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Project: Stoney Creek Affordable Housing
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New construction rental flats and townhouse
OWNER/DEVELOPER: Eden Housing, Inc.
ARCHITECT: Chris Lamen and Associates
LANDSCAPE ARCHITECT : Cottong & Taniguchi
CONTRACTOR: Ross Construction
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Housing Affordability - Affordable Housing
The Building Industry Association of California indicates that a buildable lot, no streets, no slab on grade, and no sewage or utility lines costs about $200K by the time a developer is ready to build on that lot. Then the municipality loads fees for schools, streets, cable, and any other infrastructure mechanism they deem necessary at the time.
So what is the real issue underlying the problems with housing affordability?
 • According to the federal definition by the Department of Housing and Urban Development; a home is affordable if housing costs (mortgage, tax and insurance payments) consume no more than 30% of a household's gross income. Households are deemed by HUD to have an affordability problem, or cost burden, if they pay more than 30% of income for housing; and a severe burden if they pay over 50%.
• HUD notes that for home ownership, mortgage lenders typically target 28-33% of gross household income as the maximum carrying cost for a home purchase.
• The latest available data from the California Association of Realtors indicates that the first time buyer purchasing a $300K home would face a monthly payment of $2070.00.
• If that household makes the median income of $46,000.00, those monthly payments would constitute 54% of income- making it unlikely the family would qualify for a purchase just with a traditional loan.
• To purchase the median priced home of $400K (monthly payments of $2760.00), and keep monthly cost at 35% of income, a working household needs to make at least $110K annually. If a lender approves a loan at 40% of income, the minimum required would be $82,680.00.
Source: California Association of Realtors; US Department of Housing and Urban Development
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