Making Democracy Work interviewed Springfield Zone 4 Councilman Bruce Adib-Yazdi on May 20 to start a discussion on housing concerns.
In this episode of our local program Making Democracy Work the discussion continues. Linda Regan talks with Emily Fessler, director of compliance and programs with The Kitchen, Inc.
Emily, I continue to learn how complicated the housing issue is, and I continue to hear references to the affordable housing crisis in Springfield. I've also listened to past interviews that you've given regarding this issue, so I'm interested to add your perspective to this complicated topic. From what I understand a lot, or maybe just most, of current housing construction we see around town is market driven, meaning developers are building housing they know they can make a profit on rather than addressing critical needs. Is my perception correct?
Fessler: Yes, that's generally correct. Developers unfortunately have to respond to market conditions, and right now that is the cost of land, labor, materials and financing makes it very difficult to build housing that's affordable to lower-income households without some type of subsidy attached to it. And that's why one of our primary tools for creating affordable housing is the federal low-income housing tax credit program. These developments are specifically designed to provide affordable housing, but the tax credits are awarded through the state and are very competitive. Without programs like that or additional local incentives, it's incredibly difficult to build new affordable housing.
Emily, that leads me to ask, is the exception the Sankofa building I've been reading about built up on West Commercial Street? Was this development designed to address housing?
Fessler: Absolutely. Sankofa is a great example of what is possible when developers, nonprofit organizations and government all work together. It utilized the low-income housing tax credits to make the project financially feasible while creating high quality, affordable housing. Those kinds of partnerships are really what we need more of.
In your opinion, and I don't mean to put you on the spot, but how do we get more developers to consider developing housing like the Sankofa?
Fessler: I think the biggest opportunity to create more local incentives that make affordable housing projects financially possible for developers. So, (Springfield City) Council Member Brandon Jenson has been helping lead conversations around developing local incentives that would encourage more affordable housing development. And I think it's a really important step. While the low-income housing tax credit program remains our most significant tool, local governments can also help bridge financing gaps through infrastructure investments, fee reductions, land partnerships or other incentives. So, when cities help to make it affordable housing easier to build then developers are much more likely to partner with nonprofit organizations to make these types of projects possible.
I know there are some pretty special programs in Springfield that are specifically designed, in my opinion, to add housing. I'm referring to like the Restore SGF And the Blue House Project, and I know there are others. How much are these programs helping with the Springfield housing crisis?
Fessler: I think it's really encouraging that we have so many incredible programs because not one single program can solve our affordable housing crisis itself. So, Restore SGF works to sort of preserve existing housing stock that we already have. The Blue House Project helps to create homeownership opportunities. And then of course, organizations like The Kitchen actually develop and operate affordable housing. And then we also have the Springfield Community Land Trust, which the land trust creates permanent, affordable home ownership by separating the cost of the home from the land and ensuring that those homes will remain affordable for future generations. And so, that's really important because so many of our low-income housing tax credit properties eventually actually end affordability. So, there's a 30-year period. And so, if we don't work to, you know, sort of preserve those units, then we risk losing affordable housing faster than we can build it.
Because you mentioned Brandon Jenson, I'm sure you are aware that City Council has identified housing as one of its four priority needs for the next couple years. What would you ask City Council to do to make measurable headway on this stated priority?
Fessler: Yeah, I think we can't rely simply just on state tax credits alone to solve our housing shortage, which is historically what we have done. Our local government has an opportunity to leverage their own resources to make projects more competitive and financially viable. I would encourage Council to continue support for preserving the affordable housing stock that we already have in our portfolio because, if we can protect existing units, it's often much more cost effective than having to build and create brand new affordable units.
Is there anything you would ask the community to do to support or impact housing needs in Springfield?
Fessler: Yeah, I would encourage people to recognize that affordable housing benefits everyone. It supports our workforce. It strengthens neighborhoods, improves health outcomes and helps local businesses find and retain quality employees. So, I would encourage people to learn more about the housing continuum and support organizations that are currently working on solutions to create partnerships that make long term affordability possible.