Key Takeaways
- • Bloomberg Philanthropies and the nonprofit think tank Accelerator for America will give each of 30 cities between $450,000 and $750,000 to speed up permitting and approval processes for new housing.
- • The program builds on approaches that worked in Atlanta, Austin and San Diego, and grantees will receive help in one of three areas: technology-driven approvals, "permit-ready" architectural plans, or a "strike force" to revive stalled projects.
- • Bloomberg Philanthropies expects to see measurable results within two years.
- • The first 15 winning cities include Albuquerque, Alexandria, Charleston, Chattanooga, Cleveland, Columbia, Durham, Louisville, Miami, Nashville, Omaha, Pittsburgh, Portland (ME), Providence and San Jose.
- • A National Association of Home Builders study found regulatory costs have risen almost 40% in five years to 26.4% of the average new-home sales price, potentially adding about $131,000 to a new home's cost.
Summary
Bloomberg Philanthropies and Accelerator for America will lead a project to provide hundreds of thousands of dollars to 30 cities to improve their permitting and approval processes for new housing, according to Realtor.com. Each city will receive between $450,000 and $750,000, with the exact amount varying by city.
The initiative is designed to scale approaches developed in Atlanta, Austin and San Diego, which Accelerator for America says were effective in improving their building processes. Each winning city will receive support in one of three areas: applying new technology to speed approvals, working with architects to develop "permit-ready" plans, or deploying a "strike force" to help unstick stalled housing projects. Bloomberg said it expects results within two years.
The awards come as cities confront affordability pressures. Realtor.com's housing supply gap report puts the nationwide shortage of homes at 4.03 million, while the National Low Income Housing Coalition estimates a shortage of 7.2 million affordable and available rental homes for very-low-income renters. Congress passed the 21st Century Road to Housing Act earlier this year, but lawmakers have said that implementing changes is up to local governments.
A National Association of Home Builders study this year found regulatory costs have increased almost 40% over five years and now make up 26.4% of the average home sales price. Given the rising median price, the report suggests this could add about $131,000 to the cost of a new home.
Bloomberg, the former mayor of New York City, said city halls are taking local action to increase supply. Mary Ellen Wiederwohl, CEO of Accelerator for America, said the partnership applies Bloomberg Philanthropies' long-held belief in local government as the place where problems get solved to housing.
The initiative is designed to scale approaches developed in Atlanta, Austin and San Diego, which Accelerator for America says were effective in improving their building processes. Each winning city will receive support in one of three areas: applying new technology to speed approvals, working with architects to develop "permit-ready" plans, or deploying a "strike force" to help unstick stalled housing projects. Bloomberg said it expects results within two years.
The awards come as cities confront affordability pressures. Realtor.com's housing supply gap report puts the nationwide shortage of homes at 4.03 million, while the National Low Income Housing Coalition estimates a shortage of 7.2 million affordable and available rental homes for very-low-income renters. Congress passed the 21st Century Road to Housing Act earlier this year, but lawmakers have said that implementing changes is up to local governments.
A National Association of Home Builders study this year found regulatory costs have increased almost 40% over five years and now make up 26.4% of the average home sales price. Given the rising median price, the report suggests this could add about $131,000 to the cost of a new home.
Bloomberg, the former mayor of New York City, said city halls are taking local action to increase supply. Mary Ellen Wiederwohl, CEO of Accelerator for America, said the partnership applies Bloomberg Philanthropies' long-held belief in local government as the place where problems get solved to housing.
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