In the world of affordable housing, workforce housing may be ignored by some, but it is necessary for many. People who have jobs in the service sector, which are necessary, but often poorly paid access to housing they can afford. Teachers, police and firefighters are often too. Finding money for such projects can be difficult, but not impossible. While developers cannot be considered as an option to tax credits for low-income housing (LIHTC) can be used to fund projects that include units of electricity price of labor, the conditions. Usually, “workforce housing” is generally defined as a limited income, making it affordable for people earning between 80 and 120 percent of the average annual income in the area (AMI).
In some communities, it is not difficult to achieve, since the average cost of residential workforce housing are already low. Either they are low enough for the construction of some units at low prices, limiting the property can prevent a project is economically viable. But the most expensive real estate markets, the largest gap between the income of the service sector and the average price of a home can be viable LIHTCs. Ten Fifty B, a project of San Diego, is one example. In this case, the tax credits were used to build a mixed-use development with affordable apartments for people earning less than 80 percent AMI.
Many of the housing projects in California workers cost this way because there is a significant difference between yields in the services sector and housing prices. Grant Community Development Block Grant (CDBG) is another option for developers interested in the Oil field housing projects of the working population. State Controlled local CDBG and are more flexible and allow the development of a wide range of low-income housing. Similarly, the Partnership Program investment house also has greater flexibility. As the maximum income requirements CDBG, housing the workforce in the most expensive markets might qualify.
Local governments may also offer some creative options. For example, the space above a library was made available to a developer in Oregon, which became 47 units of staff housing. The local and county governments that have committed to providing a variety of housing options are often willing to work with developers to find unique solutions. Some are even willing or can be persuaded to sell land at very low prices. Developers interested in Bakken workforce housing projects for workers should refer to the information on the HUD LIHTC, CDBG Program and HOME Investment Partnership. Consider contacting local government offices in the cities of interest as well.