Affordable is a nondescript word. However, it gets used a lot, especially now in Greenville while the City works with their consultant and other groups planning to build more “affordable housing.”
When people with resources apply the word affordable to housing, their definition of affordable may be more perception than reality. They may picture high rise buildings that are dilapidated, crime-ridden, dirty, and trashy … where “those people” live. The idea of “affordable housing” being built in or near their homes becomes threatening, indeed. NIMBY (not in my backyard) becomes virulent. That’s one understanding of affordable.
To people on the other end of the economic spectrum, affordable means having a home that their meager income allows without the landlord or mortgage company pounding on their door every week. Homes that are safe, well-maintained, lovely…and affordable… would certainly be nice but are not readily available in many cases. Affordable in this scenario allows for not only rent to be paid but also food, medical care, clothing for work, and childcare.
When people who are housing advocates or housing developers talk about affordable housing, even then the definition is murky. Is the definition of affordable based on the area medium income (AMI) which is about $66,000 in our area? If so, affordable housing defined as a percentage of the AMI can require household incomes of $52,800 (80% AMI) to $99,000 (150% AMI).
Basing the formula for affordability on the poverty guidelines is a different story. In 2017, the federal poverty guideline for a family of four is $24,600. So affordable based on 50% of the poverty guideline for a family of four is income of no more than $12,300 while 200% of the poverty guideline allows an income up to $49,200.
There is quite a discrepancy between $12,300 (50% poverty guideline) and $99,000 (150% AMI). Both the AMI and the federal poverty guideline are used in different situations as THE definition of affordable.
Another definition for affordable is rent costing $500 or less a month. That becomes extremely hard for the grandmother who is living on her Supplemental Security Income of $770 a month.
Housing and Urban Development’s (HUD) guideline is that no more than 30% of a household’s income should be used on housing (including utilities). Since studio apartments in some of the new housing complexes in and around downtown Greenville have rents ranging from $800 to $1400, the HUD recommendation is income of $32,000-$56,000. Can a four-person moderate income household afford this studio unit? One-bedroom units are renting from $1000-$1800 a month with utilities not included (annual income of $40,000 -$72,000.)
Low and moderate income people may not define these units as affordable.
Our burgeoning tourist and convention economy means that visitors spent $1.145 billion in Greenville County in 2015 and the accommodations revenue increased by 65% in the City of Greenville in 2015. This is significant and important when we think about housing for low and moderate income people. Do employees in the hospitality industry who clean the hotels, bus the tables, wash the dishes, and clerk in the retail shops earn enough to afford the new units being built in the urban area? Are they able to live near their work place? If they choose to live in housing that low and moderate income people can pay a reasonable price for, are they close to their work in the hotels and restaurants? Where do the people live who clean up after the wonderful street festivals? Where can they find a home that they can pay for? And then can they get to work?
‘Work force housing” is another term used occasionally to mean affordable. These homes may cost less than the open market can bear so work force housing indeed addresses the needs of some low and moderate income people. People who are often eligible for work force housing include teachers, fire fighters, police officers, and health care workers. Some communities have built neighborhoods or apartment units specifically for these vital workers so that the town can have quality teachers, fire fighters, police officers, and health care workers. The downside of this definition for affordable is that it rightly expects the people who live in these homes to have a steady income, few credit issues, no criminal record, non-evident mental illness, and/or a steady income.
The good news is that our community is primed to address the issue of affordable housing. Let’s just make sure that everyone is using the same definition of affordable.