|
Learn more: Resource Library | Technical Assistance | Helpful Links "Affordable housing" is a term that conjures varying images for people. Many people automatically think of public housing. Others think of “workforce housing” affordable for nurses, teachers and firefighters, while others are unsure what makes housing affordable or unaffordable. In the simplest terms, affordable housing is housing for which a household spends no more than 30% of its income. Generally, households that make around 80% of the area median income or less have the most difficulty finding affordable housing. Therefore, most people define affordable housing as a home that doesn't cost a household making 80% of the area median income or less more than 30% of that income. When households spend more than 30% of their income on housing, they may not have enough income for other necessities, such as food, clothing, medical care, transportation, utilities or emergencies, especially if it is a low income household. The Problem Although median income in Connecticut is high at $68,5951, housing prices in the state have grown substantially since 2000. The price for a single-family home in Connecticut rose by 62% from 2000 to 2008, while personal income rose by only 38%.2 Rental housing in Connecticut has also risen in price. According to Census data, median household income for Connecticut renters is only $35,4653, which works out to a job paying $17.05 an hour. In contrast, the housing wage - the amount a person must make per hour to afford a typical two-bedroom apartment without spending more than 30% of their income on housing - is now $21.60.4 For many households, these kinds of housing prices are a significant burden. Because of rising housing prices, 40% of Connecticut households spent more than 30% of their income on housing in 2008, with over 25% of those households making less than 80% of the state’s median income, up from 19% in 2004.5 These statistics show that many households in Connecticut struggle to find a decent, safe and affordable place to live. Solutions A variety of mechanisms can be used to make housing more affordable. Affordable units can be built and operated by government agencies, as is the case with public housing, which is constructed and maintained through public subsidies. In large part, the government has stopped producing affordable housing and instead both the federal and state governments provide production subsidies to private for-profit and not-for-profit developers to create affordable housing. Many of these programs also include minimum requirements regarding the number of the units that must be affordable to people making 30%, 50%, 60% or 80% of the area median income. (For more information on these programs, click here). Housing is also made affordable through housing voucher programs such as the federal Section 8 program (Housing Choice Voucher Program) and the state Rental Assistance Program (RAP). Voucher recipients typically pay 30% to 40% of their income on housing, but are able to use a voucher to fill the gap between their contribution and the actual cost of renting the unit. Affordable housing can also be increased through inclusionary zoning laws that require a certain percentage of new units developed in that town to be affordable. The state of Connecticut enacted a version of inclusionary zoning in 1990, called the Affordable Housing Land Use Appeals Act (also known as 8-30g). Under this Act, if a town does not have at least 10% of their housing designated as affordable, the town is much more limited in its ability to reject an affordable housing development proposal. The towns of Stamford and Norwalk have enacted their own municipal inclusionary zoning laws that require housing developers to include affordable units or pay a fee in lieu of providing those units. In addition, a recently enacted state statute - the Connecticut Housing Program for Economic Growth - provides incentives to municipalities that create overlays zones where higher density mixed-income housing is allowed (for more information about this Program, please visit www.homeconnecticut.org). A Range of Needs Affordable housing is needed by a wide variety of people, including families, single individuals, the elderly, the disabled and the chronically homeless. Because so many different kinds of people need affordable housing, it is built in many shapes and sizes, such as multifamily rentals, town homes, condominiums or single-family homes. This housing may also be built according to the needs of the residents who will live there. For disabled and elderly residents, affordable housing units will be constructed to include ramps, hand rails, low countertops or wide doorways. Supportive housing developments often include space for service providers, such as social workers, or for community services, like computer training facilities or meeting rooms. The community of people working on affordable housing issues includes advocates, policy makers, for-profit and non-profit developers, bankers, intermediaries, loan funds, academics, planners, interested citizens and politicians. They bring with them different perspectives and ideas about how to create more affordable housing in Connecticut.
Quick Links Affordable Housing Resources, Lyceum Resources Connecticut Housing Finance Authority DECD Housing Development Programs and Services, CT Department of Economic and Community Development (DECD) Fair Market Rents, HUD User Finding Housing or Services, Lyceum Helpful Links Housing Affordability in Connecticut: 2008, HOMEConnecticut Campaign Housing Production Finance Programs, Lyceum Resources HUD Income Limits, HUD User Listing of Local Housing Authorities, CT DECD Out of Reach: 2009, Connecticut Housing Coalition Out of Reach: 2009, National Low Income Housing Coalition State of Connecticut 2007-08 Action Plan for Housing and Community Development, CT DECD
1. U.S. Census. 2008 American Community Survey. "Median Household Income for Connecticut." <www.census.gov>
2. Analysis undertaken by the Partnership for Strong Communities for the HOMEConnecticut Campaign. Data sources: The Warren Group - Median Home Sales Price <www.thewarrengroup.com>; Bureau of Economic Analysis - State Personal Income >
3. U.S. Census. 2008 American Community Survey. "Median Household Income by Tenure for Connecticut." <www.census.gov>
4. "Connecticut Out of Reach Report, 2009." Connecticut Housing Coalition and National Low Income Housing Coalition. <http://www.ct-housing.org/out_of_reach_2006.html>
5. U.S Census. 2007 American Community Survey. "Tenure by Housing Costs as a Percentage of Household Income." <www.census.gov>
|
