Resolution 7700 - Laserfiche WebLink

Appendix E: Affordability and Displacement Everett Housing Action Plan E-1 Appendix E: Affordability and Displacement OVERVIEW Understanding the economic and social landscape of housing affordability and potential displacement of residents can be a complex task. While households overall are facing increased housing burdens over time, different communities may be more vulnerable to increases in housing costs that provide barriers to accessing safe, appropriate, and healthy housing. Certain socioeconomic characteristics may highlight potential disparities in both access to housing and long-term housing security. Lower-income households, people of color, recent immigrants, and seniors may face challenges in finding and keeping the housing they need. Understanding both the risk factors and potential challenges to housing access in the community can be essential in appreciating the magnitude of concerns about affordability and displacement and guiding appropriate policy responses. AFFORDABILITY AND DEMOGRAPHICS Definitions For discussions of affordability, there are two important concepts to consider regarding the financial resources available to households, and the household resources allocated to meet necessary housing costs: Area Median Income. When categorizing households by income, different agencies tend to use a single metric to identify how different household incomes compare to expected mid-range values in a housing market. The metric produced by the US Department of Housing and Urban Development (HUD) is called “Area Median Income” (AMI), or “Median Family Income” (MFI). Conceptually, this is assumed to be the midrange value where 50% of households have more income and 50% have less, although the metrics for AMI published by HUD are adjusted for household size and housing market trends when applied to individual households. These metrics are calculated across the broader housing market area. For Everett, AMI is determined for King and Snohomish Counties overall. Categories are typically calculated as a percentage of AMI, and include: Extremely low-income households at 0–30% AMI Very low-income households at 30–50% AMI Low-income households at 50–80% AMI Moderate-income households at 80–100% AMI Above median income households at 100% AMI or more Although these are traditionally the categories used in discussing household income and compiling national statistics, other definitions may be applicable. Under RCW 84.14.010 for example, households in high-cost areas may be considered “low income” if they have an income of 100% AMI or below, and