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Affordable Housing:
The generally accepted definition of affordability is for a household to pay no more than 30 percent of its annual income on housing. Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care.
This 30 percent of the average income is the problem here in New Jersey as it is across the United States. This 30 percent formula has lead to a lack of affordable housing since the 1990" and it's primary target and geratest effect is adding a significant hardship for low-income households. Thirty percent of a single mothers wage as a CNA at $11.00/hr for 40 hours is 500. per month for a 2 bedroom apartment.
With NJ being the highest priced, taxed,ect..ect how do we provide for the housing without preventing her from meeting the other basic needs, such as nutrition and healthcare, or saving for the future. An estimated 12 million renter and homeowner households now pay more then 50 percent of their annual incomes for housing, and a family with one full-time worker earning the minimum wage cannot afford the local fair-market rent for a two-bedroom apartment anywhere in the United States.
- Housing is affordable when persons or families can pay for it out of their monthly income and still have enough money left over for food, clothes, transportation, and healthcare.
- Housing is considered affordable when rent and utility costs are no more than 30% of a household’s income. A family of four with two working parents earning minimum wage can only afford $700 in rent or mortgage payments and utilities
- Housing costs are often much more than this, which is why development, operation and preservation of affordable housing is such a critical issue.
The Department of Housing and Urban Development have developed and administers three separate programs designed to address the nationwide shortage in affordable housing. The HOME Investment Partnerships,Self-Help Homeownership (SHOP), and Homeownership Zone programs bring federal resources directly to the state and local level for use in the development of affordable housing units, or to assist income-eligible households in purchasing, rehabilitating, or renting safe and decent housing.
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