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Busting theof Affordable Housing

the Campaign for Affordable Housing

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Busting theof Affordable Housing

the Campaign for Affordable Housing

5 MYTHS

BUSTING THE

OF AFFORDABLE HOUSING

Busting theof Affordable Housing

the Campaign for Affordable Housing

presented by

Busting theof Affordable Housing

the Campaign for Affordable Housing

Taking Action to Solve America’s Housing Crisis

the Campaign for Affordable Housing

Busting theof Affordable Housing

the Campaign for Affordable Housing

USDA Photo

Busting theof Affordable Housing

the Campaign for Affordable Housing

…and the truth is, it is good for the neighborhoods in which it is

built.

Affordable Housing is needed by individuals, families and

communities…

Busting theof Affordable Housing

the Campaign for Affordable Housing

In recent decades, home prices and rental rates have increased faster than income in most parts

of the country, increasing the need for affordable housing.

Busting theof Affordable Housing

the Campaign for Affordable Housing

Wages and the Cost of Housing in the United StatesHomeownership Market 2005

Median Priced Home1 (Single- and Multi-Family): $225,000

1Data on the median-priced home are from the National Association of Home Builders' Housing Opportunity Index for the first quarter (1Q) of 2005.2The annual income needed to qualify for a mortgage was calculated using the average prevailing interest rate, assumes a 10 percent downpayment and the use of private mortgage insurance, and includes principal, interest, taxes and insurance. 3Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.

Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.

$71,354

$45,320

$43,858

$36,531

Annual Income Needed2

Police Officer3

Nurse (LPN)3

Elementary School Teacher3

Typical Annual Salaries (2005)

$22,588

$22,753

Retail Salesperson3

Janitor3

Busting theof Affordable Housing

the Campaign for Affordable Housing

$15.37

$14.40

$12.87

$11.34

Hourly Wage Needed2

Child Care Worker3

Retail Salesperson3

Security Guard3

Typical Annual Salaries (2005)

$10.76

$9.97

Bank Teller3

Hair Dresser3

Wages and the Cost of Housing in the United StatesRental Market 2005

Fair Market Rent (2 Bedroom): $799/month

1Rental data are from the U.S. Department of Housing and Urban Development's report on Fair Market Rents for the year 2005 and are based on a survey of recently occupied units. 2The Hourly Wage Needed to Afford is the hourly wage that must be earned so that this rent does not exceed 30 percent of income, a standard measure of affordability. It is based on a concept developed by the National Low Income Housing Coalition. 3Wage data are as of February, 2005 and were obtained from a proprietary database of salary information by geographic location maintained by Salary.com.

Source: Paycheck to Paycheck 2005, and interactive database maintained by The Center for Housing Policy, the research affiliate of the National Housing Conference.

Busting theof Affordable Housing

the Campaign for Affordable Housing

As baby boomers enter retirement, higher demand for housing for

low-income seniors is expected.

USDA Photo

Busting theof Affordable Housing

the Campaign for Affordable Housing

Medical advances allow many older

and disabled Americans to live in their own homes for

longer periods.

Busting theof Affordable Housing

the Campaign for Affordable Housing

Why isn’t more affordable housing being built, especially when…

• The need is growing,• Many state and local laws require it,

and• Solutions exist?

Busting theof Affordable Housing

the Campaign for Affordable Housing

ANSWER:

Because many community residents and officials oppose the building of affordable housing based on misunderstandings…

Busting theof Affordable Housing

the Campaign for Affordable Housing

“…NIMBYism takes many forms. It can be as overt as a public demonstration against a new housing development. It also can be as insidious as the rigid application of zoning regulations that perpetuate social and economic segregation. Whatever its form, NIMBYism reflects the perception among existing residents that additional housing for low-to moderate-income people in their neighborhoods will hurt their property values or quality of life by increasing such problems as traffic congestion, crime and crowding of local public facilities.”1

1Paycheck to Paycheck: Wages and the Cost of Housing in Counties, published May 2004 by The Center for Housing Policy, the research affiliate of the National Housing Conference.

Busting theof Affordable Housing

the Campaign for Affordable Housing

We can all help expand the supply of safe, decent and affordable

housing by becoming...

Busting theof Affordable Housing

the Campaign for Affordable Housing

Myth Busters

Busting theof Affordable Housing

the Campaign for Affordable Housing

The 5 most common myths about affordable housing are:

1. Affordable housing is ugly.

2. Affordable housing produces more traffic.

3. Affordable housing increases crime.

4. Affordable housing overburdens schools and infrastructure.

5. Affordable housing lowers property values.

Busting theof Affordable Housing

the Campaign for Affordable Housing

Myth 1: Affordable housing is ugly.

THE TRUTH:Affordable housing is designed to

fit the community character in size and style. It is privately owned,

designed and developed.

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:

All over the country, the old public housing projects of the mid-20th century

are being torn down and replaced by attractive townhomes and apartments

through the HOPE IV program.

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:

Before Now

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:

Before Now

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:

Before

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:

Now

Busting theof Affordable Housing

the Campaign for Affordable Housing

Myth 2: Affordable housing produces more traffic.

THE TRUTH:Building affordable housing near jobs supports the increased use of public transportation, shortens commutes

and lessens congestion.

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:The National Personal Transportation

Survey found that low-income households make 40% fewer trips than other households.

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:

“Studies indicate that the average resident in a compact neighborhood will drive 20-30% less than residents of a neighborhood half as dense.” “At densities of 8 units per acre and higher, neighborhoods begin to support bus and rail transit….”SOURCE: John Holtzclaw, www.sierraclub.org Local Government Commission

Busting theof Affordable Housing

the Campaign for Affordable Housing

Myth 3: Affordable housing increases crime.

THE TRUTH:There is no correlation between safe, decent

and affordable housing and crime.

Studies show that what does cause crime (and a host of other socio-economic ills)

is community disinvestment, overcrowding, lack of jobs and community services.

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:Failure to build affordable housing leads to slum conditions of overcrowding, absentee owners and deteriorating properties

with no alternatives available to low income families.

Busting theof Affordable Housing

the Campaign for Affordable Housing

Myth 4: Affordable housing overburdens schools and infrastructure.

THE TRUTH:Studies show that traditional single-

family home neighborhoods have 2 to 3 times the number of school-aged

children than those residing in apartments.

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:Higher density housing provides

economies of scale for utility infrastructure in trunk lines

and treatment plants.

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:

The U.S. Office of Technology Assessment found that it cost $10,000 [per unit] more to provide infrastructure to a lower density suburban development than to a more compact urban neighborhood. (OTA-EII-643, 1995)

Infrastructure costs per housing unit significantly decline as density increases: in developments at 30 units per acre or greater to about $10,000 from $90,000 per unit when built at 4 units per acre. (Urban Land Institute, Wieman, 1996)

Busting theof Affordable Housing

the Campaign for Affordable Housing

Myth 5: Affordable housing lowers property values.

THE TRUTH:Academic studies and market analysis all prove otherwise.

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:Just like many other studies, one from Wayne State (Michigan) University tracked property values before and after affordable housing was built and found that affordable housing often has an insignificant or positive effect

on property values in higher-valued neighborhoods and improves values in

lower-valued neighborhoods.1

1See www.culma.wayne.edu/pubs/galster/NAR_report.pdf

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:Further studies that support this truth can be found at:

www.habitat.org/how/propertyvalues.aspx

www.inhousing.org/house1.htm

www.mcplan.org/c_p/brochures/Aff_hous-std.pdf

www.nw.org/network/NewsRoom/PressReleases/pdf/ExecutiveSummary.pdf

Busting theof Affordable Housing

the Campaign for Affordable Housing

THE TRUTH:

Busting theof Affordable Housing

the Campaign for Affordable Housing

To learn more about our programs, publications and workshops, contact us

at:The Campaign for Affordable Housing

5900 Wilshire Boulevard, 26th FloorLos Angeles, CA 90036(323) 330-0540 phone

(323) 330-0541 faxtcah@tcah.orgwww.tcah.org