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LOS ANGELES-Two questions dominated the Los Angeles BusinessCouncil's Mayoral Housing Summit that was held on Oct. 17 at UCLA'sAnderson School of Management: “How can we afford to build workforce housing?” and “How can we afford not to?” The first questionwas easy to answer. Further housing development has virtuallyhalted as homebuilders scramble to unload their excess supply to apopulation who can no longer qualify for a mortgage.

The second question was not as straightforward, however, asKevin Ratner, president of Forest City, pointed out during theReasons for Optimism: Preparing for the Economic Upswing panel.“It's the Fed rate. Deals require a lot more effort now,” he said.“And construction costs, though they have come down, are stillreally high, so at the end of the day it's all about finding thegap to deliver affordable housing. Right now that involvesinnovative practices.”