How Federal Policy Can Support More Affordable Housing in Exclusionary Communities

The recently funded “Yes In My Back Yard” federal grant program provides support for local and state governments to implement housing policy reforms, but it doesn’t go far enough to undo the exclusionary practices of wealthy communities.

2 minute read

January 30, 2023, 7:00 AM PST

By James Brasuell @CasualBrasuell


A new article for the Urban Institute provides recommendations for how the U.S. Department of Housing and Urban Development (HUD) can expand on a new federal grant program to increase affordable housing production in traditionally exclusionary communities.

First, the author of the post, Yonah Freemark, connects the country’s current housing shortage, in part, to the exclusionary practices of the nation’s wealthiest cities and towns, citing research published in January by Luiza Godniez-Puig and Gabriella Garriga, along with Freemark.

“These communities often dissuade or ban the development of affordable housing projects, such as those funded through the Low-Income Housing Tax Credit Program, within their boundaries, which creates higher rates of racial and class-based segregation,” explains Freemark.

Freemark cites clear evidence about the prevalence of housing segregation in the United States, and the direction of the argument is clear: HUD will have to do more than currently enabled to by federal programs in reducing residential segregation.

Freemark cites the weaknesses of the “Yes In My Backyard Act,” an $85 million grant program approved by Congress as part of the federal omnibus bill at the end of 2022, as an example of the current limitations of federal programs. For example, the current grant program doesn’t go as far as the proposals of the 2021 YIMBY Act, first proposed in 2019. “[T]he bipartisan 2021 YIMBY Act, would have required recipients of HUD's Community Development Block Grants to track the implementation of several policies that encouraged increasing housing production, such as developing higher-density zoning and reducing minimum lot size,” writes Freemark. “That bill could have led to a more even distribution of affordable housing in regions like NYC, but the bill wasn’t passed.”

Freemark also includes a few specific recommendations for how HUD can increase the effectiveness of the grant program for the task of reducing segregation, with more details on the source article:

  • “HUD could support states that target affordable housing subsidies to projects in localities with a low percentage of subsidized housing or that have resisted those units’ construction in the past.”
  • “HUD could support MPOs that develop “fair share” policies for distributing federal transportation dollars, which are generally under their purview.”
  • “HUD could support pro-affordable-housing localities that agree to reform their zoning rules specifically within neighborhoods with exclusionary zoning.”

Friday, January 20, 2023 in Urban Institute

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Bird's eye view of manufactured home park.

Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing

Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?

March 25, 2025 - Shelterforce

U-Haul truck on road with blurred grassy roadside in background.

Americans May Be Stuck — But Why?

Americans are moving a lot less than they once did, and that is a problem. While Yoni Applebaum, in his highly-publicized article Stuck, gets the reasons badly wrong, it's still important to ask: why are we moving so much less than before?

March 27, 2025 - Alan Mallach

Rusty abandoned oil well and equipment with prickly pear cactus next to it in West Texas.

Using Old Oil and Gas Wells for Green Energy Storage

Penn State researchers have found that repurposing abandoned oil and gas wells for geothermal-assisted compressed-air energy storage can boost efficiency, reduce environmental risks, and support clean energy and job transitions.

March 31, 2025 - Pennsylvania State University

Downtown Los Angeles skyline viewed from a distance with freeway and trees in foreground.

Updating LA’s Tree Rules Could Bring More Shade to Underserved Neighborhoods

A new USC study finds that relaxing Los Angeles’ outdated tree planting guidelines could significantly expand urban tree canopy and reduce shade disparities in lower-income neighborhoods, though infrastructure investments are also needed.

April 3 - USC Dornsife

Aerial view of Claifornia aqueduct with green orchard on one side.

California's Canal Solar Projects Aim to Conserve Resources and Expand Clean Energy

California’s Project Nexus has begun generating electricity from solar panels installed over irrigation canals, with researchers and state agencies exploring statewide expansion to conserve water and boost clean energy production.

April 3 - Turlock Journal

Close-up of older woman's hands resting on white modern heating radiator mounted on wall indoors.

HHS Staff Cuts Gut Energy Assistance Program

The full staff of a federal program that distributes heating and cooling assistance for low-income families was laid off, jeopardizing the program’s operations.

April 3 - The New York Times