Housing Introduction

Adequate, safe, and decent housing is the most basic need of a community. The location of housing units and proximity to schools, stores and jobs contributes to the physical health of the residents. Diverse types of housing helps to give our communities a strong sense of place and contributes to our economic and social diversity.

Housing Types and New Housing Construction Trends

The vast majority of housing, both owner-occupied and rental, is constructed by the private sector. In 2000 there were 131,069 total housing units in Washtenaw County which can be classified into three categories: single-family detached, multi-family attached, and manufactured.

• Single-family detached housing accounts for the majority, representing 54 percent of all housing units, an increase from 51 percent in 1990.
• Multi-family housing accounts for 41 percent of all housing units as of 2000, down from 44
  percent in 1990.
• Manufactured housing accounts for four percent of all housing units, up from three percent as of1990.

Looking forward to 2020, if housing continues to be constructed at the current rate:

• Single-family detached housing will increase to 59 percent of all housing units;
• Multi-family attached will decrease to 36 percent of all housing units; and
• Manufactured housing will increase to five percent of all housing units.

Housing Prices

Owner-occupied housing sale prices have been increasing at approximately six percent annually. Between January of 1999 and January of 2004, the average residential sales price increased from $181,464 to $237,164 (Ann Arbor Board of Realtors). Rental costs have been increasing at an average rate of three percent annually. Between 1990 and 2000, the average contract rent increased from $490 a month to $633 a month (2000 US Census).

Age of Housing

Maintaining the existing affordable housing stock is one important method of providing housing for low-income families. Of the 131,069 total housing units, 41,137 (31%) were built before 1960. Muchof this housing stock remains affordable by current standards set by the U.S. Department of Housing and Urban Development (HUD).

Household Income Categories

Housing needs in the County are best demonstrated by connecting household income with housing expenses and the availability of housing units for each income level. Households, as defined by HUD are “all of the people who occupy a housing unit as their usual place of residence.” “Family households,” where occupants are related by marriage, birth or adoption, are a subset of all households. For purposes of clarity and consistency, this plan refers to all households. Household income levels are categorized by HUD annually, based on the median income for a family household of four persons within a defined geographic area. Washtenaw County’s defined geographic area includes Lenawee and Livingston Counties for the purposes of calculating the median family income (MFI). The following are the standards used by HUD with FY2004 income levels:

• Extremely Low Income (ELI) households earn less than 30 percent MFI
• Very Low Income (VLI) households earn between 31 percent and 50 percent MFI
• Low Income (LI) households earn between 51 percent and 80 percent MFI
• Moderate Income (MI) households earn between 81 percent and 95 percentMFI.

Many households fall within a category commonly called “workforce housing” and have incomes that place them in either the LI or MI category. These households usually cannot qualify for existing housing programs, such as the Home Investment Partnership (HOME) and Community Development Block Grant (CDBG) programs, because their incomes are not low enough.

Housing Availability and Cost Burden

Affordable housing is defined as a household not needing to spend more than 30 percent of its income on housing expenses. A household has a moderate housing cost burden if it spends between 31 percent and 50 percent of its income on housing. The housing cost burden is considered severe if it is over 50 percent of the household income. Table 7-3 is a summary of housing availability by cost burden based on the 2000 Census, showing various income groups and the type of housing that is available and affordable to them.

Not for Profit Housing and Public Housing

While for-profit private developers construct the majority of new housing in Washtenaw County, there are non-profit private developers along with public entities that assist with the delivery of housing to Washtenaw County residents. Currently, almost $10 million is received annually through Federal funds, State grants, private foundations and corporations. There are over 20 entities providing services with these funds and programs. Federal programs include Public Housing Commissions, Section 8 vouchers, Shelter Plus Care, the CDBG Program and the HOME Program. Local programs include general fund allocations from both the Washtenaw County Board of Commissioners and the City of Ann Arbor’s Council. Other public sector programs include Low Income Housing Tax Credits program, administered by the Michigan State Housing Development Authority (MSHDA).

Special Populations

Special populations include older adults (over the age of 65) and the disabled. Special populations often have additional housing-related needs that must be met in order for such individuals to successfully maintain their independence. Additional needs may include a service provider coming to visit to ensure the dwelling remains a safe and healthy environment, and to verify that the special needs person is taking medication as prescribed and eating properly. According to the 2000 U.S. Census, approximately 70 percent of older adult households in Washtenaw County have incomes less than 80 percent of area median income. There are 1,423 persons over the age of 65 living below the poverty level, which represents six percent of the total population over age 65.