Lesson 14 - Housing Flashcards

Question

Sweat equity

Answer 1

Sweat equity is the interest or increased value in a property earned from labor put towards the restoration of a property. Habitat for Humanity is an example of a sweat equity program, helping families become homeowners by contributing hours of labor towards the construction of a home.

Answer 2

Urban homesteading has been used by a number of cities to encourage residents to occupy and renovate vacant properties, such as Detroit. HUD allows for federally owned properties to be sold to homesteaders.

Answer 3

Workforce housing is a term that is increasingly popular among planners, government administrators, and housing activists. It is also gaining cachet with home builders, developers, and lenders. Workforce housing always refers to affordable housing. It ensures that teachers, nurses, police officers, and others can afford housing in the community. The term has much less social stigma than affordable housing.

Answer 4

Community development is a broad functional topic that seeks to engage the community in solving problems to promote economic, social, environmental health. Community development is often thought about as being associated with the social aspects of the community's well-being.

Answer 5

The Aging of America is a critical issue facing cities across the United States. By 2030, people over the age of 65 are expected to represent 20 percent of the US population. According to Deborah Howe, Baby Boomers "will swell the ranks of those aged 65-plus from 34.8 million in 2000 to a projected 70.3 million in 2030, ultimately representing 20 percent of the U.S. population." America is aging — rapidly. Older adults — 65 and over — represent 13 percent of the population today. By 2030, one in every five people living in the US will be over the age of 65. This aging of America is fueled by 72 million baby boomers aging through the life cycle in combination with a profound increase in longevity. Average life expectancy doubled from the mid-30s in the 19th century to age 78 today. Currently there are more than 70,000 centenarians in the United States, roughly four times the number from just 10 years ago. And according to the U.S. Census, that number will likely exceed 1 million by 2050.

Answer 6

Community Development Banks are those that operate with a focus on economic development in low to moderate income areas. These banks are certified by the US Department of Treasury. In addition, banks can seek the alternative designation by the National Community Investment Fund for banks that locate branches and provide loans in economically distressed areas.

Answer 7

Colonias are unincorporated subdivisions with little or no infrastructure that are sold to low-income individuals. Colonias are located in Arizona, California, New Mexico, and Texas and their residents are predominantly Hispanic. Colonias have grown as a result of a limited supply of adequate, affordable housing near the Mexico border. For example, in Texas there are more than 400,000 people living in more than 2,200 colonias.

Answer 8

Child care is a critical part of a livable community. Many communities are challenged with a lack of quality, affordable child care and it is an issue that planners have a responsibility to address. The American Planning Association has a briefing paper on the importance of ensuring adequate child care. The City of Milpitas California has a Child Care Master Plan. State spending on preschool increased from $2.4 billion to $4.2 billion nationwide between 2005 and 2007 (Wat 2007). Although federal and state spending on child care subsidies has more than tripled in the last decade, most communities still face problems with inadequate supply of quality, affordable child care (Warner 2007).

Answer 9

Homelessness has risen over the last twenty years as a result of a growing shortage of rental housing and an increase in poverty. The National Coalition for the Homeless provides a summary of issues driving the increase in homelessness. Two trends are largely responsible for the rise in homelessness over the past 20-25 years: a growing shortage of affordable rental housing and a simultaneous increase in poverty. Below is an overview of current poverty and housing statistics, as well as additional factors contributing to homelessness. A list of resources for further study is also provided. FORECLOSURE - The National Coalition for the Homeless report found that there was a 32% jump in the number of foreclosures between April 2008 and April 2009. Since the start of the recession, six million jobs have been lost. In May 2009, the official unemployment rate was 9.4%. POVERTY - In 2007, 12.5% of the U.S. population, or 37,300,00 million people, lived in poverty. The official poverty rate in 2007 was not statistically different than 2006 (U.S. Bureau of the Census, 2007). Children are overrepresented, composing 35.7% of people in poverty while only being 24.8% of the total population. Two factors help account for increasing poverty: eroding employment opportunities for large segments of the workforce and the declining value and availability of public assistance. ERODING WORK OPPORTUNITIES - The real value of the minimum wage in 2004 was 26% less than in 1979. Factors contributing to wage declines include a steep drop in the number and bargaining power of unionized workers; erosion in the value of the minimum wage; a decline in manufacturing jobs and the corresponding expansion of lower-paying service-sector employment; globalization; and increased nonstandard work, such as temporary and part-time employment. To combat this, Congress has planned a gradual minimum wage increase, resulting in minimum wage raised to $9.50 by 2011. U.S. Conference of Mayors report stated that in every state more than the minimum-wage is required to afford a one or two-bedroom apartment at 30% of his or her income, which is the federal definition of affordable housing. Unfortunately, for 12 million Americans, more then 50% of their salaries go towards renting or housing costs. In 2007, a survey performed by the U.S. Conference of Mayors found that 17.4% of homeless adults in families were employed while 13% of homeless single adults or unaccompanied youth were employed. In the 2008 report, eleven out of nineteen cities reported an increased in employed homeless people. DECLINE IN PUBLIC ASSISTANCE - Until its repeal in August 1996, the largest cash assistance program for poor families with children was the Aid to Families with Dependent Children (AFDC) program. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (the federal welfare reform law) repealed the AFDC program and replaced it with a block grant program called Temporary Assistance to Needy Families (TANF). In 2005, TANF helped a third of the children that AFDC helped reach above the 50% poverty line. Unfortunately, TANF has not been able to kept up with inflation. In 2006-2008, TANF case load has continued to decline while food stamp caseloads have increased HOUSING - According to HUD, in recent years the shortages of affordable housing are most severe for units affordable to renters with extremely low incomes. Federal support for low-income housing has fallen 49% from 1980 to 2003 (National Low Income Housing Coalition, 2005). About 200,000 rental housing units are destroyed annually. Renting is one of the most viable options for low income people (Joint Center for Housing Studies). Since 2000, the incomes of low-income households has declined as rents continue to rise (National Low Income Housing Coalition, 2005). In 2009, a worker would need to earn $14.97 to afford a one-bedroom apartment and $17.84 to afford a two-bedroom apartment. There has been an increase of 41% from 2000 to 2009 in fair market rent for a two-bedroom unit, according to HUD (National Low Income Housing Coalition, 2009). OTHER FACTORS - Lack of Affordable Health Care, Domestic Violence, Mental Illness, Addiction Disorders

Lesson 14 - Housing Flashcards

(33 cards)