Affordable Housing and Smart Growth: Principles & Policy

Introduction: The Affordable Housing Crisis and Smart Growth

Smart Growth is an initiative developed to increase the quality, distribution, and supply of affordable housing for low-income earners. It is recognized that the growth of cities has been influenced mainly by the public, private, and non-profit sectors, and that traditional methods of town development have not provided adequate housing for low-income populations.

The impact of these shortcomings has produced an "affordable housing crisis," with over 5.4 million United States households living in accommodation that is either severely inadequate or that consumes more than half of household income in payments.

Smart Growth is aimed not only at serving affordable housing needs but also at addressing the needs of the economy, the environment, and the community. As one report describes it, "smart growth in new developments is more town-centered, transit and pedestrian oriented, and has a greater mix of housing, commercial and retail uses… Smart growth ensures greater environmental protection, by preserving open space and other environmental amenities, and leads to stronger communities by recognizing the importance of integrating development and quality of life."

Smart Growth also enjoys broad public support. A survey conducted in 2000 found that "78% of Americans support policies to curb sprawl, the haphazard and wasteful development that is damaging the environment and draining resources from established communities."

Economic, Social, and Environmental Costs of Current Development Patterns

Current development patterns were driven primarily by public policy and are characterized by a separation of land uses, dependency on automobiles, and the rapid consumption of space in suburban and exurban areas. This pattern is reinforced by strict zoning regulations, transportation systems designed around the car, and a lack of coordination in planning — the same factors that also serve as obstacles to reform.

The booming economy of the 1990s saw housing and rental costs increase at more than twice the rate of inflation, leaving many low-income households unable to find affordable housing. As a result, low-income earners are forced into substandard housing, compelled to live in areas where affordability comes at the expense of safety or school quality, or pushed into homelessness. It is also notable that job growth has occurred largely on the suburban fringe rather than in the central business district (CBD), widening the distance between workers and employment and increasing commuting costs — the second largest household expense after housing. These problems are increasingly affecting middle-income earners as well.

There is also a significant social cost. Traditional development patterns have concentrated affordable housing in specific areas, isolating low-income earners and limiting their access to education and employment. This environment also contributes to greater health problems, particularly asthma, since low-income residents often live in traffic-congested areas. Because low-income neighborhoods tend to be farther from schools, children are less able to walk or cycle, reducing their levels of physical activity.

Traditional development patterns carry environmental costs as well. Development has consumed open space and farmland, threatening species with extinction through habitat loss. Lakes, rivers, and estuaries are increasingly degraded by pollution and urban runoff. Greater reliance on transportation has intensified air pollution, particularly in urban areas. The Environmental Protection Agency recognizes these harms and endorses Smart Growth, stating that "smart growth development approaches have clear environmental benefits, including improved air and water quality, increased wetlands preservation, more brownfield sites cleaned and reused, and increased preservation of open spaces."

Smart Growth Principles as an Alternative

Smart Growth acknowledges that communities will continue to grow and seeks ways to accommodate that growth without the negative effects associated with conventional sprawl. It is characterized by ten core principles:

1. Mix land uses. 2. Take advantage of compact building design. 3. Create housing opportunities and choices for a range of household types, family sizes, and incomes. 4. Create walkable neighborhoods. 5. Foster distinctive, attractive communities with a strong sense of place. 6. Preserve open space, farmland, natural beauty, historic buildings, and critical environmental areas. 7. Reinvest in and strengthen existing communities and achieve more balanced regional development. 8. Provide a variety of transportation choices. 9. Make development decisions predictable, fair, and cost-effective. 10. Encourage citizen and stakeholder participation in development decisions.

Smart Growth recognizes that housing is a key feature of communities — shaping transportation systems, functioning as a consumer good, and providing shelter. The quality and location of housing have a direct social impact, determining who interacts with whom and what resources, such as schools, people can access.

It is also acknowledged that while the government supports home ownership, the incentives it offers largely do not benefit low-income earners.