Wednesday, July 30, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

HUD reworking affordability index

By
August 30, 2011 |

New tool will provide homebuyers with a more accurate estimate of living costs

WASHINGTON, D.C. – The U.S. Department of Housing and Urban Development announced it has awarded The Manhattan Strategies Group, LLC, and its subcontractor the Center for Neighborhood Technology a $3.2 million contract to create a national Housing and Transportation Affordability Index.

The groundbreaking index will provide potential homebuyers with a true estimate of both housing and transportation costs that can in turn help them make a more educated decision.

“Affordability is much more than just paying the mortgage, it involves other costs like transportation, gas, and utilities. The availability of a national affordability index will provide consumers better information about the true costs of a home by accounting for that housing’s proximity to jobs, schools and other services. Our goal with the creation of this housing and transportation index is to provide American families with a tool that can help them save money and have a better understanding of their expenses and household budget,” said Shaun Donovan, secretary of U.S. Department of Housing and Urban Development.

Traditionally, affordability indices determined cost of living by factoring the percentage of a family’s income devoted to housing and dividing the average housing costs by the median family income. Transportation, which is usually a household’s second most significant expense, has not been part of this equation.

“Unfortunately, many people believe that in order to qualify for a mortgage they have to buy a house far away from their work. People may think they are saving money by buying a house that is cheaper, but the transportation costs could end up making their total costs more expensive in the long run,” said Shelley Poticha, director of the Office of Sustainable Housing and Communities at HUD.

According to a recent study of 28 metropolitan areas done by the Center for Housing Policy and CNT, the average household pays 27 percent of its income for housing and 20.2 percent of its income to transportation. For working families earning $50,000, these costs account for 57 percent of the household income.

“Manhattan Strategy Group is pleased to partner with HUD to develop and test a Housing and Transportation Affordability Index Tool to build greater transparency into the true cost of housing,” stated Shezad Habib, director of MSG. “Over the next two years we will work collaboratively with HUD and our partner, the Center for Neighborhood Technology, to enable HUD programs, affordable housing and transportation practitioners, policy-makers, developers, and the public-at-large to make informed planning and land use decisions and investments. We commend HUD on this initiative which is aimed at helping local housing and transportation officials develop, implement, and improve the delivery of affordable housing in their jurisdictions.”

“Transportation costs are the second largest expense in a household budget, but they are often not considered when people choose where to live or developers choose where to invest,” said Kathryn Tholin, CEO of the Center for Neighborhood Technology. “The H+T Affordability Index helps make those costs transparent so people and policy makers can make more-informed housing choices and investment decisions. CNT is excited to work with the Manhattan Strategy Group to assist HUD in exploring how to incorporate this metric into its work.”

The creation of a national housing and transportation affordability index will also help analyze the impacts of HUD programs on the combined cost of housing and transportation in HUD-supported communities and assess the feasibility of improving outcomes and making programs and policies more efficient. The contract announced by HUD will build upon previous work done in this research area, but also establish a peer review panel of federal and industry stakeholders. HUD is committed to ensuring a transparent and rigorous process of developing a national housing and transportation affordability index, and ensuring comprehensive input regarding potential policy applications.

Comments

comments

.

News

 
District 2 candidate statements tell of goals

By Dawn Hodson | From Page: A1

Sand Fire nears containment: 66 structures destroyed

By Cole Mayer | From Page: A1 | Gallery

 
Tails wagging over dog park approval

By Julie Samrick | From Page: A3

Quarter-acre fire in Kelsey

By Rebecca Murphy | From Page: A3

 
Schedule for Highway 50 blasting closures

By News Release | From Page: A3

.

Opinion

My Turn: Privatization of public services

By Mark Belden | From Page: A4

 
Policy book

By Mountain Democrat | From Page: A4

 
.

Letters

Private property gets no respect

By Letters to the Editor | From Page: A5, 1 Comment

 
GDPUD management report

By Letters to the Editor | From Page: A5

District 2 supervisorial special election

By Letters to the Editor | From Page: A5, 3 Comments

 
Piano replaced

By Letters to the Editor | From Page: A5

Comments sign-in policy

By Letters to the Editor | From Page: A5, 1 Comment

 
Save the Guinea Worm

By Letters to the Editor | From Page: A5, 1 Comment

Large bangs

By Letters to the Editor | From Page: A5, 2 Comments

 
.

Sports

Taz pull through for SSL trophy

By Patty Pope | From Page: A8

 
Ex-Bruin lends a helping hand

By Steven Shaff | From Page: A8 | Gallery

Sierra Sharks finish middle of the pack

By Democrat Staff | From Page: A8

 
Roundup: July 29, 2014

By Democrat Staff | From Page: A8

.

Prospecting

Nuns discover a pleasant place

By Lexi Boeger | From Page: B1 | Gallery

 
Bargains can be found everywhere

By Democrat Staff | From Page: B2 | Gallery

At a glance: Game time

By Mimi Escabar | From Page: B2

 
Barbecue dinner to benefit Blue Star Moms

By Mount Aukum Winery | From Page: B2

Stagecoach story takes riders on a trip

By Wendy Schultz | From Page: B3

 
Help needed to make cool ties

By Sew 4 | From Page: B3

Stroke and osteoporosis screenings planned

By Life Line Screening | From Page: B3

 
Gold Rush Days activities cancelled this year

By Sacramento Convention And Visitors Center | From Page: B4

Master Food Preservers: Tomato time

By Monique Wilber | From Page: B4

 
Build an author platform at the Library

By El Dorado | From Page: B5

 
Sacramento area museums offer summer fun

By Sacramento Association Of Museums | From Page: B5

.

Essentials

Weather stats 7-29-14

By Michael Raffety | From Page: A2

 
Building permits 6/2-6/2014

By Michael Raffety | From Page: A2Comments are off for this post

Crime Log: July 17

By Cole Mayer | From Page: A2

 
.

Obituaries

Merlyn Wilbur Adams

By Contributor | From Page: A2

 
Lisa Oliver Rose

By Contributor | From Page: A2

Wallace Murrel Thomas

By Contributor | From Page: A2

 
.

Real Estate

.

Comics

.

Women’s Health

Love the skin you’re in

By Noel Stack | From Page: WH4

Dump stress and improve your health, productivity

By Wendy Schultz | From Page: WH7Comments are off for this post

Women’s Health Expo

By Marshall Medical | From Page: WH8

Find the confidence you need to fight back

By Special to the Democrat | From Page: WH12

Our choices directly affect our health

By Special to the Democrat | From Page: WH14

They’re NOT your mother’s hearing devices!

By Marshall Medical | From Page: WH17