Overview

The supply of affordable rental housing in the U.S. is shrinking although the need for such housing has never been greater. Approximately one-third of all U.S. households — 37 million — live in rental housing today, and the vast majority of those are households of modest economic means, with annual incomes of less than $60,000.

Since 1993, the stock of low-cost rental homes has fallen by more than 1.2 million and more than one million are at risk in the decade ahead. At the same time, various forces, including demographic change and mounting foreclosures, will likely increase the number of renters by two million. The loss of affordable rental housing destabilizes families and communities. Without a mix of housing options, communities cannot attract and retain a diverse population with a mix of incomes, ages, and occupations. Moreover, there is a growing body of research that indicates that people who live in stable, affordable homes near where they work do better in holding jobs, and that their children do better in school.

Preserving affordable rental housing is a national challenge that can be met. New knowledge about how housing matters for families and communities will help shape the next generation of national, state and local housing policy. The Foundation intends to help through grantmaking and program-related investments in the three categories described below.

In 2010, the grant budget for this program area is $14.6 million.

What MacArthur Funds

Affordable Housing Preservation

Window of Opportunity: Preserving Affordable Rental Housing is a $150 million initiative to preserve and improve affordable rental housing across the country. The Foundation provides grants and long-term, below-market loans to a portfolio of 25 large-scale, business-like, local, regional, and national nonprofit owners of affordable rental housing active in 37 states. Support also goes to specialized financing vehicles across the country as well as public sector-led preservation efforts in Chicago, New York City, and 12 other states and localities.

MacArthur additionally funds policy analysis, data collection and expert assistance to encourage investment in rental housing and foster sound policies at federal, state and local levels. The goal is to directly preserve and improve 300,000 affordable rental homes and to create a policy environment that makes it possible to preserve one million units in a decade, enough to reverse the trend of loss in the inventory of affordable rental homes

See Recent Grants for grants awarded.

For additional information, read the Window of Opportunity brochure and map (PDF).

Housing Policy

A broad body of evidence suggests that access to decent, affordable housing may lead to better physical, social and economic well-being for individuals and families and that such housing is an important ingredient of a vital community. Compelling findings from a range of fields show critical links between housing and other issues of national policy concern, such as alleviating poverty and increasing labor market participation.

In 2007, the Foundation announced a $25 million research program on How Housing Matters to Families and Communities. Its purpose is to determine through rigorous, empirical analysis if and how housing affects the well-being of families, children, communities and their local economies — beyond the shelter value of the physical dwelling itself. The Foundation also aims to translate research findings into insights that could serve as building blocks for a new generation of affordable housing policies and programs. The centerpiece is an interdisciplinary research network on How Housing Matters for the American Family, directed by Northwestern University professor Thomas Cook.

The formal launch of a competitive grants element of the program, How Housing Matters to Families and Communities, was preceded in December 2008 by award of a cluster of grants (PDF) that signal the Foundation’s interest in a portfolio of rigorous studies by new and established scholars, by public agencies willing to subject their programs to evaluation, and by economists, sociologists, health professionals and education experts.

Public Housing

The Chicago Housing Authority’s Plan for Transformation of public housing is redefining the functions of the agency and implementing a $1.6 billion capital program to demolish more than 16,000 units of housing and to rehabilitate or build 25,000 units over 15 years. The Foundation also participates in the Partnership for New Communities, a group of civic and corporate leaders committed to vital neighborhoods and the success of the Plan for Transformation.

See Recent Grants for examples of grants awarded.

Updated March 17, 2010