Equality:

Affordable Housing

Statement on Affordable Housing

The United States is in the midst of a housing crisis. The current strong economy is increasing rents and home prices everywhere, while many Americans have seen their incomes stagnate, and housing become less affordable. The U.S. Department of Housing and Urban Development (HUD) estimates that, in addition to more than 600,000 homeless people, 5.4 million families have "crisis-level housing needs" - the largest number ever recorded. These 5.4 million "worst-case" families represent the tip of the iceberg: many more American families are "shelter-poor", meaning they spend more on housing than they can afford to.

A recent study by the National Low Income Housing Coalition shows that the gap between what minimum-wage workers earn and the salary required to afford a modest, non-luxury apartment is growing throughout the country. In no state can a single, minimum-wage worker afford HUD's estimated Fair Market Value for a modest one-bedroom apartment, and in most places two minimum-wage workers together would be unable to afford a two-bedroom apartment.

Decent, affordable housing is a keystone of a stable life. Families who spend too much on housing may be forced to cut back on nutrition, health care or other necessities. Families that cannot secure a decent place to live are in even worse shape. The 1949 Housing Act set a goal of "a decent home and a suitable living environment for every American family". It is time to reaffirm our commitment to that goal.

We should:

Increase the minimum wage, and peg it to inflation, enabling more workers to afford housing.

Reform the "mansion subsidy". Federal law allows a tax deduction for mortgage interest. Since most low- and middle-income taxpayers, including half of all homeowners, do not itemize deductions, and since tenants do not qualify at all, this tax break goes disproportionately to wealthy Americans. In 1999, more than half of this subsidy - over $27 billion - went to the 8% of households with income over $100,000. The mortgage interest deduction should be capped, and the money saved should be used for a progressive tax credit, aimed at helping low- and middle-income Americans to afford housing costs and become homeowners. This can and should be done without increasing taxes for middle-class homeowners.

Institute a crash program to expand the supply of affordable housing with subsidies and loan programs for the rehabilitation and construction of affordable housing. Rehabilitation of sub-standard housing is especially urgent, and highly cost-effective.

Expand and enforce the Community Reinvestment Act, which requires banks to help meet the credit needs of their communities, including low- and moderate-income areas, and use new legislation and enforcement of existing legislation to crack down on usurious lenders and other predatory financial-service firms.

Encourage community development credit unions and other community-based lenders, and the development of cooperatively owned housing. Encourage the National Cooperative Bank to promote and finance affordable, cooperative housing.

Identify individuals and families who still cannot afford decent housing, and implement a program to close the affordability gap within five years. This can be done with a combination of housing vouchers, tax credits, SSI subsidies and other measures. This step will require extra assistance for households in areas where rents are higher than the national average.

Housing is a fundamental human right. The United States is a rich country in the midst of a record economic boom, that has largely benefitted the wealthy. There is no better time than now to affirm our commitment to affordable housing for everybody, and to implement plans to make this goal a reality.