Affordable Housing

KC topics that don't fit anywhere else.
dukuboy1
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Re: Affordable Housing

Post by dukuboy1 »

Recent Lending Tree report listed KC Metro as 8th most competitive housing market in the country. We were tied with New York
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FangKC
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Re: Affordable Housing

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Re: Affordable Housing

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phuqueue wrote: Sun Jun 23, 2019 8:58 am
FangKC wrote: Sat Jun 22, 2019 9:33 pm Meet the A.I. Landlord That’s Building a Single-Family-Home Empire
...
Sean Dobson, Amherst’s CEO, is an imposing Texan data savant who dropped out of college to get into mortgage trading. A decade ago, he made a killing shorting shaky debt during the housing crash. Today he’s adding 1,000 homes a month to his empire with the help of artificial intelligence, using data modeling to make dozens of offers a day on potentially profitable houses. The Main Street homes are a $3.2 billion investment that generates around $300 million in annual rental income, but Dobson harbors far bigger ambitions: “We want to get to 1 million homes in the next 15 years or so,” he says. While that figure reflects as much bravado as realism—it’s more than 60 times the number of homes Amherst owns today—the fact that it’s conceivable shows how much the housing market has changed, and how technology is helping investors profit from those changes.

The rise of the single-family-rental industry reflects profound shifts in the finances and attitudes of America’s families. Homeownership, long a bedrock of financial stability, has become unattainable or undesirable for many middle-income workers—for reasons including tighter lending standards, large college-debt loads, lagging wage growth and savings, and real estate speculators, such as the guy we are profiling in this very article, who outbid would-be owner-occupants to snap up "investment" property and drive prices up broadly. According to ­Yar­deni Research, slightly more than one in three households that would have been buying first homes before the financial crisis is now either renting or still living with their parents.

These trends translate into roughly 5 million households that are renting single-family homes rather than taking out mortgages and building equity, and that’s Amherst’s target market. Its specialty is grabbing run-down properties in nice, middle-class subdivisions—guided by algorithms that help it avoid bidding wars and money pits—which it then spruces up for the new rental generation. Amherst’s typical customers are couples in their early forties with one or two kids and household incomes around $60,000. They’re paying an average rent of $1,450 a month. “That’s almost exactly what they’d pay on a mortgage and other expenses if they owned the house,” says Dobson. “We’re catering to a whole new class of Americans—the former buyers who are now either forced renters or renters by choice.” And Dobson is betting that this new class is a permanent one.
...
http://fortune.com/longform/single-fami ... ket-newtab
Added back in a fairly glaring omission from this article
Koch Industries (Charles Koch) made a big investment in Amherst Holdings.

Charles Koch funded eviction push while investing in real estate companies
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But since the Covid-19 pandemic began, Koch Industries has been plowing money into real estate.

In March this year, the Wall Street Journal published a report headlined Charles Koch Is Betting Big on Distressed Real Estate. The paper reported that the billionaire’s corporate conglomerate “is emerging as a major real-estate investor during the pandemic, using its robust cash reserves to buy properties at beaten-down prices and betting on a longer-term recovery”.

Last April, a month into the pandemic, Koch Real Estate Investments made a “$200m preferred-equity investment in Amherst Holdings LLC’s single-family rental business”, according to the corporate law firm Jones Day, which said it advised the Koch Industries subsidiary on the deal. Amherst says that since 2012, “its affiliated funds have acquired and operated more than 30,000 homes”.
...
https://www.theguardian.com/us-news/202 ... 1621617429
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FangKC
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Re: Affordable Housing

Post by FangKC »

Site shows rental housing in KCMO, and out-of-city and state ownership, eviction history.

https://storymaps.arcgis.com/stories/7 ... 0279d71fda
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chaglang
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Re: Affordable Housing

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If I'm reading that right, 50% of the evictions in KC are done by local (KCMO-based) property owners. A lot of pixels are being spilled over the 50% that are done by out-of-town property owners, by Johnson County owners being the largest county in that group, and OP being the largest city within that group. But the quickest/easiest path to reducing evictions seems to be to utilize whatever leverage the city might have over its resident-owned rental property owners.

(Larger context: read the KC Tenants manifesto yesterday.)
kenrbnj
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Re: Affordable Housing

Post by kenrbnj »

Out-of-town ownership is not much of a surprise.

Consider this: Nearly every major apartment complex is owned by a corporate entity; not based in the KC Metro.

As for correlation between local ownership or out-of-town ownership; it would be safe to suggest there IS NO correlation: Rental units are a simple financial instrument. Pay on the lease, an eviction will not occur. Fail to pay on a lease, eviction (eventually) becomes the only recourse; regardless of ownership location.

Don't let anyone suggest anything to the contrary.
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Re: Affordable Housing

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chaglang wrote: Tue Jun 29, 2021 9:22 am But the quickest/easiest path to reducing evictions seems to be to utilize whatever leverage the city might have over its resident-owned rental property owners.
Very little

Evictions are part of state law and are done in state circuit courts
https://revisor.mo.gov/main/OneSection. ... on=441.770

City code limits eviction powers to blocking retaliation evictions around reporting health and safety issues to the city
Last edited by flyingember on Tue Jun 29, 2021 9:58 am, edited 1 time in total.
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beautyfromashes
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Re: Affordable Housing

Post by beautyfromashes »

chaglang wrote: Tue Jun 29, 2021 9:22 am But the quickest/easiest path to reducing evictions seems to be to utilize whatever leverage the city might have over its resident-owned rental property owners.
You make it sound like rental property owners want to evict people.
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Anthony_Hugo98
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Re: Affordable Housing

Post by Anthony_Hugo98 »

beautyfromashes wrote: Tue Jun 29, 2021 9:57 am
chaglang wrote: Tue Jun 29, 2021 9:22 am But the quickest/easiest path to reducing evictions seems to be to utilize whatever leverage the city might have over its resident-owned rental property owners.
You make it sound like rental property owners want to evict people.
Yeah, that’s usually the exact opposite of what rental owners want..
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chaglang
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Re: Affordable Housing

Post by chaglang »

Yeah, I don't have a dog in this fight at all. I was responding to Fang's post, the Twitter chatter about evictions, and the KC Tenants manifesto, and positing that /if/ one was to "do something" about evictions, going after out-of-city property owners was maybe viscerally satisfying but ineffective. Beyond that, meh. Also, I'm not advocating for anything in the KC Tenants manifesto. But it's an interesting read.
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alejandro46
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Re: Affordable Housing

Post by alejandro46 »

Thought this was kind of interesting concept. There are a handful of companies working on mass-produced housing units. I guess Elon Musk is living in one of their prototypes down in Texas.

https://www.chron.com/news/space/articl ... 78768.php

https://www.youtube.com/watch?v=qVV6CyGJgZo

Some cool concepts for later down the line with larger modular SFH, townhouses, and apartments. Key differentator they say is the tight packaging so you don't need oversized load semi as it expands from the packaging unit. Also apparently don't need a concrete slab? Some discussion about using it as disaster relief housing that could be converted to perminant homes later to avoid having all of those FEMA trailers that went to waste.
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normalthings
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Re: Affordable Housing

Post by normalthings »

Does ADA functionally block the 6unit 3 floor and 8 unit, 4 floor missing middle buildings some clamor for? Should ADA be adjusted to allow for these structured as long as the ground floor units are fully accessible?
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Re: Affordable Housing

Post by flyingember »

normalthings wrote: Thu Jul 01, 2021 4:27 pm Does ADA functionally block the 6unit 3 floor and 8 unit, 4 floor missing middle buildings some clamor for? Should ADA be adjusted to allow for these structured as long as the ground floor units are fully accessible?
Only in two cases

1. It’s a public accommodation. But a SFH is the same here, like conversion into a business

2. It receives funding incentives.

So there’s nothing special around size, you can’t build less units per lot and avoid ADA just based on size
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Re: Affordable Housing

Post by shinatoo »

normalthings wrote: Thu Jul 01, 2021 4:27 pm Does ADA functionally block the 6unit 3 floor and 8 unit, 4 floor missing middle buildings some clamor for? Should ADA be adjusted to allow for these structured as long as the ground floor units are fully accessible?
Yes.
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chaglang
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Re: Affordable Housing

Post by chaglang »

IIRC ADA/FHA/IBC (all three are in play here) require a percentage of units to be accessible/Type A/Type B units, based on a variety of factors. But if you want all of the accessible or Type A units to be on the ground floor, you can do that. Above a certain height you will still need an accessible /route/ to the upper floors (elevator), but the units themselves do not need to be accessible.
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FangKC
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Re: Affordable Housing

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Nearly half of American workers don’t earn enough to afford a one-bedroom rental
Nearly half of American workers do not earn enough to rent a one-bedroom apartment, according to new data.

Rents in the US continued to increase through the pandemic, and a worker now needs to earn about $20.40 an hour to afford a modest one-bedroom rental. The median wage in the US is about $21 an hour.

The data, from the National Low Income Housing Coalition, shows that millions of Americans – from Amazon warehouse workers to cab drivers to public school teachers – are struggling to pay rent. For the poorest Americans, market-rate housing is out of reach in virtually all of the country.
...
https://www.theguardian.com/society/202 ... 1628775303
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normalthings
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Re: Affordable Housing

Post by normalthings »

Bough introduced an ordinance that would study adding a tax on new construction (linkage fee) to pay for affordable housing.



I would support a recall of Bough.
Last edited by normalthings on Wed Aug 18, 2021 2:31 pm, edited 2 times in total.
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DaveKCMO
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Re: Affordable Housing

Post by DaveKCMO »

normalthings wrote: Wed Aug 18, 2021 2:21 pm Bough introduced an ordinance that would study adding a tax on new construction (linkage fee) to pay for affordable housing
Would it be applied to single-family home construction? That new housing type seems to escape all scrutiny when it comes to the affordability conversation.
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normalthings
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Re: Affordable Housing

Post by normalthings »

DaveKCMO wrote: Wed Aug 18, 2021 2:25 pm
normalthings wrote: Wed Aug 18, 2021 2:21 pm Bough introduced an ordinance that would study adding a tax on new construction (linkage fee) to pay for affordable housing
Would it be applied to single-family home construction?
Ordinance says commercial development. So that alone sounds like just office/apartment/industrial/retail. Seems like proposals in other cities are along those lines
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FangKC
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Re: Affordable Housing

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If there is a tax of that type, it needs to be applied to SFH to some extent. The tax also needs to escalate for each square foot of that specific house--in increments, as well as each square foot of lot sizes. People who build 4000 square foot houses should pay much more tax than 2000 sq. foot houses, and also people building on huge residential lots need to pay a lot more past a certain threshold. This would encourage increased density, and for houses to be built in multiple stories instead of sprawling one-story homes on big lots.

Many parts of Kansas City are simply not dense enough to support their infrastructure and city services. It will get worse as these neighborhoods age.

The City needs to do something to incentivize developers building on small lots. I tend to not want to outright ban huge lots, but am not opposed to making people pay a premium for them.
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