For the past ten years, the housing crisis has become more and more of a headline. The majority of Americans are finally admitting how real the crisis is, especially with headlines about $1 million starter homes.
Those of us in the industry itself aren’t surprised. We’ve been saying this intersection was going to happen. But the growing amount of headlines about construction costs, mortgage rates, and regulations have me asking a different, probably more audacious, question:
“What if this is not just a housing crisis but a creativity crisis?”
What if the shortage is, in fact, also a shortage of vision?
What if the next affordable housing development is already standing?
Because all across the country, vacant schools, old mills, underutilized parking lots, and historic landmarks are getting a second life as housing…strengthening communities in the process.
How?
Tax Credits
On a recent episode of my podcast ChangeMakers, I sat down with Marie Cervay Hickle, the 𝐕𝐢𝐜𝐞 𝐏𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐭 𝐚𝐭 𝐏𝐍𝐂 𝐁𝐚𝐧𝐤, to discuss how historic tax credits and new markets tax credits are unlocking redevelopment opportunities that might otherwise never happen.
Marie has helped close more than $450 million in tax credit equity investments, and she shared with me practical insights on:
- How historic tax credits help fill financing gaps
- Which types of properties can qualify
- How new markets’ tax credits support investment in underserved communities
- The opportunities of adaptive reuse and neighborhood revitalization
One example of a real-world transformation we discussed was a 125-year-old denim mill in South Carolina that was reimagined into a thriving 205-unit apartment community. What most saw as nothing more than an empty, unusable historic landmark became a place 200 families can call “home.”
The building itself may be historic, but the impact it’s having is current.
Look around your city… What are some places that need revitalization? What “invisible” structures could qualify for a tax credit to become affordable housing?
Accessory Dwelling Units (ADUs)
Many times, our definition of what affordable housing “should” look like is too narrow.
On another episode, I invited Whitney Hill, whose organization Snap ADU has become one of San Diego’s leading ADU builders, with Whitney herself being recognized by the San Diego Business Journal as one of its 40 Next Top Business Leaders Under Forty.
During our chat, Whitney showed me how accessory dwelling units (ADUs) are creating new housing opportunities for aging parents, adult children, caregivers, renters, and even for multigenerational families.
What’s especially interesting is that Whitney didn’t come from a construction background. She saw a housing system struggling to keep pace with demand and 𝐛𝐮𝐢𝐥𝐭 𝐚 𝐜𝐨𝐦𝐩𝐚𝐧𝐲 𝐟𝐨𝐜𝐮𝐬𝐞𝐝 𝐨𝐧 𝐜𝐫𝐞𝐚𝐭𝐢𝐧𝐠 𝐡𝐨𝐮𝐬𝐢𝐧𝐠 𝐨𝐧𝐞 𝐡𝐨𝐦𝐞 𝐚𝐭 𝐚 𝐭𝐢𝐦𝐞.
Our conversation explored entrepreneurship, affordability, and why some of the most impactful solutions don’t require massive developments in the traditional sense…just a bit of creativity and willingness to go outside the box.
There’s no reason this ADU strategy can’t be adapted across major cities to create housing where none currently exists.
How could ADUs fit into your community’s housing strategy? How could it alleviate concerns or disrupt assumptions about affordable housing?
Challenge the Status Quo
Don’t get me wrong… I’m not saying the affordable housing crisis isn’t real. No one knows that better than me.
But I also believe that for every problem, there is a solution. And sometimes we’re so focused on the problem that we’re not opening our minds wide enough to what the solution can be. As leaders, we can get so locked into “the way things are” that we don’t exercise our natural creativity to see the way things can be.
And if you’re feeling short on creativity at the moment, then take a page out of Marie and Whitney’s book. They are just two examples of how a little creativity is solving the problem in their communities.
What could that look like for your company? How would it transform your community?
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