In 1993 when the Founders launched the Denton Affordable Housing Corporation, they envisioned a new vehicle that could increase opportunities for lower income residents to access affordable decent housing in decent neighborhoods. Recognizing that the lack of decent housing has a damaging effect on the economic and social well-being of families, they also realized that a shortage of affordable decent housing can degrade the quality of life in the entire community. Because of affordable housing needs of low-income households were not being met by private developers, they were optimistic that a nonprofit housing developer and provider could fill that unmet need. In so doing, the nonprofit could not only make a difference in the lives of these targeted populations but, ultimately, have a positive impact on the overall community.
The Growing Need for Affordable Housing
The role affordable housing plays for low-to-moderate income households is well recognized. Not only is the economic and social well-being of these families at risk, but a host of social problems can occur when working families face a shortage of affordable housing. Family disruption, overcrowding and congestion degrade the quality of life in the community for all residents.
For businesses, the ability to attract and retain labor depends partly on the availability of decent and affordable housing. In high-priced areas like Denton County, people who provide the bulk of vital services such as teachers, firefighters, police offices, hospital workers, restaurant employees and retail clerks have difficulty finding an affordable place to live. Yet it is often in the communities where affordable housing for working families is most needed, that the most opposition to affordable housing exists.
It is generally accepted that a family should not spend more than 30% of its income to ensure there is enough money for other necessities. However, in a recent 6-year study carried out by the Center for Housing Policy, the number of low and moderate income working families paying more than half their income for housing increased 76 percent over that period of time. A full-time job doesn’t guarantee families a decent, affordable place to live.
A comparison of local housing costs with prevailing wages of some of these essential workers illustrates that none could afford to buy a median priced home in Denton, which, in 2005 was $158,000. Teachers with less than five years experience, entry level police officers and fire fighters, and mail carriers earn less than $40,000 a year in Denton. Using the standard of estimating ones’ home purchasing power at 2.5 times ones’ annual salary, these individuals could not afford to buy a median priced home in Denton. Of the 497 non-academic job titles at the University of North Texas, only 86, or 17%, earn salaries sufficient to support the purchase of a $100,000 home. According to the Real Estate Center at Texas A & M University, 38.8 percent of the homes sold in Denton County in 1997 were priced under $100,000. By 2005, that percentage dwindled to 9.6 percent.
The fact that the median price for a home in the Denton area is more than 20% higher than the median for the state as a whole and the fact that the fair market rents in the area far exceed what low-income working families are able to pay, accentuates the need for the programs DAHC offers.
