The Benefits of Affordable Housing

What is Housing that is Affordable?

Misconceptions are widespread, with many citizens associating “affordable housing” with large, distressed public housing projects in central cities. That conception simply does not fit reality. Plenty of Public Housing Authorities across the nation, from large to small, are well-managed and have quality units. Furthermore, public housing is only one type of housing that is affordable. In this report, “housing that is affordable” refers to privately-owned housing that receives a subsidy to bring its rent or purchase price down to a level affordable to a low- or moderate-income family. Except for the subsidy, this housing is indistinguishable from market-rate housing—it has the same architectural and landscaping styles. It often has basic amenities like energyefficient appliances and community gathering spaces. Substandard housing is, by definition, not affordable. The Benefits of Housing Affordability Economic Benefits

Housing stimulates state and local economies. When a developer creates housing that is affordable through new construction or rehabilitation, the community gains jobs through direct, indirect, and induced economic impacts1 (see the sidebar on page 3). For example, each dollar of Sadowski State and Local Housing Trust Funds leverages $4 to $6 in private investment, federal tax credits, and other funding sources. If the Sadowski State and Local Housing Trust Fund monies are fully appropriated for housing in the Fiscal Year 2021-22, the projected economic impact will be:

• Nearly 33,000 jobs • More than $4 billion in total economic output • More than $167 million returned in sales tax and other revenue2

Once a housing development is built and occupied, the residents create demand for ongoing jobs to meet their needs. Additionally, families living in affordable housing have more discretionary income to spend on food, clothing, and other goods and services, thereby boosting the local economy3 .

If the Sadowski State & Local Housing Trust Fund Monies are fully appropriated for housing in FY 2021/22, the PROJECTED ECONOMIC IMPACT WILL BE:

Over 33,000

JOBS

for Floridians More than $4

Billion

in Total Economic Output

More Than $167

Million

Returned in Sales Tax And other Revenue