Bill Overview
Title: Affordable Housing and Area Median Income Fairness Act of 2022
Description: This bill reauthorizes through FY2032 the Community Development Block Grant and other specified programs that support affordable housing. The bill also requires the Department of Housing and Urban Development (HUD) to assess alternative methods of calculating area median income (i.e., any metric used to refer to the median income level for a given area or jurisdiction for purposes of any program administered by HUD) and the use of alternative metrics in order to make housing more affordable for low-income families in urban areas.
Sponsors: Sen. Gillibrand, Kirsten E. [D-NY]
Target Audience
Population: People in need of affordable housing or impacted by housing affordability measures
Estimated Size: 10000000
- The bill impacts individuals who benefit from affordable housing programs.
- This involves individuals in need of community development support, particularly low-income families.
- HUD-administered programs are specifically mentioned, influencing those enrolled or eligible for these.
- The alternative calculation of area median income will affect affordability metrics, impacting low-income families in urban areas.
Reasoning
- The target population includes low-income families and individuals impacted by housing affordability issues, particularly in urban areas.
- The policy is designed to assist approximately 10 million people in the US, impacting their access to affordable housing.
- Given the budget constraints, not all individuals in need will be directly impacted, but the long-term goal is to increase housing affordability significantly.
- Assessing wellbeing before and after implementation will highlight the policy’s effectiveness, considering both immediate and gradual improvements.
Simulated Interviews
Retail worker (Los Angeles, CA)
Age: 34 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- Affordable housing is crucial for me as rent takes up a huge part of my income.
- I'm hopeful that with the policy, the new area median income calculations might lower my rent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 9 | 3 |
| Year 20 | 8 | 2 |
Construction worker (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 3
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I need affordable housing to get out of my friend’s place.
- The new income calculations might allow me to qualify for housing support.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 3 |
| Year 2 | 5 | 3 |
| Year 3 | 6 | 3 |
| Year 5 | 7 | 3 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
Retired (New York, NY)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- Housing costs are eating into my fixed income.
- Changes in the income calculations might help me manage better.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 3 |
Freelance artist (Chicago, IL)
Age: 28 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- Affordable housing would allow me to focus more on my career.
- The policy could provide me hope for better living conditions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Small business owner (Miami, FL)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 11/20
Statement of Opinion:
- My primary concern is finding affordable housing since my income is unstable.
- I hope the new calculations will allow for better housing access.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Nurse (Seattle, WA)
Age: 39 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- Housing expenses are overwhelming, and I've considered moving.
- This policy might help us stay here if rent becomes manageable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 9 | 4 |
| Year 10 | 9 | 3 |
| Year 20 | 8 | 3 |
Student (San Francisco, CA)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I'm not currently seeking permanent housing but will need it soon.
- This policy might help when I need to look for housing after graduation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Retired (Detroit, MI)
Age: 70 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- My primary housing concern is maintaining my home, not affordability.
- I don't expect direct benefits from the policy, but it might help community development.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Teacher (Phoenix, AZ)
Age: 47 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 16/20
Statement of Opinion:
- Already benefiting from programs, but additional adjustments could further reduce my rent.
- The policy might stabilize my housing situation long-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 8 | 4 |
Carpenter (Denver, CO)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 12/20
Statement of Opinion:
- I’m worried about the housing market and our future rent.
- The area median income adjustments give me a bit of hope for affordability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Cost Estimates
Year 1: $3500000000 (Low: $3000000000, High: $4000000000)
Year 2: $3550000000 (Low: $3050000000, High: $4050000000)
Year 3: $3600000000 (Low: $3100000000, High: $4100000000)
Year 5: $3700000000 (Low: $3200000000, High: $4200000000)
Year 10: $4000000000 (Low: $3500000000, High: $4500000000)
Year 100: $15000000000 (Low: $12000000000, High: $18000000000)
Key Considerations
- The need to strike a balance between increased housing subsidies and fiscal impacts.
- Effectiveness of reforms in median income calculations in achieving affordability goals.
- Potential impacts on inflation and housing market dynamics.