The slowing economy is forcing more people from home ownership to rentals, putting even more stress on the affordable housing market, according to a newly-formed coalition hoping to provide housing for extremely low income residents in Alabama.
Members of the Low Income Housing Coalition of Alabama (LIHCA) conducted a town hall meeting Thursday in Dothan to inform attendees about the affordable housing market in Alabama and gain input on local needs.
“Until you know you have a problem ... it’s very difficult to do anything about it,” said Sally Herring, director of community living for United Cerebral Palsy of Greater Birmingham, which partners with LIHCA.
Citing numbers from the Department of Housing and Urban Development (HUD), Herring said an extremely low income individual is defined as someone who lives at 30 percent or lower than Alabama’s median family income of $49,027, which is $14,762. Also according to HUD, an affordable housing unit is one where a resident spends no more than 30 percent of his/her income on housing and utilities.
Herring said that leaves very little to spend towards rent. While numbers are lower in Dothan, the average fair market rent for a 2-bedroom apartment in Alabama is $595, meaning a person would need to make more than $11 an hour to afford the average 2-bedroom apartment, according to the HUD formula.
Local affordable housing advocates said long waiting lists exist for most subsidized housing units in Dothan. Herring said the same shortage exists around the state and across the country.
About 40 people attended the meeting. Attendees ranged from low income earners seeking affordable housing, to community advocates, developers and city officials.
Ashley Kerr, project manager for LIHCA, said the coalition’s short-term goals are to establish a statewide membership base, earn non-profit status and push for a low-income housing trust fund for Alabama.
Kerr said some other states have already established the funds, providing another stream of money for housing needs. The trust fund could help developers gain matching funds for extremely low-income housing units.
“I truly believe this is going to happen because I believe enough people are going to care to make something like this happen,” Kerr said.
The coalition has been in existence less than a year. It has already held town meetings in Selma, Mobile, Huntsville, Montgomery and Anniston.
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