Who Qualifies for AHO Housing?

7/29/2019

Who Qualifies for AHO Housing?

[UPDATED: to reflect new June 28, 2019 HUD AMI Data] The housing in the proposed Affordable Housing Overlay (AHO) is intended primarily for low income residents, those earning c.$54,800 ($63,450) annual salary for one person, or 80% of the Area Median Income (AMI) according to June 20, 2019 CDD documents for the AHO.* For initial occupancy at least 80% of the occupants must be at or below 80% of AMI (1-person earning $54,800 or less). All the remainder must be less than 100% AMI (1-person: $68,500).** Most of these tenants will be near this 80% AMI target, since Section 8 housing is in place for lower income thresholds (e.g. 30% AMI identifies as being “extremely low income” or 50% AMI identified as being “very low income.”
Housing financial numbers published by HUD June 28, 2019 after the CDD report was published on June 20, raises the city's 80% AMI salary to $63,450.*** This same document identifies the City's 50% AMI (for inclusionary) as $39,650; HUD 50% AMI (for CHA Housing Choice Voucher) as $41,500 and the City's 100% of AMI (Homeownership resale Pool and Homebridge ) number as $79.300. These new salaries are indicated in parentheses in the examples below.

What do these salary numbers really indicate? Like the term "affordable housing," median salaries resemble pizza dough, they can be stretched or contracted to meet pretty much any set of desires or needs. And like pizza everyone likes affordable housing. The same kind of malleability also is true with terms such as middle Income. An Article in the November14, 2018 Business Insider identifies Boston as having a "Middle-Class" salary range of $57,127 to $171,382. The Boston median income is listed in this source as $85,691, considerably higher than the HUD or CDD AMI salary of $54,800 ($64,450) on which the City's Affordable Housing salary determinations will be made.

Who will find housing here in the new AHO units? Some of these people will be individuals in need who do NOT live in Cambridge or even Massachusetts because as a recipient of Federal Funding, these projects must advertise nationally for residents. The current list is some 19,000 people long. Those Cambridge residents who make too little money also will not qualify for this funding, e.g. those between 0 and 50% AMI. In short Very VERY few current residents will qualify and benefit from this very expensive and deeply flawed proposal.

LET’S PLAY A GAME …
to see which professions in the city will do OK by the radical city-wide up-zoning and massive expenditure of tax-payer money.

Carpenters – AHO housing is POSSIBLE for a few in this group, individuals who make on average $62,614 as of June 27, 2019 to qualify for the AHO housing, many will make too little or too much, to meet the 80% AMI criteria $54,800 ($63,450), and this is terminated once they reach 100% AMI at $68,500 ($79,300).

Children's Day Care Center Teacher - NOT for this group who earn an average salary of $36,700 as of June 27, 2019. This is way below the $54,800 ($63,450) 80% AMI.

Consultant - Professional Services Consultant I - NOT for this group with an average $76,470 as of June 27, 2019 (way above the $68,500 ($63,450) level AMI).

Delivery Van Driver - NOT FOR this group with an average salary of $36,090 as of June 27, 2019. This is way below the $54,800 ($63,450) 80% AMI.

Fire Fighter - POSSIBLE for a few in this group who make an average $52,881 as of June 27, 2019. Only 20% of the AHO will be for those making above $54,800 ($63,450) and this is terminated at $68,500 ($79,300).

Graphic Artists (Entry Level)- POSSIBLE for a few who make on average $58,810 as of June 27, 2019, until a promotion; Only 20% of the AHO will be for those making above $54,800 ($63,450) and this is terminated at $68,500 ($79,300).

Lab Technicians, Medical Device - POSSIBLE for a few in this group who make on average $55,273 as of June 27, 2019. Only 20% of the AHO will be for those making above $54,800 ($63,450) and this is terminated at $68,500 ($79,300).

Nurse Practitioner - NOT FOR this group, whose average salary is $121,645 as of June 27, 2019 (way above the $68,500 ($63,450)level AMI).

Police Patrol Officers - ALMOST IMPOSSIBLE AND THEN ONLY FLEETINGLY for a few in this group that make on average $62,808 as of June 27, 2019 and only then until they receive a salary increase above $68,500 ($79,300). Only 20% of the AHO will be for those making above $54,800 ($63,450) and this is terminated at $68,500 ($79,300).

Retail Sales Staff - NOT for this group who earn on average $30,034 Full Time in Cambridge as of July 27, 2019 (This is way below the $54,800 ($63,450) 80% AMI level; but the might get into the separate city housing, for Section 8 recipients).

Social Workers (BSW) - POSSIBLE for a few in this group who make on average $65,097 as of June 27, 2019 until they receive a salary increase above $68,500 ($79,300).

Teachers - Public Primary and Secondary School Teachers - POSSIBLE for a few in this group who make on average $64,900 (Primary) and $64,870 (Secondary) respectively as of June 27, 2019 until they receive a salary increase above $68,500 ($79,300). Only 20% of the AHO will be for those making above $54,800 ($63,450) and this is terminated at $68,500 ($79,300)..

Go to Salary.Com to explore other average Cambridge salaries (as of June 27, 2019). Who would qualify for this - and for how long?

HOW DO YOU FARE?
HOW DO OTHER PEOPLE YOU KNOW FARE?
IS THIS PLAN WORTH THE CITY PAYING $500,000 OF YOUR TAX DOLLARS
   PER UNIT?
NO!

There are many far better, smarter, and more effective ways to add more affordable housing here, and as you know, Cambridge is already way ahead of state mandates for this.

*The city of Cambridge will calculate income level eligibility for these proposed AHO Dwelling Units:
(i) The gross household income of an AHO Eligible Household upon initial occupancy shall be no more than one-hundred percent (100%) of AMI.

(ii) At least eighty percent (80%) of AHO Dwelling Units shall be occupied by AHO Eligible Households whose gross household income upon initial occupancy is no more than eighty percent (80%) of AMI.

**What the city’s AMI percentages mean in terms of actual salaries:
HUD 80% AMI 1-person: $45,500; 2-person: $52,000; 3-persons: $58,500; 4-persons $65,000
            Income limit for most affordable housing programs
City 80% AMI 1-person: $54,800; 2-persons: $62,640. Ami; 3-persons: $70,480 AMI, 4-
persons $78,240. Income limit for City Inclusionary Housing program
100% AMI 1-person: $68,500; 2-persons $78,300; 3-persons $88,100; 4-persons $97,800
            Income limit for FTHB Financial Assistance program
120%AMI 1-person: $82,200; 2-persons: $93,960; 3-persons: $105,720; 4-persons: $117,360
            Income limit for existing City middle-income homeownership units.

***2019 HUD Income Limits, Cambridge MA. CDD and HUD Average Median Income (AMI) Numbers June 28, 2019

City 50% AMI (for inclusionary) $39,650
HUD 50% AMI (for CHA Housing Choice Voucher) $41,500
HUD 80% of Median (most private and non-profit affordable housing) $62,450
City 80% AMI (Middle Income and inclusionary rental housing program) $63,450
100% of AMI (Homeownership resale Pool and Homebridge ) $79.300
City 120% of Median (Home Improvement program; Middle income rental program) $95,150

Above are HUD and City AMI data from June 28 Report. Below are HUD AMI data from CDD's June 20 report

4 Comments

Kelly Dolan

7/30/2019 11:22:06 am

This article illustrates an extreme misunderstanding of the HUD guidelines for qualificiations for affordable housing.

Ignoring the incorherent use of numbers in it's flawed attempt to illustrate the programs qualifications for Inclusionary Housing, the biggest issue is the author's statement

"In short Very VERY few current residents will qualify and benefit from this very expensive and deeply flawed proposal."

which is simply false.

I do not support the AHO but attempting to mislead people on the efficacy of the qualifications for the existing Inclusionary Zoning program is shameful.

Maybe that's why the author wisley did not include their name.

From the City's website

The most significant preference in the policy is the “local preference” category through which Cambridge residents now receive top priority. Preferences for families with children, and for rental housing applicants with an emergency need, are secondary preferences which determine the order in which resident applicants are considered.

The local preference criteria of “Cambridge resident” has been defined very tightly to include only applicants who are Cambridge residents at the time of the eligibility review to ensure that current residents have the best access to affordable units. In addition, once all resident applicants have been considered, Cambridge-based employees are given secondary preference based on the same criteria. Given the demand for units from residents, Cambridge-based workers who do not live in the city are rarely offered units."

A very good resource for Cambridge's Inclusionary guidelines can be found here.

https://www.cambridgema.gov/CDD/housing/~/media/152E5933A1404BEBB5619622FFF411F9.ashx

Gilberte Houbart

8/3/2019 12:09:40 pm

I think being specific on why exactly the statement you quoted is false would help others understand your point.

Do you have an informed estimate under AHO of how many would qualify?

8/3/2019 12:04:07 pm

Hi Kelly, I wonder if you are comparing apples and oranges: I did visit the link you provided and it took me to 2018 guidelines. The article appears to be using the guidelines published for AHO in 2019 and includes the tables used in the article.

Kelly

8/6/2019 08:37:54 am

This article trying to make an inflammatory and false case for WHO qualifies for Affordable Housing which has no place in the discussion for the Overlay and plays into the trop that opponents are rich elitists against poor people getting subsidized housing in our City

I couldn't even begin to decipher the jumble of numbers inserted here to understand exactly what point the author is trying to make BUT all of the following statements from this article are false or misleading.

“Most of these tenants will be near this 80% AMI target, since Section 8 housing is in place for lower income thresholds”

“median salaries resemble pizza dough, they can be stretched or contracted to meet pretty much any set of desires or needs. “

“Who will find housing here in the new AHO units? Some of these people will be individuals in need who do NOT live in Cambridge or even Massachusetts”

“Those Cambridge residents who make too little money also will not qualify for this funding, e.g. those between 0 and 50% AMI. In short Very VERY few current residents will qualify and benefit from this very expensive and deeply flawed proposal.”

Not true. Low income people who make below 50% of AMI receive vouchers to cover the difference. 56% of the residents in Cambridge’s inclusionary housing receive some type of voucher.

“Let’s play a game” is confusing. On one hand the author says low income residents won’t qualify for the Overlay, and then with this “game” try to assert many of these professionals will not qualify either. Affordable housing is granted on need basis first, not salary. Other factors have higher weights than salary alone

I posted the report to illustrate the qualifications necessary to receive such a unit to prove the authors assertions are misleading and false. Not to argue the yearly adjustments of AMI thresholds. Which are really meaningless in this discussion.

Arguing against the Overlay by using such inflammatory accusations is polarizing and hurts the efforts of residents that are trying to have an informed rational discussion regarding the facts of the Overlay. This discussion over who qualifies for affordable housing does not belong in this conversation. At all.

Your comment will be posted after it is approved.

Blog Posts