Agenda - 10-14-1993 - C 1 - Laserfiche WebLink

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018 - - Residential Services, Inc. , the major provider of assisted housing for developmentally disabled, handicapped, and mentally ill residents also maintains a waiting list of persons with special housing needs. Another serious need in Orange County is that of affordable homeownership opportunities, previously described in the Market and Inventory Conditions section. While some families are experiencing the cost burden associated with homeownership, most very low- and low-income families have not been able to become homeowners in Orange County. A family of four with income of 60% of the area median, or approximately $24, 000, can afford a mortgage payment of approximately $550, which can support .a mortgage of $65, 000 .5 Very few homeownership opportunities exist for such families in Orange County. Five-Year Projections. No formal projections have been made by local governments in Orange County, but over the next five years, rising housing costs will continue to outpace income growth, creating a growing cost burden on low-income families. Nearby rural counties are now absorbing the families that cannot afford to live in Orange County, and as the housing markets in those counties "catches up" with Orange County over the next five years, fewer and fewer opportunities will be available for low-income families. While the Triangle area has experienced very low unemployment and a very stable economy throughout the 1980 ' s, the majority of Orange County employment opportunities are in the service sector, usually lower wage and low skill employment. Recent budget cuts by the state threaten the main employer in the County, the University of North Carolina. At the least, income growth in the service and government sector will not increase and may slow down, as annual cost of living increases are reduced or eliminated. No proportional slowing of real estate appreciation has been experienced in the southern part of Orange County, indicating that the affordability gap will continue to grow, and the number of families paying disproportionate amounts of income for housing will continue to increase. 2. Nature and Extent of Homelessness. i. Needs of the Sheltered and Unsheltered Homeless 5 Mortgage amounts are calculated using the following methodology: Monthly Income X .40 (Total Debt Ratio) = Total Monthly Debt. Total Monthly Debt - Estimated Taxes and Insurance ($125) and Estimated Other Debt ($250 to $350) = Total Available for Mortgage. Assumed Mortgage Term of 30 years and Assumed Interest Rate of 925%. While this methodology is more subject to variation based on Estimated Other Debt, it presents a more realistic view of mortgage qualification, 15