Unaffordable Housing: What it costs to rent a 2 Br Apt [Was: Affordable...
From: Fred H Olson (fholsoncohousing.org)
Date: Thu, 14 Jun 2018 07:36:36 -0700 (PDT)
The phrase "affordable housing" is problematic. It's meaning varies
different things in different uses.  The "generic meaning" might be
housing that people can afford but that might be 30% or income or
50% or... And in the US incomes vary tremendously.

"Affordable Housing" can also refer to a US program of subsidized housing
as Dick refered to.

"Low Income housing" is subsidzed more.

Note that there is not enough subsidized housing in the US to meet the
need so people must consider "market rate housing".

I changed the subject line to "Unaffordable" which I think only has the
generic meaning that Sharon meant originally.

Rocky Corner Cohousing http://www.rockycorner.org that Dick referred to
is unique in that it has a substantial number of subsidized units which
is the main way housing can be made more affordable in the US.

With the aid of an affordable housing consultant, Rocky Corner got a
$2.6 million grant to subsidize 13 of their 30 units to various levels:

5 -  60% of area median income
4 -  80% of area median income
4 - 100% of area median income

Fred

--
Fred H. Olson  Minneapolis,MN 55411  USA        (near north Mpls)
     Email:        fholson at cohousing.org      612-588-9532
My Link Pg: http://fholson.cohousing.org



The most important factor in incorporating affordable homes is that we hired
a housing consultant who only does affordable projects. He had not been
exposed to cohousing as a concept before we interviewed him, but he got it
right away. Similarly, we had not been exposed to affordable housing as a
concept before we interviewed him, and we got it right away. His expertise
is in dealing with the Connecticut Department of Housing to obtain funding
for affordable projects. Without him, there is no way this would have
happened. He secured $2.6 million, which is what covers the difference
between the cost of construction and the (significantly lower) selling price
for the thirteen homes.

While the thirteen homes are legally classified as affordable, that doesn't
mean everyone can afford them. Five of the homes are theoretically
affordable by a household earning up to 60% of area median income (AMI), but
they would not be affordable by someone earning much less unless they had
assets allowing them to buy the home outright. Four of the homes are for
people earning up to 80% AMI. Four are for people earning up to 100% AMI.

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