Reply #65: 'Affordable housing' is a defined term with a specific meaning. [View All]

[Gormy Cuss]

It means that a low-income or moderate income household pays no more than 30% of its income for housing.
Low income is generally defined at less than 80% of the area median income, and moderate income at up to 120% of the area median. So, if the median household income in Anaheim is $60,000, then to be affordable then those with incomes up to about $72,000 must be able to qualify. A $300,000 condo, with 20% down, would be affordable to a houseshold in that range with current interest rates.

The housing is not targeted at the homeless, but at working renters. If these renters move into home ownership, their units are available to new renters and in that regard it may present more opportunities for the homeless to be housed because there are more available rentals. If instead the development does not include an affordable housing set-aside, the low to moderate income renters would not be able to afford the new housing (the article states $600,000 as a market rate price) and they will remain in the rental housing.