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THE TRUTH ABOUT AFFORDABLE HOUSING

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THE TRUTH ABOUT AFFORDABLE HOUSING

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  1. This presentation is designed to run automatically. However, it will stop at certain points to allow you to review the information being presented at your own pace. When you see the mouse symbol () appear in the upper, right-hand corner of your screen, you must left-click your mouse, or press the space bar or right arrow key on your keyboard to proceed through the presentation. You may click the back arrow key to move backward through the presentation. Thank you.

  2. THE TRUTH ABOUT AFFORDABLE HOUSING presented by

  3. the Campaignfor Affordable Housing Taking Action to Solve America’s Housing Crisis

  4. USDA Photo

  5. In recent decades, home prices and rental rates have increased faster than income in most parts of the country, increasing the need for affordable housing.

  6. Typical Annual Salaries (2005) Annual Income Needed3 $136,366 Homeownership Market 2005 Median Priced Home1 (Single- and Multi-Family) $430,000 $49,515 Police Officer5 $41,083 Firefighter5 Elementary SchoolTeacher5 $51,166 Typical Hourly Wage (2005) 1 Bedroom $17.31 Hourly Wage Needed to Afford4 Rental Market 2005 Fair Market Rent2 1BR $900/Month 2BR $1,124/Month $21.62 2 Bedrooms $12.80 Retail Salesperson5 $12.35 Janitor5 Construction Laborer5 $18.18 Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference. 1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005. 2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.  Wages and the Cost of Housing in Los Angeles, California (Los Angeles, CA Metropolitan Area)

  7. Wages and the Cost of Housing in Seattle, Washington (Seattle, WA Metropolitan Area) Typical Annual Salaries (2005) Annual Income Needed3 $87,210 Homeownership Market 2005 Median Priced Home1 (Single- and Multi-Family) $275,000 $46,664 Police Officer5 $38,718 Firefighter5 Elementary SchoolTeacher5 $48,220 Typical Hourly Wage (2005) 1 Bedroom $13.33 Hourly Wage Needed to Afford4 Rental Market 2005 Fair Market Rent2 1BR $693/Month 2BR $834/Month $16.04 2 Bedrooms $12.07 Retail Salesperson5 $11.64 Janitor5 Construction Laborer5 $17.13 Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference. 1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005. 2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com. 

  8. Wages and the Cost of Housing in Atlanta, Georgia Typical Annual Salaries (2005) Annual Income Needed3 $52,326 $44,077 Police Officer5 $36,571 Firefighter5 Elementary SchoolTeacher5 $45,547 Typical Hourly Wage (2005) 1 Bedroom $14.42 Hourly Wage Needed to Afford4 $16.04 2 Bedrooms $11.40 Retail Salesperson5 $10.99 Janitor5 Construction Laborer5 $16.18 Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference. 1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005. 2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.  (Atlanta, GA Metropolitan Area) Homeownership Market 2005 Median Priced Home1 (Single- and Multi-Family) $165,000 Rental Market 2005 Fair Market Rent2 1BR $750/Month 2BR $834/Month

  9. Wages and the Cost of Housing in Chicago, Illinois (Chicago, IL Metropolitan Area) Typical Annual Salaries (2005) Annual Income Needed3 $72,940 Homeownership Market 2005 Median Priced Home1 (Single- and Multi-Family) $230,000 $47,805 Police Officer5 $39,664 Firefighter5 Elementary SchoolTeacher5 $49,399 Typical Hourly Wage (2005) 1 Bedroom $15.44 Hourly Wage Needed to Afford4 Rental Market 2005 Fair Market Rent2 1BR $803/Month 2BR $906/Month $17.42 2 Bedrooms $17.55 Retail Salesperson5 $11.92 Janitor5 Construction Laborer5 $12.36 Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference. 1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005. 2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com. 

  10. Wages and the Cost of Housing in Wichita, Kansas (Wichita, KS Metropolitan Area) Typical Annual Salaries (2005) Annual Income Needed3 $33,299 Homeownership Market 2005 Median Priced Home1 (Single- and Multi-Family) $105,000 $43,068 Police Officer5 $35,734 Firefighter5 Elementary SchoolTeacher5 $44,504 Typical Hourly Wage (2005) $9.25 1 Bedroom Hourly Wage Needed to Afford4 Rental Market 2005 Fair Market Rent2 1BR $481/Month 2BR $624/Month $12.00 2 Bedrooms $11.14 Retail Salesperson5 $10.74 Janitor5 Construction Laborer5 $15.81 Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference. 1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005. 2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com. 

  11. Wages and the Cost of Housing in Tuscon, AZ (Tuscon, AZ Metropolitan Area) Typical Annual Salaries (2005) Annual Income Needed3 $56,132 Homeownership Market 2005 Median Priced Home1 (Single- and Multi-Family) $177,000 $41,533 Police Officer5 $34,460 Firefighter5 Elementary SchoolTeacher5 $42,918 Typical Hourly Wage (2005) $10.08 1 Bedroom Hourly Wage Needed to Afford4 Rental Market 2005 Fair Market Rent2 1BR $524/Month 2BR $673/Month $12.94 2 Bedrooms $10.74 Retail Salesperson5 $10.36 Janitor5 Construction Laborer5 $15.25 Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference. 1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005. 2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com. 

  12. Actual Income vs. Income Needed to Purchase Median Priced Home Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference. 1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005. 2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com. 

  13. Actual Income vs. Income Needed to Rent at Fair Market Value Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference. 1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005. 2Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 3The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 4The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 5Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com. 

  14. In spite of overall increases in homeownership rates, working families with children are finding it harder and harder to purchase a home.

  15. The homeownership rate of working families with children in 2001 was almost 6 percentage points lower than it was prior to 1980.

  16. Homeownership Rates All Householdsand Working Families 1978–2001 80 70.5 68.4 68.0 67.5 66.9 65.2 63.9 63.4 62.5 1978 56.6 56.3 55.8 1991 1999 2001 0 All Households All Families with Children All Working Families with Children (earning less than 120% A.M.I. but more than minimum wage)  Source: Working Families with Children: A Closer Look at Homeownership Trends, published May 2004 by The Center for Housing Policy, the research affiliate of the National Housing Conference.

  17. Opposition to affordable housing makes it difficult and costly to construct or renovate houses and apartments and undermines efforts to win political support for funding, zoning and project approvals.

  18. “…NIMBYism takes many forms. It can be as overt as a public demonstration against a new housing development. It also can be as insidious as the rigid application of zoning regulations that perpetuate social and economic segregation. Whatever its form, NIMBYism reflects the perception among existing residents that additional housing for low-to moderate-income people in their neighborhoods will hurt their property values or quality of life by increasing such problems as traffic congestion, crime and crowding of local public facilities.”1 1Paycheck to Paycheck: Wages and the Cost of Housing in Counties, published May 2004 by The Center for Housing Policy, the research affiliate of the National Housing Conference. 

  19. Working together, we can overcome NIMBYism with the truth.

  20. TRUTH TRUTH TRUTH TRUTH TRUTH Not in my backyard! Not in my backyard! Not in my backyard! Not in my backyard! Not in my backyard!

  21. THE TRUTH: People Who Need Affordable Housing Are Our Neighbors Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas. Low Income (Below 80 percent of area median income for a family of four) Truck Driver $30,100  to see next salary

  22. THE TRUTH: People Who Need Affordable Housing Are Our Neighbors Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas. Low Income (Below 80 percent of area median income for a family of four) Legal Clerk $34,260  to see next salary

  23. THE TRUTH: People Who Need Affordable Housing Are Our Neighbors Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas. Low Income (Below 80 percent of area median income for a family of four) Deputy Sheriff $40,398  to see next salary

  24. THE TRUTH: People Who Need Affordable Housing Are Our Neighbors Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas. Low Income (Below 80 percent of area median income for a family of four) Firefighter $43,506  to see next salary

  25. THE TRUTH: People Who Need Affordable Housing Are Our Neighbors Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas. Very Low Income (Below 50 percent of area median income for a family of four) Nurses Aide $11,500  to see next salary

  26. THE TRUTH: People Who Need Affordable Housing Are Our Neighbors Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas. Very Low Income (Below 50 percent of area median income for a family of four) Accounting Clerk $17,000  to see next salary

  27. THE TRUTH: People Who Need Affordable Housing Are Our Neighbors Most people who reside in affordable housing work. Here are examples of occupations and the typical annual salary levels in urban areas. Very Low Income (Below 50 percent of area median income for a family of four) Legal Secretary $23,920  to proceed

  28. Company Name Occupation Aurelia’s Hair Time Beautician Budget Rent-A-Car Administrative Assistant Capezio Factory Outlet Sales Capital Honda Receptionist City of San Jose Typist Clerk II County of Santa Clara Child Counselor CRX Telecom Corporation Receptionist/Clerk Danforth Biomed, Inc. Technician Emporium Store Detective Food-4-Less Cashier IBM Corporation Associate Engineer Company Name Occupation Kaiser Hospital Staff Assistant Micro Chassis Welder Safeway Checker San Jose State University Instruction Assistant San Jose Unified School District Bus Driver South Bay Pontiac/Cadillac Installer/Technician Sorrento Cheese Company Machine Operator Spar Logic Accountant Studio 5 Clothing Manager Tropicana Foods Cashier Wester Specialty Products Stone Cutter  THE TRUTH: Here are the occupations and employers of a real affordable apartment complex in San Jose, California. SOURCES: San Franciscan Bay Guardian (10/7/98); Nonprofit Housing Association of Northern California ; Good Neighbors Affordable Family Counseling; Jones, Pettus & Pyatok (1997); Annual Planning Information, Contra Costa County (1993); Marin Independent Journal (2/23/97); City of San Jose Memorandum (1/3/95).

  29. THE TRUTH: Preserving existing affordable housing through rehabilitation repairs and improves communities...

  30. Before…

  31. …and After...

  32. THE TRUTH: Well-designed housing comes in many densities.

  33. THE TRUTH: Higher density affordable housing decreases traffic congestion. “Studies indicate that the average resident in a compact neighborhood will drive 20-30% less than residents of a neighborhood half as dense.” “At densities of 8 units per acre and higher, neighborhoods begin to support bus and rail transit….” SOURCE: John Holtzclaw, www.sierraclub.org Local Government Commission

  34. THE TRUTH: Higher density affordable housing lowers infrastructure costs. The U.S. Office of Technology Assessment found that it cost $10,000 [per unit] more to provide infrastructure to a lower density suburban development than to a more compact urban neighborhood. (OTA-EII-643, 1995) Infrastructure costs per housing unit significantly decline as density increases: in developments at 30 units per acre or greater to about $10,000 from $90,000 per unit when built at 4 units per acre. (Urban Land Institute, Wieman, 1996)

  35. THE TRUTH: Affordable housing comes in a size and design to fit every community.

  36. There are many good ways to educate our communities about the need for affordable housing...

  43. Working together to spread the truth helps those whose help we depend on to provide safe and stable homes to their own families.

  44. The Campaign for Affordable Housing provides public education, advocacy training and advice for local groups who wish to expand housing opportunities for all.

  45. To learn more about our programs, publications and workshops, contact us at: The Campaign for Affordable Housing 5900 Wilshire Boulevard, 26th Floor Los Angeles, CA 90036 (323) 330-0540 phone (323) 330-0541 fax tcah@tcah.org www.tcah.org

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