Affordable Housing Development Case Study

Introduction The affordable housing and community development markets are becoming a scarce throughout the state of California. There is more emphasis placed on federal, state and local government policies to integrate affordable housing incentives into multifamily development projects. The term affordable housing is used to describe rental housing or owner-occupied homes, which are affordable regardless of what one’s income, may be. The United States government regards housing cost at or below 30% of one’s income as being affordable. The term workforce housing has evolved over the last 10 years as defined by the housing authorities as homes aimed at household with earnings from 50% to 120% of area median income.

California is one out of

The focus on affordable housing where families earning an annual income of $50,000 and below. Now the focus is on families earning an annual income of $50,000 to $120,000. This dramatic swing has caused a greater stress in decent and affordable housing throughout the state of California. It is not a surprise the current public housing subsidies are not enough to meet the needs of low and median income families where one in four households is eligible to receive assistance. The problem is there is a large disparity of a renter’s earnings and the average cost of rental housing nationwide. As of 2017, the national average earner has to make $19.35 per hour and in California its $26.65 an hour to afford a two-bedroom home (Misra, 2015). This cost is more than three and a half times the federal minimum wage of $7.25 an hour and two and a half times as much of California’s minimum wage at $10.50 an

This research will entail the theoretical framework in affordable and workforce housing such as Abraham Maslow’s Hierarchy of Needs, Public Administration Theory as defined by Woodrow Wilson and Fredrick Winslow Taylor, Gulick-POSDECORB (planning, organizing, staffing, directing, coordinating, reporting, and budgeting) of affordable housing. Finally, the decision-making process and the New Public Administration and Public Management will provide insight on how funds and grants are delivered to each county and city for development towards affordable and workforce housing projects (Rosenbloom, Kravchuk, & Clerkin, 2015) and it will answer the questions as to why is it important to build affordable housing and who needs