As folks prepare for the next legislative season, there is some exciting opportunity in the air. Like a “new car smell,” the newly-elected-officials will bring fresh energy to the Capitol and, hopefully, to the Affordable Housing movement in our Centennial State.
Those close to the Affordable Housing Preservation effort know that it has been a lower-than-low priority under the Polis administration. What would happen if the next Governor appreciated the untapped potential and seized the opportunity to preserve existing affordable homes?
What does Preservation mean and why does it matter?
In Colorado, about 23,000 income-restricted units will lose affordability protections over the next 15 years. At the same time, interest rates just surpassed 7%, so it’s too expensive to think we can simply – or quickly – build our way out of the Affordable Housing crisis.
In The Colorado Sun article, Colorado is losing 1 affordable housing unit for every 2 it builds, Kinsey Hassedt of Enterprise Community Partners explains the situation:
Hundreds of millions of dollars are flowing in from taxpayer-funded housing programs like Proposition 123 and state and federal housing tax credits. But if no one plugs the leak, the new construction won’t [yield] as much affordable housing as it appears on paper. Much of what’s built will simply replace what’s being lost.
“Increasing housing supply is not an either/or with production and preservation,” Hasstedt said. “It’s a ‘yes, and.’
“We’re undermining the overall effort if we’re not simultaneously investing in preservation projects,” she said.
Thankfully the Preservation Policy Coalition, co-facilitated by Enterprise Community Partners & Archway Communities, has relaunched to help advance policies and funding that preserve the long-term affordability of existing homes and prevent displacement.
Simultaneously, I’m working with a University of Colorado School of Public Affairs graduate student around the research question: “What design features make Housing Preservation Funds effective—and which elements would matter most if Colorado pursued a dedicated preservation fund for affordable housing?” This includes an analysis of several such funds across the country, from Chicago to Utah Bay Area, and more. If you’re interested in this research, let’s connect!
How might Preservation efforts balance Condition and Community?
I’ll be honest: not every affordable housing unit or property is in strong enough condition for another 30-50 years of habitability. Mobile Home Parks (aka Manufactured Home Communities, or “MHC’s”), for example, often have many older units which have exceeded their useful life (insulation and roofing are shot, energy inefficiency is such that utility bills can be higher than car payments, and, in short, the liabilities of the unit outweigh its value). Yet, the communities that reside in these parks may not be able to afford another option in the area. Therefore, to mitigate displacement, the best option may be to acquire the park, preserve the land and community, and remove and replace the units themselves with ones that are safe and modernized.
To say these projects are complex is a dramatic understatement. Fortunately, Colorado has some innovative, mission-minded organizations in this space. One such entity is a Community Land Trust (CLT), or a“nonprofit organization governed by a board of CLT residents, community residents and public representatives that provides lasting community assets and shared equity homeownership opportunities for families and communities.” Chaffee Housing Trust, Elevation CLT, and the GES Coalition / Tierra Colectiva CLT are each pursuing projects in which they would hold the land for permanent affordability and ensure as many residents as possible can upgrade to a quality home that works for their budget.
These and other nonprofit, legal, and/or technical assistance organizations are working to address immediate needs of park acquisitions (so that a speculative buyer doesn’t capture the property, increase lot rents, and further extract from these communities), as well as planning for the mid-term and long-term needs of the community. Those plans include addressing long-deferred infrastructure maintenance and upgrades; that topic deserves its own entire blog, so stay tuned for that.
Preparing for Change
Colorado’s Affordable Housing community has no shortage of creativity, collaboration, and scrappiness. I look forward to working and learning alongside the Preservation Policy Coalition and many other partners to advance these efforts, spark conversations and, perhaps, pilots – then scale what works.
For anyone looking to engage around the policy and financial environment of preserving Manufactured Housing Communities specifically, I’m hosting a convening this November 5th in Glenwood Springs. Contact me to learn more and RSVP!
On this cusp of new leadership at our State Capitol, I strongly urge the incoming Governor and elected officials to include the various types of housing preservation as a meaningful and vital part of the solution to Colorado’s affordable housing challenge.
Written By: Maggie Kinneberg
Maggie Kinneberg is a multi-faceted collaborator and leader, focused on the intersections of learning, food systems, and community health promotion....
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