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The Need for Affordable Housing An Overview Charlotte County, Florida. Shimberg Center for Affordable Housing M.E. Rinker, Sr. School of Building Construction College of Design, Construction and Planning University of Florida. In today’s presentation, we will:. - PowerPoint PPT Presentation
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The Need for Affordable Housing The Need for Affordable Housing An OverviewAn Overview
Charlotte County, FloridaCharlotte County, Florida
Shimberg Center for Affordable HousingM.E. Rinker, Sr. School of Building Construction
College of Design, Construction and PlanningUniversity of Florida
In today’s presentation, In today’s presentation, we will:we will:
Look briefly at Charlotte County household characteristics
Define affordable housing and “cost burden” Examine affordable housing need estimates and
projections Look at examples that illustrate who may
experience housing cost burden in Charlotte County
Briefly consider the impact of special population groups
Let’s get started by looking at Let’s get started by looking at general household general household characteristics. . .characteristics. . .
Charlotte County Households Charlotte County Households II
Total households (2005): 69,400 About 76% of households have 1-2 persons,
about 19% of households have 3-4 household members, and 5% are large households with 5 or more persons
Charlotte County has a higher percentage of smaller household compared to the State
Charlotte County Households Charlotte County Households IIII
Charlotte County households are much older in comparison to the State
9% of Charlotte’s households are under age 35, and approximately 46% are 65 or above
For the state as a whole, 18% are under age 35 and 27% are 65 or older
Charlotte County Households III: Charlotte County Households III: Renters or Owners?Renters or Owners?
Owner-occupied housing accounted for about 84% of the households in Charlotte County in 2005 (58,000)
Renter-occupied housing made up about 16% of Charlotte County’s households in 2005 (11,400)
Florida’s homeownership rate is about 70%U.S. homeownership rate is about 66%
Now that we’ve seen a brief Now that we’ve seen a brief overview of Charlotte County’s overview of Charlotte County’s households, let’s move into a households, let’s move into a
discussion of affordablediscussion of affordablehousing. . .housing. . .
.
What is Affordable Housing?What is Affordable Housing?
Housing is considered Housing is considered affordable if a household pays affordable if a household pays no more than 30 percent of its no more than 30 percent of its gross income for all housing gross income for all housing
related costs.related costs.
Rental housing is affordable if Rental housing is affordable if these items total no more than these items total no more than
30% of gross income:30% of gross income:RentElectricGasWater & Sewer
Homeownership is affordable if these Homeownership is affordable if these items total no more than 30% of items total no more than 30% of
gross income:gross income: Mortgage payment, including:
– Principal– Interest– Taxes– Insurance
Condominium fees or manufactured housing costs Electric Gas Water & Sewer
What is housing“cost burden?”What is housing“cost burden?”
Households are considered cost burdened if housing related costs exceed 30 percent of gross income.
Households who pay more than 30 percent of their gross income for housing may have difficulty affording other necessities such as food, child care, transportation and health care.
Affordable Housing NeedAffordable Housing Need
A common measure of housing need is the number of cost burdened households
Besides cost burden the other major component of affordable housing need estimates is household income:– defined as a percentage of area median income (AMI)
and adjusted for household size These components and their definitions are related
to program eligibility requirements
The need for affordable housing The need for affordable housing is frequently discussed using is frequently discussed using
these income levels:these income levels:
Moderate income: 80-120% AMILower income: 60-80% AMILow income: 50-60% AMIVery low income: 30-50% AMIExtremely low income: less than 30% AMI
and these cost burden levels:and these cost burden levels:
The conventional threshold of more than 30%Severe cost burden, more than 50% (DCA
summary indicator)Florida Housing’s threshold of 40%The choice of a level has significant
implications for numerical goals
Affordable Housing NeedAffordable Housing NeedCharlotte County 2005Charlotte County 2005
(households with incomes less than 80% AMI)(households with incomes less than 80% AMI) Cost burden greater than
– 30%: 10,603 households (7,274 owners; 3,329 renters)– 40%: 7,432 households (5,263 owners; 2,169 renters– 50%: 5,247 households (3,707 owners; 1,540 renters)
Severe cost burden is highly correlated with extremely low income
The distribution of cost burden in Charlotte County is somewhat lower than the overall State distribution
Current need and projected growthCurrent need and projected growth
Distinct policy and program issues– The current need for affordable housing is not a
construction need estimate– The growth in low income, cost burdened
households is a supply issue
Projected growth in affordable Projected growth in affordable housing need, Charlotte Countyhousing need, Charlotte County(severely cost burdened households with (severely cost burdened households with
incomes less than 80% AMI)incomes less than 80% AMI)
2005 – 2010:446 households
340 owners 106 renters
Growth 2005-2025 averages 100 households annually
How much do households How much do households earn in Charlotte County?earn in Charlotte County?
Area Median Income (AMI) as defined by the U.S. Department of Housing and Urban Development is $49,150 for 2005; 48,600 in 2004
That means in 2005:– Half of our residents have household incomes
greater than $49,150; and– Half of our residents have household incomes
less than $49,150
Now let’s look at rental Now let’s look at rental housing in Charlotte County . . housing in Charlotte County . .
..
Rental unit at HUD estimated Fair Rental unit at HUD estimated Fair Market RentMarket Rent
Fair Market Rent for a 2-bedroom rental unit in Charlotte County is $655
What income level would make this rental unit affordable?– Income would need to be approximately $2,200 per
month or $26,200 per year– This means household income would need to be more
than 50% of AMI
Who may be affected by Who may be affected by problems with housing problems with housing
affordability?affordability? Many of those who provide services essential to
community functioning, such as those employed providing public safety, nursing care, public education and child care.
Those who provide other essential services from which we benefit on a frequent basis, such as secretaries, retail clerks, food service workers and maids and housekeepers.
Special Population GroupsSpecial Population Groups
These groups may be disproportionately represented or may not be incorporated in estimates:– Elderly– Farmworkers– Homeless People– Persons with Disabilities
Assisted Housing Supply, Assisted Housing Supply, Preservation and Other IssuesPreservation and Other IssuesIn 2004 there were 1,600 units of assisted
rental housing, not including public housing units
Preservation of Florida’s assisted housing supply is under study by the Affordable Housing Study Commission
This presentation did not address housing condition or overcrowding
Link:Link:
Florida Housing Data Clearinghouse:– www.flhousingdata.shimberg.ufl.edu
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