of US Poverty, Brookings (2017) - https://www.brookings.edu/testimonies/the-changing-geography-of-us-poverty/

 

         11. The Growth and Spread of Concentrated Poverty, 2000 to 2008-2012 (2014) - http://www.brookings.edu/research/interactives/2014/concentrated-poverty#/M10420

 

         12. Did the Pandemic advance new suburbanization? https://www.brookings.edu/blog/up-front/2022/05/23/did-the-pandemic-advance-new-suburbanization/

 

         13. Texas Department of Housing and Community Affairs - http://www.tdhca.state.tx.us/multifamily/housing-tax-credits-9pct/index.htm

 

         14. My Home Is Here: Harris County’s Housing Needs Assessment and 10-Year Strategy (2021) - https://www.myhomeishere.org/Portals/myhomeishere/Documents/Resources/-48034192993MHIH_Final_Report_10292021_compressed.pdf

 

         15. The 2022 State of Housing in Harris County and Houston (2022) - https://kinder.rice.edu/research/2022-state-housing-harris-county-and-houston  

 

         16. Nearly two-thirds of Non-Homeowners Polled say Affordability woes Block Homeownership, BankRate.com (March 30, 2022) - https://www.bankrate.com/mortgages/homeownership-remains-centerpiece-of-american-dream/

 

          17. How Covid-19 migration, housing trends will remake the suburbs, Houston Business Journal (2022) -            https://www.bizjournals.com/houston/news/2022/08/31/population-housing-migration-suburbs-covid-19.html?utm_source=st&utm_medium=en&utm_campaign=ae&utm_content=HO&j=28908576&senddate=2022-08-31

 

18. Houston’s housing market is undersupplied and overpriced, studies find, Houston Business Journal (2022) - https://www.bizjournals.com/houston/news/2022/08/29/housing-supply-houston-population-stessa.html?utm_source=st&utm_medium=en&utm_campaign=ae&utm_content=HO&j=28908576&senddate=2022-08-31

The Consequence of Picking ‘Qualified Candidates’ for HUD Secretary

December 2016

The nomination of Dr. Ben Carson, the former presidential candidate and neurosurgeon, as the Secretary of Housing and Urban Development (HUD) has been met by an outcry from those asserting that he is unqualified for the position. Dr. Carson’s detractors argue that his lack of experience in housing or community development are instant disqualifiers, which causes one to pause and ponder prior appointees to the position, the career experience those individuals possessed, and the result of their tenures on the present state of urban America.

Other arguments that have been proffered include his lack of government experience, having never managed anything close to the size of the $47 billion agency, and his apathy for the idea of the government being able to act to improve the lives of vulnerable citizens, an assertion attributed to his June 2015 comments where he stated, “there are reasonable ways to use housing policy to enhance the opportunities available to lower-income citizens, but based on the history of failed socialist experiments in this country, entrusting the government to get it right can prove downright dangerous”.

Looking back at HUD secretaries over the last three administrations (Castro, Donovan, Preston, Jackson, Martinez, Cuomo, Cisneros), three had prior backgrounds in housing, two previously served as mayor of the city of San Antonio, then you had one lawyer and one banker. These prior HUD secretaries had varying degrees of success, however, the impact of each secretary draws no direct correlation to the experience they brought to the position. Furthermore, the combined efforts of these former secretaries have culminated in rendering America’s urban communities to the state they are currently in: gentrifying in growing cities, and deplorable in stagnant or contracting cities.

Whether Dr. Carson has the requisite experience to run HUD in the context of his own previous admission is up for fair debate, however, the larger issue we must focus on is the current state of urban and rural America, and the impact the efforts, or lack thereof, of prior secretaries has rendered on these communities. If we are to accept the premise that prior housing experience is a necessary qualifier for assuming the role, then following that logic should point to results that show how previous secretaries with the relative experience, left a legacy of transforming urban and rural communities all over the United States.

This clearly has not been the case, and in light of recent administrative rulings by HUD, and the Supreme Court ruling in TDHCA vs. ICP, urban communities specifically risk suffering deeper underinvestment going forward. Cities such as San Francisco, New York, Seattle, and Los Angeles, which enjoyed significant economic success over the last two decades have watched their inner-city communities undergo significant gentrification, displacing long-term residents. Emerging metropolitan areas are currently undergoing a similar trend, as seen in cities such as Houston, Austin, Washington-DC, and Denver. In each of these cases, communities that for a long-term were neglected and had no significant investment, welcomed revitalization of their areas, only to get swept away as older single-family homes were replaced by multi-story townhomes, and mom and pop shops, were replaced by coffee shops and organic restaurants.

The next HUD Secretary has to commit to assembling a team that will focus on revitalizing communities, rather than simply rehabilitation of existing units or delivery of new housing. Revitalization of these declining communities must prioritize housing, infrastructural investment, economic development, educational improvement, mass transportation, and physical and mental healthcare. The next secretary also must be judicious in application of the affirmatively furthering fair housing (AFFH) rule by prioritizing balancing the need to create housing options in so-called “high opportunity areas”, and the urgent need to invest in communities at risk of gentrification or greater decline into further deplorable conditions.

A Secretary with a fresh perspective might just be the shot in the arm that is needed by HUD, and Dr. Carson could have the potential to not only transform the agency, but to elevate its significance from the perspective of Congress, and in the minds of Americans.

Improving Housing for Working Class Residents: Houston 2025 Workforce Housing Plan

The City of Houston, fourth most populous city in America, and soon to be number three based on its current growth rate. This welcome growth has brought a number of challenges, particularly in areas of transportation infrastructure and housing affordability. If Houston is to continue to thrive and prosper, city leaders must work vigorously to help retain its two main selling characteristics: economic opportunity and affordable cost of living. The City plays a role in maintaining a business friendly regulatory environment that helps attract new employers and retain existing businesses within the city, however, the City plays a very limited role in job creation. In housing, contrastingly, the City can play a more significant role in delivery of moderately priced housing, and in implementation of policies to preserve the City’s housing affordability.

In a research paper published in September 2015, it was calculated that approximately 70,000 rent-restricted housing units were available within Houston, and several thousand private-owned voucher based multifamily units. The household and population analysis revealed that approximately 345,000 households earning below $35,000 annually need below market rate housing; an estimated 30,000 of those households were homeowners in 2012. The difference between the household count and the number of restricted affordable units reveals a gap of approximately 220,000 units, leaving those families having to rely on ‘market’ supply. This fact is not lost on employers, and there is a growing concern that housing within the Urban Core is becoming out of reach for middle income families as the city undergoes re-urbanization.

The Houston 2025 Workforce Housing Plan proposes specific action and policy directives the City should implement to preserve Houston’s affordable housing base for working class families in order to meet the City’s growing housing needs long-term. The housing plan focuses on addressing single and multifamily housing needs in the homeownership and rental categories. The plan further articulates a comprehensive strategy that emphasizes mixed-housing development, where different housing types and housing at various price levels are integrated within the same development, particularly in “opportunity zones”, areas within higher income census tracts in proximity of employment centers. Execution of a strategic short and long-term housing plan will help the city avoid the trap that has taken great cities like Austin, San Francisco and Seattle on an unsustainable path, and would help Houston maintain its viability as a city of opportunity poised to sustain long-term economic and population growth.

GOALS

The Houston 2025 Workforce Housing Plan would be implemented in two phases: a five year short-term plan, and a 10 year long-term sustainable affordability plan. The first phase would span the years 2016 through 2020, while the latter phase continues from year 2021 through 2025. The housing units constructed under this plan would target working families with household earnings ranging from 30% to 120% of area median income (“AMI”). The plan will target development of the below specified number of units by housing category:

MULTIFAMILY

The multifamily plan calls for development of 30,000 multifamily units from 2016 through 2020 and an additional 70,000 units from 2021 through 2025, for a total of up to 100,000 units over ten years. Development of these housing units will be accomplished through both new construction and rehabilitation of existing multifamily developments, and financed by leveraging a number of incentives (tax abatements, land grants), housing tax credits, and implementing policies to accelerate housing development.

SINGLE FAMILY

The single-family plan calls for construction of up to 50,000 owner-occupied homes, and 15,000 rental and rent-to-own housing units.

Owner-Occupied
The plan proposes construction of 20,000 single family homes within Houston’s Urban Core (Beltway 8) from 2016 to 2020, and an additional 30,000 homes within the city limits from 2021 through 2025, for a total of 50,000 housing units. The homes would be sold under affordability guidelines that expands on the current HUD minimum affordability period requirements and includes a 20-year buyback right of first refusal reserved to the City or its designee, where publically owned land is involved as “donated” land.

Single Family Rent-to-OwnThe plan proposes construction and rehabilitation of 15,000 single family homes as rental housing for working class families. Households would qualify for rentals based on affordability guidelines tied to household earnings; a key objective would be converting renters to homeowners over the long term, through 5 to 10 year lease-to-own options subject to specific stringent criteria.

The Single-family housing plans will be accomplished through a concerted effort that relies on leveraging federal housing dollars, providing property tax incentives, loosening income eligibility guidelines, improving city development policies, and rebranding of the Homebuyer Assistance Program (“HAP”) with a focus on a public service worker program. The public service worker program would focus on employees of the City of Houston, METRO, and Independent School District’s within the City limits. 

*HAP provides a $15,000 to $40,000 downpayment assistance grant for families who meet certain income criteria and purchase a home in Houston city limits that meet certain eligibility requirements.

PLAN IMPEMENTATION

The city of Houston 2025 Workforce Housing Plan would be implemented through a strategy that connects various tools and resources into a turnkey model that achieves the stated quantifiable objectives. Furthermore, the plan recognizes that those key components required to execute a successful housing and urban revitalization plan include elements of Housing, Infrastructure, Transportation, Public Amenities, Economic Development, Healthy Living, and Education. The plan anticipates incorporating aspects of these core components at various stages; infrastructure and transportation part of pre-development planning, and economic development and education in the long-term. This will help the City achieve comprehensive revitalization of neighborhoods, creating a modernized livable city platform.

MULTIFAMILY HOUSING

Development of multifamily housing has the dual benefit of achieving density, and incorporating commonly beneficial amenities within or external to a development. The goal of constructing up to 100,000 units within the next ten years is reasonable and attainable by establishing a set of guiding policies that provide City staff, housing organizations, non-profits, and private developers with a clear set of objectives and development targets. Those targets should include proposed housing units to be built within geographic boundaries, de-concentration of housing units, access to lifestyle amenities, and connectivity to transportation. This provides a platform through which the private sector can better align their long-term plans with the City’s stated goals and funding priorities. The guidelines further provide predictability, and helps the City and the development community plan ahead towards fulfilling these long-term goals.

The basic criteria for workforce multifamily housing would require that developments reserve at least 49% of their units for households earning at or below 80% AMI to qualify for treatment as an affordable multifamily development. Developments that meet this basic requirement would be eligible for property tax abatement, fast-track permitting, and flexible unit sizes; high density developments could further benefit from minimum amenity requirements, reduced parking requirements, relaxed setback rules, and possibly modified detention requirements.

The Housing and Community Development Department (“HCDD”) will issue an annual Request for Qualification (“RFQ”) to prequalify apartment developers who would be eligible to propose developments requiring City funding for the fiscal year. Prequalified developers then have the opportunity to propose qualified multifamily developments over the course of the fiscal year that meets the City’s criteria for funding and or incentives. Developers not included in the annual pre-qualification will have an opportunity to submit proposals for any subsequent solicitations from the HCDD for available funding. Developers prequalified during the prior year can simply submit an annual update to their prior year RFQ response, provided they have had no violations with HCDD or the Texas Department of Housing and Community Affairs in the preceding two years.

Once a developer has secured a site and completed preliminary plans, they would have an opportunity to submit an electronic application to the City for the incentive categories they are requesting, including fast-track permitting, tax abatement, and Chapter 380 economic development agreement. The fast-track permitting application would be the avenue to request variances for parking, setback, and detention requirements, though granting of the fast-track permit would confer no guarantee that the subsequent variance requests would be granted once full plans are developed. The application for tax abatements should include a specific dollar request on a per unit basis. After review the City may agree to or modify the tax abatement request based on cost certifications of the development. Development of multifamily would target certain Housing Opportunity Zones defined as areas within Economic Opportunity Zones, Concentrated Revitalization Areas, and High Opportunity Areas with Quality Schools (the City’s Director of Education will coordinate with local school districts on issue of school capacity). Tenant eligibility will range on a sliding scale of household incomes 30% to 120% AMI, and developments funded by TIRZ housing funds would be eligible for modified guidelines based on average market rents within the zip code.

*Note: The fast-track permitting process would be guided by the fast-track permitting proposal attached as an exhibit to this plan.

SINGLE FAMILY HOUSING

Delivery of 50,000 owner-occupied single family housing units would require construction or rehabilitation of on average 5,000 homes annually over the next decade. The strategy proposes maximizing conversion of existing property, belonging to the City and its affiliated entities, to construction of new and improved housing units. Affiliated entities include but are not limited to the City of Houston, Land Assemblage Redevelopment Authority (“LARA”), Tax-Increment-Reinvestment-Zones (“TIRZ”), Houston Housing Authority (“HHA”), and METRO. The plan would prioritize renovation or reconstruction of deteriorating housing stock, within targeted non historic preservation designated neighborhoods, in combination with construction of new housing within areas of heavy concentration of public-owned land; properties owned by LARA and tax-delinquent properties should be the highest priority for conversion.

As the Plan unfolds, the City should seek out opportunities to pursue additional land acquisition in Housing Opportunity Zones, and areas poised for concentrated revitalization. The City-controlled land can then be sold to private developers at a de minimis amount, or can be structured under control of a land trust to take advantage of potential tax benefits. Development of workforce housing should also leverage private land, owned or controlled by the builder applicants, who develop plans that conform to City guidelines for affordable or mixed-income single-family home construction. Eligible projects would qualify for fast-track permitting, and other applicable development incentives. Construction plans where feasible should incorporate sustainable environmental design and construction principles. Developments should include low and high density single family homes, zero lot patio homes, single-car garage requirements, relaxed setback rules, and reduced on-site detention requirements.

The single-family program would allow HCDD to prequalify eligible builders through an annual application process, with builders prequalified in the immediately preceding year simply submitting an annual update to their company profile, provided they have had no violations with HCDD in the preceding year. Builders not prequalified can still participate in the program through private land they control or by submitting a comprehensive application to acquire land from the pool of available land in target areas in a given year.

A builder who has secured site control and completed preliminary plans would have an opportunity to submit an application to the City for the incentive categories including fast-track permitting or property tax abatement. The fast-track permitting application would be the avenue to request variances for parking, setback, and detention requirements, though granting of the fast-track permit would confer no guarantee that the additional variance requests would be granted once full plans are developed. Application for tax abatements would be limited to land owned by affiliated city entities or developments where the land will be held in a trust. Eligible applicants for the tax abatement would be the homeowner or the land trust with the aim of maintaining long-term affordability, and tax abatements would be transferable to new owners meeting the affordability income guidelines.

Development of single family housing would target specific neighborhoods in defined Economic Opportunity Zones and Concentrated Revitalization Areas. Tenant eligibility will range on a sliding scale of household incomes from 50% to 120% of AMI, depending on the zip code. The City currently caps the purchase price for purchasers eligible for homebuyer assistance at a value of 95% of the median purchase price for the Houston area or approximately $160,000 (2015). The City’s HAP home price guidelines need to be modified to a sliding scale model with limits ranging from the 95% to 133% of the median purchase price within the city of Houston, with a provision allowing for further adjustments in neighborhoods and zip codes where the median price is significantly higher. This will expand the pool of affordable housing, and will enable more families to become eligible for moderately priced housing within the Urban Core.

INCENTIVES

Fast-Track Permitting

Eligible developments submit an application for fast-track permitting once preliminary substantive construction plans are complete for a development. The fast-track permit will reduce approval time for various phases of a construction process, mitigate inspection requirements, and shorten the development timeline, thereby providing cost savings on developments that ultimately get passed on to homeowners and renters.

Tax Abatement

The City should implement a standard incentive that provides a baseline tax abatement for construction of workforce housing, based on the category of housing and cost certification criteria; for example an eligible development within a TIRZ could be eligible for a rebate of up to 75% of the increment in taxes. For developments to qualify for the abatement, developers have to prove that the development would be cost prohibitive but for the tax abatement.

The City should expand the Downtown Living Initiative model to high opportunity areas, where City property taxes would be capped at present value, and up to 75% of the tax increment would be retained by the development for a fixed period or approximately 15 years. The program should leverage TIRZ incremental tax rebates in areas such as Galleria, Midtown, Montrose, Energy Corridor, and Medical Center. The City should also dedicate federal funds for projects that eliminate blight by tearing down existing substandard housing and condemned structures.

For developments involving City-owned property or a commitment of City funds, a developer should be required to deliver one affordable unit per $100,000 in financial incentive provided by the City. For developments involving publically-owned land acquired at a nominal amount, one single-family housing unit must be delivered per 5,000 sf of land, and 10 units per acre for multifamily or 15% of total development unit count, whichever is greater. 

Parking/setback/detention requirements

High density developments (40+ units per acre) should have reduced parking ratios, setback, and detention requirements, particularly for developments along a major transit axis with easy access to multi-modal alternative forms of transportation. These developments should also incorporate micro units in order to reduce costs, and maximize site layout; efficiency units should require no more than a 0.75 parking space per unit requirement.

Infrastructure and Economic Multiplier

The City should invest in infrastructural improvements in targeted revitalization areas, where significant private development and public investment is being made. Where feasible, workforce housing development should be targeted to areas with existing enhanced infrastructure or areas undergoing significant infrastructural improvements. The improvements to infrastructure should focus on expanded water and sewer capacity, sidewalks, security apparatus/lighting, parks, bike paths, and public amenities. Coordination of such investment efforts would accelerate the pace of community revitalization within the Urban Core, and will help the city achieve maximum impact.

The next step in community revitalization is economic development, which occurs when an area attracts private investment via incentives, available skilled workforce, or the potential return on investment. Achieving the economic multiplier imperatives requires the City gathering localized data to make the case for retail investment, and to help attract credit tenants for commercial space. The City should also emphasize providing economic and tax incentives for developers willing to invest in retail, and businesses willing to make investments within the targeted areas.

AFFORDABILITY GUIDELINES

Multifamily

Current guidelines for 4% and 9% LIHTC provides affordable units for households earning 30% to 60% of AMI. Affordability housing targets should be stratified on a sliding scale for households at 30 – 80% AMI (standard), and 50 – 120% of AMI for “high cost” developments.

Single family

The affordability cap for the City’s Homebuyer Assistance Program for single family dwelling units should be modified upward on a sliding scale from the current $160,000 to $230,000 for units within the inner-loop and higher income census tracts. Furthermore, the City should consider indexing the affordability cap going forward to the median home values within the City’s Urban Core and the Greater Houston MSA respectively.

LAND/PROPERTY

Develop a comprehensive database of property tracts owned by the City of Houston and its affiliated public entities (LARA, TIRZ, and HHA), classifying sites by size, zip code, and location characteristics. These sites should be pooled by the City through interlocal agreements with the various entities, and offer the property for sale or auction at a “de minimis” amount for construction of workforce housing. For larger scale (20 units or more) single-family owner-occupied developments, the possibility of establishing a land trust should be explored for the dual purposes of instituting restrictive covenants and securing tax relief benefits for the development.

COMMUNITY ENGAGEMENT

HCDD in conjunction with TIRZs, housing advocates, community groups, housing developers, business organizations, and the City need to develop a long-term education and awareness campaign to promote the comprehensive workforce housing plan. The campaign should focus on the importance of promoting housing and community revitalization efforts that maintain Houston’s affordable cost of living, and to encourage redevelopment of Houston’s neighborhoods in order to expand the tax base. The engagement efforts should also promote homeownership, and inform the general public of various tools and resources the City, its affiliated public entities, and community organizations have available to assist those seeking housing opportunities.

SUMMARY

The city of Houston has long been known as a city of opportunity for working families due to economic opportunity and housing affordability. The downturn in the energy industry, and rapidly escalated housing costs, require the City take decisive steps to avert a housing crisis. Implementation of a workforce housing plan for Houston will help the City retain its affordable housing stock, and expand the property tax base, further enabling the City to maintain its standing as the leading metropolitan city where working class families can work and raise their families.

The City housing department should conduct a Comprehensive Housing Market Analysis to determine the current housing stock by category, home values, and rental costs. This analysis will provide factual data on current housing inventory, the age of the housing stock, and condition of dwelling units in order to identify areas where the housing gaps exist. This data would then be applied and used to improve the Houston 2025 Workforce Housing Plan. 

Glossary of Terms

380 Agreement - An economic development incentive that provides reimbursement through tax abatement to developers for investment in public infrastructure.

CHMA – Comprehensive Housing Market Analysis: A study conducted of a defined market area to capture quantitative housing data on housing including unit count, type, age, condition, and values.

CRA – Concentrated Revitalization Area: A set geographic area targeted for focused comprehensive revitalization in areas of housing, infrastructure, and economic enhancement.

Developers – Includes private developers, non-profit organizations, Community Development Corporations

DLI – Downtown Living Initiative: An initiative by the City of Houston that offered a tax incentive of $15,000 per door for developers who build new multifamily apartments on the eastern part of Downtown Houston.

EOZ – Economic Opportunity Zones: An area of town characterized by employment opportunity, available skilled workforce, and significant private investment.

HOA – High Opportunity Area: An area or census tract where residents earn in the top 1^st or 2^nd quartile of income that features good schools and public amenities.

HAP - Homebuyer Assistance Program: Program of the City of Houston Community Development Department that provides financial grants for downpayment assistance to home purchasers who meet income eligibility criteria, and purchase homes priced at or below 95% of the area median home purchase price.

HCDD – Housing and Community Development Department: The City of Houston department responsible for administering various housing programs, and distribution of federal and local housing funds.

HHA – Houston Housing Authority: An independent agency responsible for administering the HUD housing voucher program, and who develops and manages project-based housing voucher developments.

LARA – Land Assemblage Redevelopment Authority: A City of Houston entity responsible for acquisition and assemblage of land in targeted neighborhoods.

LT – Land Trust: An arrangement whereby a private entity (the “trustee”) agrees to hold title to property for the benefit of another party or parties (the “beneficiary(s)”).

TIRZ – Tax Increment Reinvestment Zone: A public entity created by the City of Houston that operates within a specific geographic boundary where taxable values are “frozen” at the time of creation, and any increase in taxable values and subsequently taxes paid is captured for reinvestment within the defined boundary.

Urban Core – Area within the 610 loop, and certain fully developed corridors within Beltway 8.

IMPLEMENT FAST TRACK PERMITTING TO AUGMENT HOUSTON’S GROWTH AND AFFORDABILITY
by: Laolu Davies-Yemitan (September 2015)

Houston’s real estate market has been on an accelerated growth path over the last three years, however, a leveling off of prices is the optimistic outlook in the shadow of $50 per barrel oil. While consumers stand to benefit at the pump, households will continue to feel the pinch of rising unaffordability, tight supply, and fewer new projects to close the housing gap. The City has few options it can exercise to keep up its momentum, and one of those would be to implement a Fast-Track Permitting Program to make the development process more streamlined and predictable. This would also help facilitate the construction of more affordable housing options as the efficiency achieved would help alleviate ambiguities in the permitting process, limit construction delays, and drive down construction costs for the end users, Houston residents.

The City’s implementation of a fast track permit process for construction plan approval would share similarities with what has been done in cities like Austin and San Antonio. In Austin, the fast track permit process allows site development to begin while a site plan application is undergoing review by the City. The process authorizes the director of development to grant approval of a fast track permit, if in the director’s opinion, the developer meets certain requirements, including but not limited to: undergoing training for fast track certification, agreeing to a pre-construction conference, posting a cash fiscal surety for erosion and sedimentation control, and authorizing the City to draw on the cash fiscal surety.

In San Antonio, the Development Services Department has instituted fast track permits for various aspects of commercial construction including plumbing, electrical, and mechanical. To be eligible, a development needs to first obtain a fast-track permit for its interior finish structural construction. Contractors submit an application, pay a non-refundable building permit fee based on the estimated cost of construction, and submit the full design package for the interior finish. Obtainment of this preliminary permit renders the project eligible for fast-track permits for plumbing, electrical, and mechanical, provided applications are completed for each, and similar stipulations are complied with.

The City of Houston should develop its own fast track permit process for commercial and residential construction by applying elements from the aforementioned cities. Fast-Track permitting should be applicable for various construction categories including site work, water & sewer utilities, fire, mechanical, plumbing, electrical, and fire. The City should begin by establishing a Fast-Track Certification program for contractors who meet certain minimum standards, complete the requisite training, fill-out an application, and submit the required fee. The City would then establish an ad-hoc Fast-Track Committee consisting of officials from the various permitting departments that would meet weekly, where contractors can present to them during a pre-construction conference.

For projects to be eligible for fast track permitting, the general contractor must first obtain Fast-Track Certification. Next the contractor needs to sign-up for a pre-construction conference, where the City’s Fast-Track Committee will meet on a weekly basis to review the entire construction plans for each fast-track permit being requested. The construction plans need not be final, but would meet a minimum completion threshold to be eligible for preliminary review by the Fast-Track committee. If the pre-construction conference yields a preliminary approval from the committee, the project is ruled eligible for fast track permitting for each step of the permit approval process, provided the project complies with the City’s requirement for each fast-track permitting category.

Instituting the above proposed fast track permitting process will confer significant benefit to the City of Houston, and to developers, owners, and end-users. The City should begin by running a pilot Fast-Track Permitting program on qualified projects that promote Affordable Housing, Community Revitalization, and Public/Private Partnerships. Once the pilot yields measurable results, then the program can be expanded for other project types that meet the stipulated requirements. Successful implementation of the program will make the process of completing projects more efficient, cost effective, and would not abridge the rights of residents and neighborhoods to weigh in on certain projects.