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Funding Principles

Promote Affordable Housing

Funding Principles

How Can States Invest in Increasing Housing Affordability?

  • Support and Strengthen the Use of Federal Funds
  • Utilize Public-Private Partnerships
  • Provide Incentives for the Development of Market-Rate Affordable Housing. When offered in tandem with inclusionary zoning requirements, strong incentives such as relaxed zoning restrictions, waived or prioritized permit fees and density bonuses (that allow developers to create more units than otherwise permitted on a parcel of land) encourage the development of market rate affordable housing by reducing its additional costs to developers.  For example, California’s density bonus law (SB 1818) requires cities and counties to relax applicable zoning standards and grant density bonuses of up to 35 percent for developers who include a modest share of affordable housing in market-rate projects; these jurisdictions must also adopt an ordinance that states how they will comply with the legislation.[1]   
  • Utilize Funding Aimed at Vulnerable Communities.Take advantage of funding sources that support the affordable housing needs of vulnerable populations.  Section 202 Housing for the Elderly, Section 811 Housing for Persons with Disabilities, Homelessness Assistance Programs, the Housing Opportunities for Persons with AIDS Program and the Family Unification Program are all funding opportunities to support people who face unique affordable housing challenges.  By focusing resources on vulnerable populations, states ensure those in the greatest need are receiving supports and services.

[1] HousingPolicy.org. “Key State Roles.” Available online