Local Government Support for Privately Owned Affordable Housing

<p>By most accounts, the need for affordable housing across North Carolina is massive. According to 2019 census data, over a million North Carolina households are “cost burdened,” meaning they spend more than 30% of their income on housing. Almost half of those are “severely cost burdened,” meaning they spend more than 50% of their income on housing. What can local governments do to address the need for more affordable housing?</p> <p>One thing is certain: government alone does not have the resources to construct and operate the needed housing units. There is no near-term publicly-owned housing solution. Private sector capital and private sector expertise will be necessary to achieve the scale required. However, public-private partnerships of any kind are legally fraught—the constitutional order in North Carolina, and in almost every state across the nation, was designed to prevent state and local governments from aiding or interfering with the private sector. Elected officials and attorneys, who took oaths to uphold the state constitution, understandably wish to tread carefully.</p> <p>This blog post outlines the framework through which local governments can lawfully support privately owned affordable workforce housing. The legal analysis in this post, along with a listing of tools commonly used by local governments, is summarized in a chart: Local Government Tools for Private Affordable Housing.</p> Setting the Table for Affordable Housing <p>Before delving into the legal authority of local governments to support privately owned affordable housing, a threshold matter should be addressed. Constitutional case law examines (1) the necessity of a local government’s proposed affordable housing activity and (2) whether [...]</p>