What is

1
Housing For All Calvert
July 8, 2006
2
Why Are We Here?

• To explain the language of affordable housing
  
• To inform citizens about a serious problem the
  lack of affordable housing in Calvert County
• To inform citizens about HFACs positions
  concerning the housing crisis
• To inspire, persuade, and motivate citizens to
  take an active role in solving the crisis

3
What is Affordable?

• Includes both renting and purchasing
• Compares local housing costs vs. local incomes
• Includes multiple income categories

4
Quantifying Affordability

• Need a measure that considers a full range of
  incomes
• Standard tool Area Median Income (AMI)
• Calvert County 2006 AMI 86,300

Source Maryland Department of Housing
Community Development
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Applying the HUD categories to Calvert County
HUD Category Annual Salary Hourly wage
Low Income (LI) a.k.a. Workforce gt50 to 80 AMI 44,650 - 71,440 21.47 to 34.35
Very Low Income (VLI) gt30 to 50 AMI 26,790 - 44,649 12.88 to 21.47
Extremely Low Income (ELI) Less than 30 AMI Less than 26,790 less than 12.88
All three of these groups need Affordable Housing
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Some Basic Mortgage MathWhat You Can Buy Based
on Income

• Lenders mortgage other debts 1/3
• Other 2/3 everything else
• Food
• Utilities
• Transportation

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Affordable Housing Purchase by Occupation
Occupation Annual Income of Median Income HUD Category Max. Affordable
Cashier Clerk 17,185 23 ELI 46,000
Bank Teller 21,290 24 ELI 62,000
Lab Tech 25,905 29 ELI 80,000
Mechanic 36,512 41 VLI 121,000
Teacher (Elem.) 39,500 44 VLI 132,000
Nurse RN 50,681 57 LI 176,000
Source http//www.mortgage-calc.com/mortgage/h
owmuchborrow.html Based on 30 yr. fixed rate
mortgage at 6 with 0 down, 1000 property tax
and 500 hazard insurance annually. Source
www.homesdatabase.com (searched on July 6, 2006)
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Housing Prices in Calvert
House Prices House Prices Min. Annual Income To Afford of Area Median Income
2005 2006 Min. Annual Income To Afford of Area Median Income
Average 368,764 415,913
Median 310,000 350,000 98,300 114
Source http//www.mdrealtor.org/consumer_housing
stats_May_06.asp Source http//www.mortgage-c
alc.com/mortgage/howmuchafford.html 30 yr fixed
rate mortgage at 7 with 10 down, 2400 for
property taxes, and 600 for insurance. Assumes
no mortgage insurance (requires subsidy instead),
and no other monthly payments (e.g. credit cards).
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• Clearly, not everyone can afford to buy.
• How about renting?

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Making the Rent is Tough, Too

• Maryland is now ranked 45th among all states
• that is, 6th from Worst
• in terms of affordable rents according to the
• National Low Income Housing Coalitions
• 2005 Out of Reach Report

Source www.nlihc.org
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Full-time workers in MD must earn 19.62 per
hour in order to afford a 2-bedroom unit at
the states fair market rent Source National
Low Income Housing Coalitions 2005 Out of
Reach Report (www.nlihc.org) Assumes only 1/3
of income can go to housing costs
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Fair Market Rents for Calvert
Size Fair Mkt Rent Approx. Annual Income Needed
0 BR (efficiency) 948 34,000
1 BR 1080 39,000
2BR 1225 44,000
3BR 1580 57,000
4BR 2068 74,500

Source Department of Housing and Urban
Development (www.huduser.gov) Based on 1/3 of
GROSS income
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So Who in Calvert Can Afford A Two-bedroom
Apartment at Fair Market Rent?
Occupation Hourly Wage Annual Income of Median HUD Category Can Pay Fair Market Rent?
Cashier/Clerk 8.26 17,185 24 ELI No
Bank Teller 10.24 21,290 24 ELI No
Lab Technician 12.45 25,905 30 VLI No
Mechanic 17.55 36,512 42 VLI No
Teacher (Elem.) 18.83 39,500 45 LI No
Nurse RN 24.37 50,681 58 LI Yes
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Rental Properties Listed for Calvert County as
of 7/6/06
Rent of Properties
1000-1200 6
900-999 0
800-899 5
700- 799 0

Source www.homesdatabase.com
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Numbers from the Calvert County Housing Authority
Waiting Lists

• Public Family Housing  341
• Section 8 Voucher Program 537 (no new vouchers
  being issued or names being accepted)
• Senior Buildings  355

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The Bottom Line

• The farther below AMI, the greater the struggle
  will be to find affordable housing
• We need affordable housing for all
• If the market isnt providing affordable housing,
  we must advocate for it

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Recommendations

• Our program is for the people who live and/or
  work in Calvert County
• Not in conflict with objectives of limited growth
  
• We want to work with Countys elected leaders and
  agencies

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Recommendations (Continued)

• Our proposals address the current situation in
  Calvert County
• Current market, land costs, and County policies
  combine to eliminate private development of new
  affordable housing
• Minimal government initiatives to build
  affordable housing

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Recommendations (Continued)

• To get new affordable housing built as soon as
  possible (the crisis is NOW)
• To have the County live up to its stated goals
  and actions for new housing in the Comprehensive
  Plan
• encourage the availability of a variety of
  housing types to serve different income groups of
  Calvert County residents (and different age
  groups and family sizes)
• encourage a mix of family income ranges and a
  variety of housing types within new communities

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Short Term Actions to Date

• Call to eliminate excise tax on accessory
  apartments (Letter sent December 2005)
• Call to encourage the construction of accessory
  apartments (Testimony given)
• Call to reduce zoning barriers and punitive
  covenants (Testimony given)

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Short Term Actions to Date (Continued)

• Urge adoption of an Inclusionary Zoning Ordinance
  requiring affordable units in all new
  developments (Draft submitted November, 2005
  BOCC directed to study 2006)
• Call to establish single point of contact for
  housing and housing assistance (BOCC established
  Jan 2006)

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Short Term Actions to Date (Continued)

• Call to reinvigorate Affordable Housing Committee
  in Calvert County (Jan 06 BOCC directed)
• Proposal for new uses for Countys Affordable
  Housing Fund (Proposal for land acquisition to be
  made proposals for Fund also contained in IZ
  draft)

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Summary of Proposed Draft Inclusionary Zoning

• Developers of 10 or more dwelling units required
  to set aside 15 of units for affordable housing
  or, alternatively, contribute 100,000 per unit
  to Affordable Housing (Housing Opportunities)
  Trust Fund
• Household income below 80 of Area Median Income
  eligible for affordable unit. Availability for a
  whole range of incomes
• Cost offsets for builders for each affordable
  Unit

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Longer Term Goals

• Establish Charitable Housing Trust
• Provide Checklists/how-to resource
• Expand expedited permit process
• Push zoning reviews of Town Centers
• Encourage creative partnerships among government,
  builders, and civic and religious organizations
• Continue meeting with county leaders
• Provide information, education, and communication
• Expand HFAC base of allies

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Encouraging the Possible
Accessory Apartment
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Encouraging the Possible
Apartments over Businesses (Mixed Use)
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Encouraging the Possible
Inclusionary Zoning Multi-unit Structures
Promote Mixed-Income
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Expanding HFAC Base Join Us!

• Get on the HFAC Mailing List
• Attend HFAC Meetings
• Disseminate info to congregation/organizations
• Support HFAC initiatives
• Participate in HFAC public events actions and
  invite others to attend
• Speak out on behalf of those who need housing
• Check our website www.housingforallcalvert.org

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Standing Committees of HFAC(Where Do You Fit In?)

• Education Committee
• Communication/Publicity
• Political Action Task Force
• R D

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Action Steps

• Become an Organizational Liaison between HFAC and
  your congregation, club, etc.
• Write letters to the editor
• Invite others to join in our effort

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Action Steps

• Remember it is an election year
• HFAC Report card on all candidates
• Make Affordable Housing the critical issue
• Vote your values

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Picture a County

• Where development is based on need
• Where all new communities are mixed-income,
  mixed-use, mixed opportunity
• Where growth is planned as a natural outgrowth
  and in-fill of town centers, a place where people
  can walk to work and services
• Where open space can remain open space

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• The reason we fail to make America better is
  that we aim too low