Increasing the supply of affordable housing in Orange County
Introduction
In this case study, we delve into a collaborative effort to address the critical issue of increasing the supply of affordable housing for Section-8 candidates in Orange County North Carolina. The initiative aimed to tackle the shortage of affordable housing, driven by a lack of trust among landlords.
Problem
The primary problem faced in Orange County was a severe shortage of affordable housing for individuals living below the poverty line. A close collaboration with project managers at OCHD was pivotal in understanding pain points and evaluating previous efforts to address these challenges effectively. We were able to identify two key challenges that exacerbated the housing shortage:
Lack of Trust: Landlords hesitated to rent to Section-8 tenants due to concerns about timely payments and a lack of transparency in the rental process.
Lack of Social Proof: There was a notable absence of success stories or positive examples of landlords participating in the Section-8 program, making it difficult to convince others to join.
Goal:
The overarching goal was to significantly increase the supply of housing available to Section-8 tenants, thereby addressing the affordable housing crisis in Orange County.
Some of our recommendations:
Transparency Enhancement (low hanging fruit):
Increasing the operational transparency such as providing clear information on expected payment dates would increase trust and remove uncertainty from the rental process as it’s been proven that people have a low tolerance for ambiguity. Since poor servicing has consequences and implementation is cheap, this was one of our immediate recommendations as a team.
Social Proof Building:
A vital component of the strategy involved collecting positive reviews and success stories from landlords who had participated in the Section-8 program. These testimonials were to be prominently shared to reassure hesitant landlords.
Enhance their existing incentive Program:
To encourage long-term participation, this incentive reward program was re-designed to incorporate a bonus amount for referrals. In addition, landlords who remained in the program for consecutive years would gain access to discounted professional services such as accounting and advertising, enhancing the value proposition for their involvement.
Conclusion:
By embracing behavioral science principles of transparency, social proof, and motivation, these recommendations would not only improve trust and transparency but also expand housing access for vulnerable populations. This case study underscores the potential of behavioral interventions in addressing complex societal challenges.
