++Forming a healthy relationship with regret means learning to look it in the face. +
++When Peter and Sjanna Leighton were in their early 20s, their marriage fell apart. Money was tight, and they each feared they were disappointing the other; neither one knew how to communicate their vulnerabilities and hurt. +
++So one day, almost a year after their vows, Peter packed his bags and moved out of their home in San Antonio, Texas. He got an apartment on his own and focused on building his career in the restaurant business. +
++âFrom the outside world, it may have looked like Iâd recovered from our marriage failing,â says Peter, who became chronically depressed. âBut the memories of how powerful our togetherness could have been, and what could have happened if we had continued developing â all of that churned in me.â +
++Peter and Sjanna both quietly carried their regret over giving up on their relationship through other marriages, children, and divorce. Then in 2007, 33 years later, Sjanna searched Peterâs name online and found his photography website. âThe first photo that came up was a picture of him that heâd taken in our bathroom when we were married, and the second picture was me on our honeymoon, which he had titled âThe Muse,ââ says Sjanna. She realized that he lived in Austin, not far from her, and after a few weeks, she built up the courage to send him an email. They met up for coffee. When they met up a second time a few weeks later, she asked him, âWhat happened with us, Peter?â He replied, âI donât know, but you were the love of my life.â Within a month of reconnecting, they were dating again. +
++Today, at 75 and 72 years old, Peter and Sjanna have been happily remarried for 16 years. âWhen we got back together, we did it with our regrets and our perceived mistakes,â says Peter. âBecause of that, when there have been storms, weâve been able to weather them.â +
++Few people have a second chance the way Peter and Sjanna did, but most of us live with regrets. We may not own up to them (maybe not even to ourselves), but we all have past actions we wish we could change â bullying a middle school classmate, not telling a loved one how much they meant to us, choosing a safe job rather than taking a creative risk â yet we rarely reckon with this universal feeling or recognize how it can benefit us. Since we canât change the past, regret can seem useless and self-indulgent. But the emotion can clarify a disconnect between who we are and who we want to be. And it can show us how to change. +
++What causes regret +
++âThere are three pieces to regret,â says Amy Summerville, a research scientist who has led studies on the emotion. âOne, it feels bad; two, itâs based on a thought about how things could have been better; three, the thought is focused on your own actions.â In other words, if you feel bad after acing an interview and not getting the job, thatâs not regret; if you feel bad because you stayed up late playing video games and slept through the interview, that could be. +
++According to Summerville, the most common regrets come from career and romance. As people age, entering their 60s and 70s, family and health start to come up as regrets, too, but romantic regret remains consistent through life stages. +
++She has also found that regrets of inaction are more common than regrets of action. In other words, we tend to regret the things we didnât do rather than the things we did. âHuman memory adaptively functions to remind us of open things on our to-do list, rather than things weâve crossed off,â says Summerville, âwhich might mean that we have a better memory for unmet goals and they persist longer.â +
++Another factor: When we think about the path we didnât take, we only imagine the dreamy positives, overlooking the mundane details and inevitable disappointments. Itâs harder to regret choices we actually made since they led to so many other specifics. âWith action regrets, you can find a silver lining, but with inaction regrets, you canât do that,â says Daniel Pink, author of The Power of Regret: How Looking Backward Moves Us Forward. Itâs easy to regret not running away with that glamorous stranger at 22 since you donât see the fights and heartbreak. Itâs trickier to regret an unhappy marriage if it also led to wonderful kids. +
++Placing regret in context +
++If youâre reckoning with regret, first, be kind to yourself â and realistic. Itâs easy to imagine acting differently if we could do it all over with what we know now, but we didnât yet have that experience. âIf youâre middle-aged, with kids and a mortgage, itâs easy to say, âWhy didnât I take a year off and go live in Europe after college?ââ says Summerville. âBut if you really think about yourself after graduation, with student loans and family pressure to get a career, you remember how you did have responsibilities and stressors then.â +
++Itâs important to contextualize the emotion within your setting, too, especially if you live in a community that highly values personal choice and responsibility. âWhen we talk about how âpeopleâ feel regret, weâre largely talking about how white Americans and Western Europeans experience it,â says Summerville. More collectivist cultures can turn down the inner spotlight on our personal choices: An arranged marriage or raising kids within the family compound can take away some of the pressure around finding your individual path. Some religions also provide established rituals for making sense of regret, like Catholic confession or Yom Kippur, the Jewish day of atonement. But in the US, people are taught that life is what we make it as individuals â so if something goes wrong, itâs a catastrophe and itâs our fault. +
++Come clean about regret +
++The first step toward coming to terms with your regrets is owning up to them, which can be tough. âIn the US, weâve over-indexed on positivity,â says Pink, who has led surveys that documented thousands of regrets within the US and across the world. âWe tend to think that the path to a life well-lived is to be positive all the time and never negative, to look forward and never look back.â When he started talking to others about regret in midlife, Pink says he felt sheepish, expecting them to disengage from the conversation. He found the opposite: Everyone else had regrets, too, although they often felt like they werenât supposed to voice them. +
++When Sjanna Leighton got back together with Peter in her 50s, it eased some of her sadness about the end of their marriage. But as they fell in love, rediscovering the joys of their relationship, she also felt acute regret: What if they had been vulnerable with each other in their 20s and stuck it out? What would their shared life have looked like through their 30s and 40s, as partners and parents? +
++âWhen we got back together, I felt safe and acknowledged, like he accepted me for who I was, which was an extraordinary feeling,â she says. âIt also made me really sad. I wished weâd stayed together, that we had understood each other better.â +
++Let that regret inform your life +
++At first, Sjanna found that regret painful. But as she and Peter have sustained a happy second marriage to each other, sheâs realized how the emotion informs her current relationship, which is full of gratitude, compassion, and wonder. âWeâd both had difficult marriages and had kids, and know how precious it is to have someone that loves you for who you are,â she says. Sometimes she still thinks about the lifelong relationship that could have been, but when she sees couples her age bickering or bored with each other, she feels grateful that she and Peter never take each other for granted. âWeâve had some things happen that are difficult, but at the end of the day, thereâs nowhere weâd rather be than beside each other,â says Sjanna. +
++If we let it, regret can clarify how to live: How is our life misaligned with our values? How do we want to act differently in the time we have left? âIt can help us become clearer thinkers, better problem solvers, and better at finding meaning in life,â says Pink. âSome of us ignore regret; others wallow, but what we should be doing is confronting our regrets, using them as data and information.â +
++For example, say youâre 60 years old and regret that you stayed in a lackluster job rather than starting your own business. First, instead of feeling contempt for your younger self, treat yourself with kindness and curiosity. Place your choices in context: What were the reasons you stayed in this job? What were the pressures and unknowns you faced at the time? Remember, this choice is only one small part of who you are; think about some of the choices you made that make you feel proud. +
++Next, analyze. What can you learn about yourself from this regret? For the 60-year-old, a lesson might be that with the security and clarity of age, you value boldness and risk-taking more than you used to. You can work with that. Maybe you start a creative side hustle, or mentor young people, or take on a leadership role in a group at the library. +
++âYouâre trying to look backward in order to move forward,â says Pink. âYou canât undo what you did, but you can use that piercing negative feeling as a signal about what you value, and a north star for guiding the rest of your life.â +
++Remember to give yourself grace +
++Reckoning with regret often feels painful and scary. If you admit to wishing you had acted differently, then youâre admitting your imperfections. Youâre not someone who lives with âno regrets,â a glib success who never fails. But when you release yourself from the false binary of being a success or a failure, youâre free to live in a more thoughtful, informed way, one shaped by an understanding of your strengths and values. Itâs never too late to learn from your regrets and use them to shape who you want to be today: If you wish you had taken English classes seriously in college, ask your friends about their favorite books and put together your own syllabus from their recommendations. If you regret the nights you spent working late while your kids were young, talk to them about how youâd like to build a closer relationship with them (and maybe their kids) now. Owning your regret is vulnerable, but itâs the best way to avoid accumulating more regrets in the future. +
++Sjanna and Peter still have arguments and tense periods in their marriage. But unlike in their 20s, they know how to work through it â and that their relationship is worth it. âPart of the regret we both carry with us is that we werenât ready,â says Peter. âNow, we are.â +
++The Protestant work ethic hijacked America. Itâs time for a new pro-worker ethos. +
++When you hear the phrase âwork ethic,â you might think of the perfect employee. The one who puts her job above everything else, who never complains, the type that lives to work. +
++That is certainly one version of the work ethic, and itâs a story that serves employers much more than it serves employees. But is that the only version of the work ethic? Or to put it more directly, is it the best version of the work ethic? A new book by the University of Michigan philosopher Elizabeth Anderson argues that we should revisit the origins of the work ethic because the answer to both of those questions is no. +
++Anderson tells the history of the Protestant Work Ethic and how it gave rise to dueling interpretations. One of those interpretations was pro-worker and the other was not. And for various reasons, the anti-worker version is the one that ultimately prevailed â or at least itâs the one that dominates our society today. +
++So I invited her onto The Gray Area to talk about what happened and why she thinks we need to reclaim the work ethic for workers. Below is an excerpt of our conversation, edited for length and clarity. As always, thereâs much more in the full podcast, so listen and follow The Gray Area on Apple Podcasts, Google Podcasts, Spotify, Stitcher, or wherever you find podcasts. New episodes drop every Monday. +
++
+Sean Illing +
++Where does the phrase âProtestant work ethicâ come from? +
++Elizabeth Anderson +
++The phrase the Protestant work ethic comes from the great social theorist Max Weber, who wrote a book called The Protestant Ethic and the Spirit of Capitalism; the English translation came out in 1920. He set the basic terms for our understanding of the work ethic. In his description, the Protestant work ethic was an ethic of nose to the grindstone for the workers for the maximum profit of the capitalist. So itâs a pretty dreary ethic, and he himself, despite his profession of value neutrality and social science, condemned the work ethic as consigning us to an iron cage, and he contrasted the Puritan attitude toward work as recalling the capitalist version of the work ethic that came to us where we are forced to work in our calling. +
++Sean Illing +
++How important is the Protestant part of the Protestant work ethic? Is the religious foundation essential? +
++Elizabeth Anderson +
++This is coming right out of the Puritans. The Puritans in England were basically Calvinist in theology and obsessed with getting certainty about their salvation. Theologically, the Calvinists think weâre all doomed from the start except for a tiny number of people who are saved. The critical issue, then, is youâre all desperate to know whether youâre saved, and the Puritan said the only way to tell is if you are working really, really hard because that shows that God has graced you and that you really have faith. +
++Sean Illing +
++There were contradictions built into the work ethic right from the start. You call them the ârepressiveâ and âupliftingâ dimensions, and these dimensions get teased apart during the Industrial Revolution, and out of that comes the conservative and progressive work ethics. Tell me about these competing work ethics and what happened here. +
++Elizabeth Anderson +
++Probably most of us know the Puritans as the biggest killjoys in European history. They banned the celebration of Christmas. Youâre not supposed to have any fun. Youâre supposed to be full of sobriety and self-denial and frugality, and they definitely thought that you should be working crazy hard. You needed your rest. You have the Sabbath, but then you have to go straight back to work. The purpose of rest is to restore yourself to that end. +
++But the important thing is they thought that workers would reap some rewards from all of this self-denial. You get to save up, youâll be able to buy property, youâll get wealthier. You can afford some conveniences, no luxury, but at least youâll have a more comfortable life. And that was because the model workers in the 17th century, when the work ethic was perfected, both had capital and engaged in manual labor. The master craftsman who owned his own shop, even merchant sailors were entitled to a share of the profits of the commercial voyage. +
++We donât have a sharp distinction between manual workers and capitalists in the 17th century. The critical issue in the Industrial Revolution is then you get a very sharp split between wage laborers whose only source of income is the wage they get from their employer on the one hand, and capitalists on the other hand, whose entire income comes from profit or interest or some kind of income flow from ownership of an asset. +
++Sean Illing +
++This is the hijacking of the term âProtestant work ethicâ youâre talking about, right? +
++Elizabeth Anderson +
++Absolutely. The version that we received that ended up being neoliberalism as we know it today is the version that Max Weber described and condemned in 1920. Thatâs the version that I claim was hijacked by the capitalists and turned against the workers. +
++Thereâs another separate tradition of the work ethic, which is consistent because they kept to the class neutrality of the rights and duties of the work ethic. The whole idea was, yeah, you work really hard and then youâre entitled to reap the fruits of your labor, and that means you need decent pay, a living wage. Youâre entitled to have improving prospects if you fulfill the demands of the work ethic. +
++Now, what was happening, especially in the first half of the Industrial Revolution, is that because now you have a sharp division between capitalists and workers, the workers are working harder than ever under more grueling and dangerous conditions, and their wages stagnate all the way through the mid-19th century. Theyâre basically flat. Meanwhile, the capitalists are reaping all the gains of the Industrial Revolution. So their income is growing by leaps and bounds, even though theyâre actually not doing much, theyâre just investing assets. Thereâs a lot of passive income there. So you see a betrayal of the idea that working hard is going to enable you to improve your life. +
++Sean Illing +
++The rich have always wanted the poor to work for them â thatâs as old as civilization. So what is the real innovation with the conservative work ethic? Is it that we get an ideology that morally justifies exploitation? +
++Elizabeth Anderson +
++To an extent, but itâs a particular kind of exploitation thatâs quite extreme. So by the late 18th century, we see conservative thinkers, notably Edmund Burke and Thomas Robert Malthus, who are in an absolute panic about the rising radicalism of propertyless workers. Many of them are inspired by the French Revolution in 1789. Theyâre out in the streets. Theyâre starting to protest and demand that their voices be heard. Also, the welfare rolls are growing, and conservatives are in a complete panic over this. +
++Malthus had this idea that it must be because of population increase: Those lazy workers are having too many kids that they canât afford to feed because they will not restrain their sexual impulses. And many of us might recall similar ideas being promulgated in all the controversies about welfare reform in the United States, despite the fact that thereâs never any empirical evidence for this. +
++Sean Illing +
++Thatâs sort of the point, isnât it? These ideologies have a material impact on how we see the world, on who we see, and who we ignore, and they color our moral intuitions in all kinds of ways. +
++Elizabeth Anderson +
++A lot of what Iâm writing about, and this is especially true in the US, is a culture deeply imbued with the hijacked version of the work ethic, the capitalist version. And so, thereâs unbelievable contempt and suspicion of the poor. The overwhelming majority of Republicans think that poor people, who maybe are getting food stamps or some kind of public assistance, are lazy and life is easy for them. Itâs like theyâre just living in a hammock. Now, anyone whoâs actually been poor knows that itâs in fact a lot of work to be poor, just getting the daily subsistence, and often theyâre keeping down three part-time jobs. They canât get full-time hours anywhere, and itâs enormously difficult just to pay for basic necessities. +
++But thatâs not the image that many Americans have because weâre deeply imbued with the work ethic, suspicion of the poor, contempt for the poor, when in fact what social scientists have been telling us ever since the rise of social science is that a lot of poverty is structural. It has nothing to do with the virtues and vices of individuals. Itâs already built into the system. +
++Sean Illing +
++Youâve mentioned the word neoliberalism, which is a boogeyman term at this point, but this is really what youâre contesting in this book. +
++Elizabeth Anderson +
++That is correct. Neoliberalism just is the late 20th century and early 21st century revival of the conservative work ethic. Really all the patterns of thinking were already set in the late 18th century, which became policies that redistribute income from workers to property owners and the holders of assets. Thatâs what neoliberalism amounts to: a whole bunch of policies that secure an increasing share of income for the holders of capital assets. +
++Sean Illing +
++Iâm wondering why you think neoliberalism won when it did. I mean, we had this long period of post-war social democracy in America. And then in the late â70s or early â80s, depending on who you ask, that gives way to the era of neoliberalism, the era weâre still living in today. Why did it win at that particular moment in history? +
++Elizabeth Anderson +
++The late â70s were a period of stagflation. We had the Vietnam War, rising distrust in institutions, and society was ripe for a critique of heavy-handed government. There was actually excessive regulation, I have to say. Thatâs a legacy of the New Deal. And so, society was ripe for a critique of many aspects of the New Deal regime that was still dominant in the 1970s, but itâs also the case that a lot of businesspeople themselves hated the New Deal from the start, never liked it, always resented it. Businesses, though, had won a great victory in 1948 with the Taft-Hartley Law, which undermined labor unions, and they had to spend a couple of decades steadily chipping away at the power of unions. +
++By the mid-70s, they had already undermined unions quite a lot. Reagan gets elected in 1980, and one of his most famous acts was to fire all of the striking air traffic controllers. That was a deliberate signal he was sending to corporations that they should be equally tough and break unions and employ very aggressive methods. And that, I think, got the ball rolling even faster. +
++Sean Illing +
++Zooming out a bit, do you think it would just be better if our livelihoods and our status and sense of self-worth and all that werenât anchored to our jobs? +
++Elizabeth Anderson +
++I think that Americans probably excessively identify themselves with their jobs, but I donât think itâs necessarily a bad thing to do that. I think it depends on what the content of your job is. +
++Sean Illing +
++But thatâs part of the problem though, right? To borrow a phrase from the late David Graeber, we have all these âbullshit jobs.â The nature of the work we do matters a ton. If we were all working jobs that we truly enjoyed, well, that would be different. +
++Elizabeth Anderson +
++Yes. And in fact, even the professional-managerial class has its difficulties. You might have come across this Washington Post article, which was discussing who are the happiest workers in America. Itâs the lumberjacks, the farmers, and the fishers. Professionals are actually way down there. +
++Sean Illing +
++What do you think is the most immediate thing we could do to empower workers so that they have more genuine freedom in their lives? +
++Elizabeth Anderson +
++Well, I do think unions would definitely help. I think paid vacations would help. Workers having more say at work would help. Making basic necessities more available to people without having that be tied to work is critical. In all the social democracies, access to health care is not contingent on your having a job, and you donât have to pay a lot for it. The prices are way more reasonable than they are in the United States. So I think we have to have some kind of public provision there. And also, in the social democracies, you donât have to pay for college. You have a rich public university system and your tuitionâs paid for. In places like Denmark and Germany, 18-year-olds even get a stipend for going to college. So theyâre not even financially dependent on their parents while theyâre not working, theyâre just going to school. +
++To hear the rest of the conversation, click here, and be sure to follow The Gray Area on Apple Podcasts, Google Podcasts, Spotify, Stitcher, or wherever you listen to podcasts. +
++Local governments are trying a new way to address the housing crisis. +
++Quietly and with little fanfare, the idea of building new publicly owned housing for people across the income spectrum has advanced in the United States. +
++Governments have successfully addressed housing shortages through publicly developed housing in places like Vienna, Finland, and Singapore in the past, but these examples have typically inspired little attention in the US â which has more restrictive welfare policies and a bias toward private homeownership. +
++Then one US community started exploring social housing with a markedly more American twist: Leaders in Montgomery County, Maryland â a suburban region just outside Washington, DC, with more than 1 million residents â said they could increase their local housing supply not by ramping up European-style welfare subsidies but through essentially intervening in the traditional capitalist bidding process. Government, when it wants to, can make attractive bids. +
++Now, with an acute nationwide housing shortage, and declining home construction due to high interest rates, the idea is spreading, and more local officials have been moving forward with plans to create publicly owned housing. They are very clear about not calling it âpublic housingâ: To help differentiate these projects from the typical stigmatized, income-restricted, and underfunded model, leaders have coalesced around calling the mixed-income idea âsocial housingâ produced by âpublic developers.â +
++âWhat I like about what weâre doing is all we have effectively done is commandeered the private American real estate model,â Zachary Marks, the chief real estate officer for Montgomery Countyâs housing authority, told me in 2022. âWeâre replacing the investor dudes from Wall Street, the big money from Dallas.â +
++By offering private companies more favorable financing terms, Montgomery County hoped to move forward with new construction that theyâd own for as long as they liked. They had plans to build thousands of publicly owned mixed-income apartments by leveraging relatively small amounts of public money to create a revolving fund that could finance short-term construction costs. Eighteen months ago, this ârevolving fundâ plan was still mostly just on paper; no one lived in any of these units, and whether people would even want to live in publicly owned housing was still an open question. +
++Answers have since emerged: The first Montgomery County project opened in April 2023, a 268-unit apartment building called The Laureate, and tenants quickly came to rent. Itâs not the kind of public housing most Americans are familiar with: It has a sleek fitness center, multiple gathering spaces, and a courtyard pool. âWeâre 97 percent leased today, and itâs just been incredibly successful and happened so fast,â Marks said. +
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Montgomery Countyâs Housing Opportunities Commission
++Encouraged by the positive response, Montgomery County has been barreling forward with other social housing projects, like a 463-unit complex that will house both seniors and families, and another 415-unit building across from The Laureate set to break ground in October. While construction has lagged nationwide as the Federal Reserve worked to rein in inflation, private developers in Montgomery County have been able to partner with the local government, enticed by their more affordable financing options. +
++As word started to get around, city leaders elsewhere began reaching out, curious to learn about this model and whether it could help their own housing woes. Montgomery County was getting so many inquiries, they decided to host a convening in early November, inviting other officials â from places like New York City, Boston, Atlanta, and Chicago âto tour The Laureate and talk collectively about the public developer idea. Roughly 60 people were in attendance. +
++âI am very bought into the Zachary Marksâs line that there is every reason for cities to be building up a balance sheet of real estate equity and we should be capturing that and using it to reinvest in public goods,â said one municipal housing leader who attended the Montgomery County conference and spoke on the condition of anonymity because they were not authorized to talk to the media. âThatâs the vision â and you can just describe it in so many ways. You can say weâre socializing real estate value for public use, or you can describe it as weâre doing public-private partnerships to invest in our communities.â +
++Paul Williams, who leads the Center for Public Enterprise, a think tank supportive of social housing, said growing interest in the public developer model has even led to new conversations with the Department of Housing and Urban Development. âPublic agencies are clearly hungry for tools that allow them to produce a lot more housing, and in the past year and a half weâve gone from working with Montgomery County and Rhode Island to establishing a working group with a few dozen state and municipal housing agencies who come to our regular meetings,â he told Vox. âThatâs gotten HUDâs attention, and weâre now talking with them about ways the federal government can support this kind of innovation.â +
++Atlantaâs leaders are on track to implement the Montgomery County model +
++Perhaps no city has run as fast with the Montgomery County idea than Atlanta, Georgia. The cityâs mayor, Andre Dickens, took office in early 2022 and set an ambitious goal to build or preserve 20,000 affordable housing units within his eight-year term. The Dickens administration wanted to find ways to do this that didnât depend on the whims of Republicans in the state legislature or federal government. +
++One of the key strategies Dickensâs team has embraced is making use of property the city already owns, such as vacant land. âWe did not have a good sense of what we had, what we did not have, and what was the best use for any of it,â said Josh Humphries, a senior housing adviser to the mayor. +
++The Dickens administration convened an âaffordable housing strike forceâ to get a better understanding of the cityâs inventory and started studying affordable housing models around the world, including social housing in Vienna and Copenhagen. Atlanta leaders also participated in a national program called Putting Assets to Work and learned about the efforts in Montgomery County. +
++Humphries said what âreally sealed the dealâ on social housing for them was simply the scarcity of alternative tools to build affordable housing, since they were already exhausting all the available funding they had from the federal Low-Income Housing Tax Credit (LIHTC). +
++By the summer of 2023, armed with money from a city housing bond, the Atlanta Housing Authorityâs board of commissioners voted to create a new nonprofit that would help build mixed-income public housing for the city. Leaders estimate it could lead to 800 new units by 2029. +
++Atlantaâs first bid for private-market developers to construct social housing went out last month, and Humphries says theyâre excited about how their new financing could spark new partnerships. âThe combination of tools that we plan to use that are similar to what theyâre doing in Montgomery County, like being able to decrease property taxes and have better interest rates in your financing, is very enviable,â Humphries said. âIt has allowed us to have conversations with market-rate developers who maybe otherwise wouldnât be interested because they havenât been able to figure out how to make their other [private-sector] projects work.â +
++Boston wants to move forward with social housing, and Massachusetts might help +
++Since 2017, Boston has been working to redevelop some of its existing public housing projects by converting them into denser, mixed-income housing. Kenzie Bok, who was tapped by the cityâs progressive mayor last spring to lead the Boston Housing Authority, said that existing work helped pave the way for leaders to more quickly embrace the Montgomery County model. As in Atlanta, Bok and her colleagues have been trying to figure out how to build more affordable housing when they have no more federal tax credits available. +
++âI think everyone in the affordable housing community is looking around and saying, âGee, we have this [low-income housing tax credit] engine for development but it doesnât have capacity to meet the level we need,ââ Bok told me. And while the federal government could increase the tax credit volume, that requires action in Washington, DC, that for years has failed to materialize. +
++Bok grew interested in the Montgomery County model since it seemed to offer a way for her city to augment its affordable housing production without Congress. Bok was also intrigued by the potential of the revolving fund to spur more market-rate construction in Boston, which has slowed not only because of rising interest rates but also because institutional investors typically demand such high rates of return. +
++âThe default assumption is that affordable units are hard to build and market-rate ones will build themselves from a profit-motive perspective,â Bok said. âIn fact, we have a situation now where ironically itâs often affordable LIHTC units that can get built right now and other projects stall out.â +
++Bok and her colleagues realized itâs not that mixed-income projects donât generate profits â those profits just arenât 20 percent or higher. Mixed-income affordable housing wouldnât need to be produced at a loss, Boston leaders concluded, they just might not be tantalizing to certain aggressive real estate investors. By creating a revolving fund and leveraging public land to offer more affordable financing terms, Boston officials realized they could help generate more housing â both affordable and market-rate. +
++In January, in her State of the City address, Boston Mayor Michelle Wu pledged to grow the cityâs supply of public housing units by about 30 percent in the next 10 years, with publicly owned mixed-income housing being one way to get there. +
++To help move things forward, state lawmakers are also exploring the idea. This past fall, Massachusettsâs governor put placeholder language in a draft housing bond bill to support social housing and a revolving fund. The specifics are likely going to be hashed out later this spring, but the governorâs bond bill is widely expected to pass. +
++In Rhode Island, too, state-level interest in supporting the notion of publicly developed affordable housing has grown. Stefan Pryor, the stateâs secretary of housing, attended the Montgomery County, Maryland conference in November, and Rhode Island recently announced it would be contracting with the Furman Center, a prominent housing think tank at New York University, to study models of social housing. âWe look forward to the studyâs observations and findings,â Pryor told Vox. +
++Can mixed-income housing help those most in need? +
++Lawmakers intrigued by what Montgomery County is doing praise the fact that publicly owned mixed-income housing units theoretically offer affordable units to their communities forever, unlike affordable housing financed by the Low-Income Housing Tax Credit that can convert into market-rate rentals after 15 years. Leaders also like that after some initial upfront investment, the publicly owned projects start to pay for themselves, even delivering economic returns to the city down the line. +
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Charles Arrington
++But while housing complexes like The Laureate can offer real relief to struggling middle-class tenants â a quarter of The Laureateâs units are restricted to those earning 50 percent or less of the area median income â an outstanding question is whether the social housing model could also help those who are lower-income, who might require even more deeply subsidized housing. +
++In Washington, DC, some lawmakers have been exploring the social housing idea, and one progressive council member introduced a bill calling to support mixed-income housing accessible to those making 30 percent or less of the areaâs median income. But critics of the bill say that the rents of those living in nonsubsidized units would have to be so high to make that rental math work. +
++A housing official speaking on the condition of anonymity told me they think itâs okay if the social housing model can only really work to support more middle-class tenants in neighborhoods that charge higher rents because leaders still have financing tools to build more deeply affordable housing in lower-cost areas. In other words, social housing can grow the overall pie of affordable units throughout a city. +
++Other leaders, like in Boston and Atlanta, told me theyâre exploring how they could âlayerâ the mixed-income social housing model with additional subsidies to make them more accessible to lower-income renters. +
++Marks, from Montgomery County, knows thereâs still a lot of stigma and reservations about American public housing, which many perceive as being ugly, dirty, or unsafe. Few understand that many of the woes of existing public housing in the US have had to do with rules Congress passed nearly 100 years ago, such as restricting the housing to only the very poor. Besides getting his message out, Marks said he likes to just have people come see for themselves whatâs being done. +
++âThe temperature immediately comes down when people can walk around, see how attractive it is, how itâs clearly a high-quality community with nice apartments,â he said. âItâs why getting proof of concept is so important.â +