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People ask us all the time
"How do you define affordable housing? What is affordable housing?"
Well it's pretty easy to understand. Remember when you rented your first apartment?
And your folks told you that you shouldn't spend any more than 25% of your monthly income on housing
So that you'll have money left over for food, clothing, healthcare and transportation and all your other necessities.
That's essentially the way the Department of Housing and Urban Development defines it.
They say that people shouldn't have to spend more than 30% of their income rather than 25%.
So again, they'll have money left over for the other things they need in their lives.
Unfortunately, developers can't always build housing, given the costs for land and construction and materials and labor
That allows them to rent it or sell it to people so that they only have to pay
30% of their income on housing.
So the way it works is that sometimes for low- and very low-income people
The government has to provide subsidies, either to the developer, to subsidize the construction
or the renter, to subsidize the rent, or the buyer, to subsidize the purchase.
But in those ways, housing can be made affordable to people
so they spend no more than 30% of their income on housing.
That's affordable housing.