Understanding Affordable Housing through Service Learning Teacher s Guide

Transcription

1 Understanding Affordable Housing through Service Learning Teacher s Guide Citizens Housing and Planning Association and Education Development Center, Inc.

2 Understanding Affordable Housing through Service Learning Teacher s Guide Program developed by: Citizens Housing and Planning Association 18 Tremont Street, Suite 401 Boston, MA Phone/TTY: Executive Director, Aaron Gornstein Program Manager, Melissa Quirk Education Development Center, Inc. 55 Chapel St. Newton, MA Phone: Project directors, Chris Miara and Leslie Hergert Funded by Bank of America and Eastern Bank September 1, 2006 EDC/ CHAPA 2

3 Table of Contents Introduction: Before You Get Started Introduction Handouts and Teacher Resources Handout # A 1: Affordable Housing/Service Learning Pre/Post Test: Teacher s and Student s Versions Teacher Resource # A 2: Glossary of Housing Terms Teacher Resource # A 3: Frequently Asked Questions about Affordable Housing Handout # A 4: Local and State Partners Handout # A 5: Possible Community Projects Class 1: Housing as a Community Issue Class 1 Handouts and Teacher Resources Teacher Resource # 1 1: Continuum of Beliefs about Housing Teacher Resource # 1 2: Commonly Expressed Beliefs about Housing Teacher Resource # 1 3: History of Affordable Housing Initiatives Teacher Resource # 1 4: PowerPoint on Affordable Housing Teacher Resource # 1 5: Information on Zoning Teacher Resource # 1 6: Local Zoning Map Class 2: The Problem: Income vs. Housing Costs Class 2 Handouts and Teacher Resources Handout # 2 1: Community Resident Cards Handout # 2 2: Calculating Housing Payments Handout # 2 3: Inventory of Subsidized Housing Handout # 2 4: Money in the Bank Cards Class 3: Affordable Housing Solutions in Massachusetts Class 3 Handouts and Teacher Resources Handout # 3 1: Strategies to Create Affordable Housing Handout # 3 2: Local Case Studies Class 4: A Local Example of Affordable Housing Class 5: Reflections on Learnings and Planning Service Reflection Activities Supplemental Reading EDC/ CHAPA 3

4 Introduction: Before you get started Background For many people in the United States, finding safe, decent, and appropriate housing in a location that suits their needs at a price they can afford is a problem. This problem affects not just poor people, but many households with moderate incomes. Often, when people look for housing they can afford, the housing they find is located far from their workplace, not near public transportation, or in a different community from their children s schools, their family and friends. Location and quality of housing affects the ability to maintain steady employment, the quality of children s educations, and expenses for transportation and other living costs amongst other critical concerns. Housing costs are a growing concern for residents of Massachusetts, a state ranked as the third least affordable market for renters in the U.S. Even knowing those factors, lawmakers, politicians, and Massachusetts residents do not always fully understand the challenges faced by low to middleincome families in finding and maintaining housing that is affordable. It is critical for students to understand how widespread housing difficulties are in this state and the extensive impact of housing affordability on not just individual households, but also communities. Education Development Center, Inc. (EDC) and the Massachusetts based Citizens Housing and Planning Association (CHAPA) with funding from Bank of America and Eastern Bank have developed this curriculum unit to introduce high school students to the issues surrounding this problem. This unit provides students with information about the economic, political, legal, and social factors that contribute to, and result from, the current shortage of affordable housing and presents strategies to ameliorate the situation. It also engages students in actively exploring these problems and solutions, both in the classroom and in the community. Local community partners provide their expertise and opportunities for community service linked to the curriculum. Students identify their own promising solutions and work with government agencies and community groups to address local problems. Overview of Curriculum This curriculum unit explores four general questions: 1. What is affordable housing? Focus: To define affordable housing and to examine how the definition has changed over the past decades. 2. How does housing fit into the context of a community? Focus: To identify typical and new types of land use patterns, costs, and availability of housing in the local community. 3. Why is housing affordability a problem? Focus: To explore the gap between what many people in a city or town can afford and the price of housing. 4. How can municipalities create affordable housing? Focus: To gain an understanding of the primary strategies used by Massachusetts cities and towns to maintain and increase affordable housing. EDC/ CHAPA 4

5 The unit includes five lessons. We planned each lesson to take approximately 55 minutes, and each lesson includes the following elements: Objectives connect to government and economics standards. Preparation Activities cover what you need to do before you teach the lesson. Possible Speakers include community officials and housing experts. Learning Activities provide step by step descriptions of the lesson, with approximate times for each step. Handouts include in class exercises for students. Teacher Resources provide background reading that can be used to prepare lectures or draw on in class discussions. Additional Activities support students in extending their learning into the community or provide opportunities for the class to do additional work on a given topic. Homework includes extra assignments to enrich students learning; not all lessons include homework. You might choose to use more time to allow for more discussion and optional activities. We also provide Reflection Activities. You can use these activities all together in a culminating lesson, or you can use them singly at the end of each lesson, to encourage students to reflect on their learning from the lessons and their community experience. Finally, we provide a Supplemental Reading List that includes Web sites and fiction and nonfiction books. You and your students might want to use these resources to supplement in class work. Advance Preparation 1. Review the standards for your class or subject matter. For example, Economics and American Government cover the following related standards: Economics (Grade 12 Elective) includes supply and demand, property rights, role of government, public goods and services. American Government (Grade 12 Elective) includes the nature of government, civic, political, and private life, common good, current state and local legislative issues, and the roles of citizens. Students analyze a public policy issue and practice civic skills. 2. Review the lessons and background material. As you read, you will get a sense of the whole unit and the information you will impart. You will also be able to decide which lectures you want to provide and which you want to ask a community person to present. First, review the Handouts and Teacher Resources that follow this Introduction. You will use these materials throughout the unit. Handout # A 1: Affordable Housing/Service Learning Pre/Post Test gauges students knowledge of housing issues to use at the beginning and end of the unit; we include an answer sheet with the test. EDC/ CHAPA 5

6 Teacher Resource # A 2: Glossary of Housing Terms and Teacher Resource # A 3: Frequently Asked Questions about Affordable Housing can be used when students raise questions about terminology or concepts during discussions. Handout # A 4: Local and State Partners will help you identify organizations to collaborate with in teaching the curriculum (see #3 below). Handout # A 5: Possible Community Projects provides a list of options to consider. 3. Meet with your community partner to plan how you will work together. Handout # A 4: Local and State Partners is a list of potential community partners. The community partner can work with the class in several ways: Provide expertise on housing issues in general and specifically in your community Serve as a guest speaker for some or all classes Suggest service projects that would meet a community need Provide opportunities and support for student service projects and suggest other organizations in the community with whom students might work Ideally, you should meet with your partner before the unit begins to agree on roles and to develop plans for speakers, community actions, and service opportunities. 4. Decide when you want to bring in speakers. In addition to your community partner, you might want to invite other guest speakers experts on a topic such as mortgages or local officials. We have provided suggestions for guest speakers, but they are suggestions only. If you invite a speaker, you can use the Teacher Resources to let speakers know the type of issues you hope s/he will cover. 5. Decide whether you want to use any of the Additional Activities. Several classes have options for community activities and extensions. These include visits to local affordable housing units and participation in town meetings. Before you begin to teach the curriculum, decide which of the Additional Activities you want to use and arrange needed transportation and other logistics. You can use some of the activities as options for students to do on their own; others may be for in school or after school time. 6. Plan service opportunities for your students. Service learning is a teaching and learning approach that integrates community service with academic study to enrich learning, teach civic responsibility, and strengthen communities (National Commission on Service Learning, 2001). We developed this curriculum unit as a service learning opportunity, with students working in the community on issues related to what they learn in class. Many of the Additional Activities included in each lesson involve students, either as individuals or small groups, in the community and can be done as a homework assignment. The last class provides time for students to plan a service activity that allows students to act on what they have learned. To involve students in a service learning takes careful planning. KIDS Consortium, one of the leading service learning organizations in the country, describes the following stages: 1. Research the problem 2. Investigate solutions 3. Decide on a project EDC/ CHAPA 6

7 4. Design the project 5. Implement the project 6. Evaluate the project While this may seem like a lot of work to complete in a five class unit, the first two stages are already included in the unit itself. You will need to make time for some stages in class, and students will implement their projects outside of class. We have allotted time in Class 5, after students learn about affordable housing, for students to consider and choose service activities (Stage 3), and to plan their projects (Stage 4). You will need to plan early with your community partner how you will organize this part of the unit. Handout # A 5: Possible Community Projects provides a list of possible projects. Here are some options for organizing: Offer one day of service, with several projects for students to choose among. For example, a day working on a Habitat for Humanity building project, or a day of community surveys with small groups organized on different topics. Offer a select number of projects, so students can work on them in groups of four to five. Projects might all come from and help your community partner, or they might involve several different groups in the community. This could involve inviting sponsor organizations to Class 5 to offer projects and time in that class for students to choose and shape the projects. Allow students to create their own service projects to do on their own time. We suggest that you have other options (e.g., a final paper) for students who choose not to volunteer to work on a project. EDC/ CHAPA 7

8 Handout # A 1: Student Pre/Post Test Your Name: Class: Date: 1. Cities and towns are zoned for various uses. Name at least two types of zones one finds in a typical city or town. 1) 2) 2. Name at least two ways the federal government has helped people afford housing over the last 50 years. 1) 2) 3. True or false: At this time, the federal government is building a lot of new affordable housing in my city. True False 4. Approximately what percent of your income is considered the maximum you should pay for housing each month in order not to be rent burdened? 5. Do you agree or disagree with the following statement: There are no longer people in my city who have trouble affording a house or apartment. Agree Disagree Don t know 6. What is at least one strategy a community group could use to build affordable housing in your city? 7. What types of buildings are currently being created as affordable housing in your city? 8. Most municipalities have one or more community organizations that help people find and afford housing. Name at least one way people can help those organizations do their work. EDC/ CHAPA 8

9 Handout # A 1: Student Pre/Post Test Teachers Answer Sheet NOT for COPYING 1. Cities and towns are zoned for various uses. Name at least two types of zones one finds in a typical city or town. 1) 2) Answers: Residential Commercial or retail Industrial or manufacturing Conservation, open space, or recreational Institutional 2. Name at least two ways the federal government has helped people afford housing over the last 50 years. 1) 2) Answers: Build housing specifically for people below a certain income level. Allow people to reduce their federal taxes if they pay a mortgage. Help people afford a mortgage to buy a home. Give people below a certain income level a voucher to help them pay rent. 3. True or false: At this time, the federal government is building a lot of new affordable housing in my city. True Answer: False False 4. Approximately what percent of your income is considered the maximum you should pay for housing each month in order to not be rent burdened? Answer: 30% 5. Do you agree or disagree with the following statement: There are no longer people in my city who have trouble affording a house or apartment. Agree Disagree Don t know EDC/ CHAPA 9

10 6. What is at least one strategy a community group could use to build affordable housing in your city? Answers: Use state or federal government funds for this purpose. Ask the city for funds from the Community Preservation Act. Raise private funds. Build in a part of the city that is zoned to encourage affordable housing. Reuse an old building or lot. 7. What type of buildings are currently being created as affordable housing in your city? Answers: Town houses Single family homes Ownership units (condominiums) in mixed income buildings Incorrect: Large rental apartment buildings for extremely low income households. Most municipalities have one or more community organizations that help people find and afford housing. Name at least one way people can help those organizations do their work. Answers: Many answers are possible here. You can decide what is acceptable. EDC/ CHAPA 10

11 Teacher Resource # A 2: Glossary of Housing Terms Affordability of housing: According to HUD, the generally accepted definition of affordability is for a household to pay no more than 30 percent of its annual income on housing. Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation and medical care (for more information, visit An array of economic and social factors have created the current situation in Massachusetts, in which many people no longer earn enough to be able to rent or buy a home. A variety of public and private initiatives seeks to reduce the cost of housing to people who could not otherwise afford it. Affordable housing: This is housing for ownership or rent that the government restricts by deed or by maximum rent level to remain affordable over the long term to households earning below a certain income level. These units are available only to households that earn below a certain figure of the Area Median Income (AMI). For ownership units, the maximum allowable earnings are usually 80% of AMI while for rental, the maximum earnings range from 30% AMI to 50% AMI up to 80% AMI. Area Median Income (AMI): This is a figure established by the federal Department of Housing and Urban Development agency (HUD). Half the incomes in the area are above this amount, and half below. HUD uses the median income for families in metropolitan and non metropolitan areas to calculate income limits for eligibility in a variety of housing programs. HUD estimates the median family income for an area in the current year and adjusts that amount for different household sizes so that household incomes may be expressed as a percentage of the area median income. For example, a household s income may equal 80 percent of the area median income, a common maximum income level for participation in HUD programs. HUD defines 80% AMI as low income, 50% AMI as very low income, and 30% AMI as extremely low income. Chapter 40B Comprehensive Permit: 40B is a state law that has led to the development of much of the new affordable housing in recent years. If less than 10% of a town s housing stock is affordable (according to state guidelines), developers can apply for a comprehensive permit under the 40B statute to circumvent existing zoning regulations, typically by building more houses or apartments per acre than would be allowed otherwise. The developers must make at least 25% of the new units affordable to people below 80% AMI for the region (as defined by the federal government). For example, in an area where developers must build houses on an acre, a developer can use a comprehensive permit to build a 12 unit ownership building with three units available at an affordable price. Towns that do not have the state mandated 10% of affordable housing available to households below 80% AMI primarily use 40B. Worcester and Boston generally do not use 40B because more than 10% of their housing is already affordable to households below 80% of AMI. Community Preservation Act (CPA) funds: Individual towns and cities can vote to add a surcharge to their local property taxes, which is put into the town s CPA fund. The state government then contributes additional money to this fund. A town or city must use at least 10% of the money in the CPA fund for affordable housing. Housing Choice Vouchers (also know as Section 8, MRVP or AHVP vouchers): Federal funds pay a portion of the rent for a household earning below a certain income. A tenant with a voucher pays 30% of their income towards their rent and the government pays the difference between the EDC/ CHAPA 11

12 market rent and the tenant s portion. Tenants with vouchers must rent apartments that cost less than the maximum amount set by the U.S. Department of Housing and Urban Development (HUD). Public housing: Massachusetts has both state and federal funded housing. Public housing provides rental housing for eligible low income families, the elderly, and persons with disabilities. It varies from scattered single family houses to high rise apartments for elderly individuals. The U.S. Department of Housing and Urban Development (HUD) administers federal aid to local public housing authorities (PHAs) that manage the housing for low income residents at rents they can afford. In Massachusetts, the Department of Housing and Community Development administers state aid to the PHAs. Smart Growth: A relatively new concept in urban planning, Smart Growth refers to the addition of housing, stores, and recreational facilities in areas that are already developed such as town centers and are near public transportation rather than in open space. As a result, there is less sprawl, the natural environment is preserved, and residents can walk and bike, rather than having to drive every place. Since many of the apartments and condominiums that developers create in these Smart Growth areas tend to be expensive, the state government and local planners are encouraging cities and towns to make some of the housing affordable. In fact, there is new state funding to encourage this type of development. For more information, visit: EDC/ CHAPA 12

13 Teacher Resource # A 3: Frequently Asked Questions about Affordable Housing What is the difference between affordable housing, public housing, and subsidized housing? Affordable is a general term for housing that costs 30% or less of one s income and is either rental or ownership housing. Both public housing and subsidized housing are affordable. Public housing is built and/or supported by the state or federal government and is usually rental. Subsidized housing is either public housing or private rental or ownership housing that companies or organizations develop using government funds, tax incentives, etc. How does someone qualify for subsidized housing? Typically, their income must be below 80% of the Area Median Income. (For a definition of Area Median Income, see Teacher Resource # A 2.) For rental housing, a household applies to a local housing authority or a private development with subsidized units and joins a waiting list if there are no units available. For ownership units, a household applies to the developer s agent. Then, the state agency funding the units the local housing authority or the private monitoring agent, often a local nonprofit organization designated by the town reviews the household s income. How do you make sure a unit that sells at below market rate to a low income buyer stays affordable for the next buyer? The deed is restricted. Typically, the seller can make a certain percent of profit, but the unit must still be affordable to someone who qualifies under the guidelines described above. If there are no houses in the range deemed affordable for workers making a certain income, how is it possible that there are workers in that category living in the town? Households moved in many years earlier, households share residences, or households have several incomes. Does low income housing lower the value of property in the neighborhood? The MIT Center for Real Estate completed an analysis of property values related to seven specific large, dense, multifamily 40B rental developments in six different communities in April There was no statistically significant difference in the change in values between the homes in the 40B impact area and the homes in the remainder of the community. The research reviewed the change in value of single family homes in the 40B impact area (defined as abutters and immediate neighbors) with the change in value of dwelling units in the remainder of the community, over a period of five to 15 years depending on the year in which the 40B project was developed. For the full report, visit: EDC/ CHAPA 13

14 Handout # A 4: Local and State Partners The following organizations have additional information or service opportunities for your class. For contact information for community based organizations involved with affordable housing issues contact CHAPA at or Government Agencies Massachusetts Department of Education is responsible for ensuring improved teaching and learning in all of the Commonwealth s public schools. The department has a Homeless Education Coordinator. Massachusetts Department of Housing and Community Development makes state and federal funds and technical assistance available to strengthen communities and help them plan new developments, encourage economic development, revitalize older areas, improve local government management, build and manage public housing, stimulate affordable housing through the private sector, and respond to the needs of low income people. Local town and city planning and development offices, which in some cases are a single designated person, coordinate the municipality's approach to development. Search for the town Web site to find information about the municipality s planning function. The Massachusetts Chapter of the American Planning Association can provide background on planning and connect you with your city or town s office. Local housing authorities, at the municipal or regional level, operate government funded public housing and distribute housing vouchers. Local elected officials (e.g., city councilors, mayor, planning board members, zoning or housing board members) all have influence in decisions made around affordable housing development and preservation. Search your city s or town s Web site for more information. Non Governmental Organizations Local community housing advocacy organizations, alliances, trusts, and committees Housing developers and housing management companies Local nonprofit human service providers Temporary Shelters Your city or town may have shelters designated to serve specific groups of people (e.g., battered women, teenagers, single men, families). Shelters may also provide opportunities for service. As mentioned earlier, shelters provide an indication of lack of and need for affordable housing in a municipality. EDC/ CHAPA 14

15 Handout # A 5: Possible Community Projects 1. Develop graphic presentations (charts, PowerPoints, fact sheets) of housing costs and affordability for an organization to use or to make presentations to community groups. Consider including community housing costs, down payment and monthly payments on mortgages for these homes, incomes required to pay these mortgages, number of residents and town employees below this income, and affordable housing options in the town. Partners: Planning office, realtors, banks, town demographer, town clerk, mayor s office 2. Conduct a survey of the housing needs of specific populations in the community (e.g., seniors, town employees) for a community organization or city/town office. Partners: Office of elder affairs, school department (for school employees), town or city hall, IT department (to run the numbers) 3. Create a user friendly catalog of affordable housing in the community that includes the number of units, who is served, and whether the housing is private or public. Partners: Housing authority, planning office, nonprofit housing development organizations 4. Create a report or a PowerPoint about the actions the town and private developers have taken to increase affordable housing in the past 10 years: funding, zoning, incentives, 40B. Partners: Nonprofit housing development organizations, planning office, housing authority 5. Write an op ed and/or letter to the editor about the issues described above. Partners: Local newspaper, others listed previously 6. Create a local cable TV show about the issues described above, have guests with various points of view. Partners: Local TV, others listed previously 7. Develop a media campaign and materials (e.g., brochures, fact sheets, newspaper articles) on the issues described above. Partners: Nonprofit housing development organizations, housing advocacy groups, media/ communications firms, communications departments of colleges, League of Women Voters, local paper 8. Work with local organizations and agencies to convene a forum bringing together diverse interests. Partners: League of Women Voters, nonprofit housing development organizations, housing advocacy groups, planning office, housing authority, mayor s office, selectmen EDC/ CHAPA 15

16 Class 1: Housing as a Community Issue Objectives Students will understand housing as a critical issue for their community. Students will be able to identify different approaches the government has used to help low and middle income people afford housing. Students will be able to describe the purpose of zoning and types of zones frequently used by cities and towns. Preparation Read Teacher Resource # 1 1: Continuum of Beliefs about Housing and decide which items you want to use. Teacher Resource # 1 2: Commonly Expressed Beliefs about Housing as background information. Teacher Resource # 1 3: History of Affordable Housing Initiatives as input for a lecture. Teacher Resource # 1 5: Information on Zoning as input for a lecture. Review Teacher Resource # 1 4: PowerPoint on Affordable Housing Copy Handout #A 1: Student Pre Test for each student in the class Obtain Equipment to show Teacher Resource # 1 4: PowerPoint on Affordable Housing Teacher Resource # 1 6: Local Zoning Map. Get a zoning map from the local Planning Office, either by calling the office or by going to the municipal Web site. Either post it on the wall or turn it into an overhead or PowerPoint. (To locate your planning office, see Handout # A 4.) Decide whether you will present the lectures on affordable housing and zoning or get a guest speaker Possible Speakers City/town managers or planners can describe local zoning, land use, and development issues. Staff from the local housing authority or housing organization can describe subsidized housing in the community, and they can explain how people access subsidized housing. Learning Activities 1. Introduce the issue of housing and have students complete the Pre Test. (5 10 minutes) Link the issue to the context of the class (e.g., Economics, Government). EDC/ CHAPA 16

17 2. Engage students in discussing the Continuum of Beliefs about Housing. (15 minutes) Students explore their initial beliefs about housing by lining up in the room according to their beliefs on issues you read aloud. You will read aloud from Teacher Resource # 1 1: Continuum of Beliefs about Housing. Each statement will take approximately one to two minutes to move and discuss, so you may want to choose a limited number of the statements. Identify a place in the room or in the hall where students can stand in a line. Tell them, I will read a statement. If you totally agree with this statement, go to my right (or designate a place). If you totally disagree with it, go to the left (or designate a place opposite the first place). Or, you can choose a place on the continuum between these two points that identifies approximately where your beliefs are on the continuum. When students have chosen their places, ask them to share briefly with those around them why they chose to stand there. If you do not have room in your class for students to stand comfortably and without crowding, choose one of these alternatives: Pose each statement as a simple agree/disagree statement and have the students who agree stand up, then sit down. Follow the same process for the students who disagree. Ask students to jot down their reasons for answering as they did. Then, ask for a few comments on both sides of the issue. Have students go to opposite corners of the room for agree/disagree. Ask groups to discuss their answers and then ask each group to report out. If you want to keep students in their seats, write on the board a Lickert scale of five points from Strongly Agree to Strongly Disagree. Read each statement and ask students to write their answers and reasoning on a piece of paper. Then, lead a group discussion on their responses. When you elicit students answers whether on each item or in a group discussion at the end make sure to accept all answers. Do not argue with students or try to teach information; you will cover these issues in upcoming lessons. Here you just want to gauge students initial knowledge and attitudes about the topic. Ask students to talk about why they think something and explain their rationales, and then ask whether anyone else has a different opinion. You might want to take notes on students comments, so you can follow up on them later and see whether there are changes at the end of the unit. You can use this exercise as a warm up activity to engage students in thinking about the issue, and it is up to you to decide how long to let it go on. Wrap up by telling students that they will continue to explore these issues in the course of this unit. 3. Present information about affordable housing. (10 minutes) You or a guest speaker will present a short lecture on affordable housing. It should include the following points: A definition of affordable housing A history of affordable housing how it began and how it has evolved Who is eligible for affordable housing today and how they get access to it How affordable housing is developed today EDC/ CHAPA 17

18 See Teacher Resource # 1 3: History of Affordable Housing Initiatives for an outline of a possible lecture. In order to give students a visual image of the many different kinds of affordable housing that exist in the state, show Teacher Resource # 1 4: PowerPoint on Affordable Housing. 4. Explain land use and zoning. (20 minutes) As zoning affects the kinds of housing that are available in a town or city and where that housing is located, it is important to give students some background information on zoning. Use Teacher Resource # 1 5: Information on Zoning as the basis of a short presentation to students on zoning. You can do this yourself, or you might want to invite a local government official to present the information. Point out that rules on things like lot size and water supply will affect where you can build housing and how expensive the housing will be. After the presentation and questions from students, show students the local zoning map (Teacher Resource # 1 6) and note the categories on the map of their city/town: Residential: single family Residential: multi family Business/commercial; industrial/manufacturing Conservation/flood plain Institutional Open space/recreational Discuss with the whole class: Which districts are the largest? If you are in a suburban town: Are there multi family residences? Are residences allowed in business areas? Are there residential areas near transportation? Do people need a car to get around in your community? If you are in an urban area: Are there industrial areas? Is there housing near industrial areas? Are there residences near transportation? Do people need a car to get around and live in your community? Is there open space? Can you think of areas in your community that are examples of Smart Growth (see Handout # A 2 for a definition)? Additional Activities Ask students to map the community by taking a bus or walking tour. What do students notice? EDC/ CHAPA 18

19 Teacher Resource # 1 1: Continuum of Beliefs about Housing 1. Housing is a right. 2. People who work in a community should be able to live there. 3. Communities are improved by having residents from diverse backgrounds. 4. Housing is a private market matter. Government should not be involved. 5. People who have worked hard to move to a city or town shouldn t have to subsidize housing for others. 6. Once city neighborhoods get fixed up, the people living there can t afford to stay. 7. Affordable housing brings poor people into a community. 8. Everyone can find an affordable place to live someplace in Massachusetts. 9. Assuming only one or the other is possible, I d rather have more parks than houses in my neighborhood. 10. Cities have done enough to create affordable housing; the suburbs haven t done their fair share. 11. Lack of affordable housing for people with special needs (mental, physical, and psychological) is a big problem. 12. Buying a home is better than renting. 13. Poor people get plenty of resources from the government already so subsidized housing is too much assistance. 14. Affordable housing looks bad and hurts property values. EDC/ CHAPA 19

20 Teacher Resource # 1 2: Commonly Expressed Beliefs about Housing The following questions often arise during discussions about affordable housing. We used them to create Teacher Resource # 1 1: Continuum of Beliefs about Housing. According to CHAPA, community members frequently articulate the points of view listed under each question during meetings and hearings on affordable housing. Your students may hold these and other opinions. Use this resource to help you stimulate discussion and debate on these topics. 1. Is housing a right? Yes: Housing is a necessity of life; shelter is similar to water and food. Housing is a key component to success in society and everyone has a right to have a home. No: Housing is primarily an investment and a market commodity. In a capitalist market, there are no rights to purchase certain items. 2. Should people who work in a community be able to live there? Yes: People who serve a community through their labor should have the opportunity to participate in the benefits of that community. Businesses are most interested in cities and towns in which their employees can afford to live. Government workers such as teachers, firefighters, and police will be more effective if they live in the community they serve. No: You should live where you can afford to live. Local municipal workers and employees of local businesses who live in a town do not bring outside investment into a community. Residents of towns and cities already pay the salaries of their municipal employees; we should not expect them to pay for their housing, too. 3. Is increased diversity a compelling reason to increase affordable housing? Yes: A more diverse community including economic, ethnic, racial, and cultural diversity is a more vital community. No matter what your economic status, you can learn from people who earn at all economic levels. No: It is important to preserve the economic, racial, and ethnic character of a community by restricting demographic change. You can seek diverse experiences outside of the town in which you live. 4. Should government have a role in creating housing? Yes: Housing is a necessity, so government should ensure everyone has access to it. EDC/ CHAPA 20

21 The housing market is rising faster than incomes, making housing unaffordable for some people, regardless of how hard they work. Government should provide (temporary or permanent) assistance to people who are not able to afford their own housing at a particular time. People with low incomes already receive a disproportionately small amount of our society s and government s resources. No: The private sector is much more efficient at producing housing than is government. Housing is primarily an investment and market commodity; efforts to intervene in an important element of the market economy cannot succeed. Supporting people economically reduces their incentive to earn more money. There is a limit to how much individuals and the government can help people in need. 5. Should we ask people who have worked hard to move to a particular location to subsidize housing for others? Yes: People with low incomes often work very hard and long hours, but they do not earn as much money as others for a variety of reasons, including lack of access to quality education and job opportunities as well as discrimination. People share a responsibility for taking care of others, and that includes subsidizing opportunities for others. Some people are not able to shift jobs to a new area when housing costs increase. People should be able to remain in their communities, despite rising housing costs. No: Everyone in the U.S. has equal opportunity and differences in income are due to people s willingness to work. The government should not levy taxes for services to others. People who say they need affordable housing in certain communities are being picky about where they want to live. People should choose where to live based on their income, rather than the community or location. 6. Are low and moderate income residents of city neighborhoods displaced when the city or developers fix up the area in which they live? Yes: Reinvestment attracts wealthier people, and people who are willing and have the means to pay higher rents. Neighborhood reinvestment strategies focus on building communities that will attract people with more wealth. No: Neighborhood reinvestment does not guarantee that rents and the cost of living will rise and drive away current residents. Neighborhood attractiveness does not mean wealth will follow. There are ways to preserve the affordability of some housing in a neighborhood. EDC/ CHAPA 21

22 7. Is buying a home better than renting? Yes: Owning provides stability to families and individuals. The opportunity to receive a tax incentive for owning property is a financial advantage. Paying equity towards property instead of rent to a landlord is a financial advantage. Owning provides the opportunity to have a growing investment. No: Owning a home can be a financial burden. Owning a home has increased responsibilities that some people do not want. Owning a home puts you at financial risk and restricts your mobility. 8. Does affordable housing hurt property values? Yes: Developers build affordable housing without care for aesthetics or neighborhood character. People who rent have less at stake in maintaining their property than those who own. No: Some new affordable housing structures are better looking than the older existing neighborhood housing. Cities and towns can work with developers to create attractive affordable units. Studies show that in Massachusetts property values do not decrease in areas with new affordable development. EDC/ CHAPA 22

23 Teacher Resource # 1 3: History of Affordable Housing Initiatives In the United States, the government has developed programs to help both low income and middleincome households afford housing. These initiatives have changed over time in response to different philosophies and problems. A definition of affordable housing In general, experts consider housing affordable if a household pays no more than 30% of its income for it. Unless otherwise noted, this curriculum refers to affordable housing as housing that is restricted to people with incomes below an amount set by the federal government. The government or other sources subsidize the cost. A history of affordable housing how it began and how it has evolved Government assisted affordable housing was initially proposed in the first part of the 20 th century, in response to the overcrowding, deterioration of buildings, and homelessness that the Great Depression caused in the nation s cities. The federal government began a public housing program to alleviate unemployment and eliminate unsafe and unsanitary conditions. It funded the construction of large scale high rise apartment buildings in many cities, and soon municipalities began to create cities within cities. In the late 1940s and 1950s, federally funded housing programs were developed for middle class Americans initially for the returning World War II and Korean War veterans, and then for others. The government initiated two programs: government backed mortgage insurance through FHA and a secondary mortgage market that enabled families to purchase their homes over a 30 year period, making mortgage payments (and, therefore, the homes themselves) affordable to tens of thousands. Secondly, it created tax benefits for homebuyers in allowing mortgage interest deductions when filing federal personal income tax returns. Massachusetts s state government also created subsidized housing in the middle of the 20 th century. In addition to developing housing for elderly, the state turned over to cities and towns housing that the government initially built for returning World War II veterans and required that low income families live in the housing. Housing assistance programs for lower income households changed dramatically again in the 1970s when President Nixon created a market based program known as Section 8 Rental Assistance. Eligible families receive Section 8 vouchers to subsidize rent in locations of their choice, thus increasing the prospect of de concentrating poverty and reducing many problems associated with the large scale, high rise public housing in urban areas. Affordable housing today Today, one can classify subsidized housing in Massachusetts according to who manages it and how it is financed. 1) Government managed (public housing): While the federal and state governments no longer build large scale housing for people with low incomes, much of this housing still exists. Each city and town s housing authority which is a government agency manages the housing. EDC/ CHAPA 23

24 How it s financed: Residents generally pay 30% of their income for rent. Federal and state governments pay the remainder of the costs of these developments. Who lives there: The government designates some of this housing for families, some for elderly people, and some for people with disabilities. All must be below certain incomes. Housing authorities also manage government subsidized rental vouchers (known as Section 8 or Housing Choice Vouchers), available to people who are below certain incomes. Residents pay 30% of their income to rent the units. 2) Private: Today, private for profit and nonprofit developers are creating the only new affordable housing for rent and purchase and various private organizations and companies manage this housing. To obtain subsidies, developers must ensure that the units will remain affordable to subsequent renters or owners. How it s financed: Developers use some or all of the following means to create housing at below market rates: Obtain financing from the state s housing finance agency, Mass Housing. Apply for a variety of funds or tax breaks from the state government. Seek donations or grants from foundations or other private sources. Units must remain affordable, even if they are re sold or rented. Who lives there: Most of the housing built by these groups has some units for households with low income, and the rest for households with higher incomes (called mixed income development). Developers design some of these units for elderly people, some for families, and some for people with disabilities. As with public housing, residents with low incomes pay 30% of their income to rent or buy these units at below market rate levels. EDC/ CHAPA 24

25 Teacher Resource # 1 5: Information on Zoning A community s vision for the type of city or town it wants to be influences its zoning decisions how it will use land, what kinds of buildings developers can build, and where developers can build. Many of the obvious differences among cities, towns, and suburbs relate to their zoning regulations and land use decisions. In cities, residential and business uses are close together and most neighborhoods include a mixture of both. Suburbs and towns tend to separate housing from business use and to have distinct areas of open space. Zoning ordinances consist of two parts: a map and text describing rules and regulations. The zoning map shows how the government divides the community into different use districts or zones. Zoning began as a public health measure to separate housing from industry. Common districts today include: Residential, often with separate districts for single family and multifamily Commercial, often with separate districts for downtowns and other uses, light and heavy industry Conservation, often with flood plains indicated Recreational/open space/parkland Agricultural Zoning rules and regulations typically establish a list of land uses permitted in each district plus a series of specific standards governing lot size (e.g., in some areas of town, single family residences must have at least ¼ acre, in other areas houses must be on at least one acre lots), building height, and other requirements. There may be separate sections for related issues such as parking standards, sign regulations, landscaping, water supply, historic preservation standards, and various environmental criteria (such as requirements for tree plantings in new developments). The text also usually describes the responsible government bodies (e.g., zoning administrator, planning commission, board of zoning appeals) and procedures for administering and applying the zoning ordinance. In addition to separate districts for specific uses, most cities and towns also have mixed use districts. For many years, the preferred pattern outside of cities was to segregate housing from business areas, building new housing developments in areas that were previously open space, with new roads and shopping malls replacing town centers. This pattern led to what is now called sprawl. Many urban planners currently recommend a concept called Smart Growth, which includes the following aspects: Mixing land uses, such as stores, office buildings, and apartments Mixing houses of different sizes and prices in the same area Developing new businesses and houses in areas that are already built up or reusing vacant buildings for new purposes Putting housing near public transportation Urban planners view Smart Growth as a way to reduce traffic by encouraging people to walk and take public transportation, to revitalize the business areas because people live as well as work there to maintain open space for recreation, and to build a sense of community. EDC/ CHAPA 25

26 Class 2: The Problem: Income vs. Housing Costs Objectives Students will be able to calculate the amount renters or buyers can pay for housing, based on their incomes. Students will be able to determine the income needed to purchase or rent housing in their communities. Preparation Bring Multiple copies of the newspaper or free real estate booklets, making sure to include ads for both sales and rentals. Copy Handout # 2 1: Community Resident Cards onto cardstock and prepare them for students. Decide how many you will use and which ones. Ideally, students will work in pairs, but this will depend on the number of students in the class and other factors. Decide whether you will assign pairings and roles, let students draw roles at random, etc. Cut out cards and place in a container from which students can draw a card. Handout # 2 2: Calculating Housing Payments for students. Completed Handout # 2 3: Inventory of Subsidized Housing. Contact the local housing authority office (see Handout # A 4 for contact information) for a list of public housing and the length of the waiting list for each type. We have provided information on three cities as examples. Handout # 2 4: Money in the Bank Cards onto cardstock and prepare them for students. Decide whether to invite a speaker. Possible Speakers Realtors can describe the kinds of housing available and their costs. Bankers can describe the process of applying for a mortgage and the bank s criteria for granting one. Learning Activities 1. Describe housing options and budgeting. (10 minutes) Briefly describe housing options: rental and purchase; apartments, condominiums, and houses. When renting an apartment, the renter typically makes a security deposit (often first and last months rents) and then pays rent to the owner on a monthly basis. When purchasing a condominium or house, the buyer typically makes a down payment (for example, 5 10% of the entire price) and borrows the remainder from a lending institution. The amount borrowed is the mortgage. The owner makes monthly mortgage payments, which include interest on the loan, to the lending institution. Obviously, the more expensive the house is that you buy, the higher the monthly payment. Explain that most experts recommend that people, whether renters or homeowners, should pay approximately one third of their gross (pre tax) income for housing. If you plan to rent a home, take one third of your monthly income to determine the amount of monthly rent you can afford. If you want to purchase a house or condominium, your monthly mortgage payment should be approximately one third of your monthly income. EDC/ CHAPA 26