We Need Minimum Wage Housing; California Dept. of Housing’s Relative Definitions of “Affordable” and “Low” Don’t Define What HMB Needs

From the  California Department of Housing and Community Development

Most federal and State housing assistance programs set maximum incomes for eligibility to live in assisted housing, and maximum rents and housing costs that may be charged to eligible residents, usually based on their incomes.

The Department of Housing and Community Development (HCD) publishes annual tables of official federal and State income limits for determining these maximums for a variety of programs, including most of those on the web site.

State statutory limits are based on federal limits set and periodically revised by the U.S. Department of Housing and Urban Development (HUD) for the Section 8 Housing Choice Voucher Program.  HUD’s limits are based on surveys of local area median income (AMI).  The commonly used income categories are approximately as follows, subject to variations for household size and other factors:

• Acutely low income: 0-15% of AMI
• Extremely low income:  15-30% of AMI
• Very low income:  30% to 50% of AMI
• Lower income:  50% to 80% of AMI; the term may also be used to mean 0% to 80% of AMI
• Moderate income:  80% to 120% of AMI

“Affordable housing cost” for lower-income households is defined in State law as not more than 30 percent of gross household income with variations (Health and Safety Code Section 50052.5).  The comparable federal limit, more widely used, is 30 percent of gross income, with variations.  “Housing cost” commonly includes rent or mortgage payments, utilities (gas, electricity, water, sewer, garbage, recycling, green waste), and property taxes and insurance on owner-occupied housing.

“Affordable”? “Low-Income”? We Need “Minimum Wage” Housing: 30% of $15/hr = $700/month Rent

SEPTEMBER 2, 2021