Social housing is mixed-income housing that is owned and operated by public agencies, which can include local cities, school districts, counties, and state agencies. As opposed to privately-owned housing, social housing prioritizes the social needs of a community over private profit.
Social housing is very different from American public housing. Public housing built in the United States was destined to fail—it was built in undesirable areas, placed far away from jobs and good schools, made available only to the lowest income people, managed poorly, and was systematically disinvested over time. Social housing provides mixed-income housing available to the vast majority of the public, and will be located near jobs, schools, public transit, and other amenities. By creating mixed-income neighborhoods, social housing fosters economic opportunities for all while providing housing at deeper levels of affordability. And because social housing is mixed-income, it will pay for itself, meaning little to no need for additional government subsidy over the long term!
Existing attempts to address the lack of affordable housing have not produced nearly enough to meet the need. Over 97% of cities and counties in California haven’t produced enough affordable housing. Plus, many California cities struggle to meet their housing goals for middle income families, because there do not exist many subsidies and programs for that income level. Social housing has been successful all across the globe. While over half of renters in California are rent burdened paying over 30% of their income on rent, successful social housing models in Vienna and Hong Kong allow their average renter to pay between 4-8% of their income on rent. Social housing is a tool to address the housing shortage at all income levels, and it’s time we try it here in California.
City budgets are statements of values. All throughout California we are experiencing a housing crisis and skyrocketing costs of living. There are a number of ways we can pay for social housing—upfront capital can be gained from placing local bond measures on the ballot, to financing through lease-revenue bonds and certificates of participation. An important aspect of social housing is its cost neutrality. Rents are priced at-cost, meaning that social housing will pay for itself and not require additional public subsidy in the future—all while providing housing at all income levels that is more affordable than the private market.
Social housing is commonplace all around the world. Most notably, 80% of Singapore’s entire housing stock is publicly owned, and 60% of Vienna’s is publicly owned. Meanwhile, less than 1% of United States’ housing is publicly owned. However, that hasn’t stopped social housing from being pioneered in Montgomery County and Maryland [source]. Now, cities and states throughout the United States are paving the way to bring social housing to their communities too!
Cities know their communities and what they need best. Social housing is housing that is built for the social good, meaning local public agencies can build housing that adheres to high sustainability, labor, and design standards, all while being able to reach deeper levels of affordability for their future residents. Social housing can also include public amenities like childcare facilities, libraries, recreation centers, parks, and retail spaces. When local governments have a more direct role over the housing that is being built, they can ensure that every dollar is invested right back into the community in ways that make the most sense.
Some people have said that “cities don’t build housing.” But why? The affordable housing crisis requires every level of government to step in to make sure every family is able to afford a safe and stable home. That includes our mayors, city council members, school board members, and county supervisors. In the United Kingdom, 55% of the country’s social housing stock is owned by local authorities. Cities absolutely can build housing, and they should!
Yes, the Social Housing Program would count towards the RHNA.
The RHNA process is designed to ensure that each region in California has an adequate supply of housing to meet the needs of its residents, including low-income and working-class families. The Social Housing Program would help to increase the supply of affordable, stable housing in California and help to meet the state's housing needs. By supporting the creation of more social housing, we can work towards meeting our RHNA goals and ensuring that all Californians have access to safe, decent housing.
