HousingConcepts - Affordable Housing Concepts 2009 Page 1...

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Affordable Housing Concepts 2009 Page 1 Affordable Housing Concepts Florida’s Statutory definition (s. 420.9071, F.S.): Affordable means that the monthly rent or monthly mortgage payments, including taxes and insurance, do not exceed 30 percent of the gross income of the household. It is not the intent of this definition to limit the individual household’s ability to devote more than 30 percent of its income for housing, and housing for which a household devotes more than 30 percent of its income will be deemed affordable if the first institutional mortgage lender is satisfied that the household can afford mortgage payments in excess of the 30 percent benchmark. This definition masks variations in affordability of different household types: The disposable income left over after paying routine household expenses is quite different for a household earning $60,000 than for a household earning $15,000. Units that are affordable in a small rural town will be quite different from an affordable home in a metropolitan area . According to the National Low Income Housing Coalition report titled Out of Reach [ http://www.nlihc.org ] the situation in Florida in 2009 is: In Florida, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,019. In order to afford this level of rent and utilities, without paying more than 30% of income on housing, a household must earn $3,398 monthly or $40,776 annually. Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a Housing Wage of $19.60. In Florida, a minimum wage worker earns an hourly wage of $7.25. In order to afford the FMR for a two-bedroom apartment, a minimum wage earner must work 109 hours per week, 52 weeks per year. Or, a household must include 2.7
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This note was uploaded on 08/27/2011 for the course BCN 4023 taught by Professor Stroh during the Spring '11 term at University of Florida.

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HousingConcepts - Affordable Housing Concepts 2009 Page 1...

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