Niamh Ducey

Blue Group
4/24/16
Critical Thinking: Affordable Housing
The D.C government must provide more funding for affordable housing. Presently, there
is not enough affordable housing supply to meet the demand of people who are in need of it. The
limited supply of affordable housing forces people to put most of their income toward mortgage
or rent rather than other necessities, increases homelessness, and forces the government to house
people elsewhere, which costs more than providing permanent affordable housing. The problem,
simply stated by the DC Fiscal Policy Institute, is that, Demand is up but our supply of housing
and available resources is going down. This is caused by the recent dramatic rise of housing
prices and no change of peoples wage or income A survey done by the U.S. Census Bureau
shows through a graph that between 2002 and 2013, the bottom 40 percent of renters in D.C. had
0% increase in income, but about a 35% raise in rent. Low-income people and families of D.C.
are having to pay considerably more for their housing with no raise in income.
People who cannot afford their housing cannot put their income towards other necessities,
but are forced to put most of their income towards paying rent or mortgage. With more
affordable housing, Parents can devote more of the household budget to healthy food and
medical care (MHpartners, FAQs). According to the federal governments largest affordable
housing program, Section 8, people should not spend more than 30% of their income towards
mortgage or rent. This recommendation is, however, unrealistic for many. The most recent
information from the DCFPI, written in 2010, states that there are 133,000 residentsnearly
one-quarter of the population [of D.C.] are low-income. The definition of low-income is an
income at or below $24,475 a year for a family of three (Reed, 1). Then of these 133,000 lowincome residents, 64 percent [about 85,120] devote half or more of their income to housing
(DCFPI, 1).

The lack of affordable housing supply is the main issue that causes an increase in
homelessness. In a Hunger and Homelessness survey done by the National Low-Income Housing
Coalitions in 2014 said that, A lack of affordable housing is the lead cause of homelessness
among families with children. Another article, written by Liza Doran of the National Alliance to
End Homelessness simply states that, the solution to homelessness is housing, but there often
arent enough affordable homes to end homelessness. It is simple. If one cannot pay for his or
her housing, he or she cannot live in the house or apartment, then may become homeless. The
DCFPI states that A parent would have to work 136 hours a week at minimum wage to afford a
two-bedroom apartment at the fair market rent. Without affordable housing, these homeless
people must turn to shelters. Public homeless shelters are usually crowded, and can be
dangerous. They are not often welcome in many neighborhoods which leads shelters to locate
within or close to high-crime areas. (Goodmann, Fels, and Glenn, Violence Against Women).
Providing only temporary, unstable housing such as shelters, rather than permanent,
affordable housing costs more for the government. Kate Coventry, DCFPI analyst, states that the
decision to not create stable, affordable housing for homeless, is the more expensive option. In
the winter of 2013, the government spent, $3,000 a month per family for 200 families in
hotels. When the cold season arrives, homeless people overcrowd the shelters. This requires the
government to send the people to hotels or motels for the season. According to the Office of
Assistant Secretary for Planning and Evaluation of the U.S. Department of Health and Human
Services, the poverty line income for a 4-person family is $24,250 per year. If there was stable,
affordable housing for those 200 families, the government, using section 8 would only spend
about $894 per month per family; saving about $2,106. Section 8 pays the difference between
30% of a households income and the rent charged by a landlord. In this example, 30% of 24,250

is 7,275. This number divided by 12 months is 606.25 per month, which is the amount of rent the
family would pay. The average rent for a two-bedroom apartment in D.C. is about $1,500. The
government would pay the difference between the $1,500 and $606.25, which is $893.75. This
amount is cheaper than the $3,000 the government would pay for shelter and hotels, as noted
above. This example shows that the Government is spending too much, rather than less and
helping more people.
To solve and eliminate the affordable housing crisis, the D.C. and federal government
must increase the funding for the existing affordable housing programs. One of these programs is
known as the Section 8 voucher program. This federal program allows low-income families to
pay no more than 30% of their rent or mortgage; the government pays the difference. This is an
example of our federalist system in action; a federal funded program that is administered by the
states and cities. This programs is available for every state in the country, including D.C., each
with a certain number of vouchers; in D.C. there are only 14,000 vouchers available. These
openings are taken quickly, leaving many applicants with no aid. In 2015, there were about
41,000 District of Colombia households in the DC Housing Authoritys waiting list for Section
8 (Baer, Policy and Poverty). This leaves at least 27,000 households in the District area with no
financial help; being forced to pay more than reasonable (which is 30% of income according to
federal government Section 8 standards). A second affordable housing program that D.C.
provides is the Housing Production Trust Fund. This program is funded by 15% of a certain
D.C. tax, called the Deed Transfer and Recordation Tax (CNHED, Understand DC Programs).
The Housing Production Trust Fund provides money to help build affordable housing. 80% of
the funding goes towards housing for households with an income below 50% of the D.C.s
Average Median Income. The Tenant Opportunity to Purchase Program is a third D.C.

provided program that helps households of lower-income afford their housing. The program
gives apartment tenants the opportunity to buy their apartment when the owner decides to sell.
From there, the Housing Production Trust Fund funds low-income tenants for renovations
(CNED, Understand DC Programs). In a Washington Post article from 2015, Author Aaron Davis
writes, The homeless population in the District accounts for 63 percent of the entire regions
homeless population. The solution to this crisis is through the expansion of the beneficial
housing programs.
The D.C. affordable housing crisis is a significant issue that affects homelessness,
peoples way of life, and the D.C. governments spending. Households cannot buy as much
medical care, personal hygiene, and other necessities, as they would with less of their income put
towards housing. The homelessness rates have risen as a result of less affordable housing. People
are forced out of stable homes and into shelters because they cannot afford a home. The D.C.
government is also having to spend more money on shelters, temporary housing, than they would
by providing affordable housing. All of these issues can be solved if there were simply more
housing. An increase in the amount of actual affordable housing is the answer. To obtain more
housing, the government must prioritize the need for more funding towards affordable housing.

Annotated Bibliography
Doran, Liza. "Affordable Housing Increasingly Unavailable to Low-Income Renters."
National Alliance to End Homelessness:. N.p., 21 July 2015. Web. 24 Apr. 2016.

This article allowed me to visualize the exact supply of affordable housing compared to
the need through graphs.

"Report Ties Lack of Affordable Housing to Family Homelessness: National Low Income
Housing Coalition." National Low Income Housing Coalition. N.p., 22 Dec. 2014. Web. 24 Apr.
2016.
This article gave me information of the percentages of the rise of homelessness and what
causes it.