Cohousing-L Mailing List: Re: What does affordable mean?

[Jock Coats (jock.coats]

For information, in the UK, government housing departments, NGOs and  
economists suggest that for housing to be affordable, the regular  
costs to the resident - ie rent or mortgage and any management or  
service charge, but not including any property taxes, insurance and  
so on, should consume no more than about 30% of adjusted net  
household income.

i say about, because obviously it differs with the overall income -  
at £15,000 adjusted net household income it should be about 25% max  
rising to 35% max at about £35,000 net adjusted household income per  
annum.

The adjustment is to account for the composition of the household.  A  
single person needs to spend less on food, clothes and so on for the  
same income as a couple with two kids sort of thing.  Younger kids  
cost less than older kids.  The adjustment factors can make quite a  
difference.

These figures are used by local authorities up and down the country  
to determine whether a builder is providing "genuinely affordable"  
housing for example as part of their planning/zoning obligations.

Just thought you'd like to know how we do it!

Jock

On 11 Sep 2006, at 22:40, Rob Sandelin wrote:

> This word, affordable, seems to vary quite a bit in definition. I  
> am not
> sure that there is a good definition either, so I would encourage  
> folks who
> seek or ask about affordability to define that in terms of an upper  
> dollar
> home price limit, therefore clarifying what you are really seeking.  
> I would
> think sometime who defines affordable, simple living as being a  
> home under
> $60,000 would be discouraged by somebody defining affordable as  
> $240,000.
> Sure, if the other homes in your development cost $400,000 each ,  
> then $250K
> is a bargain, but it is still not necessarily affordable depending  
> upon what
> you do for a living and how much debt you are willing to carry.
>
> At Sharingwood we have one, hand built shack of recycled scrounged  
> materials
> that was built for free by the owner, on a lot he paid $20,000 for  
> many
> years ago. We have another person who has acquired a lot from their  
> parents,
> who also was intending to hand build a small, shack sized dwelling  
> for under
> $5,000 in new material costs. Both of these shacks will use the  
> commonhouse
> plumbing systems (at a small monthly surcharge). Both are small  
> enough that
> they are considered non-code buildings. This is clearly simple and
> affordable living by most definitions but not reproducible, it is  
> unlikely
> either of the two existing unbuilt lots will sell, if they ever go  
> up for
> sale which is not currently the case,  at anything less than full  
> market
> value which is probably around $90,000 at this point.
>
>
> Rob Sandelin
> Sharingwood Cohousing
> Naturalist, Writer
> The Environmental Science School
> http://www.nonprofitpages.com/nica/SVE.htm
> > <((((º>`·..·`·..·`·...><((((º>...·`·..·`·...><((((º>.·`·..·`·...>< 
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--
Jock Coats - Chair, Oxfordshire Community Land Trusts
c/o Warden's Flat 1e, J Block Morrell Hall, OXFORD, OX3 0FF
w: +44 (0)1865 483353 h: +44 (0)1865 485019
m: +44 (0)7769 695767 e: jock.coats [at] oclt.org.uk
www: http://www.oclt.org.uk/ - http://jockcoats.blogspot.com/