Elected Officials
Business Leaders
Community Members

What Elected Officials Should Know About Affordable-Workforce Housing

  • “Affordable” housing does not equal subsidized, government run, or section 8 housing.
  • Affordable housing means that a family or individual is spending no more than 30 percent of their household income on rent or mortgage.
  • Of the almost 1.1 million households in the region, 244,813 of them are paying more than 30 percent of their income on housing, that is about 23% (Census 2000).
  • This problem affects working families, and not just fast food employees. Bank tellers, librarians, nurses, child care providers and teachers all make less than what it takes to afford a home and raise a family.
  • Being able to own a home contributes to a family’s long term wealth creation. At the same time, healthy communities need to provide for all its members. A variety of housing, including homes for purchase and rental units, including multifamily units make a stronger community.
  • Factory built housing can provide a viable affordable housing alternative. Homes have foundations, and are attractive and energy efficient.
  • Housing Trust Funds are mechanisms communities use to support the creation of affordable housing and housing stability in communities. Funds for this can be generated without drawing from other worthwhile programs. Use taxes and real estate transfer taxes can be imposed solely for the use of Housing Trust Funds.
  • What you can do:
    • Include affordable-workforce housing in your community’s master plan. Be aware or who works in your community, how much they earn, and what housing options are feasible for them. Think about future housing needs in your community and start to plan for them now.
    • Talk to your constituents about the desirability of creating places for all those who work in your community to live in your community. Why wouldn’t you want the grocery clerk, the receptionist, the school teacher to live on your street?
    • Implement zoning policy that allows for the construction of affordable homes.
    • Work regionally—we sink or swim together. Be open to talking and working with your counterparts in neighboring communities.

What Business Leaders Should Know About Affordable-Workforce Housing

  • Wages increased 1.6 percent while the price of housing increased 9.3 percent in the same time period in 2004.
  • Fair Market Rent in the St. Louis region is $670 for a two bedroom apartment. A worker would have to earn $12.88 per hour to make enough to afford this apartment by working 40 hours per week. A minimum wage earner would have to work 100 hours per week, 52 weeks per year. Forty one percent of renters can not afford the fair market price for a two bedroom apartment.
  • The Department of Housing and Urban Development defines “low-income” as those who earn less than 80 percent of the area median income. In the St. Louis region, the area median family income is $65,900, with 80 percent of that equaling $52,720 annually.
  • Many working people in our community are low income workers, making less than 80 percent of the median income, including nurses, teachers, secretaries, and child care workers. How invested can a teacher be in teaching your children in a school where her own children can not attend because the family can not afford a home there?
  • Employees who live in or near the community in which they work decreases absenteeism from work and increases worker productivity. If a parent must leave work for a meeting at their child’s school, it can mean the difference between taking two hours leave from work and taking most or all of the day off.
  • Employer Assisted Housing (link to policy issues) is an employee benefit and an incentive for workers to stay with their employer. Through the program, workers are offered forgivable loans for a down payment or closing costs by the employer when the employee commits to working for the company over a period of several years (usually 3-5). Sometimes there are geographic restrictions and homebuyer education requirements as well.
  • Employer Assisted Housing programs decrease employer’s expenses related to worker recruitment and retention. There are over 730 Employer Assisted Housing programs nationwide.
  • What you can do:
    • Provide Employer Assisted Housing as a benefit for employees who earn less than the area median income. In Illinois, the Statewide Housing Action Coalition is administering the program, providing technical assistance and management of the program to any employers in the state (contact the Illinois Statewide Housing Action Coalition, 312-939-6074). In Missouri, Freddie Mac is promoting Employer Assisted Housing Programs and can provide more information to interested employers (contact Freddie Mac, 636-386-0882).
    • Become a spokesperson in the business community. Speak to your colleagues about the importance of ensuring that those you employ can live in the communities where they work.

What Community Members Should Know About Affordable-Workforce Housing

  • The shortage of affordable housing options in our region does not only affect the poor. Nurses, child care workers, store clerks, and teachers—working families—are not able to afford to live in many area communities.
  • When families spend more than 30 percent of their income on housing costs they are spending too much. Spending more than that means not having enough money each month for other necessities.
  • When families pay too much for their housing, it affects the entire community. It leads to less neighborhood stability and higher turnover for employers.
  • When a segment of society is forced to live elsewhere, the community ultimately suffers. Businesses can’t find the employees they need and diversity is lost.
  • Mixed income communities and factory built housing do not lead to decreased property values.
  • Less expensive housing can be structurally sound and attractive, fitting in with the character of existing homes.
  • What you can do:
    • Talk to your elected officials about how your community can create affordable housing opportunities for everyone.
    • When the issue of affordable housing comes up in your community—support it!
    • Be an advocate for all members of your community. Talk to your friends, family, and neighbors about the importance of creating inclusive communities.