1. Richard Y. Nelson Jr. Director Montgomery County Department of Housing and Community Affairs Wednesday, May 9th

2.  In Montgomery County, and the Washington region as a whole, we are victims of our own success.  The County and indeed the entire region are great places to live, work, visit, and invest.

3.  Unfortunately for many people who work in the County, it is simply not affordable to live here. This is an issue not just for us in Montgomery County, but for jurisdictions throughout the region.

4.  Because of the area’s recent economic growth, the region suffers from a shortage of about 67,000 housing units to house workers.  The shortage is projected to grow to nearly 383,000 by 2010, according to Professor Fuller of George Mason University.

5.  And we continue to grow  By 2030 the region will add 1.2 million new jobs and 1.6 million new people.  In Montgomery County we will grow by 170,000 new jobs, 215,000 new people, and 94,000 new homes.

6.  But over 75% of our region’s households are not located within identified centers of activity for employment, transit or commercial activity.

7.  COG’s forecast for 2025 indicates that the region has not fully addressed the mismatch between “jobs and housing” or the separation of housing and employment locations.

8. In Montgomery County --  The average median income in the county is $94,500 for a household of four – one of the highest in the state.  The median home sales price is close to $600,000 –  $850,000 new detached  $565,000 existing detached  $535,000 new townhome  $360,000 existing townhome

9.  To afford the median priced home, a family of four would need an income of $150,000. (bank underwriting equates affordability at 4 times annual salary.)  A large number of residents currently pay more than 30 percent of their income on housing per month.

10.  As a result for many families the only affordable housing options are a great distance from their work.  The result is that while families may save money on housing costs, transportation and commuting costs increase significantly.

11.  Nationally, a working family spends 77 cents more on transportation for every dollar saved on housing.  Working families spend 28% of their income on housing and 29% of their income on commuting to work.

12.  Issues for employers  Retention, recruitment, etc.  Issues for community  Traffic congestion, air quality etc.  Issues for employees  Increased costs  Stress, less time to spend with families

13. What Montgomery County is doing –Workforce Housing Requirements –Increased Housing Initiative Fund –Affordable Residential Development on County owned land –Affordable Housing Task Force –Outreach to employers for Employer Assisted Housing (EAH)