Cohousing-L Mailing List: Low Income Housing

[Sharon Villines (sharon]

Reminder about affordable vs low income. They are different things. 80% of 
market rate is still out of the range of millions of people who need housing.

Zillows mortgage rate calculator:

http://www.zillow.com/mortgage-calculator/house-affordability/

According to Zillow a family of four earning twice the poverty level, ~ $50,000 
a year, IF they have a $20,000 downpayment and can cover the closing costs 
($4,000?), can afford to mortgage a house costing $195,000. 

I doubt if many families of four earning $50,000 a year have $24,000 just 
sitting around ready to use. Some cities, like DC have had programs from time 
to time in which they paid the downpayment for first time homebuyers who 
qualified. The programs vary in details but that might make it possible in some 
cities at some time.

But even this level excludes those earning less than $50,000 a year. This 
requires a whole different paradigm.

Having some low income units in a varied income community, means the top 
earners are subsidizing the lowest earners. Why does anyone have to live in a 
subsidy? Why does anyone want to be subsidizing an unknown neighbor? This works 
if people know and trust each other but I haven’t seen it work when people 
don’t. It’s the long term issues that David Mandel mentioned that make this 
unworkable. Housing is “permanent”, not I’ll give you $100 this month. It’s 
$100 every month as long as you and your neighbor live there.

We need a model that reduces income inequality — not one that allows it to 
continue. Land trusts, etc., do not correct. They just blunt the effects for a 
few people and the programs themselves become a support for a badly managed 
economic system. They keep it limping along.

Everything everyone has said is true. But none of it solves any problems. How 
much low income cohousing has resulted from discussions of land trusts?

All the plans in the world to “require” some homes to be sold for 80% of market 
value probably cost more to administer than just giving people the money for 
down-payments. We need a new system and to think differently. Thinking 
sociocratically would fundamentally change the way we approach social problems. 

Sharon
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Sharon Villines, Washington DC

Logic will get you from A to B.  Imagination will take you everywhere.