the need for affordable housing an overview hillsborough county, florida shimberg center for...
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The Need for Affordable Housing The Need for Affordable Housing An OverviewAn Overview
Hillsborough County, FloridaHillsborough 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, In today’s presentation, we will:we will:
Look briefly at Hillsborough 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 Hillsborough 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. . .
Hillsborough County Hillsborough County Households IHouseholds I
Total households (2005): almost 430,000About 61% of households have 1-2 persons,
about 30% of households have 3-4 household members, and 9% are large households with 5 or more persons
Hillsborough County’s household size distribution is almost identical to the State
Hillsborough County Hillsborough County Households IIHouseholds II
Hillsborough County households are younger in comparison to the State
About 23% of Hillsborough’s households are under age 35, and approximately 19% are 65 or above
For the state as a whole, 18% are under age 35 and 27% are 65 or older
Hillsborough County Households III: Hillsborough County Households III: Renters or Owners?Renters or Owners?
Owner-occupied housing accounted for about 65% of the households in Hillsborough County in 2005 (280,000)
Renter-occupied housing made up about 35% of Hillsborough County’s households in 2005 (150,000)
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 Hillsborough overview of Hillsborough
County’s households, let’s move County’s households, let’s move into a discussion of affordableinto a discussion of affordable
housing. . .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 NeedHillsborough County 2005Hillsborough County 2005
(households with incomes less than 80% AMI)(households with incomes less than 80% AMI) Cost burden greater than
– 30%: 92,834 households (38,279 owners, 54,555 renters)
– 40%: 63,691 households (26,767 owners, 36,924 renters
– 50%: 45,528 households (19,152 owners, 26,376 renters)
Severe cost burden is highly correlated with extremely low income
The distribution of cost burden in Hillsborough County is similar to the 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, Hillsborough Countyhousing need, Hillsborough County
(severely cost burdened households with (severely cost burdened households with incomes less than 80% AMI)incomes less than 80% AMI)
2005 – 2010:– 4,319 households
2,175 owners2,144 renters
Growth 2005-2025 averages 900 households annually
How much do households How much do households earn in Hillsborough County?earn in Hillsborough County?
Area Median Income (AMI) as defined by the U.S. Department of Housing and Urban Development is $52,150 for 2005, 51,200 in 2004 (Tampa Bay metropolitan area)
That means:– Half of our residents have household incomes
greater than $52,150; and– Half of our residents have household incomes
less than $52,150
Who earns less than AMI in Who earns less than AMI in Hillsborough County?Hillsborough County?
(based on Q3-2004 wage data)(based on Q3-2004 wage data) Public school teachers (K-12) Policemen Firefighters Nurses Secretaries Child Care Workers Maids and housekeepers Food Service Workers Retail Sales Clerks Many others
What does this mean in What does this mean in dollars?dollars?
Lower income households earn between $31,300 and $41,750
Low income households earn between $26,100 and $31,300
Very low income households earn between $15,650 and $26,100
Extremely low income households earn less than $15,650 per year
Let’s look at these categories Let’s look at these categories in another way:in another way:
Moderate income group may include experienced police officers and registered nurses
Lower income group may include less experienced firefighters, police officers and nurses
Low income group may include entry level teachers (K-12) and firefighters
Very low income group may include secretaries and retail salespersons
Extremely low income group may include child care workers, maids and housekeepers, food service workers, and retail salespersons
Now let’s look at rental Now let’s look at rental housing in Hillsborough housing in Hillsborough
County . . .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 Hillsborough County is $805
What income level would make this rental unit affordable?– Income would need to be approximately $2,700 per
month or $32,200 per year– This means household income would need to be more
than 60% of AMI
Using our example groups, Using our example groups, who cannot afford this rental who cannot afford this rental
unit?unit?Entry level firefighters and entry level
public school teachers, secretaries, child care workers, retail salespersons, maids and housekeepers, food service workers
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
Persons with Disabilities – Persons with Disabilities – Hillsborough County 2005 estimateHillsborough County 2005 estimate
Households with low income (<60% AMI), severe cost burden (50+%), and including at least one person age 15+ with a disability:– 19,961 households (8,671 owner households,
11,290 renter households)– Over 60% of these households have incomes
under 30% AMI– Approximately 2,500 of these households are in
substandard housing– Over half receive Social Security of SSI income
Assisted Housing Supply, Assisted Housing Supply, Preservation and Other IssuesPreservation and Other IssuesIn 2004 there were almost 20,000 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