industry and caused six million potential homeowners to leave the housing market or become renters. The resulting impact on housing affordability and the overall housing market has been significant.

• Increased poverty: Nationwide, more than 19 million families are either homeless or paying more than half their income on housing, according to Enterprise Community Partners.

• Skyrocketing rents: In California, rent on a two-bedroom apartment rose 17 percent between 2005 and 2013, while renter incomes increased by only 5 percent.

• Affordability nears record lows: After falling to a low of 29 percent in mid- 2008 then rising to 56 percent in 2012 as home prices plunged, C. A. R.’ s Housing Affordability Index has hovered below 40 percent for 12 consecutive quarters. In the second quarter of 2016, 31 percent of California households had the income needed to purchase the median-priced existing, single-family detached home, which sold for $ 516,220. Assuming a 20 percent down payment, a household needed an annual income of $ 101,217 to qualify.

• Loss of affordable rentals. The supply of affordable rental homes for seniors, disabled persons and others on fixed incomes is dwindling. In California, as many as 131,000 federally subsidized rental apartments are scheduled to be returned to market rates over the next two decades.

Moving Toward Solutions

For decades, REALTOR ® associations have joined other organizations in supporting affordable housing programs at the national, state and local level and acted to protect against laws or regulations that would make housing less affordable. In late April, the C. A. R. Board of Directors voted to back a state Assembly proposal that would redirect $ 1.3 billion in surplus funds to a variety of affordable housing programs. Among the highlights of the proposal are a new workforce housing grant program that will provide down payment assistance, personal income tax credits to help cover a portion of mandatory seismic retrofit costs, funds to finance the construction and rehabilitation of farmworker housing and emergency housing, and tax credits that will enable developers to build, renovate

and acquire some 8,700 affordable homes serving an estimated 62,500 families.“ Our teachers, nurses, firefighters, police officers and other middle class workers should be able to afford to live in the communities they serve,” said C. A. R. President Pat Zicarelli.“ C. A. R. recognizes the urgency of California’ s housing crisis and is fully supporting the proposal to invest a portion of our state’ s budget surplus to address this housing crisis.” Analysts and housing leaders agree that meeting California’ s workforce housing needs likely will take decades and require an army of advocates and a willingness to consider new and unique solutions at every level of the public, private and nonprofit communities. However, they wonder whether the“ political will” exists to make these necessary changes.“ We knew that housing wasn’ t getting enough respect before the crash, but after the housing markets took down the world economy, you would think that people would think that housing was pretty important, and we should pay attention to it,” said Myers.“ But no, it doesn’ t seem to be working that way. It’ s baffling. I can’ t explain it.”

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* APR = Annual Percentage Rate. APR can vary and is based on Prime Rate plus a margin of 0.00 % to + 5.00 % based on credit rating. The APR is subject to change on the 10th of each month, based on changes to Prime Rate, the highest Prime Rate published in the Wall Street Journal“ Money Rates” table on the 20th of the prior month. Minimum APR 4 %, maximum APR 18 %. Up to 80 % CLTV with loan amounts of $ 10,000 to $ 500,000. 10-year draw period, 20-year repayment period. During the draw period, you may withdraw( advance) funds up to your credit line limit and pay interest accrued on that balance monthly. After the draw period, you may not withdraw any more funds from the line. Your loan is then amortized and you begin to pay the principal and interest monthly. There are no loan processing or early closure fees and no prepayment penalty. You may need to pay certain fees to third parties to open the loan. These fees generally total between $ 450 and $ 1,500. If you ask we will provide you with an itemization of the fees you will have to pay to third parties. Rates, terms and conditions are effective as of publication date and are subject to change without notice. Loans are available for owner-occupied properties in the state of California only. On approved credit. CommonWealth Central Credit Union membership is required prior to loan funding, and is available to almost anyone. NMLS ID # 458544. FEDERALLY INSURED BY NCUA

GILROY • MORGAN HILL • SAN MARTIN NOVEMBER / DECEMBER 2016 gmhtoday. com

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