Affordable Housing Legislation

There's some good news on the affordable housing front. Or maybe I should say there's the potential for good news there in 2008.

Both the House and Senate passed legislation this year to create a National Affordable Housing Trust Fund Account. This would be a dedicated funding source for the development, preservation and rehabilitation of 1.5 million affordable homes over 10 years.

Heaven knows this area badly needs more affordable housing. Even with prices currently sinking,  housing remains unaffordable for many people given the average wages in this area. And all those new retail shops in Culpeper, Warrenton and Gainesville aren't going to help! Find me one that pays enough for their employees to qualify for a mortgage!

While both the House (HR 2895) and Senate (S 2523) have passed these bills, they are, of course, different versions. So they'll have to be reconciled in 2008. And, that's where they're likely to run into some trouble.

Right now these bills are bipartisan efforts. The Senate version, for example, was sponsored by three Republicans and three Democrats. But there are definitely those who oppose this bill, particularly for the funding mechanism, with revenues coming primarily from Fannie Mae and Freddie Mac.

So, if this is an issue that's important to you, please contact your Senators and Congressional Representative. It would be a nice gift to bring in the New Year!

Workforce Housing

We have a guest blogger today.  His name is Chris Moyles and he is with the Rapidan Better Housing Corporation, a housing oriented non-profit. This is actually taken from a longer post on a local list-serve. But I thought it a timely and important topic for discussion. I'm anxious to hear your thoughts!

Affordable Housing

A recent study by George Mason University makes it clear what most of us here probably already know.  Local wages are not even coming close to keeping up with the increased costs of housing.  Given today's news about stagnant wages nationally, this can not be good news for the local real estate market.

Between 2000 and 2005 rents increased in the northern Virginia area 2.7 times faster than wages.  During those same years the cost of buying a home increased 12 times faster than wages.  If you don't see a connection between those numbers and the current slump in the real estate market I'd suggest you're burying your head in the sand!

Income for a family of four now needs to be as high as 94 to 115 percent of the median income in order to live and work in this area without any public assistance or subsidies.

Lest you think this is only a problem for the poor, let me suggest that it impacts all of us.  First of all, the teachers, firefighters, policemen, etc. that we depend on in our communities can no longer afford to live here. That's bad for all of us.

Secondly, the housing prices force families to move further and further out in order to obtain housing that fits within their budget.  This further increases the pressure on roads and mass transit, virtually guaranteeing taxes will have to rise to fix the transportation problems. Increase taxes enough and you'll make this area less attractive to businesses and the economy overall will suffer.

The economy will also suffer as employers are unable to recruit talented people because they don't want to pay the prices either in actual dollars or in the loss of family time commuting, that would allow them to afford to live here.

I'm not proposing solutions here today, although I plan to have another blog talking about possibilities down the road.  But I thought these numbers were shocking enough and important enough to warrant a discussion.

As always, your comments are welcomed!