Attachment 1:                                                            return to workforce memo

                 
        Attachment #1        
       Area Median Income:  $81,400          
    HUD's Current Income Limits for King County        
    (March 2008 released)            
                   
FY 2008 Income Limit Area Median Income FY 2008 Income Limit Category 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person
                   
    Very Low (50%) Income Limits $28,500 $32,550 $36,650 $40,700 $43,950 $47,200 $50,450
rent they can afford $713 $814 $916 $1,018 $1,099 $1,180 $1,261
Extremely Low (30%) Income Limits $17,100 $19,500 $21,950 $24,400 $26,350 $28,300 $30,250
rent they can afford $428 $488 $549 $610 $659 $708 $756
Low (80%) Income Limits $43,050 $49,200 $55,350 $61,500 $66,400 $71,350 $76,250
81,400 is 100% of median for King County this is rent developer would charge for "workforce affordable rentals" rent priced for those at 80% of median $1,076 $1,230 $1,384 $1,538 $1,660 $1,784 $1,906
                 

Attachment 2:

    Attachment #2    
         
There is no shortage of housing affordable to those at 80% of median
* the real shortage is housing for those at or below 40% of median
         
2006 King County Housing Benchmarks Report includes Seattle:  
Supply and Demand for Affordable Rental Housing:  2006
  Percent of Number of Number of Cumulative Deficit or Surplus of Supply to Demand  
  Median Income of Household Rental Units to Income Group Rental Households in Income Group    
  <30% 310 73,700 -73,390 Deficit
  30-40% 30,730 25,800 -68,460 Deficit
  40-50% 111,860 23,800 19,600 Surplus
  50-60% 74,060 22,800 70,860 Surplus
  60-80% 69,760 39,600 101,020 Surplus
  >80% 20,590 104,200 17,410 Surplus
         
Hint on reading chart:       
to calculate deficit of 68,460 units for those with incomes between 30-40% of median:
  68,460=(73,700+25,800) - (30,730+310)  
         
Observations drawn from above county housing chart  
1. There is a shortage of 68,460 units affordable to those with incomes
  at or below 40% of area median income  
2. The number of King Co. Households with incomes   
  at or below 80% of median totals 185,700   
3. The number of rental units in the market at rent levels affordable to those
  with incomes at or below 80% totals 286,720  
4. There is a surplus of 101,020 "workforce" housing units available to those
  with incomes at or below 80% of median  
5. Of the 307,310 rental units in Kg. Co. (Including Seattle),   
  93% or 286,720 of those units are  
  affordable to those with incomes at 80% of median
6. The majority of tenants in Kg. Co. (including Seattle) only can afford
  units priced at or below about 55% of median income
         
Why provide subsidies to developers to produce units at 80% of median
  * when there is a surplus of these  units and  
  * when developers are building them now without subsidy
         
         
         

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