2023 State of Housing Instability and Homelessness Report Deep Dive: Stable Housing

STABLE HOUSING

Stable housing refers to living arrangements that provide a secure and sustainable environment for individuals or families. It typically involves having a safe and affordable place for residents to live without fear of displacement or housing instability. Characteristics of stable housing may include:

• Affordability: Housing costs are manageable and do not consume an excessive portion of household income.
• Security of Tenure: Residents have legal rights and protections against arbitrary eviction or displacement.
• Safety and Habitability: The housing unit meets basic health and safety standards.
• Accessibility to Services: Residents have access to essential services such as healthcare, education, transportation, and employment opportunities.
• Community Support: Residents are connected to supportive networks and resources within the community.

Achieving stable housing is essential for promoting overall well-being, economic security, and social cohesion. It provides a foundation for individuals and families to thrive and participate fully in society.

STABLE HOUSING RESOURCES

In Charlotte-Mecklenburg, there are several programs that facilitate access to stable housing.

These programs include various housing subsidies and homeownership initiatives. Subsidized housing can be a pathway to stability for both homeowners and renters by providing a financial bridge that helps cover the gap between household income and housing costs.

Housing Subsidies

Housing subsidies are financial assistance programs that help individuals or families afford housing costs. The subsidies aim to make housing more affordable for low-income or vulnerable populations.

The various types of housing subsidies include:

• Rental Subsidies: These subsidies help tenants afford the cost of renting a home. They may cover a portion of the rent directly to the landlord or provide vouchers that tenants can use to offset rental payments.
• Project-Based Subsidies: These subsidies are tied to specific housing developments or projects. Landlords or property owners receive subsidies to keep rents affordable for tenants living in designated units.
• Tenant-Based Subsidies: These subsidies are provided directly to eligible tenants, allowing them to choose and rent housing in the private market. The subsidy amount is typically based on the tenant’s income and the local housing market.

Housing subsidies play a critical role in addressing housing affordability challenges and reducing homelessness by ensuring that individuals and families have access to safe and stable housing options.

Homeownership Initiatives

Homeownership initiatives encompass a variety of programs and policies designed to support individuals and families in purchasing and maintaining stable housing. These initiatives aim to increase access to homeownership, particularly for low- and moderate-income households, by providing financial assistance, education, and support throughout the homebuying process.

Some common examples of homeownership initiatives include:

• Down Payment Assistance: Programs that offer financial assistance to help homebuyers cover the initial down payment and closing costs, which are often significant barriers to homeownership for many individuals and families.
• Subsidized Mortgage Options: These programs provide mortgages with lower interest rates or more favorable terms than conventional loans, making homeownership more affordable and accessible.
• Homebuyer Education and Counseling: Education and counseling services that provide prospective homebuyers with information and resources to help them navigate the homebuying process, understand their financing options, and make informed decisions about homeownership.
• Foreclosure Prevention and Mitigation: Programs that aid homeowners facing foreclosure, including loan modification, financial counseling, and mediation services to help homeowners stay in their homes and avoid foreclosure.

These homeownership initiatives play an important role in promoting wealth building, stability, and economic opportunity for individuals and families, particularly those historically underserved by the housing market. By addressing barriers to homeownership and providing support to aspiring homeowners, these initiatives help to create more inclusive and sustainable communities.

 Naturally Occurring Affordable Housing (NOAH)

In addition to housing subsidies and homeownership initiatives, households may access stable housing through unsubsidized, Naturally Occurring Affordable Housing (NOAH). NOAH refers to existing housing units that are affordable to low- and moderate-income households without the need for government subsidies or interventions. These units are typically found in the private rental market and are affordable due to factors such as age, location, or condition rather than intentional affordability measures. NOAH plays a vital role in providing affordable housing options for low- and moderate-income households, particularly in high-cost urban areas where housing affordability is a significant challenge. Preservation efforts and policies aimed at maintaining the affordability of NOAH units are essential for ensuring that these housing options remain available to those who need them.

WHAT WE KNOW

• The number of available medium and long-term subsidies has increased. We have seen an increase in the number of medium-term and long-term subsidies available in the community largely due to an additional project-based Veterans Affairs Supportive Housing (VASH) vouchers and the influx of 178 American Rescue Plan Act (ARPA) funded Emergency Housing Vouchers (EHV).
• The gap for affordable housing is expanding for low-income renters. Housing affordability analysis by the City of Charlotte indicates that the estimated gap for affordable housing for households at <=30% AMI while still significant, is decreasing. However, the gap for affordable housing for those earning 31%-50% AMI is expanding.
• Affordable units are concentrated in certain zip codes. In 2022, based on median gross rent, the most affordable one-bedroom rental units were located in west Charlotte (zip code 28208 and 28214). Few affordable rental units were located in zip codes in south Charlotte and North Mecklenburg.

APPROACHES TO IMPROVING ACCESS TO STABLE HOUSING

One way to increase access to stable, affordable housing is through community land trusts (CLTs). The Dudley Street Neighborhood Initiative in Boston, the San Francisco Community Land Trust in San Francisco, and the Champlain Housing Trust in Burlington, VT have all successfully implemented CLT models that have facilitated affordable housing, community ownership, and equitable development in their respective communities. Another way to increase access to stable housing is to strengthen collaboration between state Medicaid agencies and housing, aging, and disability agencies. This enhanced collaboration can facilitate enhanced access to resources and programs for low-income and vulnerable populations. North Carolina will have the opportunity to work toward achieving this strengthened collaboration with their participation in the Housing and Services Partnership Accelerator (HSPA) Initiative.

Community Land Trusts

A community land trust (CLT) is a nonprofit organization that acquires and holds land for the benefit of the community. The primary goal of a CLT is to provide and preserve affordable housing, economic development opportunities, and community spaces for current and future generations. They typically operate by separating ownership of the land from ownership of the buildings or improvements on the land.

CLTs can provide several benefits to communities and homeowners. By owning the land, CLTs can help keep housing costs affordable for low- and moderate-income individuals and families. In addition, they may place restrictions on the resale price of homes to ensure affordability for future buyers. CLTs also provide stability by ensuring that land remains permanently available for affordable housing and community purposes. With the CLT model, homeowners typically have the opportunity to build equity through homeownership while benefiting from the affordability and stability provided by the CLT model. CLTs often also engage in broader community development activities, such as creating community gardens, commercial spaces, or public amenities that enhance the overall quality of life in the community. Overall, community land trusts promote affordable housing, community development, and equitable land use practices to ensure stable housing and communities.

 Housing and Services Partnership Accelerator (HSPA)

 On February 9, 2024, the United States Departments of Health and Human Services (HHS) and Housing and Urban Development (HUD) announced that North Carolina has been selected to participate in the Housing and Services Partnership Accelerator (HSPA). The goal of the HSPA is to assist states in enhancing their service delivery efficiency and effectiveness by reducing potentially avoidable, high-cost services like emergency room visits and institutional care. Its aims to enhance both physical and mental health outcomes for Medicaid beneficiaries. States participating in the HSPA will receive technical assistance and guidance, with the goal of facilitating the development and execution of innovative strategies to provide housing-related activities and supports to individuals with disabilities and/or older adults facing or at risk of homelessness. Through the HSPA, states with approved section 1115 demonstrations or section 1915(i) state plan benefits covering housing-related supports and services for individuals experiencing or at risk of homelessness will convene to develop ways to enhance the delivery of housing-related supports and services and bolster partnerships with housing and community-based organizations.

WHY DOES THIS MATTER

Stable housing provides a foundation for physical and mental well-being and is closely linked to economic stability. When individuals have a stable place to live, they are better able to maintain employment, pursue educational opportunities, build financial assets, and obtain and maintain social capital. Stable housing is also key factor in preventing homelessness. By providing individuals and families with a secure place to live, stable housing helps to address one of the root causes of homelessness and supports efforts to prevent housing instability.

Overall, stable housing is essential for promoting individual and community well-being, economic prosperity, and social cohesion. It serves as a cornerstone for building healthy, thriving, and resilient communities.

The 2023 SoHIH report and all complementary material can be found on the Charlotte-Mecklenburg Housing & Homelessness Dashboard https://mecklenburghousingdata.org/state-of-housing-instability-homelessness-reports/