2006-03-21_Agenda - Laserfiche WebLink

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2 Workforce Housing Needs Low income, and moderate income individuals and families face a variety of challenges in today’s housing market. In the Twin Cities there is a shortage of affordable workforce housing for individuals and families earning less than 50% of th e area median income - those households earning approximately $38,000. In the Twin Cities the av erage rent for a two-bedr oom apartment is $925, requiring an income of at least $32,500 a year. More than a third of Minnesota households make less than that annually, including people working in critical service sector jobs such as preschool teachers, childcare providers, medical assistants, school bu s drivers, and bank tellers. Many individuals and families are paying far more than 1/3 of their an nual income on housing th at is often substandard, and struggling to maintain a decent qua lity of life. By definition, if a household pays more than 30% of their gross annual income towards their housing co sts, their housing is not affordable and they live in precarious financial situations. In the vicinity of the Har Mar Apartments site, th ere are thousands of service sector jobs paying hourly wages that range from minimum wage to $14 per hour. Housing options are limited for individuals and families earning low wages. The table below represents the scenario of a single head of household’s ability to find affordable hous ing based on low to moderate hourly wages. A single income Would earn Resulting in household with an an annual income the ability to pay a hourly wage of… of… monthly housing cost of… $6.15 $12,792 $320 $7.00 $14,560 $364 $8.00 $16,640 $416 $9.00 $18,720 $468 $10.00 $20,800 $520 $11.00 $22,880 $572 $12.00 $24,960 $624 $13.00 $27,040 $676 $14.00 $29,120 $728 The Har Mar Apartments revitalizati on proposal will incorporate a va riety of housing units with a range of price levels to accommodate service sect or workers as well as hou seholds earning moderate incomes.