Prior posts have addressed: when housing is not affordable; when renters are cost-burdened or severely cost burdened; what factors make housing in a particular area unaffordable; how affordable housing is created; and federal and state programs that provide the subsidies needed for affordable housing. In this post we will look at a case study of […]
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What government resources help create “affordable housing”?
Federal and state governments encourage private developers to build affordable housing. The programs reward developers willing to take development risk with a reasonable developer fee (12-16% of total costs, depending on project size.) Development risk includes planning, entitlement, design, financing, and construction risk. Major federal and state programs for financing the construction of affordable housing […]
How do you create “affordable housing”?
Affordable housing costs as much as other housing. Actually it costs more due to high financing costs and complex regulations. And the rents are capped to be affordable to households earning 60% (or 30%) of area median income. Operating expenses consume 60% or more of the rental income. That leaves little cash flow to service […]
What factors make housing unaffordable in certain areas?
In some areas demand from tens of thousands of new high-tech jobs has pushed housing prices through the roof. Those earning lower wages become cost-burdened, or severely cost-burdened renter households. Wages in an area may be chronically low because of the nature of available jobs. If the area is in demand as a place for […]
When is housing not “affordable”?
Affordable housing is a relative concept. It relates total housing costs to the resources of a household. Economists and policymakers agree that if a family’s rent and utilities are 30% or less of their total income, it is affordable. The remaining 70% of income is usually sufficient to meet the family’s other living needs. If […]
Welcome to our new website!
Welcome to Our Coastal Village, Inc.’s website. We hope our website will: Increase local awareness of the need for affordable housing and how the need is being addressed. Provide information for potential tenants/buyers of our affordable housing. Encourage tax-deductible donations and grants in support of our mission.