Facing a lack of affordable housing, voters in one Ohio city may take action Tuesday
Affordable housing: Cincinnati voters may raise taxes to help poorest The Cincinnati Enquirer
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Affordable Housing Advocates Propose Tax Increase to Address Housing Shortage
This story has been updated to show a complete breakdown of how the money raised by Issue 24 would be spent.
The National Low Income Housing Coalition estimates a shortage of 7.3 million affordable housing units nationwide, affecting the poorest renters in every state and major metropolitan area. In response, a group of affordable housing advocates in Cincinnati has proposed a solution: raising taxes on themselves to fund affordable housing.
Issue 24: Raising Taxes for Affordable Housing
Issue 24, added to the ballot through a signature-gathering campaign led by Cincinnati Action for Housing Now, aims to increase the city’s earned income tax from 1.8% to 2.1%. This tax increase would generate up to $50 million annually to build and maintain affordable housing specifically for the lowest-income residents in the area.
Similar Approaches in Other Cities
Voters in San Jose, California, previously approved an increase in their property transfer tax to fund affordable housing and homeless shelters. The measure has led to the creation of hundreds of affordable apartments and assistance for unhoused students and families.
The Housing Gap
The National Low Income Housing Coalition’s annual report, “The Gap,” highlights the inadequate supply of affordable housing for households with extremely low incomes. Nationwide, there are only 33 affordable units available for every 100 renter households in this income bracket.
How Issue 24 Would Work
Issue 24 would allocate funds primarily to households earning 30% or less of the median income for the Cincinnati metro area. At least 65% of the raised funds would go towards developing and maintaining housing for these families. Up to 30% of the money could be used for households earning up to 50% of the area median income, and 5% would cover administrative costs and oversight.
The plan would expand Cincinnati’s existing Affordable Housing Leverage Fund, which has already raised $112 million through public and private funds. The fund has supported the construction and preservation of income-restricted units in the city.
Addressing the Financing Gap
Developers and builders would play a crucial role in leveraging funds for affordable housing construction and maintenance. However, some argue that there is already a significant amount of unappropriated funds in the Affordable Housing Leverage Fund that haven’t been utilized. Additionally, high labor and material costs, restrictive zoning laws, and bureaucratic processes make building affordable housing challenging.
The Impact on Homebuyers
Opponents of Issue 24, such as the Homebuilders Association of Greater Cincinnati, express concerns about the financial burden on homebuyers. They argue that increasing taxes could further dampen demand for market-rate housing, which is crucial for builders and developers’ profits.
Despite the potential challenges, affordable housing advocates believe that addressing the housing shortage requires immediate action. By raising taxes and allocating funds towards affordable housing initiatives, they aim to provide stable and affordable homes for the city’s most vulnerable residents.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty
- SDG 11: Sustainable Cities and Communities
- SDG 17: Partnerships for the Goals
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 1.4: By 2030, ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance.
- SDG 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums.
- SDG 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Number of affordable housing units created or maintained for households with extremely low incomes.
- Percentage of funds allocated to developing and maintaining housing for different income thresholds.
- Amount of money raised through tax increases for affordable housing.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.4: By 2030, ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance. | – Number of affordable housing units created or maintained for households with extremely low incomes. |
| SDG 11: Sustainable Cities and Communities | Target 11.1: By 2030, ensure access for all to adequate, safe, and affordable housing and basic services and upgrade slums. | – Percentage of funds allocated to developing and maintaining housing for different income thresholds. – Amount of money raised through tax increases for affordable housing. |
| SDG 17: Partnerships for the Goals | Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships. | – Amount of money raised through tax increases for affordable housing. |
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Source: cincinnati.com
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