Mortgage

Freddie Mac finds climate change compounds affordable housing woes

Freddie Mac finds climate change compounds affordable housing woes
Written by Publishing Team

An apartment complex after Hurricane Laura made landfall in Lake Charles, Louisiana, US, Thursday, August 27, 2020. Hurricane Laura swept through Louisiana early Thursday, becoming one of the strongest to ever hit the state with “catastrophic” storms, flooding and winds. Destructive that could cause insured losses of more than $15 billion. Photographer: Luke Charette/Bloomberg

Luke Sharett / Bloomberg

Climate changeRelated natural disasters disproportionately damage affordable housing, and efforts to address this concern have been fragmented, Freddie Mac found in a study in line with Service duty plan.

The government-sponsored institution, citing data from New York University’s Furman Center, noted that the concentration of low-income individuals living in flood-prone areas (16%) is greater than their representation within the population as a whole (15%). The disparity is greater for the 10% of census tracts, which are areas of high poverty. Fifteen percent of these are flood areas.

This means that low-income individuals have been disproportionately affected by disasters over the past 10 years. The study indicated that as a result of these events, more than 5,000 people lost their lives, 232 thousand people were displaced annually, and damages exceeded 800 billion dollars, citing US figures from the Internal Displacement Monitoring Center in Switzerland and the National Oceanic and Atmospheric Administration.

These individuals also tend to be apartment renters Black, Indigenous, or Colored people Additionally you may experience stress related to Rising rents and the disproportionate effects of the pandemic – all of which are fears to be subject to consumer protection. This makes it especially important for multifamily service employees to note public and private assistance related to the disasters identified in Freddy’s report, and how it can be enhanced.

Freddy Mac said in a transfer report.

Noting mortgage providers with lending arms or partners is what Freddie identifies as the potential to participate in what could be a growing market for financing that could help protect apartment buildings from disaster.

“Financial institutions in the private market have the opportunity to redesign and expand the market by integrating performance-based retrofit financing into their regular loan offerings and programmes,” the report stated, adding that this is a market BanksAnd Financial institutions for community developmentAnd other lenders are starting to get in.

Various public programs are also available for this purpose, such as those available through nationwide commerce Evaluated Clean Energy Programs And through tax credits for low-income housing. However, this has its limitations.

Freddy noted that PACE funding lacks a national standard and is not available in all states, with 38 authorized but only 26 operational programs currently in operation. Only 7% of this funding has been used for resilience projects to date, as estimated by the PACENation stakeholder group mentioned in the report.

Federal low-income housing tax credits, which are allocated to developers through state housing finance agencies, are subject to priorities in their jurisdiction’s eligible allocation plan. While the number of countries prioritizing resilience projects has grown, only 24 countries currently have provisions to mitigate, prepare for, or recover from disasters, according to data from American Planning Association data Reported by Freddy Mac.

Other programs that can help within certain local boundaries include community grants available from the Department of Housing and Urban Development for disaster recovery and mitigation. HUD also has an “environmentally friendly and flexible retrofit program,” and FEMA is providing some help, according to budget allocations.

Overall, Freddy Mac has found that while it may not be possible to develop a national policy in this area, more coordination between providers of existing programs could improve property resilience as climate change increases the risk of property damage from disasters.

Effectively maximizing the resilience of multifamily properties is not something that can be done unilaterally; it concludes that it requires cooperation, motivation of private market stakeholders, and agreement between public policy advocates and private market investors.

.

About the author

Publishing Team

Leave a Comment