Today's affordable housing is defined by its cost, not its design or ownership status. Policymakers consider housing to be affordable when a family pays
no more than 30% of its total income on housing costs, including
rent and utilities or mortgage expenses. This definition is widely
used by local, state and federal governments and recognizes that
households have other essential expenses including food, clothing,
healthcare, childcare, education and transportation. Housing is
affordable if it meets this 30% test. Unfortunately, too many people in the East Bay face much higher housing costs.
When EBHO refers to “affordable housing,” we also mean
housing that is affordable to people with low and moderate
incomes. The definition of these income levels is established by the
U.S. Department of Housing and Urban Development (HUD) as
a percent of the Area Median Income (AMI) and varies annually
from region to region and by household size. You can find HUD’s
income levels for the state from the California Department of Housing and Community Development.
Why does it matter now?
Despite the recent economic downturn, the housing crisis in the
East Bay remains severe. Even for working families
with two or more income earners, rents and home prices are
high relative to combined job income and unemployment has made it difficult for many families to meet their housing and other expenses. Future prospects in the job market are not expected to improve significantly. According to the
California Employment Development Department, the occupations
that will add the most jobs in California are low-paying and require
no advanced education. This means that hard-working people may still need help to afford a safe, stable, and appropriate place to live.
Foreclosures have had a huge impact not only for homeowners, but for renters. Tenants are sometimes (unlawfully) evicted without notice when their landlord goes into foreclosure, and with more families losing their homes the competition for quality and affordable apartments has grown. That's why EBHO advocates for preserving our current stock of affordable housing, and to help nonprofits, governments and others to create more housing for the future.
For more information on housing affordability, see EBHO's Guidebook, or visit the following sites:
- Housing California
- Non-Profit Housing Association of Northern California
- National Low-Income Housing Coalition
- Center for Budget and Policy Priorities