Tax incremental financing. Use it now to finance workforce housing: A developer selects a site and applies for permits to build multi-unit homes. Half would be market rate to generate profit; the remainder will be affordable for our workforce, including first responders and teachers. That initial development, like all that follows, will need to be subsidized. Those dollars will need to come from an existing public sector source. The incremental difference between the amount of the “before tax,” and “after tax” determined once construction is complete is reserved. Designated local governments then use that sum to fund the next affordable project, and on and on. Applying tax incremental financing to fund workforce housing is another example of thinking outside the box resulting in new, if yet untested, approaches to housing finance.

In the United States, where real estate is ultimately about profit and loss, the best way to bend the paradigm is to prove something different can be lucrative. But first you have to build it.