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3. Busting the of Affordable Housing the Campaign for Affordable Housing 5 MYTHS BUSTING THE OF AFFORDABLE HOUSING

4. Busting the of Affordable Housing the Campaign for Affordable Housing presented by

5. Busting the of Affordable Housing the Campaign for Affordable Housing Taking Action to Solve Americas Housing Crisis the Campaign for Affordable Housing

6. Busting the of Affordable Housing the Campaign for Affordable Housing USDA Photo

7. Busting the of Affordable Housing the Campaign for Affordable Housing …and the truth is, it is good for the neighborhoods in which it is built. Affordable Housing is needed by individuals, families and communities…

8. Busting the of 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.

9. Busting the of Affordable Housing the Campaign for Affordable Housing Wages and the Cost of Housing in the United States Homeownership Market 2005 Median Priced Home 1 (Single- and Multi-Family): $225,000 1 Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005. 2 The 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. 3 Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com. Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference. $71,354 $45,320 $43,858 $36,531 Annual Income Needed 2 Police Officer 3 Nurse (LPN) 3 Elementary School Teacher 3 Typical Annual Salaries (2005) $22,588 $22,753 Retail Salesperson 3 Janitor 3

10. Busting the of Affordable Housing the Campaign for Affordable Housing $15.37 $14.40 $12.87 $11.34 Hourly Wage Needed 2 Child Care Worker 3 Retail Salesperson 3 Security Guard 3 Typical Annual Salaries (2005) $10.76 $9.97 Bank Teller 3 Hair Dresser 3 Wages and the Cost of Housing in the United States Rental Market 2005 Fair Market Rent (2 Bedroom): $799/month 1 Rental 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. 2 The 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. 3 Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com. Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.

11. Busting the of Affordable Housing the Campaign for Affordable Housing As baby boomers enter retirement, higher demand for housing for low-income seniors is expected. USDA Photo

12. Busting the of Affordable Housing the Campaign for Affordable Housing Medical advances allow many older and disabled Americans to live in their own homes for longer periods.

13. Busting the of Affordable Housing the Campaign for Affordable Housing Why isnt more affordable housing being built, especially when… The need is growing, Many state and local laws require it, and Solutions exist?

14. Busting the of Affordable Housing the Campaign for Affordable Housing ANSWER: Because many community residents and officials oppose the building of affordable housing based on misunderstandings…

15. Busting the of Affordable Housing 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 1 Paycheck 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.

16. Busting the of Affordable Housing the Campaign for Affordable Housing We can all help expand the supply of safe, decent and affordable housing by becoming...

17. Busting the of Affordable Housing the Campaign for Affordable Housing Myth Busters

18. Busting the of Affordable Housing the Campaign for Affordable Housing The 5 most common myths about affordable housing are: 1. Affordable housing is ugly. 2. Affordable housing produces more traffic. 3. Affordable housing increases crime. 4. Affordable housing overburdens schools and infrastructure. 5. Affordable housing lowers property values.

19. Busting the of Affordable Housing the Campaign for Affordable Housing Myth 1: Affordable housing is ugly. THE TRUTH: Affordable housing is designed to fit the community character in size and style. It is privately owned, designed and developed.

20. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH:

21. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: All over the country, the old public housing projects of the mid-20 th century are being torn down and replaced by attractive townhomes and apartments through the HOPE IV program.

22. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: Before Now

23. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: Before Now

24. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: Before

25. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: Now

26. Busting the of Affordable Housing the Campaign for Affordable Housing Myth 2: Affordable housing produces more traffic. THE TRUTH: Building affordable housing near jobs supports the increased use of public transportation, shortens commutes and lessens congestion.

27. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: The National Personal Transportation Survey found that low-income households make 40% fewer trips than other households.

28. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: 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

29. Busting the of Affordable Housing the Campaign for Affordable Housing Myth 3: Affordable housing increases crime. THE TRUTH: There is no correlation between safe, decent and affordable housing and crime. Studies show that what does cause crime (and a host of other socio-economic ills) is community disinvestment, overcrowding, lack of jobs and community services.

30. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: Failure to build affordable housing leads to slum conditions of overcrowding, absentee owners and deteriorating properties with no alternatives available to low income families.

31. Busting the of Affordable Housing the Campaign for Affordable Housing Myth 4: Affordable housing overburdens schools and infrastructure. THE TRUTH: Studies show that traditional single-family home neighborhoods have 2 to 3 times the number of school-aged children than those residing in apartments.

32. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: Higher density housing provides economies of scale for utility infrastructure in trunk lines and treatment plants.

33. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: 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)

34. Busting the of Affordable Housing the Campaign for Affordable Housing Myth 5: Affordable housing lowers property values. THE TRUTH: Academic studies and market analysis all prove otherwise.

35. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: Just like many other studies, one from Wayne State (Michigan) University tracked property values before and after affordable housing was built and found that affordable housing often has an insignificant or positive effect on property values in higher-valued neighborhoods and improves values in lower-valued neighborhoods. 1 1 See www.culma.wayne.edu/pubs/galster/NAR_report.pdf

36. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH: Further studies that support this truth can be found at: www.habitat.org/how/propertyvalues.aspx www.inhousing.org/house1.htm www.mcplan.org/c_p/brochures/Aff_hous-std.pdf www.nw.org/network/NewsRoom/ PressReleases/pdf/ExecutiveSummary.pdf

37. Busting the of Affordable Housing the Campaign for Affordable Housing THE TRUTH:

38. Busting the of Affordable Housing 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 tcah@tcah.org www.tcah.org