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  APRIL 2007

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Terwilliger Teams with ULI to Create Center fo Workforce Housing

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  PRESS RELEASE FROM URBAN LAND INSTITUTE

Former ULI Chairman J. Ronald Terwilliger Provides $5 Million to Fund ULI Terwilliger Center For Workforce Housing


“Those Who Serve Their Communities Should be Embraced by Their Communities”

WASHINGTON (February 1, 2007) — J. Ronald Terwilliger, former chairman of the Urban Land Institute (ULI), has committed $5 million to the creation of the ULI Terwilliger Center for Workforce Housing, ULI announced today. The center will address one of the most critical issues facing urban areas across the country by supporting the development of housing affordable to moderate-income workers, including teachers, nurses, firefighters, government workers, and police officers. The gift from Terwilliger is the largest individual contribution ever made to the Institute.

Terwilliger, chairman and chief executive officer of Atlanta-based Trammell Crow Residential, is one of the nation’s most successful residential real estate developers and an acclaimed housing expert. For years, Terwilliger has been a leading advocate for affordable housing. With people increasingly shut out of decent housing close to their jobs, the need for a center devoted to workforce housing is more important than ever, he said.

Although some markets have recently experienced home price declines, “Housing that is close to jobs will stay out of reach for many people who work in our communities,” Terwilliger said. “As a result, working families who are neither very low-income nor high-income are being pushed farther and farther away from employment centers, adding to traffic congestion and sprawl. It’s hard on these families, and it’s inefficient growth. We are aiming to turn this situation around. Our ultimate goal is to achieve a measurable increase in mixed-income workforce housing in communities across the nation.”

In announcing the gift, ULI Chairman Marilyn Jordan Taylor outlined the challenge and the importance of addressing it with all the resources the public and private sectors can together bring to bear. “We at ULI have spent a lot of time thinking about how to make a difference,” said Taylor. “Ron’s extraordinary contribution will move us into action.”

Plans call for the ULI Terwilliger Center to be based in Washington, D.C., from where its staff members will work with ULI district councils, housing-related organizations, and various public- and private-sector representatives in several urban areas to create models of mixed-income workforce housing design, development and financing that can be applied to other cities. Initially, the center will focus on three markets—Atlanta, Washington, D.C., and Southeast Florida. In each, the center will develop a plan to increase the production of mixed-income housing over a specified time period; to expand available project financing where necessary; and to support developers in completing projects. The goal is to produce at least 3,500 units of new workforce housing in the three markets within five years.

As part of its overall program of work, the center will identify barriers to workforce housing production (such as inflexible zoning and building codes) and work to eliminate those barriers by raising awareness of the affordability gap and by advocating changes in public policy. The center is likely to advocate greater use of inclusionary zoning, which offers development incentives such as density bonuses in exchange for the provision of a certain percentage of below-market rate units.

“In my view, mandatory inclusionary zoning is one of the most effective tools to get housing built that people can afford, and it does this in a mixed-income housing context,” Terwilliger said. “Because it results in mixed-income housing, inclusionary zoning benefits people who otherwise would not have the opportunity to live in a market-rate environment. It gives people who make up the bulk of a community’s workforce an opportunity to live closer to their jobs.”

To educate the public and help change public policy, the center will partner with local, regional and national organizations, including chambers of commerce, employer organizations, home builder organizations and housing advocacy groups. The center will publish best practices, organize conferences and provide competitions to recognize individuals and companies demonstrating excellence in the area of mixed-income housing production.

The workforce housing provided through the center will be oriented toward people typically making between 60 percent and 120 percent of the median income for the targeted market, and it will be mixed with housing offered at market rates. Those income boundaries will be kept flexible, however, to reflect variations of salaries and housing costs in individual markets. An emphasis will be placed on designing and building housing in ways that encourage long-term affordability.

“A huge number of fully-employed people—service workers, office personnel, teachers, police officers, hospital workers, firefighters, municipal workers, low- to mid-level management—are getting squeezed by the housing crunch. They need to be able to live closer to where they work. Those who serve their communities should be embraced by their communities, not shut out,” Terwilliger said. “This is not just a matter of social equity. The shortage of workforce housing is compromising the economic well-being of our cities. I see this center as helping to change this pattern in a way that benefits both workers and communities.”

ULI will explore the eventual creation of a fund to support the center’s work. The fund, possibly operated through the ULI Foundation, would attract capital from financial institutions, philanthropic institutions, Wall Street, individuals and other sources to finance the development of workforce housing by for-profit and non-profit developers and through public-private partnerships.

“The center represents an incredible opportunity for ULI to make a real difference in the future of our nation’s communities,” said ULI President Richard Rosan. Noting that the U.S. population reached the 300-million mark last fall, he said, “The shortage of affordable housing in urban areas is only going to get worse as our nation’s population continues to rise. The truly sustainable communities are the ones that that will be providing housing choices.”

The center will be directed by a board of nationally prominent individuals, including well-known housing advocates, who will serve in both an advisory and a fundraising capacity. A search for an executive director for the center is now underway.

The Urban Land Institute (www.uli.org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has more than 34,000 members representing all aspects of land use and development disciplines.


 




 

 
 


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