CORRESPONDENCE - WS-1 OPPOSITION

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30 ¢j" uYxdr�, ;hM 'Y7`}� nHja u4 .dM 5'°".6 r d} 'SANj,�.4'., �u )bs�t4a-s,U . ay ,. 5.0..�". yM3 Rising Housing Costs Have Eroded Disposable Incomes... Median Income Left Over After Paying for Housing Costs (Indexed) 110 105 100 95 65 2001 2002 2003 2004 2085 2006 2007 2088 2003 2010 2011 2012 2613 2014 2815 2016 Income Quintile ■ Bottom ltl Lower Middle ■ Upper Middle ■ Top Notes. Income quartiles include both owners and renters. Median housing Costs and household incomes are in constant 2010 dollars, adjusted for Inflation using the CIR J to, All Items. Hoeing costs include cash mntacd utilities, Indexed values are cumulative percent change. Source'. JC -S tabulations of US Census Bureau, American Community Surveys. !$$['1� t2d¢�x• tsi"ne'-+�n.�u �..�se1 a..5�-. ai.y a, w-1riu.ns uxu-..i ±-,col9aaU >c3y ... Especially Among Lowest -Income Renters Median Iboards Left O you After Paying far Housing Costs (Thousands of dr llors) Bottom Lower Muscle Upper Middle Top Income Quartile Notes: Income quartiles Include bath renters and owners. Hansing tests include cash rent and utilities, Source: JCHS tabulations of 2016 American Community Surrey. occurring affordable housing) available to extremely low-income renters. In 2014, counties with populations of at least 20,000 had an average of 34 naturally occurring affordable, adequate, and available units per 100 extremely low-income renters. Of these counties, 29 (about 2 percent) had no units meeting the criteria, while the most affordable counties provided 81 units for every 100 extremely low- income renters. On average, smaller counties have a higher ratio of supply to demand than larger urban counties, while large urban counties have the greatest deficit (Figure 29). At the same time, a Hudson Institute report finds that losses of low-cost units are high. About 60 percent of the 15 million rentals affordable in 1985—some 8.7 million units—were lost by 2013. The biggest reductions were due to permanent removals, with 27 percent of affordable rentals in 1985 (4.1 million units) demolished, destroyed in disasters, or reconfigured into fewer units. About 18 percent (2.7 million units) were converted to owner -occupied or seasonal housing, while 12 percent (1.7 million units) were upgraded to higher rents through gentrification. The remaining 276,000 units were temporarily out of the affordable stock. This same report also documents how the low-cost rental stock is replenished over time. A little under a third of affordable rentals in 2013 were also affordable in 1985, highlighting the importance of preservation. Even so, a large majority of affordable rentals were added through a variety of other means over time, with roughly equal shares coming from new construction and conversion of non- residential structures, filtering from higher price points, and conver- sion of owner -occupied or seasonal housing to rentals (Figure 30). Given the lack of naturally occurring affordable units, federal housing assistance is crucial for lowest -income renters. The Urban Institute estimates that HUD and USDA programs assist 53 percent of units affordable to extremely low-income renters. In the largest counties where supplies of naturally occurring affordable units are especially tight, federal programs on average contribute an average of 24 units per 100 extremely low-income renters. In smaller and nommetropoli- tan counties, federal programs account for an average of 27 units per 100 extremely low-income renters. THE ADDED BURDEN OF UTILITY AND TRANSPORTATION COSTS For renters that pay for their own use, utilities can be a sizable compo- nent of total housing outlays. The 2016 American Community Survey reports that the median renter spent $140 per month on electricity, gas, heating fuel, and water bills beyond any utility costs included in the rent. Utility spending varies across income groups and geographies. Lowest - income renters (making less than $15,000) spend the least on utilities, or $120 per month at the median. Renters in this income group living