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2. the Campaign for Affordable Housing THE TRUTH ABOUT AFFORDABLE HOUSING presented by

3. the Campaign for Affordable Housing Taking Action to Solve Americas Housing Crisis

4. the Campaign for Affordable Housing USDA Photo

5. 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.

6. the Campaign for Affordable Housing Wages and the Cost of Housing in Los Angeles, California (Los Angeles, CA Metropolitan Area) Rental Market 2005 Fair Market Rent 2 1BR $900/Month 2BR $1,124/Month Homeownership Market 2005 Median Priced Home 1 (Single- and Multi-Family) $430,000 $136,366 $49,515 $41,083 $51,166 Annual Income Needed 3 Police Officer 5 Firefighter 5 Elementary School Teacher 5 Typical Annual Salaries (2005) $17.31 $21.62 $12.80 $12.35 Hourly Wage Needed to Afford 4 Retail Salesperson 5 Janitor 5 Construction Laborer 5 Typical Hourly Wage (2005) $18.18 1 Bedroom 2 Bedrooms 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 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. 3 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. 4 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. 5 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.

7. the Campaign for Affordable Housing 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 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. 3 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. 4 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. 5 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. Wages and the Cost of Housing in Seattle, Washington (Seattle, WA Metropolitan Area) Rental Market 2005 Fair Market Rent 2 1BR $693/Month 2BR $834/Month Homeownership Market 2005 Median Priced Home 1 (Single- and Multi-Family) $275,000 Annual Income Needed 3 Police Officer 5 Firefighter 5 Elementary School Teacher 5 Typical Annual Salaries (2005) $87,210 $46,664 $38,718 $48,220 $13.33 $16.04 $12.07 $11.64 Hourly Wage Needed to Afford 4 Retail Salesperson 5 Janitor 5 Construction Laborer 5 Typical Hourly Wage (2005) $17.13 1 Bedroom 2 Bedrooms

8. the Campaign for Affordable Housing 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 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. 3 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. 4 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. 5 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. Wages and the Cost of Housing in Atlanta, Georgia (Atlanta, GA Metropolitan Area) Homeownership Market 2005 Median Priced Home 1 (Single- and Multi-Family) $165,000 $52,326 $44,077 $36,571 $45,547 Annual Income Needed 3 Police Officer 5 Firefighter 5 Elementary School Teacher 5 Typical Annual Salaries (2005) Rental Market 2005 Fair Market Rent 2 1BR $750/Month 2BR $834/Month $14.42 $16.04 $11.40 $10.99 Hourly Wage Needed to Afford 4 Retail Salesperson 5 Janitor 5 Construction Laborer 5 Typical Hourly Wage (2005) $16.18 1 Bedroom 2 Bedrooms

9. the Campaign for Affordable Housing 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 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. 3 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. 4 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. 5 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. Wages and the Cost of Housing in Chicago, Illinois (Chicago, IL Metropolitan Area) Homeownership Market 2005 Median Priced Home 1 (Single- and Multi-Family) $230,000 $72,940 $47,805 $39,664 $49,399 Annual Income Needed 3 Police Officer 5 Firefighter 5 Elementary School Teacher 5 Typical Annual Salaries (2005) Rental Market 2005 Fair Market Rent 2 1BR $803/Month 2BR $906/Month $15.44 $17.42 $17.55 $11.92 Hourly Wage Needed to Afford 4 Retail Salesperson 5 Janitor 5 Construction Laborer 5 Typical Hourly Wage (2005) $12.36 1 Bedroom 2 Bedrooms

10. the Campaign for Affordable Housing 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 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. 3 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. 4 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. 5 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. Wages and the Cost of Housing in Wichita, Kansas (Wichita, KS Metropolitan Area) Homeownership Market 2005 Median Priced Home 1 (Single- and Multi-Family) $105,000 $33,299 $43,068 $35,734 $44,504 Annual Income Needed 3 Police Officer 5 Firefighter 5 Elementary School Teacher 5 Typical Annual Salaries (2005) Rental Market 2005 Fair Market Rent 2 1BR $481/Month 2BR $624/Month $9.25 $12.00 $11.14 $10.74 Hourly Wage Needed to Afford 4 Retail Salesperson 5 Janitor 5 Construction Laborer 5 Typical Hourly Wage (2005) $15.81 1 Bedroom 2 Bedrooms

11. the Campaign for Affordable Housing 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 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. 3 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. 4 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. 5 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. Wages and the Cost of Housing in Tuscon, AZ (Tuscon, AZ Metropolitan Area) Homeownership Market 2005 Median Priced Home 1 (Single- and Multi-Family) $177,000 $56,132 $41,533 $34,460 $42,918 Annual Income Needed 3 Police Officer 5 Firefighter 5 Elementary School Teacher 5 Typical Annual Salaries (2005) Rental Market 2005 Fair Market Rent 2 1BR $524/Month 2BR $673/Month $10.08 $12.94 $10.74 $10.36 Hourly Wage Needed to Afford 4 Retail Salesperson 5 Janitor 5 Construction Laborer 5 Typical Hourly Wage (2005) $15.25 1 Bedroom 2 Bedrooms

12. the Campaign for Affordable Housing 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 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. 3 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. 4 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. 5 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. Actual Income vs. Income Needed to Purchase Median Priced Home Median Home Price 1 Income Needed 2 Police Officer 3 Firefighter 3 Elementary School Teacher 3 Location2005 Diff2005Diff2005Diff 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)

13. the Campaign for Affordable Housing 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 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. 3 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. 4 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. 5 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. 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 Location 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 Retail Salesperson 3 Janitor 3 Construction Worker 3 Location 1BR Diff2BR Diff20051BR Diff2BR Diff20051BR Diff2BR 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

14. 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.

15. 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.

16. the Campaign for Affordable Housing Homeownership Rates All Households and Working Families 1978–2001 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. All HouseholdsAll Families with ChildrenAll Working Families with Children (earning less than 120% A.M.I. but more than minimum wage) 0 80 65.2 63.9 66.9 68.0 70.5 63.4 67.5 68.4 62.5 55.8 56.3 56.6 1978 1991 1999 2001

17. 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.

18. 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.

19. the Campaign for Affordable Housing Working together, we can overcome NIMBYism with the truth.

20. the Campaign for Affordable Housing N ot in my backyard! N ot in my backyard! TRUTH Not in my backyard! Not in my backyard! Not in my backyard!

21. the Campaign for Affordable Housing Low Income (Below 80 percent of area median income for a family of four) 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. Truck Driver$30,100 THE TRUTH: to see next salary

22. the Campaign for Affordable Housing Legal Clerk$34,260 Low Income (Below 80 percent of area median income for a family of four) 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. THE TRUTH: to see next salary

23. the Campaign for Affordable Housing Deputy Sheriff$40,398 Low Income (Below 80 percent of area median income for a family of four) 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. THE TRUTH: to see next salary

24. the Campaign for Affordable Housing Firefighter$43,506 Low Income (Below 80 percent of area median income for a family of four) 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. THE TRUTH: to see next salary

25. the Campaign for Affordable Housing Nurses Aide$11,500 Very Low Income (Below 50 percent of area median income for a family of four) 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. THE TRUTH: to see next salary

26. the Campaign for Affordable Housing Accounting Clerk$17,000 Very Low Income (Below 50 percent of area median income for a family of four) 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. THE TRUTH: to see next salary

27. the Campaign for Affordable Housing Legal Secretary$23,920 Very Low Income (Below 50 percent of area median income for a family of four) 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. THE TRUTH: to proceed

28. the Campaign for Affordable Housing THE TRUTH: 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). Here are the occupations and employers of a real affordable apartment complex in San Jose, California. Company NameOccupation Aurelias Hair TimeBeautician Budget Rent-A-CarAdministrative Assistant Capezio Factory OutletSales Capital HondaReceptionist City of San JoseTypist Clerk II County of Santa ClaraChild Counselor CRX Telecom CorporationReceptionist/Clerk Danforth Biomed, Inc.Technician EmporiumStore Detective Food-4-LessCashier IBM CorporationAssociate Engineer Company NameOccupation Kaiser HospitalStaff Assistant Micro ChassisWelder SafewayChecker San Jose State UniversityInstruction Assistant San Jose Unified School DistrictBus Driver South Bay Pontiac/CadillacInstaller/Technician Sorrento Cheese CompanyMachine Operator Spar LogicAccountant Studio 5 ClothingManager Tropicana FoodsCashier Wester Specialty ProductsStone Cutter

29. the Campaign for Affordable Housing Preserving existing affordable housing through rehabilitation repairs and improves communities... THE TRUTH:

30. the Campaign for Affordable Housing Before…

31. the Campaign for Affordable Housing …and After...

32. the Campaign for Affordable Housing Well-designed housing comes in many densities. THE TRUTH:

33. the Campaign for Affordable Housing Higher density affordable housing decreases traffic congestion. 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

34. the Campaign for Affordable Housing Higher density affordable housing lowers infrastructure costs. 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)

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

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

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43. 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.

44. 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.

45. 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