What is Naturally Occurring Affordable Housing (NOAH)?

What is Naturally Occurring Affordable Housing (NOAH)?

Naturally Occurring Affordable Housing (NOAH) refers to residential properties that are affordable without government subsidies or formal affordable housing programs. These properties typically consist of older buildings, such as apartments, duplexes, or single-family homes, that are not subject to rent restrictions but are priced lower due to their age, location, or condition. NOAH properties are an important component of the housing market, providing affordable housing options for low- to moderate-income individuals and families.

Key characteristics of NOAH include:

1. Affordability: NOAH units are affordable to people earning low to moderate incomes, often those making between 60% to 80% of the area median income (AMI).
2. Market-Driven: The affordability of NOAH units is determined by the market rather than by government regulation or subsidies.
3. Older Buildings: NOAH properties are usually older and may not have the same modern amenities or energy efficiency as newer, more expensive properties.
4. Maintenance and Condition: These properties may require more maintenance and upkeep, both for owners and tenants, due to their age.
5. Location: NOAH properties are often found in less desirable locations, which can contribute to their affordability.
6. Vulnerability to Market Forces: NOAH units are susceptible to market pressures, such as rising property values and redevelopment, which can lead to displacement of tenants and loss of affordable housing stock.

Preservation of NOAH helps maintain affordable housing options in communities, as the loss of these units can exacerbate housing affordability crises. Strategies to preserve NOAH include policy measures like tax incentives for property owners, funding for maintenance and repairs, and the creation of community land trusts.