Housing is considered affordable when monthly costs associated with housing are 30% or less of the total household income. Households that pay more than 30% of their gross income for housing are considered cost-burdened and may have difficulty affording other necessities.
Localities often choose a percentage of AMI for which housing costs must be affordable in order for dwellings to qualify as "affordable housing." To encourage more housing which is affordable to those making less than the AMI (such as 60% or 80%) localities may require a certain percentage of dwellings in new developments to be affordable or offer incentives for developers to include more affordable units. Additionally, localities may invest in rehabilitation or construction of affordable housing in order to maintain affordable housing stock.
Efforts to increase affordable housing in Charlottesville
In November of 2008, the City of Charlottesville defined its affordable housing threshold as any unit where the occupant is below 80% of the AMI and spends no more than 30% of their income on housing costs. In February 2010, they set an official target of bringing 15% of the City's total housing stock within an affordable range.
The City has a Housing Advisory Committee that advises City Council on affordable housing policy.
Agencies, entities and groups that deal with affordable housing
- Joint Task Force on Affordable Housing - convened by UVA, Charlottesville and Albemarle County; reported its results in January 2009
- Piedmont Housing Alliance
- ↑ http://22.214.171.124/offices/cpd/affordablehousing/index.cfm U.S. Department of Housing and Urban Development, retrieved on 1/13/09
- ↑ The City of Charlottesville 2025 Goals for Affordable Housing. Rep. City of Charlottesville. Web. 02 Feb. 2010. <http://www.cvilletomorrow.org/docs/20100201-City-Affordable-Housing-Strategies.pdf>.