Affordable housing


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Definition of affordable housing...When is a house considered affordable and whent it is not!!

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Affordable housing

  2. 2. Housing is Considered Affordable when.. <ul><li>households that are renting or purchasing are able to pay their housing costs and still have sufficient income to meet other basic needs such as food, clothing, transport, medical care and education. </li></ul>
  3. 3. Housing is considered affordable when… <ul><li>- Total housing costs are deemed to those that have a median income . </li></ul><ul><li>Rental housing is within the financial means of those in the lower income ranges of a geographical area. </li></ul><ul><li>The total housing costs should not exceed (28-35)% of the household monthly income </li></ul>
  4. 4. Housing is considered affordable when… in Canada and USA <ul><li>Housing is considered affordable when its cost doesn’t exceed 30% of household’s monthly income. </li></ul><ul><li>The 30% includes </li></ul><ul><ul><li>Rent and utilities in an apartment. </li></ul></ul><ul><ul><li>The monthly mortgage payment and housing expenses for a home owner. </li></ul></ul><ul><li>The 30% also include taxing and insurance. </li></ul>
  5. 5. Affordable housing has to… <ul><li>Preserve and expand the supply of good-quality housing units. </li></ul><ul><li>Make existing housing more </li></ul><ul><li>affordable and more readily </li></ul><ul><li>available. </li></ul>
  6. 6. <ul><li>3. Promote racial and economic </li></ul><ul><li>diversity in residential neighborhoods. </li></ul><ul><li>4. Help households build wealth. </li></ul>Affordable housing has to…
  7. 7. <ul><li>5. Strengthen families. </li></ul><ul><li>6. Link housing with essential supportive services. </li></ul><ul><li>7. Promote balanced metropolitan </li></ul><ul><li>growth. </li></ul>Affordable housing has to…
  8. 8. Factors That Limit Affordable Housing Production <ul><li>The cost of land, labor, and materials. </li></ul><ul><li>Local zoning and subdivision ordinances. </li></ul><ul><li>Other land use policies. </li></ul><ul><li>Development and construction fees. </li></ul>
  9. 9. Factors That Limit Affordable Housing Production <ul><li>Building code standards. </li></ul><ul><li>Financing issues. </li></ul><ul><li>Taxes. </li></ul><ul><li>Reaction from the community. </li></ul><ul><li>Other government policies and programs. </li></ul>
  10. 10. <ul><li>Affordable Housing Policies Must Help Promote Healthy Families and Communities. </li></ul>
  11. 11. Samples of Housing Policies Around the World
  12. 12. Local Housing Allowance (LHA) <ul><li>It is a way of calculating rates of housing benefit for private tenants renting private sector accommodation in England and Wales </li></ul>(LHA) was introduced on 7 April 2008
  13. 13. Local Housing Allowance (LHA) <ul><li>It can cover rent and some service charges, if you have to pay them to continue living in the property. It cannot be used to pay charges for heating, hot water, lighting, laundry or cooking. </li></ul>
  14. 14. LHA does not currently affect: <ul><li>Council tenancies. </li></ul><ul><li>Most tenancies with registered social landlords. </li></ul><ul><li>Tenancies that started before 15 January 1989 . </li></ul>
  15. 15. LHA does not currently affect: <ul><li>people living in hostels, mobile homes or houseboats, bed and breakfast accommodation. </li></ul><ul><li>Benefit claims that are treated as under the rules in operation prior to 2 January 1996 because of care, support, or supervision being provided by certain categories of not for profit landlord. </li></ul>
  16. 16. Eligibility <ul><li>Housing Benefit is available only to those who are treated as liable to pay rent, have permanent right to reside in the UK and pass the habitual residence test. </li></ul>
  17. 17. The amount of LHA awarded depends on: <ul><li>The number of bedrooms deemed to be required by the claimant. </li></ul><ul><li>Where they live. (which determines the market level of rents within this area) </li></ul>
  18. 18. Rental Housing Programs in the United States <ul><li>1. The Public Housing Program. </li></ul><ul><li>2. Private-sector production programs in the 1960s and 1970s. </li></ul><ul><li>3. Tenant-based assistance emerges. </li></ul>
  19. 19. Rental Housing Programs in the United States <ul><li>4. A new generation of federal production programs. </li></ul><ul><li>5. Transformation of public housing. </li></ul><ul><li>6. Supportive housing programs </li></ul>
  20. 20. <ul><li>‘ The assumption is that housing is affordable in rural areas but the reality is that it’s not the case at all. The cost of living can be just as high as in metropolitan areas and incomes are usually lower,’ * </li></ul><ul><li>* Professor Beer, University of Adelaide – Australia. </li></ul>