The Impact of the Shortage of Affordable Housing on Homelessness - Essay Example

The Impact of the Shortage of Affordable Housing on Homelessness The basic right of every citizen is housing or shelter and this also applies to those for whom it is difficult to afford it. You have to have a house in order to avail the services which the government provides or the services which all citizens are entitled to. Affordable housing is a term used for housing units for people within a specified income bracket usually towards low income people but can also be applied to all income brackets. It can include both rental hand ownerships. For example in the certain country housing cost which is a certain percentage of the person's salary is considered affordable. Of this goes up housing is considered expensive and creates problems hardships for the family or individual. Affordable housing can be defined as a housing scheme which costs a household a maximum 30% of their incomes. If the cost of housing increases beyond 30% then the families are considered to be in a position where they have difficulty in affording all the basic necessities of life which includes food, shelter, medical care and transport facilities. In the United States, a number as large as 2 million are burdened with basic necessities of life as they are paying more than 50% for their housing cost out of their annual salary. This is to say that a household with one bread owner who earns a minimum wage can in n o way afford a two bedroom house/apartment in accordance with the prices prevailing in the market. (Development, 2008 ) Affordable housing is defined as: Non-market housing, provided to those whose needs are not met by the market and Includes social rented and intermediate housing." (Fenton, 10 April 2007) Intermediate housing is that kind of housing in which the rent paid by the tenant is lower than the market price but it is higher than the social rent. It does not include low cost market housing but shared equity products in addition to intermediate rent are included. Over the years, the budget of the US Housing Urban Development (HUD) has decreased by a substantial amount. From $83 billion in 1976 it dropped to around $ 18 billion in 1983 and has been around $30 billion ever since. There were around 400,000 affordable housing units in 1976 and by 2002 only 25,900 were left. Still the HID added only a mere 7,635. This is very less with respect to the demand and over the years the number of households or people in need for affordable housing have increased rather than decreased. (Council, 2007) More than 60% of extremely low-income households spend more than 30% of their income on housing - exceeding HUD's affordability standard. (Without Housing: Decades of Federal Housing Cutbacks Massive Homelessness and Policy Failures.) According to HUD standards, housing that costs half or more of household income is severely unaffordable or "a severe cost burden." (Development U. D., 2003) The cost of renting a house is beyond the financial capacity of a lot of people in United States today. As the income remains constant, the housing rents have shot up. Hence there is a big gap between increase in spending and more or less no significant increase in the amount of money earned by individuals making it more difficult for the low income brackets to afford a house on a rental basis. Shortage of affordable housing increased to a great extent the risk of homelessness. Some of the policies on affordable housing include the local authorities should in advance plan out the housing needs of their community or jurisdiction including those who cannot afford it easily. A community should be planned in such a way that it should have a mix of housing which accommodates those who can afford bid houses as well as those sectors who need affordable prices. Regional Planning Guidance for Yorkshire and the Humber to 2016 (RPG12) outlines its approach to affordable housing in Policy H4 Housing Size, Type and Affordability. The policy requires targets for the provision of affordable housing in each district to be informed by evidence from local housing needs assessments in consultation with housing authorities and other social and affordable housing providers. Where there is evidence to justify the application of lower thresholds (i.e. high demand urban areas and accessible rural areas) as set out in Circular 6/98 development plans should include a policy to acknowledge the particular need" (Affordable Housing Policy, 2008) Another example is that acording to the law in chicago, 20% of the houses should be there as affordable houses and the period for affordability is set to thirty years. (Policy, updated June 27, 2008) According to National Low Income Housing Coalition in the United States, there does not exist a single jurisdiction where a person earning a minimum wage is able to rent even a one bedroom apartment. On an average, if an individual wants to rent a two bedroom apartment then he should earn a minimum of $1578 per hour. As we go in the more posh and expensive areas of the United States, the crisis worsens. In California, for instance, a person working full-time would have to earn $22.86 per hour to afford a two-bedroom apartment; a minimum wage worker would need to work 135 hours per week. (Coalition, 2006) As the crisis worsens, more and more people are forced to live without a shelter on their heads and survive on the streets or in shelters like caravans or motels with the lack of alternatives available to them. Shortage of housing which increases homelessness has adverse health effects on those who suffer and are forced to live on the streets. Due to homelessness, the medical problems are illness further worsens and exacerbates. The people who live on the streets without a shelter on their heads are exposed to the harmful rays of the sun and to other elements. They are exposed to pollution and are surrounded by unhygienic environment at all times which is very harmful especially for children. Homeless individuals are also exposed to the violence prevailing on the streets and with crime rates going high this is very dangerous and also poses potential life threats. Another aspect is being exposed to the rampant diseases spread around in overcrowded shelters causing threat of potential health risks. Homeless individuals also go through mental stress regarding their accommodation and poor standard of living. Their minds are continuously burdened with thoughts of how to make life easier for them and such stress can cause medical illnesses and can also lead to depression for some individuals. This in turn can lead to adaptation of unethical habits like smoking and indulging in drugs which leads to other social unrests and crimes. Frustration is also a factor that should be mentioned. Low standard of living and not being able to afford the basic necessities of life can create great frustration for people and this frustration is shown in a lot of ways which at times also prove to be illegal like stealing, robbery and theft, rape and murder. People who are homeless also suffer the effects of improper diet as the meals can be irregular or might have the essential combinations of proteins, vitamins and other needed for a balance diet. Sanitary is also a problem being faced by those who live on the streets and in the shelter. Due to shortage of affordable housing, people are now sharing houses and the number of people in one house is on a rise which causes congestion in the houses. Due to economic hardships that these people face, they cannot afford a house and some of them even revert to staying in motels when no other alternatives are available. In 2006, the availability of affordable housing is at an all time low. The waiting lists for public housing are exceeding the limits. The pressure is felt across all types of housing tenures which includes the market for rental housing, the market for house ownerships and also the public housing. In addition to these, a shortage is also felt in the short term accommodation for those who lie in the low income bracket and this short term accommodation can include caravans, emergency shelters and pub tops. Another concern is that if people take accommodation in caravans or hotels, it will negatively affect the tourism sector and hence will adversely affect the economy. People are experiencing a rise in the rental rates with no significant increase in incomes to afford the rental prices. With fears of recession all across the globe and rising fuel prices, job cuts are also taking place many major industries putting further pressure on pockets. Rising fuel prices have led to price hike of many commodities and it is now ever more difficult to afford a house in today's time. The demand for affordable housing with such economic conditions is rising and with a shortage of supply of such housing, the price for rentals or ownership will further increase and the problem will exacerbate with more and more people on the streets and without homes. This will not only affect the low income group but soaring prices will also hit the middle income group making it difficult for them to maintain a home themselves as well. These factors further complicate the issue of reducing the cost burden for renting a house and reducing homelessness on a whole. (Committee, 2006) The government is taking several steps to make housing affordable for lower income brackets. One such step is taken by HUD. HUD acts as a mission regulator for two government sponsored enterprises by the name of Fannie Mae and Freddie Mac. These two enterprises operate in the secondary mortgage market and with the help of HUD develop housing schemes which are beneficial for low inv=come earners and provide and encourage solutions for low income lending and also encourages through its schemes lending for those in the undeserved geographic areas. (Development U. D., 2001) According to Holman's study, the projections for the dwellings in the UK that are estimated are official. It can further be divided in two sectors which are the market sector including ownerships which do not include housing benefits and are private. The second sector is the affordable sector which includes housing benefits are based on private and social renting. The study further explains that the demand for intermediate renting comes from two kinds of groups. Those which do not have housing benefits and social tenants which are better off. The study revealed certain factors resulting in shortage of affordable housing in rural areas. These factors include restrictions that are put in villages with respect to planning, non availability of sites for construction for houses, conflict between construction of houses in areas which are sustainable as opposed to those areas in which it is really needed or where the lower income bracket is densely populated and problems of homelessness are evident and finally the study says that the specific targets for affordable housing in rural areas is also missing. (Fenton, 10 April 2007) Some of the recommendations to combat shortage of affordable housing are that first of all great support should be provided to those organizations and initiatives that help in reducing homelessness. Secondly the definition of homelessness should be expanded and should also include those who are sharing a house or living n motels and efforts should be made to make affordable housing available to them as well. Creating a national trust fund for the provision of affordable housing will also help in dealing with the problem of shortage of affordable housing. Surety should also be provided regarding the sustainability and continuity of services which are funded by government program or HUD after the withdrawal of support. Congress should make it mandatory for the local authorities to give first priority to those people who are experiencing homelessness when they are providing grants for housing assistance for the public. (Council, 2007) REFERENCES: 1. Affordable Housing Policy. (2008). North East Lincolnshire Council . http://www.nelincs.gov.uk/housing/Affordable-Housing-Policy.htm. 2. Coalition, N. L. (2006, December). Out of Reach 2006. 3. Committee, S. M. (2006). Shelter Tasmanian Inc. www.sheltertas.org.au. 4. Council, N. H. (2007). Housing and Homelessness. Policy Statements . www.nhchc.org Page. 5. Development, U. d. (2008 , May 16). Affordable Housing. Community And Planning Ddevelopment . http://www.hud.gov/offices/cpd/affordablehousing/. 6. Development, U. D. (2001, January). HUD's AFFORDABLE LENDING GOALS FOR FANNIE MAE AND FREDDIE MAC. Issue Brief V . www.huduser.org. 7. Development, U. D. (2003). Trends in Worst Case Housing 1978-1999. A Report to Congress on Worst Case Housing Needs- Plus Update on Worst Case Housing Needs in 2001 . 8. Fenton, A. (10 April 2007). An Approach to Determining Affordable Housing Need for the East Midlands Regional Plan. The Cambridge Centre For Housing And Planning Research . 9. Policy, t. C. (updated June 27, 2008). Case Study: Chicago's Affordable Requirements Ordinance. Copyright 2008 Center for Housing Policy, http://www.housingpolicy.org/about_us.html. 10. Without Housing: Decades of Federal Housing Cutbacks Massive Homelessness and Policy Failures. (n.d.). Western Regional Advocacy Project. Read More