This is the next installment in our series spotlighting different ways communities across North Carolina are tackling their housing needs.
Local governments across North Carolina have adopted “penny for housing” policies. These units range is size from Raleigh through Apex all the way to Carrboro. We think this is a policy more communities, including small communities, should consider.
What it is
Under “a penny for housing” policy, a local governing board simply decides, usually as part of a budget process, that each year from then on it will devote to its affordable housing efforts an amount equal to one cent – one penny – on the tax rate, however much money that is from year to year. This is entirely the governing board’s choice as an element of the budget.
Why we like it
*A “penny for housing” policy helps insulate housing funding from the annual budget battle. After the board makes the decision one year, the adjusted amount of that penny moves right into the next budget. The board can certainly change that amount (or do away with it) any year, but having the policy in place can reduce the friction over that line item.
*It naturally grows your funding over time, as the value of a penny goes up in your community (and can give housing the full benefit of an upward revaluation!). And it doesn’t have to be one cent — Durham is at 2 cents, and Carrboro pledges 1.5 cents. You of course can still apply other resources from time to time.
*The policy provides your staff and your local housing partners increased assurance that you’ll have a certain level of funding each year. This makes it easier to plan for bigger projects with longer time horizons. It also signals that you understand that the housing problem is a long-term issue, and that you’re in the fight for the long haul.
*It demonstrates your willingness to put your own resources toward the solutions. If you won’t put some of your own money into solving a problem, why should other people – in this case, your local housing partners and outside developers – put their money in? Click here for our disclaimer, click here to send us a message, and click here to learn more about our housing practice.