David Shove wrote:  30% of homeless adults work full or part-time.  40% earn
more than $10 hour.

Me: I don't know where you found this data.  However one source I am aware
of is the Wilder foundation 2001 report on homelessness (1).  Wilder found
that 41% of the homeless adults work full or part time.  32% earn more than
$10/hour.  31% have credit problems.  38% were diagnosed with a mental
illness.  32% �consider themselves� alcoholic or chemically addicted (the
number might be higher if diagnosed by a professional).  21% have a criminal
record.  33% of all homeless adults had at least one child under 18 with
them and 21% of those children were diagnosed with �a serious mental or
emotional problem.�  All of these percentages have worsened since the 1991
Wilder report.

My purpose is not to smear the homeless, but rather to point out that there
might be issues other than just an affordability gap.


Dave Shove again:  The average rent for a one-bedroom apartment is $675.30 a
month.  A medical assistant working for $10.80 an hour would have to work 59
hours a week to afford a one-bedroom apartment, and 67 hours a week to
afford a two-bedroom apartment.

Me: Comparing AVERAGE rent to the income for LOW wage earners is misleading.
Why don't you compare the MEDIAN income in St. Paul to the AVERAGE rent?
The right question is -- at what price point are 1 bedroom apartments
available?

If you open the Pioneer Press classifieds, you will find many 1 bedroom
apartments available today between $550 and $600 per month.  Using the
affordability standards (30% of a household's income), a person that makes
$10.80/hour can afford to spend $561.60 per month on housing.  The St. Paul
rental market does provide for the household you identified.

What everyone must realize is that "affordable housing" is NOT A PRICE
POINT.  See if we picked a price point, say $600 per month, then many market
rate rentals would be affordable.  But that is not how it is done.
"Affordable housing" is government subsidized projects that set their rent
at a price point that is affordable to households at some percentage of the
Area Median Income (AMI).  The common breakdown for affordable housing is:

Percentage   Income level   "affordable housing" rental limit
Median       $76,400        $1,910.00
80%          $61,120        $1,528.00
50%          $38,200        $  955.00
30%          $22,920        $  573.00

The last data I have (which is 3 months old), says the average rent for a
St. Paul, 2 bedroom, MARKET RATE apartment is $856.00.  Therefore, the
rental housing market TODAY has the situation where many government
subsidized "affordable" housing units cost more than the market provides
without subsidies.


Dave Shove again:  Any questions? Please call Amber at (651) 249-7286

Me: I have a question that I would like discussed here.  Affordable housing
advocates always talk about how hard it is to find housing for people that
make $7.00, $8.00 or even $10.00 per hour.  But, when those same affordable
housing advocates receive money from the federal and state government to
build affordable housing, they often build housing affordable to households
that make 50% of the AMI ($38,200/year).  Since the RENTAL market already
provides for people that make 50% of the AMI, why would you build any units
for those households?  Why not focus on 30% of AMI and down?  Aren't you
missing the goal originally stated?  If we build "affordable housing" at 50%
of AMI and not 30% of AMI will this problem ever improve?

Regards, Bill Cullen
East Side Landlord

(1) http://www.wilder.org/research/reports/pdf/homeless-summary.pdf

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