“Affordable” housing sounds like such a good idea. Who could be against extending the American Dream to those who cannot afford the average home price of over $450,000 in Howard, right?
The problem is it discriminates against everyone else as it drives prices up on other homes.
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Here?s how. In Howard County, a family of four with a household income of $75,408 qualifies to apply for the moderate-income housing program. Once approved, that family can purchase a condo or town home for a discounted rate in area developments.
At Ryan Homes? Elkridge Crossing, the moderate-income housing condos sell for $178,067 and town homes for $204,044. Regularly, those properties sell for about $260,000 to $330,000. Any way you slice it, that is a huge discount on a luxury home. Condos at Elkridge include a sun room, two full baths, an open kitchen and patio.
This is patently unfair to other county residents. How would you feel If you were a family of four with a household income of $94,260 ? the median household income in the county? Why should the extra $18,852 you make each year force you to sometimes pay more than $100,000 more for the same property?
The program has other repercussions. A number of studies, including one from the California-based Reason Foundation, find that inclusionary housing policies, like rent control policies, reduce the supply of housing ? driving demand up with prices.
The other issue with affordable housing is verifying incomes. Howard County performs credit checks on applicants to verify income at the time of sale. But it?s not as if owners need to vacate their homes once their incomes rise above the threshold for qualifying for the program ? even if that is months after the sale.
What?s clear is that the program only benefits a few people at the expense of those who can ill afford to subsidize anyone in today?s real estate market.
The county should dismantle the program and instead spend its money on something proven to reduce poverty: education. By pouring it into the school system, the county will ensure those living in Howard have the tools necessary to attend post-secondary education and win high-paying jobs after graduation.
