What Are The Future Prospects For Housing Policy For People On Low Incomes - Essay Example

Due: What Are The Future Prospects For Housing Policy For People On Low Incomes? (A look at the policies that will address housing needs for the low-income population) Table of Contents Introduction 4 Background 5 Contemporary Context 8 Short Term Policies 10 Medium Term Policies 10 Long Term Policies 11 Recommendations 11 References 11 What Are The Future Prospects For Housing Policy For People On Low Incomes? Introduction In many countries all over the world, proper and decent housing for citizens has been an issue and still is an issue. Although housing is one of the basic needs an individual needs not lack, majority of people still lack a house. Housing demands have gone higher and higher as well as cost of that housing itself. Developers focus on large amounts of returns with their eyes steadily fixed on how much they will gain from any unit they sell or rent out. This focus on high return housing investments by developers has technically locked out low income people out of proper ownership of a house. This has thrown majority of such people to slums where housing is relatively affordable. Even though such housing in slums seems affordable to many of these low income earners, the conditions of such houses are pathetic. There is a lot of congestion in slums, the available water resource is dirty and not suitable for human consumption and there is a lot of risks involved in living in such places. Governments, well wishers as well as NGOs need to come up with structures that will ensure that low income earners are given an opportunity to own or rent a house they can afford. Plans need to be put in place to ensure that even people with low incomes get proper housing for their children and families as a whole. The question therefore begs; how can such people be housed? How can they afford houses with their little incomes? Do the governments of the affected people take it up upon themselves to address the challenges of housing facing their citizens? There must be a solution to this problem. Strategies must be laid and put in place to ensure that this problem is solved in a short while before it is declared a disaster. Moreover, the disparity between the rich and the poor needs to be put in a close check as well. Developers need to have a cheaper option for people that find themselves in these categories. If this case is not swiftly addressed, our slums will continue to grow and grow and the problem will continue to bite us. The governments of such countries need not only to address the issue of housing for low income earners but also to address the issues that lead to this. Some of the issues are poverty, poor economies, increased gaps between the rich and the poor, and unemployment that has led to increased rural-urban migration to major towns. The issues enlisted above must fully be addressed for any progress to be made in the process of finding a decent and affordable shelter for people who have low incomes. This will not only provide shelters but keep our cities and towns clear of congestion and crime. Background Lack of adequate proper housing for the low income groups of people, the elderly and disabled members of our communities is not an event that came to be just the other day. It is not new that people are sheltered in very poor conditions but it has been an issue under discussion and consideration by so many nations and governments. “The housing problems facing low-income families have several dimensions—cost, availability, quality, location, and stability. Problems of cost and availability contribute to this nation’s widely acknowledged lack of affordable housing. Low-income households’ demand for affordable housing far exceeds the supply. Moreover, even if working families can find housing, it frequently consumes too much of their income. Substandard quality of housing often contributes to unhealthy or dangerous living conditions for some individuals and families. There is frequently a spatial mismatch between affordable housing location and job opportunities. An emerging body of research on housing and welfare reform also points to the pivotal role that housing plays in the stability of working families, especially those leaving the welfare rolls.” (Williamson, E. H., 2004) Different leaders all over the world have tried to deal with these issues with little or no success at all. This is because the pertinent issues that have led to the rise of poor housing that have been continually experienced. Nevertheless, these leaders have not given up and new avenues are sought to find out what can be done and to finally find a solution that will last for the many affected individuals and communities. These avenues have borne some fruit and the many strategies that are being laid are hoped to sort out these groups of people. In the Commonwealth of Massachusetts for instance, decent, proper and affordable housing for people with low incomes, the disabled members of the society as well as the elderly is a matter that they have been taking into account. It has been a challenge managing the large populations of people putting up in dirty slums with poor hygiene, insecurity and other challenges. To address this issue, the government came up with a program aimed at reducing the number of people seriously affected by this problem. A number of proposals have been made but the one remarkable one is the family housing program (Chapter 200 and Chapter 705). This is a state-funded program that aims to provide housing for low-income families in neighborhoods throughout the state. In this program, local housing authorities commonly abbreviated as LHAs, create housing developments for low-income families by constructing new units and/or acquiring existing homes or condominium units. This is how this program works; the households seeking public housing have to apply for housing in the communities in which they are interested in living or owning a house. Each individual local housing authority (LHA) issues its own application for the housing it is mandated to manage. These applications are available by either calling or visiting a local housing authority or by using the forms available on the DHCD website. It is quite important to note here that there is no limit to the number of LHAs to which a household can apply. Those tenants that do live in state-aided family housing are expected to pay 30% of their total income for rent if utilities are also included in the rent. But if the tenant pays for his/her own utilities separately they will be expected to pay 25% of their income for the rent. The Department of Housing and Community Development (DHCD) provides subsidy funds to local housing authorities to cover the costs of operating state-aided housing not provided for by these reduced tenant rents. Perhaps the question at this point is how does a family or a person qualify for this? The case here is that f for a family to qualify and be eligible for this; they should have incomes within the established income limits. The income limits are set at 80% of the median income for the area in which the community is located, varying by the size of the household and its location. These limits are set every two years, in which case the most recent income limits were set in August of 2012. An applicant's net income is calculated by totaling each household member's (above 18 years old) total income before any deductions and subtracting any applicable deductions. Once the household has been determined eligible financially it is then to be determined qualified for this state-aided public housing by the LHA. Using the qualification standards contained in DHCD's eligibility and selection formula, each LHA screens each applicant household to ensure that each applicant and his or her household members are qualified for state-aided public housing. If an applicant is found either ineligible or unqualified he/she has the right to appeal such a decision locally at the housing authority and if necessary, at DHCD. Another case that can be looked at is that of San Francisco Gate. There are many plans that were put in place to assist in addressing the issue of poor housing for low income people. Many projects and programs were put in place to ensure that home ownership reached everyone including the low income and disadvantaged populations, to help decongest towns, and to generally give a decent housing to the people of San Francisco Gate. According to San Francisco Chronicles, below are some of the strategies that were put in place: a) Salvation Army Assistance In depending on the United Way funding, the Salvation Army provides rental and mortgage assistance to people who have an interest. Those applying for this assistance must present an eviction notice, , photo ID, Social Security card for each member of the family, proof of income and, if necessarily required, a proof that only $200 or less remains to be paid for the current month’s rent or mortgage funds. Although the stated maximum assistance is generally $200, to those displaced from FEMA declared natural disaster areas, additional funding may be provided. Moreover, in late June 2010 the Salvation Army announced that it would provide long-term managed assistance for qualified individuals who were displaced from their homes as a result of flooding in certain geographic areas. b) Rural Housing Grants HUD provides funding to states for rural housing grants. Very-low, low and moderate income level families may apply for these grants. The income limitations are entirely based on a percentage of the median income for the area. Moreover, house ownership, rental and repair grants may be available in areas that are found to be meeting the rural criteria. In general terms, rural areas include cities with under 10,000 residents, open country and certain cities with a maximum population of 20,000 residents. The amount of grant amount that one will need varies depending on the area in question and the specific needs of the people and groups involved. c) Homeownership Vouchers Programs HUD offers housing grants to qualified low-income families in the form of vouchers for homeownership or renting assistance. In previous times, the Housing Choice Voucher Program termed as Section 8 Housing, allows eligible and qualified low-income families opportunities to make a choice as to where they would want to live. It is not with any doubt important to note and make it clear that HUD's Homeownership Vouchers Program provides grants also to eligible first-time home buyers. This is meant to enable these first-time home buyers to get easy access to these houses thereby cutting on the spread of the effect of poor and lack of housing among people that have never owned homes before. Such grants may provide mortgage payment assistance down payments on home loans and help paying for living expenses. The target grant receivers are people that may not have owned property for the previous three years and must live in the home as their primary residence. d) State Homeless Grants States typically distribute federal funding for homeless programs to municipal departments, counties or approved businesses as well as non-profit organizations. The funding provides grants to qualified area families to tackle the evidently homeless and/or potentially homeless situations. In this case, homeless families receive assistance for housing needs, food and medical expenses due to emergency needs of the individuals and the groups involved. Nevertheless, those people who are in danger of eviction may also receive this kind of assistance. Those that need assistance in this line usually either call or visit a state’s Public Housing Authority for programs available in that state concerning housing grants offered by their states. e) Disabled Vouchers In this program, HUD provides grant assistance to qualified disabled individuals through its well Designated Housing Vouchers program. The non-elderly, low-income families that include a member with disabilities who live in public housing designated for occupancy are also considered eligible for this grant program. Also, qualified disabled individuals living alone may also apply for these vouchers. These families or individuals are enrolled into this voucher program as a special admission. Those who wish to apply to this program are asked apply to the local PHA for this grant program. Contemporary Context Living in slums is not new to this generation. In this modern society, we still have people who own too little incomes to enable them find decent housing for themselves and their families. Many young people still go to cities and towns to find a living but end up in slums because of the low amounts of incomes they earn. They can’t have access to proper housing and thus settle for the slums where they can at least manage to raise some little rent to cater for their rent needs. Therefore, putting together all these, it is still vastly incumbent upon governments and states to provide a solution to the housing problem. The slums are already congested and therefore an alternative has to be identified. Many governments have major plans to upgrade their slums and build better but relatively affordable houses. For instance, in Kenya, the government through its ministry of housing came up with a plan to upgrade major slums in the country. The targeted slums included Kibera and Mathare all found in Nairobi City. Some of the slum house owners and politicians with interest in the said areas never made it easy but plans are still underway to address the issue. Unfortunately, it is known that businessmen have a lot of interest in slum dwellers. Instead of providing solutions, they make the problem even larger and bigger. In this case, they fight against the authorities that wish to upgrade slums simply because they fear that they will lose their source of income. Many of these businessmen have great interests in these areas knowing that they are a sure source of income, and they are easy to manage. Nonetheless, other sectors especially the private sector have come up with ideas which are intended to allow people of low incomes own houses and other properties as well some of these are highlighted below: a. Newspapers Promotions Many newspaper and magazine editing companies have taken the opportunity to win big by giving their readers an opportunity to own homes. Some of the companies have come up with promotions that enable each buyer or reader an opportunity to enter a draw. At every level of the promotions, participants win different gifts with the ultimate gift being a house. To the point to which these promotions are true, winners have testified to have actually got an opportunity to own homes. b. Bank Deposit Promotions Banks too have not been left behind in creating an opportunity to win big in the housing industry. They have over time sponsored promotions that encourage people to open accounts with them, make deposits and stand a chance to win in the final draw. Again in this case, many have actually testified to have played and won in such promotions. Some individuals indeed have gotten to own houses though few through these promotions. c. Retail commodities promotions Retail commodities that people use daily have also been used by manufacturers to give people a chance to win homes. Promotion cards have been majorly employed in retail chains or manufacturing companies through their marketing departments. Again in this case, many participants attest to truth in these promotions. d. Communication And Internet Service Provider Promotions Communications and internet service providers the world over have been involved in this trade of promotions that involve participants or customers winning homes. This has been majorly based on ‘scratching and winning’ in which case a customer scratches a top-up card and stands a chance to win a house. Policies towards Addressing the Housing Problems for Low-Income People Short Term Policies The following short term policies can be put in place to try to sort out the issue of poor and indecent housing for the low income population: a. Rent Control Rent control is a government intervention measure that ensures that the maximum amount of house rent that people can pay is within their abilities. The government ensures that this limit is not exceeded by any house owner. b. Government Construction Of Houses The government can construct houses on social basis. In this case, the government through its agencies comes up with houses that are easily affordable and accessible to this target group. This can go a long way into housing these people temporarily as a more permanent solution is sought for. Medium Term Policies a. Tax breaks Under this policy, the governments and states may choose to lift up some taxes on house developers to encourage them to build affordable units that will be easily afforded by low-income families. This can be done as the government puts in place better housing facilities for its citizens. Taxes can be waived on building materials import among other areas that affect the cost of putting up a housing unit. b. Subsidies To Private Entrepreneurs The government can also provide subsidies to private entrepreneurs who are engaged in the housing industry. These subsidies will encourage these investors to come up with housing units that will be largely affordable to the target group. These subsidies will also encourage new investors with interest in this sector. Long Term Policies a. Government Housing One major policy that the government can employ to approach this issue of housing challenges for the low-income population is building government housing units. The government through its department or ministry of housing can build affordable housing units that will help house the unfortunate members of the society. b. Upgrading Of Slums The ever growing slums in the affected economies can be the starting point for the government of those affected. Even if it is done in phases, the government can plan itself and target to house a given number of its un-housed or poorly housed population within a given duration of time. In this case, targeting the slums to upgrade them is the best way to go. Recommendations Housing challenges are a reality and so many people are affected across the globe. Many people in the 21st century still have no houses or dwell in very poor environmental conditions. This is a problem that needs to be completely solved. The governments of such people should look so carefully into finding a lasting solution to the challenges that poor and indecent housing continues to pose on people the world over. The current slums should be upgraded to better units which are affordable to many, the government can also utilize it bare unused land to settle its population. References 1. Kasting, C., (2007). Closing the Gap: Housing Needs and Priorities of BC’s Urban Aboriginal People. Volume II Victoria region information pg 62-72 2. www.ahmabc.org/pdf/Volume%20II%20Final%2022%2002%2007%20 (2).pdf 3. Kasting, C., S. Artz, (2005). Homeless Outreach Project for Families What Happens to the Children? Irish Journal of Applied Social Studies. Vol 6. No. 1.Autumn 2005. 4. Kemp, A., (April 2006). Why isn’t Rental Housing Being Built? What needs to change? 5. www.housingaffordability.ca/documents/canadian/RECO%20Rental%20Report.pdf Read More