Transcript Slide 1
the Campaign for Affordable Housing 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. the Campaign for Affordable Housing THE TRUTH ABOUT presented by AFFORDABLE HOUSING the Campaign for Affordable Housing the Campaign for Affordable Housing Taking Action to Solve America’s Housing Crisis USDA Photo the Campaign for Affordable Housing the Campaign for Affordable Housing 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. the Campaign for Affordable Housing Wages and the Cost of Housing in Los Angeles, California (Los Angeles, CA Metropolitan Area) Typical Annual Salaries (2005) Homeownership Market 2005 Median Priced Home1 Annual Income Needed3 $136,366 $49,515 Police Officer5 (Single- and Multi-Family) $430,000 $41,083 Firefighter5 Elementary School Teacher5 $51,166 Typical Hourly Wage (2005) Rental Market Hourly Wage Needed to Afford4 2005 Fair Market Rent2 Retail Salesperson5 1BR $900/Month 2BR $1,124/Month Janitor5 $17.31 1 Bedroom $21.62 2 Bedrooms $12.80 $12.35 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. 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. 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. 2Rental 3The the Campaign for Affordable Housing Wages and the Cost of Housing in Seattle, Washington (Seattle, WA Metropolitan Area) Typical Annual Salaries (2005) Homeownership Market 2005 Median Priced Home1 Annual Income Needed3 $87,210 $46,664 Police Officer5 (Single- and Multi-Family) $275,000 $38,718 Firefighter5 Elementary School Teacher5 $48,220 Typical Hourly Wage (2005) Rental Market Hourly Wage Needed to Afford4 2005 Fair Market Rent2 Retail Salesperson5 1BR $693/Month 2BR $834/Month Janitor5 $13.33 1 Bedroom $16.04 2 Bedrooms Construction Laborer5 $12.07 $11.64 $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. 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. 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. 2Rental 3The the Campaign for Affordable Housing Wages and the Cost of Housing in Atlanta, Georgia (Atlanta, GA Metropolitan Area) Typical Annual Salaries (2005) Homeownership Market 2005 Median Priced Home1 Annual Income Needed3 $52,326 $44,077 Police Officer5 (Single- and Multi-Family) $165,000 $36,571 Firefighter5 Elementary School Teacher5 $45,547 Typical Hourly Wage (2005) Rental Market Hourly Wage Needed to Afford4 2005 Fair Market Rent2 Retail Salesperson5 1BR $750/Month 2BR $834/Month Janitor5 $14.42 1 Bedroom $16.04 2 Bedrooms Construction Laborer5 $11.40 $10.99 $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. 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. 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. 2Rental 3The the Campaign for Affordable Housing Wages and the Cost of Housing in Chicago, Illinois (Chicago, IL Metropolitan Area) Typical Annual Salaries (2005) Homeownership Market 2005 Median Priced Home1 Annual Income Needed3 $72,940 $47,805 Police Officer5 (Single- and Multi-Family) $230,000 $39,664 Firefighter5 Elementary School Teacher5 $49,399 Typical Hourly Wage (2005) Rental Market Hourly Wage Needed to Afford4 2005 Fair Market Rent2 Retail Salesperson5 1BR $803/Month 2BR $906/Month Janitor5 $15.44 1 Bedroom $17.42 2 Bedrooms Construction Laborer5 $17.55 $11.92 $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. 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. 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. 2Rental 3The the Campaign for Affordable Housing Wages and the Cost of Housing in Wichita, Kansas (Wichita, KS Metropolitan Area) Typical Annual Salaries (2005) Homeownership Market 2005 Median Priced Home1 Annual Income Needed3 $33,299 $43,068 Police Officer5 (Single- and Multi-Family) $105,000 $35,734 Firefighter5 Elementary School Teacher5 $44,504 Typical Hourly Wage (2005) Rental Market Hourly Wage Needed to Afford4 2005 Fair Market Rent2 Retail Salesperson5 1BR $481/Month 2BR $624/Month Janitor5 1 Bedroom $9.25 $12.00 2 Bedrooms Construction Laborer5 $11.14 $10.74 $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. 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. 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. 2Rental 3The the Campaign for Affordable Housing Wages and the Cost of Housing in Tuscon, AZ (Tuscon, AZ Metropolitan Area) Typical Annual Salaries (2005) Homeownership Market 2005 Median Priced Home1 Annual Income Needed3 $56,132 $41,533 Police Officer5 (Single- and Multi-Family) $177,000 $34,460 Firefighter5 Elementary School Teacher5 $42,918 Typical Hourly Wage (2005) Rental Market Hourly Wage Needed to Afford4 2005 Fair Market Rent2 Retail Salesperson5 1BR $524/Month 2BR $673/Month Janitor5 1 Bedroom $10.08 $12.94 2 Bedrooms Construction Laborer5 $10.74 $10.36 $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. 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. 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. 2Rental 3The the Campaign for Affordable Housing Actual Income vs. Income Needed to Purchase Median Priced Home Median Home Price1 Income Needed2 2005 2005 2005 Diff 2005 Diff 2005 Diff Los Angeles, CA $430,000 $136,366 $49,515 ($86,851) $41,083 ($95,283) $51,166 ($85,200) Seattle, WA $275,000 $87,210 $46,664 ($40,546) $38,718 ($48,492) $48,220 ($38,990) Atlanta, GA $165,000 $52,326 $44,077 ($8,249) $36,571 ($15,755) $45,547 ($6,779) Chicago, IL $230,000 $72,940 $47,805 ($25,135) $39,664 ($33,276) $49,399 ($23,541) Wichita, KS $105,000 $33,299 $43,068 $9,769 $35,734 $2,435 $44,504 $11,205 Tuscon, AZ $177,000 $56,132 $42,918 ($13,214) $34,460 ($21,672) $42,918 ($13,214) Location Police Officer3 Firefighter3 Elementary School Teacher3 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. 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. 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. 2Rental 3The the Campaign for Affordable Housing Actual Income vs. Income Needed to Rent at Fair Market Value 1Bedroom Fair Market Value 2 Bedroom Fair Market Value 1 Bedroom Hourly Rate Needed 2 Bedroom Hourly Rate Needed Los Angeles, CA $900.00 $1,124.00 $17.31 $21.62 Seattle, WA $693.00 $834.00 $13.33 $16.04 Atlanta, GA $750.00 $834.00 $14.42 $16.04 Chicago, IL $803.00 $906.00 $15.44 $17.42 Wichita, KS $481.00 $624.00 $9.25 $12.00 Tuscon, AZ $524.00 $673.00 $10.08 $12.94 Location Retail Salesperson3 Location Janitor3 Construction Worker3 1BR Diff 2BR Diff 2005 1BR Diff 2BR Diff 2005 1BR Diff 2BR Diff Los Angeles, CA $12.80 ($4.51) (8.82) $12.35 ($4.96) ($9.27) $18.18 $0.87 ($3.44) Seattle, WA $12.07 ($1.26) (3.97) $11.64 ($1.69) ($4.40) $17.13 $3.80 $1.09 Atlanta, GA $11.40 ($3.02) (4.64) $10.99 ($3.43) ($5.05) $16.18 $1.76 $0.14 Chicago, IL $12.36 ($3.08) (5.06) $11.92 ($3.52) ($5.50) $17.55 $2.11 $0.13 Wichita, KS $11.14 $1.89 (0.86) $10.74 $1.49 ($1.26) $15.81 $6.56 $3.81 Tuscon, AZ $10.74 $0.66 (2.20) $10.36 $0.28 ($2.58) $15.25 $5.17 $2.31 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. 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. 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. 2Rental 3The the Campaign for Affordable Housing In spite of overall increases in homeownership rates, working families with children are finding it harder and harder to purchase a home. the Campaign for Affordable Housing The homeownership rate of working families with children in 2001 was almost 6 percentage points lower than it was prior to 1980. the Campaign for Affordable Housing 80 Homeownership Rates All Households and Working Families 1978–2001 65.2 66.9 63.9 68.0 70.5 67.5 68.4 63.4 62.5 55.8 56.3 56.6 1978 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. the Campaign for Affordable Housing 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. the Campaign for Affordable Housing “…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. the Campaign for Affordable Housing Working together, we can overcome NIMBYism with the truth. the Campaign for Affordable Housing Not in my Not in my backyard! backyard! Not in my Not in my Not in my backyard! backyard! backyard! the Campaign for Affordable Housing 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 the Campaign for Affordable Housing 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 the Campaign for Affordable Housing 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 the Campaign for Affordable Housing 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 the Campaign for Affordable Housing 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 the Campaign for Affordable Housing 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 the Campaign for Affordable Housing 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 to proceed $23,920 the Campaign for Affordable Housing THE TRUTH: Here are the occupations and employers of a real affordable apartment complex in San Jose, California. Company Name Occupation Company Name Occupation Aurelia’s Hair Time Budget Rent-A-Car Capezio Factory Outlet Capital Honda City of San Jose County of Santa Clara CRX Telecom Corporation Danforth Biomed, Inc. Emporium Food-4-Less IBM Corporation Beautician Administrative Assistant Sales Receptionist Typist Clerk II Child Counselor Receptionist/Clerk Technician Store Detective Cashier Associate Engineer Kaiser Hospital Micro Chassis Safeway San Jose State University San Jose Unified School District South Bay Pontiac/Cadillac Sorrento Cheese Company Spar Logic Studio 5 Clothing Tropicana Foods Wester Specialty Products Staff Assistant Welder Checker Instruction Assistant Bus Driver Installer/Technician Machine Operator Accountant Manager Cashier Stone Cutter 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). the Campaign for Affordable Housing THE TRUTH: Preserving existing affordable housing through rehabilitation repairs and improves communities... the Campaign for Affordable Housing Before… …and After... the Campaign for Affordable Housing the Campaign for Affordable Housing THE TRUTH: Well-designed housing comes in many densities. the Campaign for Affordable Housing 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 the Campaign for Affordable Housing 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) the Campaign for Affordable Housing THE TRUTH: Affordable housing comes in a size and design to fit every community. the Campaign for Affordable Housing There are many good ways to educate our communities about the need for affordable housing... the Campaign for Affordable Housing the Campaign for Affordable Housing the Campaign for Affordable Housing the Campaign for Affordable Housing the Campaign for Affordable Housing the Campaign for Affordable Housing the Campaign for Affordable Housing Working together to spread the truth helps those whose help we depend on to provide safe and stable homes to their own families. the Campaign for Affordable Housing The Campaign for Affordable Housing provides public education, advocacy training and advice for local groups who wish to expand housing opportunities for all. the Campaign for Affordable Housing 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 [email protected] www.tcah.org