Quote:
Originally Posted by BTinSF
Wrong.
Differences:
1. Source of funds:
Public housing--tax money, federal grants
"Affordable housing"--development fees, bond proceeds, funds raised by non-profit charities
2. Whose eligible (target resident):
Public housing--the very poor, welfare recipients, seniors living on Social Security
"Affordable housing"--lower middle (reaching into the "middle middle") class, nearly all employed; "many affordable rental units serve households earning up to 60% AMI (Area Median Income). This translates into $40,650 for a single person, and $58,100 for a four-person household." (Source: http://www.sfraaffordablehousing.org/ )
3. Rental/for sale
Public housing--always rental
"Affordable housing"--both, some for rent, some for sale
4. Development
Public housing--built/managed by a city-run housing agency
"Affordable housing"--built/managed by private non-profit developers
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I think we're not understanding each other. None of this is entirely true or relevant to my main point.
Affordable housing, by definition, is housing costing no more than 30% of Area Median Income. It doesn't matter who provides it; it's still considered affordable housing if it meets this requirement.
My point is that there is no "magic receipe" for successful provision of affordable housing through the private sector, rather than through public authorities. Public housing is not inherently "worse" than private options, such as inclusionary housing.
And really none of your points are entirely true, at least not in the agencies I am familiar with.
1. Public housing receives govt. subsidies, as do private-market inclusionary housing developments.
HPD and HDC, the two main inclusionary housing developers in NYC, use a combination of sources, including, yes, developer $$$ and tax credits, but also direct subsidies from federal, state and city sources.
2. Public housing is NOT only for the poor, at least not in NYC. There is no income limit to live in public housing, and there are plenty of middle class in public housing (in fact 50% of units, by law, must be rented to households with at least one full-time salaried resident with a working class minimum income level. This is called the "Working Families Requirement", and was instituted to ensure income mixing).
3. Public housing can be for sale. There are moderate income housing co-ops managed by public housing authorities.
4. Affordable housing is not necessarily built or managed by the private sector. In most cases in the U.S. it is, but this is only because most U.S. cities public housing has become a dirty word.
And public housing has a huge private component nowadays. Dozens of public housing developments in NYC have plans for on-site private sector middle-income housing. The sites were built in the Corbusian-style, and usually have excess land that is now being long-term leased to the private sector to raise revenue for the agency.