SACRAMENTO—In a recent article, GlobeSt.com discussed how the Sacramento region is benefiting from the Bay Area population influx, where housing supply shortages and skyrocketing home prices are pushing buyers outward for options. However, this demand should include service-enriched housing programs, which are critical to affordable housing in Sacramento, Flynann Janisse, executive director of Rainbow Housing Assistance Corporation, says in this exclusive.

GlobeSt.com: What are the most significant issues faced by affordable housing communities in Sacramento? How do these affect resident turnover?

Janisse: Sacramento is facing challenges that are very similar to what the rest of the nation is experiencing. There is an insufficient supply of affordable housing for low-income individuals and families in addition to those with set incomes, such as veterans, seniors and the disabled. The likelihood of a stabilized tenant base in market-rate communities is nearly nonexistent, particularly with conflicts resulting from rent control or rather lack thereof. The natural evolution of turnover becomes a social and economic barrier to stability for both the residents and the landlords, owners and investors. As the market rate owners and investors seize the opportunity to push rents, low-income households are pushed out, and the demand for affordable housing becomes more and more significant. The law of supply and demand drives profitability for one while impeding social economics for those most vulnerable.

GlobeSt.com: What types of service-enriched housing programs help stabilize affordable housing developments and effectively serve the needs of diverse populations in Sacramento?

Janisse: Tailored programs and services that promote higher levels of education, develop employability skills, and remove barriers to social and economic advancement are the most impactful resources deployed in affordable housing communities. These layers of service can be designed uniquely to serve the many faces of affordable housing, offering a broad approach to meeting the needs of the target population. Some examples of this would be free or low-cost youth enrichment programs to reduce the associated expense of day care, GED classes, mentorship programs and employment services including vocational training.

GlobeSt.com: How can investing in resident service programs positively impact the ROI for owners and investors alike?

Janisse: The provision of a service-enriched housing model designates financial resources to advance the life skills of a tenant population. This investment in human capital yields both a social and economic return, creating economic value. Affordable housing, by design, fulfills the fundamental housing needs of low-income individuals and families. The qualifying rules mandate a tenant base with documented barriers to financial sustainability. As owners and investors are reminded of the intentional and value-based principals that embody the preservation and development of affordable housing, there is an understanding the tenant base is key to the financial stability of an asset. Key financial indicators are driven by occupancy, turnover expenses, marketing, security and legal support. A robust provision of services tailored to education, employment and community enrichment aids in resident retention and enhances the capacity of the most vulnerable populations to become self-sufficient through social and economic supportive services. A stabilized tenant base vested in the community they live, work and thrive reduces expenses and promotes opportunities for growth in rental income.

GlobeSt.com: How do service-enriched housing programs impact the local economy?

Janisse: The art of improving the economy is best described as community economic development. This focus encourages using local resources in a way that enhances economic opportunities while sustainably improving social conditions. There is a great deal of research that correlates human development to economic growth in local economies and beyond. Providing programs and services that will advance an individual's education, offer skilled vocational training and promote employability increase the opportunities for income growth. These types of programs have a domino effect on the economy in a number of ways such as buying power, value-based living that results in a reducing crime and the influx of a skilled work force, allowing for business growth opportunities.

GlobeSt.com: What are the most significant issues faced by affordable housing communities in Sacramento? How do these affect resident turnover?

GlobeSt.com: What types of service-enriched housing programs help stabilize affordable housing developments and effectively serve the needs of diverse populations in Sacramento?

GlobeSt.com: How can investing in resident service programs positively impact the ROI for owners and investors alike?

GlobeSt.com: How do service-enriched housing programs impact the local economy?

Instant Insights /

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