The Cost of Fragmentation: A Comparison of State Affordable Housing Finance Governance Systems
Published On February 10, 2026
To finance and build affordable housing, developers across the United States need to assemble multiple funding sources at the federal, state, and local levels. Public funding sources can be administered by separate agencies or departments, each with its own requirements and timelines. This fragmentation can result in increased development costs, project delays, and added uncertainty for projects—all critical barriers to building affordable housing in high-cost, high-demand housing environments.
In a new series of resources, Terner Center researchers examine how states structure the governance of their affordable housing finance systems and the implications for accessing key subsidy programs, with the goal of lifting up effective models that may be replicable in other states.
Website Explainer
This interactive tool shows how fragmentation affects the financing of affordable housing projects. Maps offer at-a-glance information on which entities administer the key affordable housing finance programs for each state. The explainer also highlights best practices and recommendations for state reforms.
A Comparison of State Affordable Housing Finance Governance Systems
A landscape scan of all 50 states highlights noteworthy features of states’ systems. Stakeholder interviews and case studies of Maryland, Massachusetts, Minnesota, New York, North Carolina, and Oregon reveal challenges and ingredients for governance success.
What California Can Learn from the Affordable Housing Delivery Systems of Other States
California has invested over $40 billion in affordable housing since 2019, but the system to finance and develop affordable housing is highly fragmented and inefficient. As state leaders streamline efforts through the new California Housing and Homelessness Agency, this report explores what California can learn from other states to establish a more integrated and effective governance model.
Acknowledgments
We would like to thank Carolina Reid and Ben Metcalf for their careful reviews and thoughtful comments. In addition, we would like to thank our interviewees for sharing their perspectives with us. Additionally, we would like to acknowledge the research conducted by Samuel Arnett, MCP ’26, to support this project.
We gratefully acknowledge the support of the Chan Zuckerberg Initiative for this work.
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