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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.

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Presentation on theme: "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."— Presentation transcript:

1 Housing For All Calvert July 8, 2006

2 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 HFACs positions concerning the housing crisis To inspire, persuade, and motivate citizens to take an active role in solving the crisis

3 What is Affordable? Includes both renting and purchasing Compares local housing costs vs. local incomes Includes multiple income categories

4 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

5 Applying the HUD categories to Calvert County HUD CategoryAnnual SalaryHourly wage Low Income (LI) a.k.a. Workforce >50% to 80% AMI $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 $26,790less than $12.88 All three of these groups need Affordable Housing

6 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

7 OccupationAnnual Income% of Median IncomeHUD CategoryMax. Affordable Cashier Clerk$17,18523%ELI$46,000 Bank Teller$21,29024%ELI$62,000 Lab Tech$25,90529%ELI$80,000 Mechanic$36,51241%VLI$121,000 Teacher (Elem.)$39,50044%VLI$132,000 Nurse RN$50,68157%LI$176,000 Affordable Housing Purchase by Occupation * Source: Based on 30 yr. fixed rate mortgage at 6% with $0 down, $1000 property tax and $500 hazard insurance annually. ** Source: (searched on July 6, 2006)

8 House Prices* Min. Annual Income** To Afford % of Area Median Income Average$368,764$415,913 Median$310,000$350,000$98,300114% Housing Prices in Calvert *Source: ** Source: 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).

9 Clearly, not everyone can afford to buy. How about renting?

10 Source: Making the Rent is Tough, Too 45th Maryland is now ranked 45th among all states 6th from Worst – that is, 6th from Worst – in terms of affordable rents according to the National Low Income Housing Coalitions 2005 Out of Reach Report

11 Full-time workers in MD $19.62 per hour* must earn $19.62 per hour* in order to afford a 2-bedroom unit at the states fair market rent Source: National Low Income Housing Coalitions 2005 Out of Reach Report ( * Assumes only 1/3 of income can go to housing costs

12 Fair Market Rents for Calvert SizeFair Mkt Rent* Approx. Annual Income Needed** 0 BR (efficiency) $948$34,000 1 BR$1080 $39,000 2BR$1225 $44,000 3BR$1580 $57,000 4BR$2068 $74,500 *Source: Department of Housing and Urban Development ( ** Based on 1/3 of GROSS income

13 So Who in Calvert Can Afford A Two-bedroom Apartment at Fair Market Rent? OccupationHourly Wage Annual Income % of Median HUD Category Can Pay Fair Market Rent? Cashier/Clerk$8.26$17,18524%ELINo Bank Teller$10.24$21,29024%ELINo Lab Technician$12.45$25,90530%VLINo Mechanic$17.55$36,51242%VLINo Teacher (Elem.) $18.83$39,50045%LINo Nurse RN$24.37$50,68158%LIYes

14 Rental Properties Listed for Calvert County as of 7/6/06* Rent# of Properties* $ $ $ $ *Source:

15 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

16 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 isnt providing affordable housing, we must advocate for it

17 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 Countys elected leaders and agencies

18 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

19 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

20 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)

21 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)

22 Short Term Actions to Date: (Continued) Call to reinvigorate Affordable Housing Committee in Calvert County (Jan 06 – BOCC directed) Proposal for new uses for Countys Affordable Housing Fund (Proposal for land acquisition to be made; proposals for Fund also contained in IZ draft)

23 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

24 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

25 Encouraging the Possible Accessory Apartment

26 Encouraging the Possible Apartments over Businesses (Mixed Use)

27 Encouraging the Possible Inclusionary Zoning: Multi-unit Structures Promote Mixed-Income

28 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:

29 Standing Committees of HFAC (Where Do You Fit In?) Education Committee Communication/Publicity Political Action Task Force R & D

30 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

31 Action Steps Remember it is an election year HFAC Report card on all candidates Make Affordable Housing the critical issue Vote your values

32 Picture a County… Where development is based on need Where all new communities are mixed- income, 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

33 The reason we fail to make America better is that we aim too low

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