Housing For All Calvert July 8, 2006
Mar 29, 2015
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”