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.

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 of affordable housing in Calvert County• To inform citizens about HFAC’s positions

concerning the housing crisis• To inspire, persuade, and motivate citizens to take

an active role in solving the crisis

What is “Affordable?”• Includes both renting and purchasing

• Compares local housing costs vs. local incomes

• Includes multiple income categories

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

Applying the HUD categories to Calvert County

HUD Category Annual Salary Hourly 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 $26,790 less than $12.88

All three of these groups need Affordable Housing

Some Basic Mortgage MathWhat You Can Buy Based on Income

• Lenders: mortgage + other debts = 1/3

• Other 2/3 = everything else• Food

• Utilities

• Transportation

Occupation Annual Income % of Median Income HUD Category Max. Affordable

Cashier Clerk $17,185 23% ELI $46,000

Bank Teller $21,290 24% ELI $62,000

Lab Tech $25,905 29% ELI $80,000

Mechanic $36,512 41% VLI $121,000

Teacher (Elem.) $39,500 44% VLI $132,000

Nurse RN $50,681 57% LI $176,000

Affordable Housing Purchase by Occupation

* Source: http://www.mortgage-calc.com/mortgage/howmuchborrow.html Based on 30 yr. fixed rate mortgage at 6% with $0 down, $1000 property tax and $500 hazard insurance annually.

** Source: www.homesdatabase.com (searched on July 6, 2006)

Affordability by Income

0

1

2

3

4

5

6

Occupation

$0$20,000$40,000$60,000$80,000$100,000$120,000$140,000$160,000$180,000$200,000

Max. Affordable Purchase*

# of Properties Available

House Prices* Min. Annual Income**

To Afford

% of Area Median Income

2005 2006

Average $368,764 $415,913

Median $310,000 $350,000 $98,300 114%

Housing Prices in Calvert

*Source: http://www.mdrealtor.org/consumer_housingstats_May_06.asp

** Source: http://www.mortgage-calc.com/mortgage/howmuchafford.html 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).

Clearly, not everyone can afford to buy.

How about renting?

Source: www.nlihc.org

Making the Rent is Tough, Too

Maryland is now ranked 45th45th among all states

– that is, 6th from Worst6th from Worst –

in terms of affordable rents according to the

National Low Income Housing Coalition’s

2005 “Out of Reach” Report

Full-time workers in MD must earn $19.62 per hour$19.62 per hour**

in order to afford a 2-bedroom unit at the state’s fair market rent

Source: National Low Income Housing Coalition’s 2005 “Out of Reach” Report (www.nlihc.org)

* Assumes only 1/3 of income can go to housing costs

Fair Market Rents for Calvert

Size Fair 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 (www.huduser.gov)

** Based on 1/3 of GROSS income

So Who in Calvert Can Afford A Two-bedroom Apartment at Fair Market Rent?

Occupation Hourly Wage

Annual Income

% of Median

HUD Category

Can Pay Fair Market Rent?

Cashier/Clerk $8.26 $17,185 24% ELI No

Bank Teller $10.24 $21,290 24% ELI No

Lab Technician $12.45 $25,905 30% VLI No

Mechanic $17.55 $36,512 42% VLI No

Teacher (Elem.)

$18.83 $39,500 45% LI No

Nurse RN $24.37 $50,681 58% LI Yes

Rental Properties Listed for Calvert County as of 7/6/06*

Rent # of Properties*

$1000-1200 6

$900-999 0

$800-899 5

$700- 799 0

*Source: www.homesdatabase.com

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

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 isn’t providing affordable housing, we must advocate for it

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 County’s elected leaders and agencies

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

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”

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)

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)

Short Term Actions to Date: (Continued)

• Call to reinvigorate Affordable Housing Committee in Calvert County (Jan 06 – BOCC directed)

• Proposal for new uses for County’s Affordable Housing Fund (Proposal for land acquisition to be made; proposals for Fund also contained in IZ draft)

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

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

Encouraging the Possible

Accessory Apartment

Encouraging the Possible

Apartments over Businesses (Mixed Use)

Encouraging the Possible

Inclusionary Zoning: Multi-unit Structures Promote Mixed-Income

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: www.housingforallcalvert.org

Standing Committees of HFAC(Where Do You Fit In?)

• Education Committee

• Communication/Publicity

• Political Action Task Force

• R & D

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

Action Steps

• Remember it is an election year

• HFAC Report card on all candidates

• Make Affordable Housing the critical issue

• Vote your values

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

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