Does Dave Chappelle Have a Problem With Affordable Housing?
Maybe, but that doesn’t seem to be what motivated the comedian’s tirade against a housing development earlier this year.
What’s Going on With Dave Chappelle and Affordable Housing?
Image by Blake Wheeler from Unsplash.
Since February this year, comedian Dave Chappelle’s name has consistently been tied to his opposition to a housing development near his home in Yellow Springs, Ohio. In a public forum at a village council meeting, Chappelle took the floor to decry Oberer Homes’ plans filed with the village to construct a residential community on a 52-acre plot just north of his house.
He compared his company’s economic contributions to the village to the developer’s, saying, “I cannot believe you would make me audition for you. You look like clowns. I am not bluffing. I will take it all off the table,” effectively threatening to put a halt to his business activities in the 3,700-person village east of Dayton, should the plans come to pass.
Later during that meeting, the Yellow Springs council failed to pass the rezoning adjustment which would have allowed for Oberer’s proposed greenfield development to proceed. As a result, major news outlets from CNN to Rolling Stone reported that the comedian had “killed” affordable housing in the town.
The Only Problem? The Development Wasn’t Affordable.
It’s true: While there was the potential for an affordability component in the plan, Oberer Homes wouldn’t be the one building it — the plan under the proposed zoning merely called for the donation of a small parcel to the village to build “20 to 30 units,” according to a memo drafted by the village council president. And that parcel was actually the farthest part of the development site from the Chappelle home, and there was no timeline given or discussed for those units.
Also, without the approved rezoning, development could have still moved forward — just with a bit of reconfiguration, generally aimed at higher-priced single-family homes. But Chappelle also headed that off in April, according to local news, buying up at least 19 acres of Oberer’s land which abutted his property.
It’s an Important Mischaracterization
Clearly, mainstream news got it wrong — or at least presented it that way at the national level. While many accused Chappelle of NIMBYism against affordable housing, the reality appears to be that he doesn’t want anything in his backyard — that a small part could have potentially become affordable housing was purely incidental.
It’s still important to correct the record. While it may seem like a technicality — and in many ways it is — it’s a technicality that matters. With so many opponents of affordable housing already present in virtually every city in this country, it’s irresponsible to disingenuously add more fuel to the fire. Dave Chappelle may have acted selfishly, out of pure NIMBYism, or perhaps he didn’t. This blog doesn’t purport to have the answers, but the failure of the rezoning proposal didn’t remove affordable housing from the village: For all we know, the village may not have moved to build those homes for years, if ever.
So, What’s the Point?
Here’s the real issue: We know that affordable housing is in dire need across the country. New York City, Miami, and San Francisco need far more than they have. So, too, do smaller towns and villages like Yellow Springs. So, what happens when media outlets proclaim that public figures are staunchly against affordable housing or “killing” new affordable housing developments? Well, when reality doesn’t bear that out, it merely makes the critical work of affordable and public housing advocates all the more difficult.
The fact remains that affordable housing remains critically in need, and the sector can offer a significant investment upside to would-be investors or developers. Let’s not needlessly complicate that message.
What is the purpose of HUD multifamily loans?
HUD multifamily loans are available through a number of different lenders, and these loans may be used for a wide range of properties, from affordable housing to market-rate communities. HUD multifamily loans are insured by the Federal Housing Administration, or FHA, and are available for the purchase, refinancing, or development of multifamily properties. In reality, HUD only underwrites and insures these loans, which are provided by other lenders.
How do HUD multifamily loans work?
HUD multifamily loans are available through a number of different lenders, and these loans may be used for a wide range of properties, from affordable housing to market-rate communities. HUD multifamily loans are insured by the Federal Housing Administration, or FHA, and are available for the purchase, refinancing, or development of multifamily properties. HUD offers its 221(d)(4) program for apartment construction and substantial rehabilitation, and all HUD Apartment loans are non-recourse, fixed-rate, and fully amortizing over 35+ years, making them a fantastic option for longer-term buy and hold investors.
For more information, please visit the following links:
What are the benefits of HUD multifamily loans?
HUD multifamily loans offer many benefits, including 35-year fixed rate terms, full amortization, and leverage up to 83.3% for market-rate apartment buildings or 87% for rental assistance properties. HUD loans also have few restrictions on borrower experience, unless you’re getting a construction loan, and their liquidity and net worth borrower requirements are far more flexible compared to even agency loans. Additionally, HUD multifamily loans include specific benefits for affordable properties, such as increased LTV allowances, reduced DSCR requirements, and lower mortgage insurance premiums, or MIPs. HUD multifamily loans also fit well with the Low-Income Housing Tax Credit (LIHTC) program https://www.hud.loans/hud-loans-blog/lihtc-program-hud-multifamily-loans and the Rental Assistance Demonstration (RAD) program https://www.hud.loans/hud-loans-blog/rental-assistance-demonstration.
What are the eligibility requirements for HUD multifamily loans?
HUD multifamily loans are designed to help borrowers of all experience levels access the financing they need to succeed in the multifamily housing market. The minimum credit score for most programs is just 620, and there are options for borrowers with even lower scores. Eligible properties for HUD multifamily loans must already be encumbered by HUD-insured loans.
For more information, please visit 5 Myths about HUD-Insured Multifamily Loans and HUD 241(a) Supplemental Financing for HUD Multifamily Loans.
What are the risks associated with HUD multifamily loans?
The risks associated with HUD multifamily loans include longer approval times, significant documentation requirements, and the need for one or more professional advisors to guide the borrower through the entire process. This information was sourced from www.hud.loans/fha-hud-insured-multifamily-loans and www.commercialrealestate.loans/hud-multifamily-loans.
How can HUD multifamily loans help increase affordable housing?
HUD multifamily loans can help increase affordable housing by providing increased Loan-to-Value (LTV) allowances, reduced Debt Service Coverage Ratio (DSCR) requirements, and lower Mortgage Insurance Premiums (MIPs). Additionally, HUD multifamily loans such as the HUD 221(d)(4) and HUD 223(f) can be combined with the Low-Income Housing Tax Credit (LIHTC) program, which offers investors a dollar-for-dollar federal tax credit in order to encourage investment in affordable properties. These loans also fit well with the Rental Assistance Demonstration (RAD) program, which allows properties using certain HUD legacy housing assistance programs to convert their properties to long-term Section 8 HAP (Housing Assistance Payment) contracts.