Affordable Housing Outlook 2016—The Challenges ahead
The last several years have seen a surge in rental demand, with 43 million families and individuals now living in rental housing across the country since mid-2015. This is up nearly 9 million from 2005, the largest gain in any decade recorded. The downturn in both the economy and the more recent renewal of the housing market fueled this statistic, extolling the benefits of renting.

Also, the aging of Millennials, those born from 1985-2004, has added to the number of renters, as Baby Boomers (ages 51-70) continue to downsize and rent rather than own.

But rental stock has not kept pace, the rental market has tightening, showing vacancy rates now at their lowest point, and rent prices rising at 3.5 % annually, the fastest pace in almost 30 years. This is creating a situation where the “cost-burdened” renter pays more than 30% of their income for housing, and in many cases the severely-burdened are paying as much as 50% of their earnings, rising from 7.5 million households in 2001 to over 11 million by 2014. This has set another record.

Seeing the need for more apartment development, and seizing the opportunity to build, many developers are erecting multifamily, yet renters find that due to higher construction costs, these units are not within reach. It’s nice to think that a more robust economy is allowing for more construction, but the tremendous need for affordable housing is not being filled. And, many renters who already live in apartments are seeing rents continually increasing, and having nowhere else to go, become cost-burdened. Interestingly enough, even households earning $30,000 to $44,999 now represent a cost-burdened group that has increased 37-48%, although their number was 10% in 2014.The situation for the severely cost-burdened has reached a critical point with the combination of higher rents and substandard housing.

The Low Income Housing Tax Credit (LIHTC) program, of course, still remains the primary means of expanding and preserving the affordable supply; that is why this program is so important. But the number of additional units produced through LIHTC is lagging behind the need.

So what is the answer? For one thing, policy makers need to consider the extent and form of housing assistance, but perhaps most importantly, they need to promote development of a wider range of option and in communities that offer quality schools and more job opportunities. Developers have had to be extremely creative in layering subsidies in order to do projects and keep rents affordable, but the complexity and requirements of these layered subsidies add costs. Yet, all level of government must capitalize on the capabilities of the private and non-profit sectors, listening to their experience “from the trenches”, so to speak.

It is just this creativity and vision that will enable the affordable housing industry to make the leap to the next level for the industry.

Through our non-profit organization, Silver State Housing, our properties offer opportunities for seniors to volunteer their time while gaining experience for potential employment in the general workplace, to brush up on their office skills in a friendly and helpful environment. AARP has been a helpful source for these seniors who want to work.

Now and again, volunteers seem to fit the bill for employment at our properties when openings occur. Such is the case with Greg Pike and Clarissa Milton who joined the staff at McKnight Senior Village. Greg works as a porter, dividing his time between McKnight and our Santa Barbara Palms. Clarissa trained for and is now employed as McKnight’s receptionist.

More recently, Joan Black did volunteer training at our Sonoma Palms, where she now holds its receptionist position. Lori Muehlhausen, Silver State Housing’s executive director states, “it’s great helping put people back to work, to see them actively engaged. It puts a smile on all our faces!”

This quarter, we take the opportunity to tell the story of our Whispering Palms Apartments, a senior rental housing community of 208 units on 15 acres.

Opened in 2001, Whispering Palms features single-story apartments, 104 one-bedroom units and 104 two-bedroom units, and a large community recreational clubhouse. The club- house has full-kitchen facilities, outdoor pool/ spa, health room, exercise room, media room, game room with planned activities and outings offered.

Health screenings and food distribution are coordinated by the resident manager working with our non-profit partner, Silver State Housing, to bring numerous supportive services to our residents.

Whispering Palms is located at 2655 West Lake Mead Boulevard, in North Las Vegas. Just east of the major intersection of Lake Mead and Rancho Drive, the community enjoys access to retail, including a Walmart center, banking, health care, as well as two well-known local hotel/casinos, Texas Station and the Fiesta Rancho for entertainment and employment opportunities.

Designed by John Burke Architects, the- se units resemble small homes, and the property exhibits water-conserving desert landscaping.

Whispering Palms was financed with tax exempt bonds, allocated through Nevada Housing Division. Construction began in 2000 and the property was placed in service in February 2001.

The property has enjoyed steady occupancy, all within a gated community that has become a fixture to the area.