In regards to building more affordable housing, one of the big issues is the amount of hoops HUD and local governments require you to jump through that slows the progress. Here is an example timeline of a project I am working on:
- HOME funding application is due in May of 2023
- Project is notified they have been selected for funding August 2023
- HUD anticipated funding release date August 2024
- HUD/City delayed. Funding now anticipated January 2025
This project is a small 4 unit townhome that could not be built without HUD funding due to the valuation gaps in the neighborhood. On top of waiting almost 19 months to receive this funding, there are mountains of paperwork that are required to be fill out before, during, and after construction.
We need to implement a 90 or 180 day review process for all federally funded small housing projects. The longer the project is delayed, the higher the costs. With this new streamlined process, we also need a massive reduction in the amount of paperwork that are required for these projects. It is unnecessary, adds costs, and disincentives local communities members from taking on development projects.