Affordable housing is a housing that is considered affordable to those with average household incomes assessed by national or local government with a recognized index of housing affordability. Much of the literature on affordable housing refers to mortgages and a number of forms that exist along the continuum - from emergency shelter, transitional housing, to non-market leasing (also known as social or subsidized housing), to formal and informal rentals, customary housing , and ends with affordable home ownership.
In Australia, the National Peak Housing Peoples Group developed their definition of affordable housing as a housing that is "... sufficient in standards and locations for low- or middle-income households and is not so expensive that households are unlikely to be able to meet basic needs others in a sustainable manner. "In the UK, affordable housing includes" rental houses and social medium, provided for eligible households that meet their needs that are not met by the market. "
The idea of ​​housing affordability became widespread in the 1980s in Europe and North America. In the words of Alain Bertaud, of New York University and former planner at the World Bank,
"It's time for planners to abandon abstract goals and to focus their efforts on two measurable results that have always been important since the growth of the big cities during the 19th century industrial revolution: the mobility of the workers' space and the housing affordability . "
The choice of housing is a response to a very complex set of economic, social, and psychological impulses. For example, some households may choose to spend more on housing because they feel they can afford, while others may have no choice.
Video Affordable housing
Measuring housing affordability
Median Many
Indicators Some Medians, recommended by the World Bank and the United Nations, assess housing affordability by dividing average house prices by annual gross income [before tax].
"The general measure of affordability of the wider community is the number of homes that can be purchased by households with a certain percentage of median income.For example, in a balanced housing market, the average household (half the more affluent households) can officially afford choice the median housing, while the poorer than the median income can not afford the average house.50% affordability for the average home shows a balanced market. "
Determining the affordability of housing is a complex and commonly used-rate-of-revenue-spending tools have been challenged. In the United States and Canada, generally accepted guidelines for housing affordability are housing costs that do not exceed 30% of household gross income. Canada, for example, switched to the 25% rule of the 20% rule in the 1950s. In the 1980s this was replaced by a 30% rule. India uses 40% rule.
Housing Affordability Index (HAI)
One of the greatest strengths of HAI developed by MIT is its ability to capture the Total Cost of Ownership of individual housing options. In calculating the index, the cost of rent and mortgage payments are clearly modified by the hidden costs of the choice.
Maps Affordable housing
Household income and wealth
Revenue is the main factor - not price and availability, which determines the affordability of housing. In the market economy the income distribution is the main determinant of the quantity and quality of the housing obtained. Therefore, understanding the challenges of affordable housing requires an understanding of trends and disparities in income and wealth. Housing is often the biggest expense for low and middle income families. For low- and middle-income families, their homes are also the largest source of wealth.
The most common approach to measuring housing affordability is to consider the percentage of income households spend on housing expenditure. Another method of studying affordability is looking at hourly wages of full-time workers who are paid only with minimum wages (as determined by their local, regional, or national governments). The hope is that full-time workers will be able to buy at least a small apartment in the area where they work. Some countries see those living in relative poverty, which is usually defined as making less than 60% of the average household income. In their policy report, they consider the presence or absence of housing for people who generate 60% of the average income.
Housing expenses
The affordability of housing can be measured by changes in the relationship between house and rental prices, and between house prices and income. There is an increase among policy makers in affordable housing as housing prices have risen dramatically creating a crisis in affordable housing.
Since 2000, "the world has experienced unprecedented house price booms in terms of size and duration, but also synchronization in various countries." "Never before has house prices gone so fast, so long, in so many countries." Prices are doubling in many countries and almost triple in Ireland.
The biggest financial bubble bubble in history in 2008 caused a global chaos in the housing market. In 2011 house prices in Ireland had fallen by 45% from its peak in 2007. In the United States prices fell by 34% while foreclosures increased exponentially. In Spain and Denmark house prices fell by 15%. However, regardless of that, house prices continue to be overvalued by around 25% or more in Australia, Belgium, Canada, France, New Zealand, the UK, the Netherlands, Spain and Sweden.
Causes and consequences of rising house prices
Costs are driven by a number of factors including:
- demographics shifted
- the number of people decreasing per stay
- Growing Density Density, Regional Urbanization
- dense population growth (eg, very high prices in Australia and Canada as population increases drive demand).
- supply and demand
- shortage of residence to number of households
- family size smaller
- strong psychological desire for home ownership,
- shortage of residence to number of households
- a shift in economic policy and innovation in financial instruments
- reduces the profitability of other forms of investment
- availability of housing finance
- low interest rate
- mortgage market innovation
- public policy
- deregulation
- zoning land use
- significant government tax levies and levies for new housing (especially in Australia)
Inequality and housing
Some researchers argue that the shortage of affordable housing - at least in the US - is partly due to income inequality. David Rodda noted that from 1984 and 1991, the number of quality rental units declined as demand for higher quality housing increased. Through gentrifying older neighborhoods, for example, in East New York, rental rates are rising rapidly when landlords discover new residents who are willing to pay higher market prices for housing and leave low-income families without rental units. Ad valorem property tax policies combined with price increases make it difficult or impossible for low-income residents to compensate.
Other home expenses
In measuring housing affordability there are various expenditures beyond the actual housing stock price itself, which is considered dependent on the index used.
Some organizations and agencies consider the cost of purchasing a single family home; others see exclusively the cost of renting an apartment.
Much research in the US, for example, focuses primarily on the average cost of renting a two-room apartment in a large apartment complex for new tenants. These studies often bring together luxury apartments and slums, as well as desirable and unwanted environments. Although this practice is known to distort actual costs, it is difficult to provide accurate information for various situations without heavy reports.
Typically, only legal, permitted, separate housing is considered when calculating the cost of housing. Low rental costs for a room in a single family home, or an illegal garage conversion, or college dormitory are generally excluded from calculations, no matter how many people in an area live in such situations. Because of the methodology of this study, the cost of median housing tends to increase slightly.
Cost is generally considered in cash (not accrual). So the person who made the last payment on the mortgage of a large house may live in a housing that is officially unaffordable one month, and housing is very affordable in the next month, when the mortgage is paid off. This distortion can be significant in areas where the cost of real estate is high, even if income is also equally high, since high income allows higher proportion of income to be dedicated to buying expensive homes without jeopardizing the ability of households to buy food or otherwise. basic needs.
Growing density of regional convergence and urbanization
The majority of the more than seven billion people on earth now live in cities (UN). There are more than 500 urban areas over one million people in the world. The city became a major city into a megalopolitan city area and even a "galaxy" of over 60 million inhabitants. The Yangtze Delta-Greater Shanghai area now exceeds 80 million. Tokyo-Yokohoma adjacent to Osaka-Kobe-Kyoto has a combined population of 100 million. Rapid population growth led to an increasing need for affordable housing in most cities.
The availability of affordable housing in the proximity of mass transit and associated job distribution has become highly unbalanced in periods of rapid regional urbanization and the growing convergence density.
"In addition to the hardships that cause families who can not find shelter, the lack of affordable housing is perceived by many urban planners to have a negative effect on the health of society as a whole."
The affordable housing challenges in the inner cities ranged from homeless people forced to live on the road, to the relative disappearance of vital workers such as police officers, firefighters, teachers and nurses unable to find affordable accommodation near their workplaces. These workers are forced to live in the suburbs to work for up to two hours each time they work. Lack of affordable housing can make cheaper labor cheaper (because workers travel long distances) (Pollard and Stanley 2007).
Economy
The lack of affordable housing places a certain weight on the local economy.
In addition, individual consumers are faced with mortgage arrears and excessive debt and hence reduce consumption. The combination of high housing costs and high debt levels contributes to the reduction of savings.
These factors can lead to a decrease in investment in sectors that are important for long-term economic growth.
Supply and demand
In some countries, markets are unable to meet increasing demand to supply affordable housing supplies. Although the demand for affordable housing, especially affordable rental housing for low and middle income, has increased, the supply has not. Potential home buyers are forced to switch to the rental market, which is also under pressure. Inadequate inventory of home supplies increases the demand for private and social rent, and in a worse, homeless scenario.
Several factors affect stock supply and demand
- Demographic and behavioral factors
- Migration (to city and potential jobs)
- Life expectancy
- Building codes
- Greater tendency for people to live alone
- Young adults postpone forming their own households (in developed countries).
- exclusive zoning
- Job level
- Increased unemployment increases demand for market rent, social housing and homelessness.
- Real household income
- Household income does not follow the rise in housing prices
- Affordability of rental and owner occupancy rates
- Interest rate
- Mortgage availability
- The level of confidence in the economy and housing market
- Low trust reduces requests for owner occupation
Labor market performance
In both large metropolitan areas and regional cities where house prices are high, the local residence lacks local enterprises at a competitive disadvantage. They are placed under wage pressure as they try to reduce the income/housing price gap. Key workers have fewer housing options if prices rise to levels that are not reachable. Variations in affordability of inter-regional housing can create labor market barriers.
Potential workers are prevented from moving to jobs in areas with low affordability. They are also prohibited from migrating to areas with high affordability because low house prices and rents indicate the potential for low capital gains and poor job prospects.
Social costs from a lack of affordable housing
The affordability of housing is more than a personal problem experienced by every household that can not easily find a place to live. The lack of affordable housing is considered by many city planners to have a negative effect on the health of society as a whole.
Jobs, transport and affordable housing
Lack of affordable housing can make low-cost workers scarcer, and increase demands on transport systems (because workers travel longer distances between jobs and affordable housing). The increase in housing costs in US cities has been attributed to a decrease in enrollment in local schools.
"Faced with some affordable options, many people are trying to find cheaper housing by buying or renting further, but long trips often lead to higher transportation costs that remove all the savings in shelters." Pollard (2010) calls this "drive 'until you qualify" approach, leading to extensive development and forcing people to drive further distances to go to work, to get groceries, to bring children to school, or to get involved in other activities. A good residence may save significant household travel costs and thereby improve the overall family economy, even if the rent is higher than where it lives in a poorer location. Households must decide whether to pay more for housing to make some round-trip and low-expense, or to receive a long or expensive trip to get "better" housing. The absolute availability of housing is generally not considered in the calculation of affordable housing. In depressed or rare areas of the country, for example, the predicted price of a canonical median two-bedroom apartment may be quite easily accessible even for workers with minimum wages - if only apartments were ever built. Some affordable prototype housing includes Nano House and Affordable Green Tiny House Project.
Affordable housing and public policy
Policymakers at all levels - global, national, regional, municipal, community - associations seek to address the issue of affordable housing, the crisis of very complex global proportions, with a myriad of policy instruments. These responses range from a stop-gap financing tool to long-term intergovernmental infrastructure changes.
In the simplest terms, housing affordability refers to the amount of capital available in relation to the price of goods to be obtained. Public policy is informed by the underlying assumptions about the nature of the housing itself. Is housing a basic necessity, a right, a right, or a public good? Or is it just another consumer-level consumer choice, a commodity or an investment in a free-market system? "Housing Policy provides a remarkable litmus test for the values ​​of politicians at every level of the office and from the various communities that influence them.Often these tests only measure the warmth or coldness of a more prosperous and secure person of the family from a lower socio. economics (Bacher 1993: 16). "
The need for affordable housing can be addressed through public policy instruments focused on the demand side of the market, a program that helps households achieve financial benchmarks that make housing affordable. This may include an approach that only encourages general economic growth - in the hope that a stronger economy, higher employment rates, and higher wages will improve the household's ability to get housing at market prices. Federal government policy defines banking and mortgage lending practices, tax actions and regulations affecting building materials, professional practices (eg real estate transactions). Individual household purchasing power can be increased through tax and fiscal policies that result in reduced mortgage costs and borrowing costs. Public policy may include implementation of subsidy programs and incentive patterns for the average household. For the most vulnerable groups, such as seniors, families with single parents, disabled people, etc. Some forms of public funded benefit strategies can be implemented by providing individual households with sufficient income to purchase housing.
Currently, policies that facilitate supply-side production include favorable land use policies such as inclusion zones, relaxation of environmental regulations, and enforcement of affordable housing quota in new developments.
In some countries, such as Canada, municipalities began to play a greater role in developing and implementing policies on the shape and density of urban housing in residential districts, in the early 1950s. At the municipal level recently promoted policy tools including easing restrictions on accessory residential units, and a reduction in the amount of parking that should be built for the new structure.
Affordable housing is a controversial reality of contemporary life, since the benefits in affordability are often generated from expanding the available land for housing or increasing the density of residential units in specific areas. Ensuring affordable housing supply means ensuring that communities weigh the acceptable and perceived impact on the needs of affordability alone. The process of weighing the impact of finding affordable housing is quite controversial, and laden with race and class implications. Recent research, however, suggests that proximity to low-income housing development generally has a positive impact on environmental property conditions.
The ever-growing gap between rich and poor since the 1980s manifests itself in a housing system where public policy decisions privilege the ownership sector to the detriment of the leasing sector.
Owens wondered whether the housing market helped reduce the concentration of poverty in the National Longitudinal data between 1977 and 2008 with concentrations from the 100 largest metropolitan areas in the United States. Data information is to compare or intertwine with differences in national housing subsidies, entry, exit, and improvement of low-income housing.
Right to build
An article by writer Libertarian Virginia Postrel in the November 2007 issue of Atlantic Monthly reports on the study of the cost of obtaining "the right to build" (ie building permits, red ribbons, bureaucracy, etc.) in different US cities. The cost of "right to build" does not include the cost of land or the cost of building a house. The study was conducted by Harvard economists Edward Glaeser and Kristina Tobio. According to the chart that accompanies the article, the cost of obtaining "the right to build" adds about $ 600,000 to the cost of each new home built in San Francisco. The study, cited, published by Ed Glaeser and Joe Gyourko, reached its conclusions about the value of the right to build in various locations based on a methodology comparing single-family home costs in the quarter-acre versus a half-acre lot, with all the differences between the two being linked to zoning costs and licensing and other local government regulations. In contrast, the standard valuation methodology recognizes the importance of locational attributes, different values ​​placed in similar home markets based on the size of the plot, and the impact of the scope and character of increasing the value of land, the factors not considered significant in the Glaeser and Gyourko analyzes. The analysis of Glaeser and Gyourko also failed to address other local and regional factors besides regulations affecting housing prices, such as construction costs and non-construction inputs for housing, availability of constructed land, and the nature of local demand (eg, smaller vs. houses larger, acreage vs. accessibility, transport options).
Government restrictions on affordable housing
Many governments limit the size or cost of living quarters that people can live in. Make it illegal to live permanently in homes that are too small, low cost or do not meet the requirements set by the government. Generally this law is implemented in an effort to improve "standard" housing across the country. This can cause thousands of homes across the country to be left vacant for most of the year even when there is a great need for more affordable housing as in countries like Sweden, Norway, Finland and Denmark where there is a common tradition to own summer homes. This sometimes raises concerns for respect for rights such as the right to use someone's property.
In the United States, most cities have zoning codes that set minimum sizes for housing units (often 400 square feet) as well as the number of unrelated people who can live together in one unit, resulting in "breaking the bottom end of the private housing market, raising the rental price of everything on it. "
Affordable housing by country
Australia
Australians who receive the many social security benefits from Centrelink who rent out houses from private homeowners are entitled to rental assistance. Rental assistance is a subsidy paid directly to the tenant in addition to Centrelink's basic benefits such as Age Pension or Disability Pension. The amount of rent assistance paid depends on the amount of the lease payment, whether the tenant has a dependent and how many dependents there are. Tenants residing in public housing in Australia are not eligible for rental assistance.
An Australian who buys a home for the first time is entitled to a first homeowner grant. This grant was introduced on 1 July 2000 and is jointly funded by the Commonwealth and state and territory governments. The first home buyers currently qualify for A $ 7000 grant to reduce the cost of entering the housing market.
The Commonwealth Government in 2008 introduced the first home savings account, in which those who save for new homes qualify for government contributions to their savings accounts, depending on the conditions.
Western Australia
Housing Department Affordable Housing Schemes
The Department's long-term goal is to provide at least 20,000 more affordable homes by 2020 for low to middle-income, through the Door Opening Scheme. Opening the Door offers two ways for Western Australians to own their own homes.
Shared Housing Ownership is the only scheme of its kind in Australia. Residents of Western Australia can buy their own homes with the help of the Housing Department with a SharedStart loan through Keystart, a Government loan provider. By joint ownership, the initial cost of buying a home is reduced, since the Department maintains up to 30% of the property. The Department's share depends on your loan capacity, the size of the household, as well as the location and type of property. In the future, buyers can have the option to buy the full amount or sell the house back to the Department. With ShareStart loans you can buy newly built homes and off-the-plan properties offered by the Housing Department.
Affordable House Sales
The Department of Housing (Housing Authority), through the Housing Authority, now offers Affordable Housing Sales to the general public. Property is available for anyone interested in buying a home. The Department works closely with the industry to ensure that the property being developed for sale is affordable for those with low to moderate incomes.
Canada
In Canada affordability is one of the three elements (adequacy, suitability) used to determine core housing needs.
Ontario
In 2002, the Social Housing Services Corporation (SHSC) was created by the Province of Ontario to provide group services to social housing providers (public housing, non-profit and co-op) after downloading responsibility for more than 270,000 social housing units to the local area. municipality. This is a non-profit company that is governed by municipal, nonprofit and cooperative housing councils. Its mandate is to provide home providers and Ontario service managers with purchasing, insurance, investment and mass information services that add significant value to their operations.
With an annual budget of $ 4.5 million, SHSC and its two subsidiaries, SOHO and SHSC Financial Inc. offers specialized insurance programs for social housing providers, bulk gas purchases and innovative energy efficiency retrofit programs that coordinate energy audits, expertise, funding, wholesale purchase of goods, energy-efficient training and education, and data evaluation. SHSC manages and provides investment advice to housing providers on capital reserves valued at more than $ 390 million. Working closely with other housing and non-governmental organizations, SHSC also supports and develops independent housing-related research, including a new Housing Internship program for graduate-level researchers.
British Columbia
Recently there has been a movement toward the integration of affordable social housing with market housing and other uses, such as redevelopment of the Woodward building in Vancouver in 2006-10.
Legislation to help make home ownership accessible to middle-class families, and other measures aimed at ensuring that British colonists can continue to live, work and raise families in British colonials such as an increase in the supply of leased properties is validated and will apply to 2 August, 2016.
China
China also experienced a gap between housing prices and affordability as it moved away from the welfare benefits system in the form of a market-oriented allocation system (Hui et al. 2007). The vast majority of urban housing before 1978 in the planned economic era comprises almost free homes that are produced and allocated by an unsustainable single country channel system. The purpose of China's housing reform started in 1978 is to gradually transform the housing of "free goods" into "subsidized goods" and ultimately into "commodities", prices that reflect the true cost of production and market profit margins. In 1998 China accelerated urban housing reforms further away from the welfare benefits system in the form of a market-oriented allocation system, with the state reducing its role in housing provision. The reforms were followed by increased home ownership, housing consumption, real estate investment, and skyrocketing housing prices.
High housing prices are a big problem in a number of major cities in China. Beginning in 2005, a high level of housing appreciation became a serious affordability issue for middle- and low-income families: in 2004 the housing appreciation rate was 17.8%, almost double the 10% revenue growth rate (NBSC 2011). The municipal government has responded to calls to increase housing supply for low-income and low-income families with a number of housing policies and programs, among them the Affordable Housing Program and the Housing Funds Program.
The Affordable Housing Program (commonly known as "Economical and Comfortable Housing Program, or ?????) is designed to provide affordable housing for lower middle-income households to encourage home ownership.In 1998 the Ministry of Construction and the Ministry of Finance together announced the "Urban Method of Affordable Housing Construction Management," marked the commencement of the program, aimed at middle to low-income households (annual income of less than 30,000 to 70,000 RMB by household size and specific area), this public housing program provides housing (typically 60- 110 square meters) at an affordable price (usually 50-70% market price).
In the policies and mandates set by the central government, local governments are responsible for the operation of the program. Local governments usually choose state-owned land for real estate developers, which is responsible for finance and the construction of affordable housing. Profits for real estate developers are controlled to be less than 3%, so as to keep housing prices at an affordable rate. Individuals need to apply for affordable housing through households and income investigations.
The program is controversial in recent years due to inadequate construction, poor administration, and widespread corruption. Local governments have limited incentives to provide affordable housing, since that means lower revenues from land transfer costs and lower local GDP. As a result, program funding has declined since the beginning, and the level of affordable housing construction has dropped from 15.6% (1997) to 5.2% (2008). Due to the limited supply of affordable housing and excessive housing demand from middle to low income populations, affordable housing is usually sold at high market prices. In many non-qualified households, high-income households have affordable housing units, while many eligible families are denied access.
The Housing Provident Fund (HPF) program is another policy effort to provide affordable housing. China introduced the National Housing Supply Funding (HPF) program in 1995. This is similar to housing funding programs in other countries such as Thailand and Singapore. The HPF provides a mechanism that enables prospective buyers who have income to save and end up buying residential units (which may be a common housing unit previously). The HPF includes subsidized savings programs related to retirement accounts, subsidized mortgage rates and discounts for home purchases.
Mali
The Development Workshop, a Canadian and French NGO, has brought real alternatives for residents to agree on affordable housing that fights environmental degradation and offers training and employment for many unemployed or unemployed people. The project has received many awards, such as the United Nations UN-Habitat Human Settlements award. One of the key aspects of this project is the introduction of non-wood construction and new techniques for building public buildings, offices, and simple shelters among other examples. This process increases the demand for skilled builders, and as a consequence training courses become necessary. The cost of building economics declined, and as a result more than 1,000 buildings without forests were built.
India
In India, it is estimated that in 2009-10, about 32% of the population lives below the poverty line and there is great demand for affordable housing. The deficit in urban housing is estimated at 18 million units, most of which are among the economically weaker segments of society. Some developers are developing low cost and affordable housing for this population. The Government of India has taken various initiatives to develop properties in the low-cost and affordable segment. They also looked at the PPP model for the development of this property. ' The haryana government' launched an affordable housing policy in 2013 This policy is intended to encourage the planning and completion of the "Group Housing Project" in which the "pre-defined size" apartment is made available on " predetermined tariffs "in the" Targeted period "as defined in this policy to ensure an increase in" Affordable Housing "supplies in urban areas in haryana. See Haryana's Affordable Housing Policy
United Kingdom
The UK housing market in the late 1980s and early 1990s experienced a series of almost unprecedented changes and pressures. The combination of circumstances produces crises, including demographic changes, income distribution, housing supply and ownership, but financial deregulation is essential. Housing affordability becomes a significant policy issue when the impact on the normal functioning of the owner-occupied market becomes severe and when the macro-economic feedback effects are taken seriously. A number of special policy changes result from this crisis, some of which may persist. Many of them revolve around the ability or others to buy housing, either as prospective buyers whose price goes out of the boom, new buyers lose their homes through bad credit or get trapped by 'negative equity', or the tenant is affected by deregulation and many more lease rates high.
A 2013 investigation by The Bureau of Investigative Journalism found that Britain spent £ 1.88bn - enough to build 72,000 homes in London - by hiring temporary accommodation in the 12 largest cities of Britain over the previous four years.
Research by the Trust for London and New Policy Institute found that London sent 21,500 within three years to 2015/16. This is 24% of all homes shipped during that period.
The United Kingdom has a long tradition of promoting affordable social rental housing. This may be owned by local councils or housing associations. There is also a wide range of affordable homeownership options, including joint ownership (in which the tenant leases shares in the property of the social landowner, and owns the rest). The government has also sought to promote the supply of owners who have affordable stocks to purchase, primarily by using land-use planning systems to require housing developers to provide a lower-cost housing proportion in new developments. This approach is commonly known as inclusive (though not in the UK) zonation, and the current mechanism for securing affordable housing provision as part of the planning application for new housing development is through the use of the Treaty S.106. In Scotland the equivalent is the agreement agreement Section 75. (Section 75 of the City and State Planning (Scotland) Act 1997)
Board house
Most of the previous UK houses were owned by the council, but the numbers have been reduced since the early 1980s because of Thatcher's government initiatives that limit the housing construction of the council and provide financial and policy support for other forms of social housing. In 1980, Conservative government Margaret Thatcher introduced the Right to Buy scheme, offering to the tenant board the opportunity to purchase their house at a discount of up to 60% (70% on a house rental house like a flat). Along with Right to Buy, shares of the board are diminishing as property is transferred to a housing association. The Renter Board has in some instances chosen to transfer property management to a long nonprofit organization. The tenants are still tenants of the Council, and the housing stock remains the property of the Council. The change in management is driven by additional funding from the central government to invest in housing stock under the Decent House Program. The program requires council housing to be brought to an established standard combined with a limitation of the amount that can be borrowed by the board and leads to an increase in the organization of such arm's length settings. In some areas, large numbers of house councils are destroyed as part of urban regeneration programs, due to poor stock quality, low demand and social problems.
In rural areas where local wages are low and home prices are higher (especially in areas with holiday homes), there are special problems. Planning restrictions severely limit rural development, but if there is evidence of need then the exclusion site can be used for people with local connections. This evidence is usually provided by a housing demand survey undertaken by the Rural Housing Enabler that works for the local Rural Community Councils.
The housing association is a non-profit organization with a history that began before the beginning of the 20th century. The number of homes under their ownership grew significantly from the 1980s when successive governments attempted to make it the main form of social housing, giving priority to local governments. Many homes previously under the ownership of local authorities have been transferred to newly established housing associations, including some of the largest in the country. Although nonprofit organizations, rental housing associations are usually higher than for board housing. Renting a home through a housing association can in some circumstances prove to be more expensive than buying a similar property through a mortgage.
All major housing associations are listed in the Home and Community Agency responsible for the setting up of social housing starting April 1, 2012. The registered housing association is known as the Registered Social Landlord since 1996, but in the 2008 Official Housing and Regeneration Act the term becomes a Registered Provider. The latter also includes council housing, and developers and other bodies that can receive grants for development. The Department for Communities and Local Government establishes policies for housing in the UK. In Scottish policy regulated by the Scottish Parliament; check and arrange falling activity to the Scottish Housing Regulator. The social housing in Northern Ireland is governed by the Northern Ireland Housing Executive, which was established to take ownership of board shares and prevent the allocation of sectarian housing to people of one religion.
The 2017 report by the Trust for London and New Policy Institute found that 24% of new homes built in London are social, affordable, or shared accommodation properties within three years until 2015/16.
United States
The federal government in the US provides subsidies to make housing more affordable. Financial assistance is provided to homeowners through mortgage interest rate deductions and for low-income households through a housing subsidy program. In the 1970s, the federal government spent the same amount of tax deductions for homeowners as on subsidies for low-income housing. However, in 2005, tax reductions have increased to $ 120 billion per year, representing nearly 80 percent of all federal housing assistance. Advisory Panel for Federal Tax Reform for President Bush proposes to reduce home mortgage interest reductions in a 2005 report.
Housing assistance from the federal government for low-income households can be divided into three parts:
- "Tenant based" subsidies are given to individual households, known as the Section 8 program
- "Project-based" subsidies are given to owners of housing units that must be rented for low-income households at affordable prices, and
- Public Housing, which is usually owned and operated by the government. (Some public housing projects are managed by private agencies subcontracted.)
"Project-based" subsidies are also known by their share of the US Housing Act or the 1949 Housing Act, and include Section 8, Section 236, Section 221 (d) (3), Section 202 for elderly householders, Section 515 for rural tenants, Section 514/516 for agricultural workers and Section 811 for persons with disabilities. There is also a housing subsidy through a project-based Part 8 program. The US Department of Housing and Urban Development (HUD) and USDA Rural Development manage these programs. The Rural Development Program HUD and USDA have stopped producing large numbers of units since the 1980s. Since 1986, the Low-Income Housing Tax Credit program has become a major federal program to produce affordable units; however, the housing produced in this program is less affordable than previous HUD programs.
One of the most unusual US public housing initiatives is the development of subsidized middle class housing during the New Deal (1940-42) under the auspices of the Mutual Ownership Defense Housing Division of the Federal Employment Agency under the direction of Colonel Lawrence Westbrook. These eight projects were purchased by the population after the Second World War and in 2009 seven projects continued to operate as joint-stock companies owned by their residents. These projects are one of the few definitive success stories in the history of US public housing efforts.
In the US, households are generally determined in terms of the amount of realized revenue they generate relative to the Median Area Income or AMI. Localized AMI figures are calculated annually on the basis of measurable household surveys in the geographical range known as metropolitan statistical areas, as defined by the Office of Management and the US Budget. For US housing subsidies, households are categorized according to federal law as follows:
- Moderate income households earn between 80% and 120% of AMI.
- Low-income households generate between 50% and 80% of AMI.
- Very low income households produce no more than 50% of AMI.
Some states and cities in the United States operate affordable housing programs, including supportive housing programs, temporary housing programs, and leased subsidies as part of public assistance programs. Local and state governments can adjust this income limit when managing affordable local housing programs; however, the US federal program must adhere to the above definition. For the Section 8 voucher program, the maximum contribution of households for rent can be up to 40% of gross revenues.
Comprehensive data for the most affordable and least affordable places in the US are published annually by affordable, non-profit organizations, the National Low Income Housing Coalition. The NLIHC promotes the 30% guidance of household income as the upper limit of affordability. According to the 2012 National Low Income Housing Coalition report, in every community across the United States "rental rates are not affordable for full time workers."
However, using indicators, such as Multiple Median indicators that assess housing affordability by dividing average home prices by the median household's median income before taxes, regardless of the extreme difference between HNWI and individuals in the lower quintiles, distorted images of real affordability are made. Using this indicator - which sets housing affordability rates on a scale of 0 to 5, under category 3 and below affordable prices - by 2012, the overall market of the United States is considered 3 (affordable).
Since 1996, while incomes in the upper quintile have increased, incomes in lower quintile households have declined to create negative results in housing affordability.
Before the 2007 real estate bubble, the average household paid $ 658 per month in the total cost of housing (Census 2002). As many as 20% of households are considered living in unreached housing: Nine percent of all households are renters in unreached housing, and eleven percent of all households are homeowners with high housing costs.
In the 2000 Census, average homeowners with mortgages (70% of homeowners and 48% of census respondents) spend $ 1,088 per month, or 21.7% of household income, for housing costs. The average homeowner without a mortgage (30% of all homeowners (80% of elderly homeowners) and 20% of respondents spend $ 295 per month, or 10.5% of household income, for housing costs Tenants in 2001 ( 32% of respondents) spent $ 633 per month, or 29% of household income, on the cost of housing.
Government and semi-government agencies that contribute to ensuring the availability of affordable housing supply in the United States are the US Department of Housing and Urban Development (HUD), USDA Rural Development, Federal Home Loan Bank, Fannie Mae and Freddie Mac. Housing Partnership Network is an umbrella organization of over 100 residential and nonprofit community development. Important private sector institutions that need to be consulted are the National Home Builders Association, the National Affordable Housing Management Association (NAHMA), the Affordable and Rural Housing Council (CARH) and the National Association of Realtors. Valuable research institutes with dedicated staff for analysis of "affordable housing" include: Housing Policy Center, Brookings Institution, Urban Institute and Joint Center for Housing Studies at Harvard University and Furman Center for Real Estate and Urban Policy at New York University, and Budget Priority Center and Policy. Some of these institutions (the Fannie Mae Foundation, the Urban Institute, the Brookings Institute Metropolitan Policy Program, the Company Community Partners, LISC, the Harvard Joint Study Center for Housing, etc.) are partnering to create KnowledgePlex, an online information resource devoted to affordable housing and issues community development.
New York City
New York City suffers from a shortage of affordable housing. New York City is a highly desirable place to live in, attract thousands of new residents each year, and face water and public transport constraints. As a result, housing prices continue to climb. Finding affordable housing in New York City is a struggle for most urban dwellers including low-income, middle-income, and even middle-income families. Since 1970, revenues have remained stagnant while rental rates have almost doubled for New York. As a result, 48.7% of households spend more than 30% of their income on rent. Several federal and state initiatives have targeted this issue, but failed to provide affordable, inclusive, and sustainable housing for New York City residents.
New York City continues to be a racially and economically segregated city. While the poverty rate for non-Hispanic whites is below the national average of 11.0%, the poverty rate for minority groups is significantly higher. The poverty rate for African-Americans is 20.8% and the poverty rate for Asians is 18.1%. The poverty rate for Hispanics is the highest in 28.1% of the population. Historically, public housing commissioned by race and ethnicity and the environment in New York remains separate. More than 60% of non-Hispanic residents live in areas characterized as having high access to economic opportunities with low transport accessibility. Conversely, more Hispanics, African Americans, and Asians live in areas where transit is accessible but have low chances. Similarly, most of the federal subsidized housing in New York City tends to lie in areas accessible to public transport, but lacks access to stable jobs and educational opportunities.
Sustainability is a large part of what constitutes the overall feeling of the environment. Sustainable housing characteristics include green building techniques that promote energy efficiency, successful recycling practices, and environmental walkability. Affordable housing in New York City tends to be very easy to navigate, with easy access to public transport. However, green building practices are avoided in affordable housing with the belief that upfront costs are too expensive.
One of the main characteristics of the environment with the concentrated housing in New York City is the lack of access to economic opportunities. The environment with the highest concentration of public housing is also included in the category of environment with the lowest local population. These environments failed to provide quality schools and stable jobs. Scholars have created this idea as "an unequal opportunity geography." The population of low-income communities is concentrated more likely to live a life with poor outcomes including poor health, unstable low wages, and achieving below average levels of education.4 One of the main causes of this is that these communities and residents are cut off from the richer resources of neighboring communities may have, such as better schools and job opportunities.
The problem of affordable housing concerns the citizens of New York as a whole, with more than 90% believing that everyone has the right to take refuge. With the recent recession and rising cost of housing, it is not surprising that over 30% of New York City residents fear they may one day become homeless.
Affordable housing is a major urban problem facing New York City. The concentrated environment of poverty tends to have poor housing stocks, higher crime rates, higher drop out rates, and inadequate access to economic opportunities. For people who earn below 50% on average, only 18% of all rental units and only 4% of market-level rental units are considered affordable in 2009. New York City must address the decline in the amount of affordable housing and increase its sustainability and access to opportunities.
Finally, politicians and policy makers must determine the most optimal policy solution for affordable housing issues in New York City. Part of this process includes educating people, homeowners, business owners, and other stakeholders about the costs and tangible results of affordable housing. Many of these groups base their views on unfounded fears. In fact, affordable housing actually serves to revitalize the environment. Older and damaged buildings are demolished or renovated to create new structures that are architecturally appropriate to the environment. It leads to a stable population, builds the environment, and works to revitalize the area. In addition, the general public perceives environmentally friendly construction on affordable housing has a much higher up front cost and less return on investment. However, the average construction premium for sustainable green housing development is only 2.4% more than the standard development cost. Affordable sustainable development in homes also results in lower operating costs and utility bills, better air quality, and overall health improvement.
During his first term, Mayor Bloomberg successfully introduced and then expanded the New Housing Market Plan, an innovative plan to create 165,000 affordable housing units by 2013. In his previous position as Commissioner of the Department of Housing Conservation and Development of the City of New York, the US Department of Housing and Development Secretary Urban, Shaun Donovan works to implement this initiative, the largest affordable housing plan for a city in US history. Donovan also started his work to promote affordable, sustainable and accessible housing for economic opportunities during his tenure in New York City. Since 2000, the average monthly rent has increased by 18% while the average wage rate has not changed. In addition, despite the recent economic recession and decline in housing prices, in 2010 only 6% of affordable home sales for New York earned average income.
Criteria:
The main criteria in evaluating alternative policies for affordable housing in New York City include effectiveness, political feasibility and economic feasibility. To be considered affordable housing, rent should not exceed 30% of the income of the population. In creating or maintaining an affordable unit, alternatives must also provide sustainable housing with access to economic opportunities. Affordable housing units should be within reasonable walking distance to public transport, maximizing citizens' opportunities for quality education and employment opportunities and maximizing the use of sustainable building elements.
Affordable housing has an inherent cost attached to it in addition to construction and maintenance costs. Depending on where the alternative plans to place affordable housing units, communities can be revitalized or unstable. Although the revitalized community will see an increase in the value of additional property and businesses, creating jobs, an unstable environment may experience an increase in crime and lower property values. In terms of market outcomes, the alternative chosen for affordable housing should work to stabilize and revitalize the environment.
One of the main differences in alternatives is whether alternatives are based on federal or local support. Many alternatives depend on federal funding in the form of grants or other resources to provide affordable housing. Full support from the federal government is required if alternatives are based on federal funding. In addition, public opinion about affordable housing affects politicians' decisions. Politicians and policymakers must work to educate the public about the potential outcomes of affordable and supportive housing alternatives. Politicians must also balance the interests of powerful market developers who may oppose policies promoting sustainable affordable housing that can increase development costs. The chosen alternative should have broad support to ensure it is done quickly and as intended.
In 2016, Mayor Bill De Blasio introduces mandatory zoning-inclusion which requires that 30% of all new construction units become affordable.
Some policy alternatives for consideration of affordable housing in New York City include:
Status quo
The status quo analyzes the current affordable housing policy against the criteria to see if it is aligned with the objectives. The current policy is determined by Mayor De Blasio, the New York City Housing Authority, and the New York City Department of Conservation and Development Conservancy. It provides for the creation and preservation of affordable housing through a mixture of funding sources and means, including the Federal Housing Authority and HUD financing and insurance programs, HUD project-based leasing assistance, New York State and Old Mitchell's New York City program, and low-income housing tax credit.
Zoning Inclusion
Inclusive Zoning is a technique for developing mixed housing mixtures. This law will require that a set percentage of units in each new or renovated building means being used for affordable housing. Instead, developers receive 'density bonuses', allowing them to build more units than is normally allowed. Inclusive Zoning aims to promote a mixed income and equitable growth community for all residents. Several studies conducted between 1981 and 2005 have suggested that zoning inclusions make homes that market prices more expensive, limit the supply of new homes, and produce some affordable units. According to the study, developers in areas that incorporate inclusionary zonation compensate for the cost of homes being discounted by raising the market-level home prices. The rise in house market prices then led to a decline in production of new homes resulting in an overall housing shortage. Often the required percentage of newly developed land can be met in a number of ways based on city regulations. Cities like Napa, California have provided developers of "alternative equivalent proposals" such as developing affordable housing on other sites (probably cheaper land), and allowing them to pay fees or fines to pass inclusive zoning laws simultaneously.
Environmental Choice Initiative
The Choice Neighborhood Initiative is a program sponsored by the US Department of Housing and Urban Planning. This represents the idea of ​​investing more into low to middle income environments, which seek to bring economic revitalization to the region. The goal of this initiative is to bring economic opportunities to areas that already have affordable, high-concentration homes and access to public transport. Environment with high concentrations of public housing can compete for funding for urban revitalization. The environment proposes a strategy for using funds to create lasting results that improve the quality of life in the area. These funds are targeted for dismantling and to create new housing and development, but can also be used to invest in schools, infrastructure, and commercial development.
Housing Vouchers
Housing vouchers are given to low-income residents to pay for private landlords to pay rent. Citizens can pay hinges
Source of the article : Wikipedia
0 Comments