Washington Area Housing Partnership Workforce Housing Briefing

City of GreenbeltJuly 31, 2006

Hon. Barbara Favola Chair, Washington Area Housing Partnership

Member, Arlington County Board

Workforce Housing

• In the Metropolitan Washington Region, we are a victim of our own success.

• This region is a great place to live, work, visit and invest.

• Unfortunately though, it is unaffordable for many who live here.

• What is "workforce housing"?

• How does workforce housing differ from affordable housing?

– workforce housing is typically associated with housing affordable to households earning incomes from approximately 60% - 120% of area median income.

– 2006 Area Median Income is: $90,300• Source: HUD AMI for the DC Metropolitan Statistical Area

Workforce Housing Continued

Workforce housing includes single-family homes, townhouses, condominiums, starter homes, and apartments that are affordable to area workers.

• Workforce Housing Occupations Earning Between 60% -120% of the Area Median Income:

– Emergency Medical Technician, Registered Nurse, Fireman, Police Officer, Librarians, Teachers, and municipal employees providing essential services to our communities

• Low Income Occupations earning between 30% - 60% of the area median Income:

– Religious Workers, Social Workers, Dental Assistants, Cashier, Waiter/Waitress, Food Preparation Worker, and Grounds Keeper

Who Needs Workforce / Affordable Housing?

$101,314Annual Income Needed to Afford an Existing Home

Fire Fighter

Home Ownership Market 2006

Median Home Price in Prince George’s County

$319,000

$41,800

$49,500$55,580

$39,310

$20,320

Paralegal Middle School Teacher

Emergency Medical Technician

Child Care Worker

Source: Center for Housing Policy, MRIS, and WAHP

$22.83 / 2 Bdrm1

Hourly Income Needed to Afford

Cashier

Rental Market 2005

Fair Market Rent Prince George’s County

$9.09

$16.17$13.08

$10.12$14.42

Religious Worker

Cooks Housekeeper

Hairdresser

$20.10 / 1 Bdrm

1 Bedroom $1,045 • 2 Bedroom $1,187

Source: Center for Housing Policy, MRIS, and WAHP

Attracts new residents that provide everyday services to a community, such as teachers, child care providers and law enforcement officers.

Creates options for residents to live near their place of employment, thus reducing traffic congestion and time spent away from families.

– Housing Costs are crucial to 67.6% of business location decisions.

• Source: Development Magazine

Means never having to tell your graduates, new families, disabled, or seniors, "you must leave us because there is no housing for you."

Workforce Housing Benefits the Community and the Economy

Promoting Mixed-Income Communities

The Partnership recognizes the benefits of mixed-income communities and is working to promote affordable housing tools encouraging mixed-income communities

Alleviate Concentrations of Poverty

Producing High Quality Developments

Enhanced Safety and Community Services

The Partnership:

• Convenes regional leaders and stakeholders to advocate for expansion of affordable housing opportunities. – Researches and reports on local housing policies and

provides technical assistance to non-profit organizations and local governments.

– Recognizes successful local government policies and programs through the Partnership’s Best Practice Awards.

– Includes lending institutions, national advocacy groups, local governments and affordable housing developers.

• Outlines affordable housing best practices

• Provides examples of successful implementation by local governments

• Launched Dec. 2005

The Toolkit

Funding provided by: