Safe, Stable and Affordable Housing

1. Safe, Stable and Affordable Housing • What does safe housing mean? • That you and anyone you are response for has a reasonable expectation to be free from harm.

2. Safe, Stable and Affordable Housing • What does stable housing mean? • That you have a reasonably good chance of staying there for a predictable period of time.

3. Safe, Stable and Affordable Housing • What does affordable housing mean? • That you can pay for the housing month after month without causing yourself or your budget too much stress.

4. Group Assignments for Posters • Group 1a: Draw the qualities of safe housing. • Group 1b: Draw the qualities of unsafe housing. • Group 2a: Draw the qualities of stable housing. • Group 2b: Draw the qualities of housing that is not stable. • Group 3a: Draw the qualities of affordable housing. • Group 3b: Draw the qualities of unaffordable housing.

5. Price to Rent Ratio • The median price of homes in your area—this is the “price” in the ratio • The average or median rent paid for a house or apartment with similar characteristics—they have the same number of bathrooms and bedrooms; comparable square footage, etc. Median price of home/(average or median monthly rent X 12) = Price to Rent Ratio • Greater than 18housing values may be so high that renting may make more sense. • Less than 15  it may be a good time to buy. • From 15 to 18 is gray area  other factors may need to be considered also.

6. Case Study Price to Rent Ratio Visual Aid 5.6

7. What Kind of Asset is Housing Visual Aid 5.7

8. Opportunity Passport™ Matched Savings and Housing • First month’s rent • Security deposit for an apartment • Down payment and closing costs for a house • One-time payment of renter’s insurance with first month’s rent • One-time payment of homeowner’s insurance with down payment Visual Aid 5.8

9. Housing Traits • Over 1,000 square feet • All utilities (except Internet or phone) are included in the rent. (Satellite television included) • Walking distance to work or school. • Close to public transportation • Individual housing—no roommate • Pets (including dogs) allowed • Fixed rent for 3 years • Extremely safe—access through coded gate • Onsite amenities including indoor/outdoor pool, gym, recreational room and more • Walking distance to shopping district with movie theaters and restaurants • Walking distance to friends—several friends live in the community • Walking distance to family • Walking distance to community of faith • Walking distance to other volunteer/community service interests • No stairs—first floor apartment • Ability to paint and decorate apartment without interference from property owner • Outside space—small deck and yard • Parking space close (and free!) • Extremely clean upon move-in—clean windows, blinds, refrigerator, oven, bathroom, etc. • Well-kept exterior—painted, landscaped, well-lighted • Updated (stainless steel) appliances, new carpeting, granite countertops and remodeled bathroom with a Jacuzzi tub • Free wi-fi • Accessible unit • In a neighborhood with excellent schools • A room with a view—high up in a high rise • Near parks, walking paths and bike paths • Low-crime neighborhood • Close to child care provider • (walking distance) • Close to partner (walking distance) • Washer and dryer in the unit Visual Aid 5.9

10. Carousel Station 1 • One-Time Renting Costs Visual Aid 5.10

11. Carousel Station 2 • Ongoing Renting Costs Visual Aid 5.11

12. Carousel Station 3 • One-time home buying costs Visual Aid 5.12

13. Carousel Station 4 • Ongoing home buying costs Visual Aid 5.13

14. Housing Budget Maximum All costs associated with housing should be between 25% and 40% of your net income. • All costs = Visual Aid 5.14

15. Uses of Net Income

16. Ways to Pay for Housing • Chafee Funds—states can elect to use up to 30% of their funding to support “room and board.”. • Education, Training and Voucher Program—these funds can be used to cover housing costs while you are in enrolled in postsecondary training or education. • Family Unification Program (FUP)—funded by the Department of Housing and Urban Development, the FUP program in partnership with the local public housing authority and the local public child welfare agency provide housing vouchers to young people who have been in foster care. • Section 8 Housing Choice Voucher Program—through this program, you can rent a place directly from a property owner.. • Public Housing Program—as a young person in care, you may qualify for a spot in a public housing residence. • Transitional Living Program—organizations that receive Transitional Living Program dollars must provide young people in care with a safe and stable place to live. The living arrangements can include host homes, group home and supervised apartments.

17. The Actual Costs of Rent-to-Own

18. Credit History, Credit Scores and Renting • If you have a poor credit history or low credit score, a property owner or landlord can: • Deny your application—not rent you the apartment. • Require a co-signor on the lease. • Require a larger deposit than would be required of another renter. • Raise the rent to an amount higher than would be charged another applicant. • Any of these circumstance is called an “adverse action” because of your credit reports or scores. • If any of these things happen, the property owner or landlord must provide you with an adverse action notice that includes: • the name, address and telephone number of the credit reporting agencies—Equifax, TransUnion or Experian—that supplied the consumer report, including a toll-free telephone number for the credit reporting agency. • a statement that the credit reporting agency that supplied the report did not make the decision to take the adverse action and cannot give the specific reasons for it. • a notice of the individual's right to dispute the accuracy or completeness of any report used against them. • a statement that the individual has a right to a free report from the credit reporting agencies that provided the information upon request within 60 days.

19. Rights versus Responsibility • What is a right? • What people are allowed to do or are entitled to based on laws and regulations. • What is a responsibility? • Expectations that you will take care of certain things, perform certain duties or avoid certain behavior.

20. The Fair Housing Act • Your rights as a renter are outlined in the Fair Housing Act. This federal law makes it illegal to discriminate against anyone due to : • Race or color • Religion • Sex/gender • National origin • Familial status • Disability • The act keeps landlords, real estate companies, municipalities, banks or other lending institutions and homeowners insurance companies from discriminating against you in accessing housing or services related to housing (like insurance).

21. Finding the Right Professionals • One of the best places to start identifying professionals to work with in the home buying process is through your social networks—you use your social capital. • Talk to friends, trusted adults, teachers and professors, bosses, members of your faith community and others about realtors, banks, home inspectors and insurance agents they have used • And sometimes, you can even get a personal referral. • You can also use a service like Angie’s List or look online.

22. The Costs of Owning a Home • The principal you owe • The interest on the principal • The taxes you owe • The insurance payment • The cost of all utilities: • Electricity • Gas • Water • Sewer • Garbage pick up • Homeowner’s association dues or condominium maintenance fees • Maintenance costs • The costs of repairs • The costs of improvements • The costs of tool and equipment to maintain your home and property • And more

23. What Should I Afford • Most general advice for housing says to keep your housing payment below 28% to 33% of your gross income –this is called your housing payment to income ratio. • All debt combined should be below 36% to 41% of your gross income-this is called your debt to income ratio. Remember, these estimates only include your mortgage payment (PITI). • Financial professionals that emphasize elimination of debt stress keeping the house payment below 25% of gross income. • Finally, you learned about the concept of ALL housing costs—not just the house payment—and keeping those within 25% to 40% of your net income.

24. Example Rules of What Someone Should Afford

25. Equity in Homeownership Visual Aid 5.25