Maybe you aren’t cost-burdened. You don’t have to decide between paying the light bill or buying food. And neither do your friends or neighbors. Maybe you’re thinking this whole issue of affordable housing doesn’t affect you.
A 2014 report by Enterprise Community Partners (here) should make us all pause and reconsider. The lack of affordable housing has measurable impacts on families, communities, and society overall. The report on housing instability, including homelessness, presents their findings by major issues; below is an excerpt of just three of these issues we can all relate to:
• Education — Housing instability/homelessness (HI/H) jeopardizes children’s performance and success in school and contributes to long-lasting achievement gaps. The stress of HI/H makes learning difficult; in addition, it disrupts school attendance, lowering students’ overall academic performance. Long-term academic success is directly impacted by housing stability.
• Health — HI/H has serious negative impacts on the health of children and adults. Problems include asthma, being underweight, developmental delays, and increases the risk of depression, to name a few. Affordable housing provides stability, freeing up resources for nutritious food and health care.
• Neighborhood Quality — The report states that “A number of national and regional studies have found that investments in affordable housing produce benefits in the form of jobs, local income, sales, increased property values and property tax revenues…” and “…Numerous studies show that affordable housing has a neutral or positive effect on surrounding property values…”
Let’s bring this closer to home. In October 2017 the Orlando Sentinel published the results of a study done by the Shimberg Center for Housing Studies at the University of Florida and Miami Homes for All, a South Florida nonprofit. The research focused on student homelessness; the Sentinel’s article (“Central Florida’s Homeless Students Top 14,000”) can be found here. According to the study, “…only 24 percent to 27 percent of homeless students passed assessment tests, while 40 percent to 48 percent of other students did.” They had higher rates of truancy and suspension, and “Even compared with students who live in poverty but are not homeless, the students whose families stay in shelters, cars, doubled up with another family or in extended-stay hotels fared significantly worse…” The Sentinel quotes Christina Savino, Orange County Public Schools senior administrator for homeless and migrant education: “…that lack of a stable home still really makes a difference.”
The lack of affordable, stable housing eventually ripples through all aspects of the local community and economy. While you might not be cost-burdened based on your income, your larger community, including the central Florida region as a whole, suffers when families are priced out of a stable place to call home.
Your turn: Contact a local food pantry, teacher, community police officer, or health clinic and discuss the issues they see related to housing instability/homelessness. For example, ask the food pantry how hunger affects their clients’ choices on other critical needs; ask a teacher how hunger affects a student’s classroom behavior and academic progress; ask a local police officer how the lack of affordable housing affects crime; ask a health clinic about the impact of delayed medical attention on children and families. Who else might you discuss the topic with? Share your experiences with us!
Affordable Housing Part I: The A, B, Cs
A is Also for Affordable Alternatives
Housing burdened. That’s the diagnosis if you’re paying more than 30% of your household income in rent/utilities. If you’re paying 50% or more, then you’re extremely housing burdened, but you probably already knew that! Whether you’re renting or trying to buy a house, are there options for finding something that fits your budget?
The good news? Yes, many programs help with renting or buying, based on location, income, family size, and other criteria. Their goal is to keep you at/under that 30% benchmark. Habitat for Humanity Lake Sumter is one of them, though we’re a small non-profit rather than a government-funded agency. If you’re hoping to buy a home in Lake or Sumter County, FL, consider starting with us. Review our Home-Ownership Qualification Criteria here: https://habitatls.org/programs/apply/.
For more comprehensive options, explore what’s offered by the Federal government, as noted in the links below; we’re sharing content from these websites as well.
The bad news? Finding the right one takes a lot of time and effort, and there’s often a long waiting list to access these programs.
Renters: The U.S. Department of Housing and Urban Development (HUD) is the mothership of programs and information. Start here https://www.hud.gov/topics/rental_assistance and use their links:
- Privately owned subsidized housing – HUD helps apartment owners offer reduced rents to low-income tenants. Search for an apartment and apply directly at the management office.
- Public Housing – affordable apartments for low-income families, the elderly, and persons with disabilities. To apply, contact a public housing agency (PHA).
- Housing Choice Voucher Program (Section 8) – find your own place and use the voucher to pay for all or part of the rent. To apply, contact a public housing agency.
- HUD Resource Locator – search for HUD field and regional offices, local PHAs, Multifamily and Public Housing locations, homeless coordinated entry system points of contacts, and USDA (Department of Agriculture), which focuses strictly on rural housing
Were you surprised to see the USDA listed? Their programs cover rentals, home purchases, and even repair grants. https://www.usda.gov/topics/rural/housing-assistance
- USDA Rentals: Click on the state and keep going as prompted. https://rdmfhrentals.sc.egov.usda.gov/RDMFHRentals/select_state.jsp
Home Buying: Both HUD and the USDA are good sources for home buying information, guidelines, and financial input. Check these links to learn more:
- HUD: https://www.hud.gov/topics/buying_a_home
- HUD: Housing counseling agencies throughout the USA offer advice on buying or renting, credit issues, and more. https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm
- USDA: Home buying loans for low and very low income people in qualified rural areas: https://www.rd.usda.gov/programs-services/single-family-housing-direct-home-loans
Your turn: Find an affordable apartment for a) your elderly uncle (monthly income $960) or your cousin (a single mom with a pre-schooler, earning $15/hour working 40 hours/week). Rent + utilities cannot exceed 30% of the total monthly income. Using the resources above, find what programs are offered in your area; are they in a city or a rural area? What restrictions apply? Is there a wait list? How long? You have one week to find it…GO! Don’t forget to share what you learned in this process on our FB page, https://www.facebook.com/habitatls/
A is for Affordable…
“Can we afford it?”
This is one of the first questions any renter or home buyer should be asking. But what, exactly, does ‘affordable’ mean? What’s affordable to you might not be to me. Is this just a philosophy about how to handle money or is this something more concrete and measurable?
It’s actually very straight-forward. The term ‘affordable housing’ means that the household spends no more than 30% of their total household income on rent plus utilities.
Because households need money left over to pay for things like food, transportation, and healthcare—known as non-discretionary spending (these are ‘needs’ not ‘wants’).
“Housing expenditures that exceed 30 percent of household income have historically been viewed as an indicator of a housing affordability problem. The conventional 30 percent of household income that a household can devote to housing costs before the household is said to be “burdened” evolved from the United States National Housing Act of 1937” (1).
The Housing Act created the nation’s public housing program to serve families with the very lowest incomes. Since then, a variety of definitions were used to establish what was considered ‘affordable’ for public housing rents. By 1981, the 30% benchmark was put into place and has remained the standard.
This benchmark eventually became part of the home-buying process when lenders began using it as part of their evaluation of a buyer’s ability to repay the loan, especially if the borrower had other debts to pay. However, in mortgage-lending land, “rent plus utilities” was replaced by the PITI factor: this is the combined total of the loan’s Principle, Interest, Taxes, and Insurance. “Through the mid 1990s, underwriting standards reflected the lender’s perception of loan risk. That is, a household could afford to spend nearly 30 percent of income for servicing housing debt and another 12 percent to service consumer debt. Above these thresholds, a household could not afford the home” and the lender wouldn’t take the risk of the buyer defaulting (1).
This benchmark helps families and landlords or lenders objectively gauge the household’s ability to handle the financial burden of the monthly housing payment. Whether it’s a rental or a purchase, then, it’s a very helpful tool and one we’ll come back to later in this series. The big question now is: based on this definition of ‘affordable’ what are my options if I can’t find a place I can afford?
If that’s the case, then it’s time to look at the variety of programs in place to help make housing affordable, whether it’s a rental or a home purchase. We’ll look at some of those next time and also consider why affordable housing is important…not just for a family but also for the entire community.
Your turn: Calculate what percent of your household income is used to pay for your housing (rent + utilities, or mortgage PITI). Next, ask others you know to do the same. Consider asking employees, young singles or marrieds, etc. Discuss how your and their situations would look if 50% or more of your total household income went to pay for housing. What other expenses would be affected?
UMATILLA, Fla. — Habitat for Humanity of Lake-Sumter is done building homes in a Lake County neighborhood.
- Habitat for Humanity builds homes for ‘Veterans Village’
- Affordable homes meant for veterans, active military
The 13 affordable homes are for veterans, activity military and spouses of those who have served.
It’s called the Veterans Village and it’s located in Umatilla.
Shawn Unger moved into the development at the end of June.
“(I) wanted to get out of the apartment living and into a home. I do have two small children in the house, so a little more wholesome living than that of the apartment,” said Unger.
Unger says he went into the Air Force when he was 17 years old after graduating from high school.
“My parents had to give me permission to do so and sign a form, and then I reported to Lackland Air Force base in 1985,” he said.
Unger’s house is one of 13 Habitat for Humanity of Lake-Sumter started building in 2016.
Through his time in the United States Air Force and his various career tracks post-service, Shawn Unger has travelled across most of the North American continent. Born and raised in West Virginia, Shawn enlisted right after graduating high school in 1985 and spent a full year in Mississippi learning to be a radar technician. He was initially slated to head to Europe for his duty station, but it was then changed last minute to South Dakota.
Once he left the Air Force, he began working for SAIC, a major IT support company, and transitioned from there to Sprint where he worked up to a position as Network Service Manager for the AOL account. After a talk with his father one day at a NASCAR race, he decided to try out the trucking world, and drove big rigs all over the US and Canada; his last employer, out of Tampa, is what led him to make Florida his home.
He left the trucking industry to work for the Department of Homeland Security for a short while before returning to an IT position with Convergys in Lake Mary, Florida. He now lives with his two young sons, Phoenix and Caleb, while his eldest son Timmy lives in New Hampshire. Shawn is looking forward to his wedding later this year to his fiancée, Rowena, who is from the Philippines.
We knew when we built the Veterans Village that we would meet some people with remarkable backgrounds and unique experiences. After all, serving in the military is essentially a guarantee of at least a few good stories. However, among all of our homeowners in the Veterans Village, none stand out as defiantly and inspirational as Ike Fretz. Our most recent resident to move into the Village, Ike’s history of service is impressive, but it’s what he’s done – and continues to do – post-service that really galvanizes the warrior spirit.
Ike served in the United States Army from 1989 through 1994 and was on active duty for Desert Storm. During that conflict, he sustained an injury while working as part of a two-man evacuation team. His actions earned him several commendations but they also left him permanently injured and wheelchair-bound. It was several years into his recovery and adaptation process that a recreational therapist introduced him to adaptive sports, and it was the beginning of a brand new outlook.
Since then, Ike has won multiple gold medals in the National Veterans Wheelchair Games events, including power lifting, basketball, bowling, and hand-cycling, which he took to the extreme with a Washington-State-to-Washington-DC cycle in 2012. Ike says that when he competes in these games, he does so to honor other veterans that he holds dear, whether living or passed, and uses his actions in spite of adversities to inspire other veterans to keep fighting.
Because of his profound story, dedication, and impact, an anonymous donor took note of Ike’s placement into a Veterans Village home and decided to pay off Ike’s mortgage, in full, as a way of honoring how he served our country and continues to serve other veterans. We were able to surprise Ike and his caretaker, Sherrie, with the news on May 23, and have an opportunity for the donor to meet Ike and thank him in person. It was a truly moving experience and added yet another momentous chapter to Ike’s already extraordinary story.
A Beginning and an End
On April 14th, Habitat of Lake-Sumter was proud to dedicate three new homes and officially welcome the Homrich, Dyhr, and Mabry families to the Veterans Village! The families were honored for their hard work and dedication through the completion of the Home ownership program, and were celebrated on beginning the first chapter of their new journey. This event came as the perfect ending to a season of generosity in our community, as local donors alongside RoMac-Lumber & Supply raised money in support of the community through the March Match campaign.
The Veterans Housing Initiative has always been a special cause to Don Magruder, CEO of RoMac, and his pledge to match donations, dollar for dollar, inspired donors to give generously… doubling their investment in affordable housing. This year, the match ran through the month of March, and because of the community’s generosity and dedication to the mission, the campaign met and exceeded the goal of $10,000!
Our Community Partner
As one of our long-standing partners, RoMac Lumber & Supply has been a huge contributor to our mission and has enabled us to continue reaching the community across Lake and Sumter county. RoMac has been a staple of Lake County for over 70 years and has expanded to serve much of the Southeast United States. Whether it’s wood, trusses, doors, or otherwise, RoMac has remained a steady supplier of quality materials and service for central Florida and beyond.
Our Homeowners, The Reason to Give
In attendance to greet and celebrate our three Veteran families were 20 community members. The joint home dedication, gave an opportunity for food, fellowship, and viewing of the families homes. Each homeowner has their own story to tell, but here is little bit about each family:
- Greg Homrich served in the United States Marine Corps, Army, and National Guard, and is still serving his community as a dispatcher for the Leesburg Police Department. Upon getting to know Greg, you will quickly find out that he is most excited about becoming a member of this unique community, having already built relationships with many of his neighbors.
- Beth Dyhr, is the spouse of her late husband who proudly served in the United States Marine Corps. As Beth’s first home as a single women, she is thrilled to start a new chapter in her life and instill her own passionate, vibrant spirit into the home.
- Kathleen Mabry was a member of the United States Army, and her ability to define strength through adversity left a mark on our staff. She is proud to be a new homeowner, and shared that the opportunity is most special because it offers a safe and secure home for her to raise her 10-year old grandson.
About the Community
The Veterans Housing Initiative led us to develop the Veterans Village in Umatilla, Florida, where veterans and their families enjoy safe, affordable housing built in a small neighborhood that focuses on relationships. Our ability to meet the needs of our local veterans is due to the compassion and generosity of our community and through partners like RoMac. We also teamed up with Combat Veterans to Careers to offer extra services to the residents – things like healthcare, transportation, and help navigating the Veterans Affairs system, to name a few. This ensures that we’re providing not just a house but a community network of support, which for many veterans is crucial for the stability they seek.
As a community-based and community-focused organization, it’s always inspiring to see how much can be done on a local scale. Your consistent support, whether it’s financial or volunteering or both, never ceases to amaze us, and we thank you so much for it! We’re looking ahead eagerly to the next big project and can’t wait to bring you along for it.
Upcoming Home Dedication:
You’re invited to join us in welcoming our newest Habitat Homeowner, Jessica, to her home!
When: Saturday, January 20 from 9AM – 10AM
RSVP: 352-483-0434 Ext. 118; firstname.lastname@example.org
Curtis was one of the first Homeowners we served through our Veterans Housing Initiative. His story is moving, and continually reminds us of the importance of a safe home.
This year marks the 30th year of Bank of America’s long-standing partnership with Habitat for Humanity in our shared goal to connect working families to affordable housing in order to build thriving communities.