FACT:  Families with children are losing their housing at unprecedented rates.

FACT: A drop in affordable housing and the limited scale of housing assistance programs are the primary causes of homelessness.

Please Note: Facts and statistics are based on national and Michigan data..

The gap between the number of affordable housing 1 units and the number of people needing them is growing and has created a housing crisis for poor people.

What happened to cause the crisis?

1. Low-rent units disappeared from the market in the millions. These units were either abandoned, demolished, converted into condominiums or expensive apartments, or became unaffordable because of cost increases (Daskal, 1998).
2. At the same time, the number of low-income renters increased, due to factors such as eroding employment opportunities and the declining value and availability of public assistance.
3. Between 1993 and 2003 the shortfall in affordable and available stock remained at 5.2 million units and 37 million will face affordability, crowding and uninhabitable conditions. (2005 American Housing Survey).
4. By 2001 the number of people (4.9 million) spending over 50% of their income on housing jumped by 67% over a 3 year period.
5. It would take annual production of more than 250,000 units for more than 20 years to close the housing affordability gap (Millennial Housing Commission 2002).

FACT:  Families with children are among the fastest growing segments of the homeless population.

• In 2004, the increase in shelter for families occurred in 79% of the 27 cities surveyed.  The increase in numbers of families seeking shelter rose over 7% in one year. (U.S. Conference of Mayors, 2004). 
• In rural areas, research indicates that families, single mothers, and children make up the largest group of people who are homeless (Vissing, 1996).
• Nationally, children make up approximately 40% of the homeless population (US Conference of Mayors 2004).  A preliminary review of shelter data in Michigan reveal that it may be closer to 50%

• For every $1 spent on low-income housing programs, the federal treasury loses $4 to housing-related tax expenditures, 75% of which benefit households in the top fifth income distribution (Dolbeare, 1996).
• In 2001, 59% of mortgage interest deduction tax savings went to households with incomes of $100,000 a year or more. Overall, 82% of the savings went to households with income of $75,000 or more, while homeowners with incomes of $20,000 to $30,000 received 0.5% of tax savings.

FACT:  Housing cost has risen, putting housing out of reach for the poorest Americans.

• From 2000 to 2002, the national housing wage for a two bedroom home increased by 18%. By comparison, the inflation rate for 2001 was 1.6% (Out of Reach, 2003).
• In Michigan, an extremely low income household (earning $18,785, or less than 30% of the Area Median Income -AMI- of $62,618) can afford monthly rent of no more than $470, while the Fair Market Rent for a two bedroom unit is $706 (Out of Reach 2004).
• A disabled person on SSI ($564) can only afford $168 a month rent.  A FMV one bedroom is $587!
• Affordable housing wage in Michigan in 2005 $13.85 to keep a two bedroom unit at 30% or less of income.  Minimum wage is $5.15 in Michigan and comprises the bulk of new jobs in this state. 
• It takes 105 hours of work a WEEK and minimum wage to afford a two bedroom at Fair Market Rent.
• In 2004 nearly 300,000 Michiganians earn below 50% of AMI.

FACT:  Housing subsidy can make the difference between stable housing, precarious housing, or no housing at all -- poor families and individuals seeking housing help are placed on long waiting lists at best, but most communities do not even keep lists an longer as the amount of help is dwindling.

• The demand for assisted housing clearly exceeds the supply: less than one-third of eligible poor renter households receive a housing subsidy (Daskal, 1998).
• The Ford Administration requested over 400,000 Section 8 vouchers in 1976.  The 2006 Federal budget request is for a mere 19,000 vouchers in Michigan.