Lehigh County's Public Information Director, Gloria McVeigh, makes it pretty clear that only two-income families can afford most homes in the Lehigh Valley."'Affordable housing' means paying no more than 30% of gross household income towards expenses that include mortgage or rent, plus taxes, insurance, and utilities. Based on the median Lehigh Valley sales price of $189,000 in 2006, an annual income of $58,431 would be needed to purchase a home. That disqualifies workers employed in vital community occupations, including licensed practical nurse (average annual salary: $34,000), police officer ($44,341), and elementary school teacher ($45,803)."
Today, the First Annual Lehigh Valley Housing Summit will convene at Historic Hotel Bethlehem. Affordable housing advocates, developers and local governments will conduct workshops on:
• Community Land Trusts
• Affordable Rental Housing
• Smart Growth and Inclusionary Zoning: Unintended consequences
• Employer Assisted Housing
The third workshop item could prevent exactly what is happening along Allentown's Hamilton Street. Because there is no inclusionary zoning, the gentrification there is resulting in de facto segregation.
This Summit was organized by the bi-county Affordable Housing Policy Advisory Committee, established by Executive Order of Don Cunningham (Lehigh County) and John Stoffa (Northampton County) in May, 2006. Initial Committee members included directors of the region’s housing authorities, community and economic development departments, redevelopment authorities, and non-profit housing agencies.
“This Summit creates a unique blend of developers, non-profits, and government people trying to find a solution for housing that’s affordable for people of all different backgrounds,” said John Rohal, Executive Director Bethlehem Redevelopment Authority. “Affordable housing is also an economic development issue, because businesses moving into the Lehigh Valley want to know that their employees can find reasonably-priced housing.”
lack of affordable housing is a myth in the lehigh valley. there is a lack of such housing in newport rhode island, greenwich connecticut, palmsprings california, palmbeach florida and all the other, oh wait, they are travel destinations! one need only drive through downtown allentown to realize that indeed there must be plenty of housing for people of low income. what we do have are enormously successful, nationally recognized poverty advocates, who have made this misconception a growth industry, and have consequently lowered the quality of life for everyone, including their clients.
ReplyDeleteAs always, I am mildly confused. If there is a lack of affordable housing, and teh LV sities are awash with the working poor, where are they living? I don't see them on the streets....
ReplyDeleteLower Mac & MM,
ReplyDeleteIt's no myth. The reason you don't see people on the streets is bc husband and wife both work to pay that mortgage,
MM - do you have a house that isn't falling apart that I can buy on my salary of less than $30K a year? If so, I'm all yours.
ReplyDeletelolv, you can certainly afford to rent a one bedroom apartment on your salary. i believe the concept of affordable housing also pertains to rentals, not just home ownership. i realize being "poor" anywhere is not fun., but if allentown isn't affordable, where is? a one bedroom in nyc rents for $2800 and costs 750k to buy. i believe one of the major reasons allentown has such a large number of low-income residents, is because housing IS affordable here. i think the way the market is going, we may once again see the 80k rowhouse by fall.
ReplyDeleteBernie, you say "husband and wife both work to pay that mortgage" as though there's something immoral about that. Poor people working hard and long to get ahead in America is a tradition that goes back to Plymouth Rock.
ReplyDeleteLower Mack,
ReplyDeleteWhen both spouses work, it places a burden on child-rearing. It's tough on everyone when one spouse can't afford to stay home with the kids. Most people do a great job of juggling, but that's what it is.
Not very long ago, double income families were the exception. A family could get by on a cop's income. That is no longer the case. I believe that, of all people, police officers and teachers should be able to support a family of two children on their incomes alone.
In some areas within the LV, both spouses have always worked. I'm told by some life long Nazareth residents that Nazareth is one such example.
But I don't mean to suggest there is anything immoral about double income families.
It is possible to own a home in Allentown and live on one modest income. You have to make a lot of sacrifices. I made the personal choice to stay home with my only child because it is the best choice for me and my family. It is not easy, and we live very frugally, but it can be done if you really want to do it.
ReplyDeleteI know some other moms who are in my position, but most CHOOSE to work. I realize for some people with low-paying jobs there is no choice and both must work, but a lot of women prefer working outside the home over home-making.
It wasn't until I was in my 30's that I could even consider owning my own home. What's wrong with renting?
Take my comment with a grain of salt because I am 24 and marriage is still a completely abstract concept to me but... I don't want to marry for money. I don't mean I don't want to marry a rich guy, I mean.... I don't want to think to myself "Gee, owning a home would be wonderful. I guess I better find a guy to settle down with so that I can live a TWO income household instead of supporting myself." Maybe I will marry one day, but I *really* hope its for a better reason than because I wanted to own my own home. Marriage is not for everyone - statistically, more than half the people who read and post on this blog are unmarried. Does that mean that we all should be precluded from owning a home?
ReplyDeleteMM, although on a "superficial" level, my salary is enough to afford a 1 bedroom apartment, in practice it isn't. According to the 30% standard, I would need to find a 1 bedroom apartment INCLUDING utilities for less than $600 a month. There truly are not a lot of those to be found, even in the depths of Allentown. Looking on craigslist ads for the last week, none of the listings posted meet that. There are a few apartments offered for less than $600 a month, but they all require that the tenant pay utilities - which when not split among roommates add up fast!
I'd also like to point out that I am not "poor." I earn over 250% of the poverty-level income in this country.
A person who is working full time 40 hour weeks at minimum wage (which is also above the "poverty" level) can afford to contribute $375, including utilities, towards their housing.
It certainly is easier to find affordable housing in A-town than anywhere else in the LV. The figures that Gloria was kind enough to give me are median figures.
ReplyDeleteCan we do something to make QUALITY affordable housing available? Certainly, but I just bought my first house for around 95k in center city. The house is in good condition. Not perfect mind you, but there are no issues to affect my quality of life. I saw plenty of other houses available under 120k in good condition too. It will require work over the long haul, but owning a home brings that requirement. Ownership means responsibility and maintenance. Besides, I get to swing a hammer and crowbar at the walls that I want to remove! And I'm not pulling in big salary: around 50k and under 30 so I have a ton of college debt in hand.
ReplyDeleteThe two bedroom that I had been renting was priced at $595 a month. My point, there is a good supply of affordable housing, the problem that I see with affordable housing is that it isn't always the greatest housing. Too much housing is either less than desireable or the density of the housing (read, multiple units in a one family house) create other problems (like parking, overcrowding, etc).
My biggest concern in housing is in options currently available. The LV has its selection of 250k+ housing options, and a good selection under 120k. What we lack is in between, say about 125-175k. Those are the starter homes that young couples buy, which helps build equity for the family. I'm not sure if you consider this affordable housing Bernie, but it's the kind that is needed.
We really have two options for this market: improve existing housing or build new. Personally, I think we have plenty of improvement opportunities in the cities (Allentown, Bethlehem and Easton) and small towns (Emmaus, Macungie, Catty, Northampton, Slatington, Hellertown, etc) of the Lehigh Valley before we start building new in our precious open space. Where opportunities present themselves, there are certainly incentives that we can be providing to support these improvements.
Dottie,
ReplyDeleteThere's nothing wrong with renting - although as I point out in my above post, that's not really affordable either, at least not if you want to live alone. And living with roommates is fine when you are 24, but I don't want to be in my 30s and still wishing that my slob roommate would wash the dishes.
Beyond that, I am not on a career track for a $60K+ job a year, even once I am in my 30s. I like it this way because I think the work I do is important and rewarding in other non-monetary ways. That said, the only chance I will ever have to accumulate any "wealth" would be by owning my home and earning equity value in it. This is how our grandparents and parents have turned "working class" jobs into providing a comfortable middle class upbringing for their families. This is one of the ways they can afford to retire. If I could never afford to own a home, all of my money towards housing would have been spent on Rent, it would not have been invested in the equity position of my very own home.
I'm not trying to spark a debate here or turn into a history/economics professor, but this is also one of the reasons why there is such a huge disparity between blacks and whites in terms of "wealth" in this country. Starting in the 1940s when Americans first started buying their homes in large numbers, Blacks were red-lined out of home ownership by banks and mortgage lenders. The Home Mortgage Disclosure Act wasn't passed until 1975! That means that whites were owning homes and passing equity down through their families for several generations before blacks ever had the opportunity to do this. At the same time, the value of property was increasing (much faster than the rate of inflation), so a home that may have been built or purchased in the 1940s now cost more than twice as much to buy or build. The "buy-in" cost for blacks was considerably higher than for whites. Here is a chart which illustrates the increase in median home values in the US (broken down by state) adjusted to inflation at the value of the dollar in 2000.
http://www.census.gov/hhes/www/housing/census/historic/values.html
Interesting info LOLV.
ReplyDeleteI agree, it's a good idea to own a house for the reasons you state. I think renting when you are just starting out is okay. When I was single and in my early 30's I bought my first house, a little cape cod in Midway Manor, and I fixed it up by myself. It was very fun and rewarding.
I've never been on a high paying career track either, neither has my hubby, but at least we are doing what we want to do!
Starting in the 1940s when Americans first started buying their homes in large numbers, Blacks were red-lined out of home ownership by banks and mortgage lenders.
ReplyDeleteLOLV, it actually started much earlier, but became a lot more noticeable in the 40s.
When we were talking about de fact segregation a few months ago, i went to numerous developments in NC and looked at the restrictions. Commonly, blacks were excluded unless hired to work there as domestic help. In addition, there was a lot of anti-Italian bias in Easton on College Hill. Those restrictive covenants were ultimately declared unconstitutional, but not until several generations after they were first imposed.
Thank you for bringing this to light Bernie. There IS a true lack of affordable housing most places in the Lehigh Valley. My husband and I both work in the medical profession, although his job is more "vital" than mine, as he is a FT paramedic. We bought what we can afford, which is a 100 y/o house in not-so-great condition. Unfortunately, the costs of renovating have eclipsed our raises in income, and even after living here for 14 yrs we still have so much work to do to the house.
ReplyDeleteSure, the housing in Allentown is more affordable, but there is NO WAY I want my children in that school system. I could live there and homeschool, but then I can't work the income I need to help make our family's housing budget.
The influx of folks with HUGE incomes from out of state has just exacerbated this situation IMO. We personally have cut all the corners, don't use credit cards, don't buy new cars, buy used items whenever possible, what else are we supposed to do? I would love to go to paramedic school when the children are older, but there is no way on God's green earth that I am going to school that long for crappy wages in a very tough job.
This comment has been removed by the author.
ReplyDeleteSorry, messed that up. Apparently our own Iron Pigs are having affordable housing issues as well, see mcall.com story today 4/3/2008.
ReplyDelete(tried to link but couldn't do it)
this thread is now starting to weave affordable housing with desirable housing. there were, are, and will be affordable houses in allentown. one may have issues with neighbors, such as density and converted apartments next door. one may have issues with the school system, but the houses are there. they may not be modern, they will not have granite counter tops or powder rooms. lolv, growing up i had friends who lived on either side of the lehigh st. hill, our enlightened city redevelopment tore down the entire neighborhood(and sense of community). it's the area below the racquet club, around the bank center and river bend apartments. many of the homeowners were black. i believe the push in the 40's to which you refer was the GI bill.
ReplyDeleteKarenemet,
ReplyDeleteThat's simply amazing, and I completely missed it. Thank you.
Karenemt,
ReplyDeleteI just noticed you have a blog and will linkt to it tonight or tomorrow.
Mike,
Is it too much to ask that a family have a nice place to raise its children? I believe that a police officer or teacher should be able to raise his children in a decent neighborhood.
That GI bill from the 40s resulted in many new developments like Mountainview in Hellertown that excluded blacks in the deed covenants.
bernie, blacks may have been excluded from that neighborhood in hellertown, but they were included in the GI bill. many bought center city houses. in england few can afford to own, where real estate prices compare with nyc. i know quite a few immigrants to the usa who quickly became home and investment property buyers. this is still by far the land of opportunity where real estate ownership is much easier and cheaper than practically anywhere else. as far as police officers, some think they should have to live in allentown. you think they should live in a decent neighborhood. so whats the next requirement, a decent neighborhood in allentown? they don't get enough pay, but too much pension? in allentown the north street project spends 220k to built houses and then sell's them for 120k, affordable housing means subsidized housing!!!!! it's the same mentality that said hanover acres was too old at 60 years, and built brandnew public housing, bless you folks.
ReplyDeleteMichael,
ReplyDelete1) Although I don't want to drift off topic, police really should live where they work ... in a decent neighboirhood. That should be a subject of collective bargaining.
2) Affordable housing to me does not mean just a roof over my head, but a place in an area wherew I can raise a family. Although the price may be right in portions of A-town, many neighborhoods are not. I think the answer does lie in the cities and old boroughs.
3) The real estate development spurred by the GI bill just exacerbated a lot of the discriminatory practices that excisted prior to the war. There were many new developments, but blacks were excluded. That's all over the LV. Prior to the war, there were many developments that excluded blacks, Italians and Jews.
Here's an up to date listing of fair market prices for the LVSMSA:
ReplyDeleteBedroom Monthly Rent
1 $668
2 $791
3 $1024
4 $1083
5 $1245
One local housing authority defines "very low income" as follows:
one person - $23050
Two people - $26350
Three - $29650
Four - $32350
Sad, but true.
those income guidelines are HUD numbers, just FYI.
ReplyDeleteMerci beaucoup.
ReplyDeleteMost clerical people I know are below those income levels.
Dottie,
ReplyDeleteYou are so right, home ownership demands a bit of fiscal discipline. This simple rule was understood by previous generations but is lost on this land’s current inhabitants. Too many today feel a sense of entitlement to have it all. Too many now are looking to the government to improve their lives or provide for them. This is a trend that should be raising red flags. “I see bad times arising”.
Scott Armstrong
Gee,
ReplyDeleteBoth my wife and I work, we live in downtown Allentown and my sons go to Allen and Raub. Should I be demanding more? Maybe the government should start a new program for me.
Scott Armstrong
Scott,
ReplyDeleteI understand your argument. It's the basic difference between conservatives, who preach self-sufficiency, and liberals, who believe government exists to help the less fortunate. Both of us are right and both of us are wrong.
But I think the basic idea of sitting down and treying to come up with ways to keep housing stock priced at levels we can all afford, is a good one.
Perhaps there could be a bit more self-sufficiency. Perhaps Browning's idea of encouraging private investors to buy an d rehanb homes and then make them available for people at moderate incomes, with the county kicking in the settlement costs, is a good one.
Although I'm pretty much in the liberal camp, I welcome your views, especially since you excpress them very clearly.
IronPigs striking out in finding local lodging
ReplyDeleteBy Jeff Schuler | Of The Morning Call
April 3, 2008
As an incentive to lure customers, two apartment complexes in Whitehall are offering a pair of nine-game ticket packages for the Lehigh Valley IronPigs if the new renters move in by May 1.
The IronPigs players wish local landlords would offer them some sort of deal as well.
On Wednesday, one day before the start of the team's first International League season, many of Lehigh Valley's 24 players had yet to find housing for the five-month season and remain in local hotels, at their expense.
''It's been very tough,'' third baseman Brennan King said Wednesday during the team's media day at Coca-Cola Park.''We spent all day Monday, an off-day, trying to find a place to live with very little luck.''
the iron pigs cannot find an apartment because no landlord can properly prep a unit for just a few months rent, the numbers don't work. hopefully yesterday's liberal lovefest, the affordable housing meeting, will just be another bureaucratic free meal. if in reality the valley would make accommodations to make housing "affordable" which means subsidized, we will officially become povertyville for the east coast. with todays material cost, a townhouse costs about 200k to build, that's the bottom line.
ReplyDelete"Perhaps there could be a bit more self-sufficiency. Perhaps Browning's idea of encouraging private investors to buy an d rehanb homes and then make them available for people at moderate incomes, with the county kicking in the settlement costs, is a good one."
ReplyDeleteBernie, do you have any contact info that I can pursue to follow up on this? Affordable housing requires partnerships and it sounds like Browning has a decent idea going. I'm interested in pursuing on my end if possible.
Geoff,
ReplyDeleteI'll call this weekend and give it to you.
goeff, would this mean zoning should give preferential consideration to those projects which are promoted as "affordable"?
ReplyDeleteironically, converters lately have termed their projects upscale because popular sentiment is against providing more apartments for low-income with children, thus the word "loft" and talk of young professionals.
this week the theme is affordable houses, so i suppose they want upscale apartments, but affordable family houses? the truth is those in a position of power have no conception of even the problems, much less the solutions, and unfortunately they must talk out of both sides of their mouth to get elected.
Bernie,
ReplyDeleteWe all agree the government should take care of those who for what ever reason can’t take care of themselves, however there is growing sentiment that the government should be taking care of all of us.
To understand America’s conservative philosophy the opening paragraphs of Thomas Paine’s essay “Common Sense” are very instructive. This was read to the troops to remind them of why they were fighting and why it was worth continuing with what at the time seemed to be a hopeless cause. This message remains pertinent to this day and will serve to remind us that our forefathers fought not only for independence but independence from big government.
Scott Armstrong
"Beyond that, I am not on a career track for a $60K+ job a year, even once I am in my 30s. I like it this way because I think the work I do is important and rewarding in other non-monetary ways. That said, the only chance I will ever have to accumulate any "wealth" would be by owning my home and earning equity value in it. This is how our grandparents and parents have turned "working class" jobs into providing a comfortable middle class upbringing for their families. This is one of the ways they can afford to retire. If I could never afford to own a home, all of my money towards housing would have been spent on Rent, it would not have been invested in the equity position of my very own home. "
ReplyDeleteare you saying we have an obligation to subsidize your career choice?
would this mean zoning should give preferential consideration to those projects which are promoted as "affordable"?
ReplyDelete+++++++++++++++++++++++
Mike, I'm not sure what you mean? Could variances, special exceptions and use by right be permitted for affordable projects? I suppose. But considering Dean Browning is a county commissioner, which means he has no say on zoning, I would imagine the incentives he describes will be something other than land use related. Not having the chance to spoke to him, I hope to learn a bit more about the incentives he speaks of.
As far as why other people say what they say about affordable housing, I can't speak for them and won't attempt. I can only say that I think we have a moral obligation to provide safe affordable housing as a society. And when I speak of young professionals and work force housing, I'm sincere about it. I have no motive to think otherwise. The only property I own is my house so I don't stand to profit from a political standpoint. I'll leave the questioning of motives and tactics to you since you seem to enjoy it. I'll focus on the real challenge at hand: how do we meet the goal of providing affordable housing? I think that is what Bernie was getting at in this post.
Bernie, call me Sunday after church (or in the evening) if you call this weekend. Tomorrow I am on the road doing training for a community.