How Do We Put the “Affordable” Back in “Affordable Housing”?
It’s a buzzword for politicians and developers: Affordability. It seems everyone agrees affordable housing is important and everyone wants it. But what exactly does “affordable” mean, and is it accomplishing what it should to truly help people and make a dent in the homelessness crisis?
The need for affordability
Indeed, homelessness numbers are reaching epidemic proportions. And society is responding — to some degree. The Affordable Housing Credit Improvement Act passed last year will expand the housing credit by 50% and increase current incentives to encourage developers to build rental homes that are affordable to extremely low-income households and to families in underserved rural and tribal communities.
But this may not be enough, considering how great the need is. Sources say that for every 100 of these “extremely low income” households, there are only 29 “affordable” rental units available.
And are they really affordable?
When it comes to renting, it’s been found that a person working 40 hours per week at a minimum-wage job can afford a two-bedroom apartment in “exactly zero counties nationwide.” And when it comes to buying a home, the challenges are just as big. Home prices are rising at twice the rate of wage growth.
According to the California Housing Consortium, housing is affordable if it costs no more than 30% of the monthly income. And, most affordable housing developments are designed for people with household incomes of 60% or less than the area median income. But, is that realistic? Consider a family with a household income of $30,000 a year, which is just below the poverty line for a family of four. For them to have affordable housing, they would need a unit that costs only $750 per month. Yet, RentCafe reports the average rent in Los Angeles for an apartment of only 791square feet is $2,500!
The Urban Institute Asserts, “To make a unit affordable to an extremely low-income family of three, you could charge no more than $540 a month. You could charge up to $1,081 for a family of three and still qualify for tax credits, but now you risk shutting out extremely low-income residents, like a parent of two children earning $21,125 as a retail cashier.”
Barriers at every turn
So, is affordable housing really affordable for the poverty stricken, disabled, addicted and mentally ill or even a single parent who is trying to provide? Moreover, even if such a unit could be found, how does a person who is struggling for various reasons afford even $750 per month, plus food, transportation, clothing, and perhaps counseling to overcome challenges and training to advance their careers and increase their incomes?
But many people believe low-income people are already getting assistance from the government. Why do they need additional supplements? Let’s break that down: Disability payments are roughly $800 if recipients are eligible, and oftentimes, they’re not. Any issue of substance abuse, which is highly prevalent in the homeless community, may exclude people from getting government support. And, what about food stamps? That’s another misperception. This federal benefit equates to about $640 per month for a family of four. I ask: Who is living on that — especially in California?
Still, even in these low amounts, accessing resources is still challenging. While volunteering at LA Mission on Skid Row, I learned a lot about how difficult it is to become eligible and approved for government benefits. The application process can be lengthy and complicated, and transportation is required to get to places of potential employment and prove you’ve submitted an application. There is also a requirement for a social security card and birth certificate — if you’re homeless, many of these items can be lost in a city-wide homeless “sweep.”
Things many of us take for granted can be deal-breakers when it comes to getting help. And even if help can be obtained, it usually isn’t enough.
Rethinking affordable
This is the reality facing homeless people and at-risk individuals and families — moms and children. Affordable isn’t “affordable.” There is limited supply and waiting lists for most units. Federal benefits are not enough, and they are hard to access. At the end of the day, homelessness is a social and shaming disease, and right now we are only treating the symptoms, and not the root causes. We need longer-term solutions, especially for those dealing with substance abuse and mental health and physical disabilities. And, when we say “affordable housing,” we need to look past the hype and buzz, and see what it’s really calling for.