Michael Bloomberg's philanthropic organization is bringing funding to 30 cities in hopes of speeding homebuilding reforms.
Michael Bloomberg's philanthropic organization is bringing funding to 30 cities in hopes of speeding homebuilding reforms.
Bloomberg Philanthropies and nonprofit think tank Accelerator for America will lead a project to give hundreds of thousands of dollars to help cities improve their permitting and approval processes for new housing.
The awards come as cities across the nation confront housing affordability challenges. The Realtor.com housing supply gap report shows the nationwide shortage of homes hit 4.03 million this year. Other groups like the National Low Income Housing Coalition estimate a shortage of 7.2 million affordable and available rental homes for very-low-income renters.
In a statement, Accelerator for America said they build on ideas developed in three cities—Atlanta, Austin and San Diego—that were effective in improving their building process. The exact donation amount varies from city to city, but each will receive $450,000 to $750,000.
Each of the winners will get help with one of three areas. Some will take aim at using new technology to speed along approvals. Others will work with architects to develop "permit-ready" plans. And others will field a "strike force" to help dislodge stalled housing projects. Within two years, Bloomberg said they expect to see results.
“City halls are taking local action to increase the housing supply and ease the shortage that is driving up rents and leaving the dream of home ownership out of reach,” Bloomberg, the one-time mayor of New York City, said in a statement. “As local governments address this issue, we have a great opportunity to spread the best ideas across the country."
Alexandria, Virginia, a suburb of Washington, DC is one winner of a Bloomberg Philanthropies grant. The city recently began work on a new housing plan, noting that 58% of its residents are renters, and half of those renters are cost-burdened. (avmedved/Adobe Stock) Ground game
The first 15 winning cities include Albuquerque, NM; Alexandria, VA; Charleston, SC; Chattanooga, TN; Cleveland, OH; Columbia, SC; Durham, NC; Louisville, KY; Miami, FL; Nashville, TN; Omaha, NE; Pittsburgh, PA; Portland, ME; Providence, RI; and San Jose, CA.
This year, Congress passed the comprehensive 21st Century Road to Housing Act, a housing reform bill. But lawmakers there say it's up to local governments to enact changes.
A new National Association of Home Builders study this year found regulatory costs have jumped almost 40% in five years and now account for 26.4% of the average sales price of a home. Given the rising median price, that could mean adding $131,000 onto the cost of a new home.
“Bloomberg Philanthropies has spent years betting on local government as the place where real problems get solved, and this partnership puts that belief directly to work on housing,” said Mary Ellen Wiederwohl, CEO of Accelerator for America, in the statement.