Having a safe and comfortable place to call home where you can develop, grow and take care of your family members is one of the most important achievements of life. Some people ignore the importance of a sheltered home. However, a stable home is the only thing that will provide your security and comfort. This way you can not only move forward but will have less stress regarding the financial condition of your life. Affordable homes will help you focus on new jobs, find better childcare for your kid explains Maxwell Drever.
If affordable housing is the problem, you won’t be able to focus on other aspects of your life. This is the case, you might have to struggle with a severe financial crisis due to rent payment. If you don’t know the definition of affordable housing, this article is perfect for you. We will also discuss if you’re eligible for affordable housing or not.
What is Considered Affordable Housing?
Affordable housing is known as the dwelling that an individual is capable of affording for 30% or less than their annual income. One of the greatest priorities of the federal government is to ensure every citizen of the United States has a safe place to live. Therefore, the government needs to deal with the housing policy, says Maxwell Drever. This is the primary reason why developers and apartment owners receive tax credits upon agreeing to offer low rental rates for lower and middle-income families. As long as these developers comply with the agreement, they will receive tax credits.
Who Is Eligible for Affordable Housing?
People who are spending more than 30% of their annual income on housing are in desperate need of affordable housing options. As they are paying high rent, they might face problems affording the basic living necessities such as clothing, food, transport, or medical care. As per The Department of Housing and Urban Development, there are at least 12 million families who are paying more than 50% of their monthly income as housing rent. Therefore, a person receiving minimum wage isn’t capable of affording a two-bedroom apartment. However, this is dependent on the AMI as well as the rules and restrictions of the cities. The AMI determines the affordability of an individual to pay the rent of where they live. HUD indicates every region of the country as well as the families whose income is less than 80% as per the AMI.
Even if your family spends more than 30% of the monthly income on the housing rents. That doesn’t mean you will be able to qualify for the affordable housing criteria. If your monthly income is too low, you won’t be able to qualify.
What is Affordable Housing Program?
Due to the extremely high demand for affordable housing. Most low and middle-income families have been waiting to get access to this type of housing for years. Keep in mind that the money required to develop affordable housing is higher than the renters can pay, added Maxwell Drever. Therefore, the government is facing difficulty to motivate the developers to build more affordable homes. Especially if they are planning to build luxurious homes. This is why the Government has introduced several different affordable housing programs including rent control, mixed-income buildings, and housing vouchers.
Home is much more than the roof and shelter. It’s a place where you can relax while having a sense of belonging in the community. When you have a proper and stable home, you can enhance your development and growth.