10 Financing and Policy Solutions to Accelerate Workforce Housing from Milken Institute
Director, Center for Regional Economics and California Center, Milken Institute
In February 2019, the Milken Institute, in collaboration with JPMorgan Chase & Co., held a Financial Innovations Lab in Oakland to address California’s workforce housing shortage and explore possible solutions for real estate and housing developers and policymakers. Its final policy and financing recommendations were as follows.
Top 5 Policy Solutions:
- Offer streamlined entitlement processes for qualifying projects,
- Align state funding programs to incorporate and incentivize a housing component,
- Inventory, organize, and incentivize land for housing development (public and private land),
- Establish a regional housing trust that would finance the development of properties in the land bank and fund a range of new construction, acquisition, and preservation, and
- Establish an effective housing tax increment financing (TIF) replacement program.
Top 5 Finance Solutions:
- Enable partnerships to better quantify the soft costs,
- Address high costs of development,
- Attract more private-sector participants to the space,
- Use innovative financing solutions for small developers, and
- Capitalize a pilot guarantee pool to finance loans to small developers.