What is “Affordable?” - Housing for All Calvert

Report
Housing For All Calvert
July 8, 2006
Why Are We Here?
• To explain the ‘language’ of “affordable housing”
• To inform citizens about a serious problem: the
lack of affordable housing in Calvert County
• To inform citizens about HFAC’s positions
concerning the housing crisis
• To inspire, persuade, and motivate citizens to take
an active role in solving the crisis
What is “Affordable?”
• Includes both renting and purchasing
• Compares local housing costs vs. local
incomes
• Includes multiple income categories
Quantifying Affordability
• Need a measure that considers a full range of
incomes
• Standard tool: Area Median Income (AMI)
– Calvert County 2006 AMI: $86,300*
Source: Maryland Department of Housing & Community Development
Applying the HUD categories to
Calvert County
HUD Category
Annual Salary
Hourly wage
$44,650 - $71,440
$21.47 to $34.35
Very Low Income (VLI)
>30% to 50% AMI
$26,790 - $44,649
$12.88 to $21.47
Extremely Low Income (ELI)
Less than 30% AMI
Less than $26,790
less than $12.88
Low Income (LI)
a.k.a. “Workforce”
>50% to 80% AMI
All three of these groups need Affordable Housing
Some Basic Mortgage Math
What You Can Buy Based on Income
• Lenders: mortgage + other debts = 1/3
• Other 2/3 = everything else
• Food
• Utilities
• Transportation
Affordable Housing Purchase by Occupation
Affordability by Income
6
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
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Max. Affordable Purchase*
# of Properties Available
Occupation
Occupation
Annual Income
% of Median Income
HUD Category
Max. Affordable
Cashier Clerk
$17,185
23%
ELI
$46,000
Bank Teller
$21,290
24%
ELI
$62,000
Lab Tech
$25,905
29%
ELI
$80,000
Mechanic
$36,512
41%
VLI
$121,000
Teacher (Elem.)
$39,500
44%
VLI
$132,000
Nurse RN
$50,681
57%
LI
$176,000
* Source: http://www.mortgage-calc.com/mortgage/howmuchborrow.html Based on 30 yr. fixed rate mortgage at 6% with $0
down, $1000 property tax and $500 hazard insurance annually.
** Source: www.homesdatabase.com (searched on July 6, 2006)
Housing Prices in Calvert
House Prices*
2005
2006
Min. Annual
Income**
To Afford
% of Area
Median
Income
$98,300
114%
Average $368,764 $415,913
Median
$310,000 $350,000
*Source: http://www.mdrealtor.org/consumer_housingstats_May_06.asp
** Source: http://www.mortgage-calc.com/mortgage/howmuchafford.html 30 yr fixed rate
mortgage at 7% with 10% down, $2400 for property taxes, and $600 for insurance. Assumes no
mortgage insurance (requires subsidy instead), and no other monthly payments (e.g. credit cards).
Clearly, not everyone can afford to buy.
How about renting?
Making the Rent is Tough, Too
Maryland is now ranked 45th among all states
– that is, 6th from Worst –
in terms of affordable rents according to the
National Low Income Housing Coalition’s
2005 “Out of Reach” Report
Source: www.nlihc.org
Full-time workers in MD
must earn $19.62 per hour*
in order to afford a 2-bedroom
unit at the state’s fair market rent
Source: National Low Income Housing Coalition’s
2005 “Out of Reach” Report (www.nlihc.org)
* Assumes only 1/3 of income can go to housing costs
Fair Market Rents for Calvert
Size
Fair Mkt
Rent*
Approx. Annual
Income Needed**
0 BR
(efficiency)
1 BR
$948
$34,000
$1080
$39,000
2BR
3BR
4BR
$1225
$1580
$2068
$44,000
$57,000
$74,500
*Source: Department of Housing and Urban Development (www.huduser.gov)
** Based on 1/3 of GROSS income
So Who in Calvert Can Afford A Two-bedroom
Apartment at Fair Market Rent?
Occupation
Hourly
Wage
Annual
Income
% of
Median
HUD
Category
Can Pay Fair
Market Rent?
Cashier/Clerk
$8.26
$17,185
24%
ELI
No
Bank Teller
$10.24
$21,290
24%
ELI
No
Lab Technician
$12.45
$25,905
30%
VLI
No
Mechanic
$17.55
$36,512
42%
VLI
No
Teacher
(Elem.)
$18.83
$39,500
45%
LI
No
Nurse RN
$24.37
$50,681
58%
LI
Yes
Rental Properties Listed for
Calvert County as of 7/6/06*
Rent
# of Properties*
$1000-1200
6
$900-999
0
$800-899
5
$700- 799
0
*Source: www.homesdatabase.com
Numbers from the Calvert County
Housing Authority Waiting Lists
• Public Family Housing: 341
• Section 8 Voucher Program: 537 (no new
vouchers being issued or names being
accepted)
• Senior Buildings: 355
The Bottom Line
• The farther below AMI, the greater the
struggle will be to find affordable housing
• We need affordable housing for all
• If the market isn’t providing affordable
housing, we must advocate for it
Recommendations
• Our program is for the people who live
and/or work in Calvert County
• Not in conflict with objectives of limited
growth
• We want to work with County’s elected
leaders and agencies
Recommendations (Continued)
• Our proposals address the current situation
in Calvert County
• Current market, land costs, and County
policies combine to eliminate private
development of new affordable housing
• Minimal government initiatives to build
affordable housing
Recommendations (Continued)
• To get new affordable housing built as soon as
possible (the crisis is NOW)
• To have the County live up to its stated goals and
actions for new housing in the Comprehensive
Plan :
“encourage the availability of a variety of housing types to serve different
income groups of Calvert County residents (and different ‘age groups’
and ‘family sizes’)”
“encourage a mix of family income ranges and a variety of housing types
within new communities”
Short Term Actions to Date:
• Call to eliminate excise tax on accessory
apartments (Letter sent December 2005)
• Call to encourage the construction of
accessory apartments (Testimony given)
• Call to reduce zoning barriers and punitive
covenants (Testimony given)
Short Term Actions to Date: (Continued)
• Urge adoption of an Inclusionary Zoning
Ordinance requiring affordable units in all
new developments (Draft submitted
November, 2005; BOCC directed to study
2006)
• Call to establish single point of contact for
housing and housing assistance (BOCC
established Jan 2006)
Short Term Actions to Date: (Continued)
• Call to reinvigorate Affordable Housing
Committee in Calvert County (Jan 06 –
BOCC directed)
• Proposal for new uses for County’s
Affordable Housing Fund (Proposal for land
acquisition to be made; proposals for Fund
also contained in IZ draft)
Summary of Proposed Draft Inclusionary Zoning
• Developers of 10 or more dwelling units required to set aside
15% of units for affordable housing or, alternatively, contribute
$100,000 per unit to Affordable Housing (Housing Opportunities)
Trust Fund
• Household income below 80% of Area Median Income eligible for
affordable unit. Availability for a whole range of incomes
• Cost offsets for builders for each affordable Unit
Longer Term Goals
•
•
•
•
•
Establish Charitable Housing Trust
Provide Checklists/how-to resource
Expand expedited permit process
Push zoning reviews of Town Centers
Encourage creative partnerships among government,
builders, and civic and religious organizations
• Continue meeting with county leaders
• Provide information, education, and communication
• Expand HFAC base of allies
Encouraging the Possible
Accessory Apartment
Encouraging the Possible
Apartments over Businesses (Mixed Use)
Encouraging the Possible
Inclusionary Zoning:
Multi-unit Structures
Promote Mixed-Income
Expanding HFAC Base: Join Us!
•
•
•
•
•
Get on the HFAC Mailing List
Attend HFAC Meetings
Disseminate info to congregation/organizations
Support HFAC initiatives
Participate in HFAC public events & actions and
invite others to attend
• Speak out on behalf of those who need housing
• Check our website: www.housingforallcalvert.org
Standing Committees of HFAC
(Where Do You Fit In?)
•
•
•
•
Education Committee
Communication/Publicity
Political Action Task Force
R&D
Action Steps
• Become an Organizational Liaison between
HFAC and your congregation, club, etc.
• Write letters to the editor
• Invite others to join in our effort
Action Steps
•
•
•
•
Remember it is an election year
HFAC Report card on all candidates
Make Affordable Housing the critical issue
Vote your values
Picture a County…
• Where development is based on need
• Where all new communities are mixedincome, mixed-use, mixed opportunity
• Where growth is planned as a natural
outgrowth and in-fill of town centers, a
place where people can walk to work and
services
• Where open space can remain open space
“The reason we fail to make America better is
that we aim too low”

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