Affordable housing is the cry of just about any major metropolis or fast-growing area in the United States. We left Austin almost two years ago, largely because the cost of real estate, remodeling, and building had become unsustainable, at least for us. Affordable housing was simply a buzzword that the city liked to throw around council meetings to make themselves feel good while continuing their high regulations process, which caused the price of real estate to continue to rise. Oh, the irony.
Speaking of irony, after leaving Austin, we ended up in the most expensive area of Arkansas…NWA.
While we love it here, we realized Bentonville and the surrounding areas have their own housing issues. Affordable housing and the ability, as a builder, to offer it is a huge issue. Because I’m up to my eyeballs in construction and maybe because I’ve had four cups of coffee this morning, I’ve got many ideas, but for the sake of time, let’s start with three.
First, addressing the affordable housing shortage in Bentonville and the surrounding area isn’t a simple, one-and-done solution. It will require a multifaceted approach involving policy reforms, public-private partnerships, and community engagement.
Buckle up, city folks because the first thing that needs to happen is:
1. Implementing Policy and Zoning Reforms
Expedited Approval Processes. Ya’ll are killing us with your ever-evolving approval and permitting processes (I’m looking at you, Bella Vista). By streamlining the development approval process you can help us builders reduce construction timelines and costs, which can then be passed on to the public.
I’m not the only one saying this. In November of 2021, the city of Bentonville created a Housing Affordability Workgroup specifically to review housing needs, availability, and affordability in Bentonville. While city review groups normally give me a tic under my left eye, this one has some good ideas, specifically by recommending creating expedited processes for small-scale developments and affordable housing projects that meet specific criteria.
Like I said, settle down wielding your permitting power, city people.
2. Fostering Public-Private Partnerships
Collaborative Developments: An affordable housing community was created in collaboration with Excellerate Housing, Bentonville Schools, Benton County, Mercy, Walton Family Foundation, and Arvest Bank. McAuley Place exemplifies successful collaborations aimed at increasing affordable housing. This 160-unit development, located near the Bentonville Community Center, includes single-family cottages and multifamily units designated for local educators and staff.
We need more of these.
Financial Incentives: Offering tax incentives, grants, or subsidies to developers who include affordable units in their projects can stimulate the construction of such housing. The federal Low-Income Housing Tax Credit (LIHTC) program, utilized in developments like McAuley Place, is a model for leveraging financial tools to support affordable housing.
And finally, for today,
3. Engaging the Community and Stakeholders
Housing Affordability Workgroup: Established by the Bentonville City Council, this group conducts reviews of housing needs, availability, and affordability and provides recommendations to the city. Their efforts have led to the development of Project ARROW, a targeted approach to increasing affordable housing supply through education and collaboration.
Educational Campaigns: Raising awareness about the benefits of affordable housing and involving residents in planning processes can build community support and reduce opposition to new developments.
By furthering the above ideas, we can improve the affordable housing situation in NWA or at least begin to move it forward.
While I don’t have a crystal ball, all signs point to the fact that interest rates will drop sometime this year, and the housing market will heat up.
Let’s prepare and be ready.
The Overly Caffeinated Agent 