LANSING, Mich. – A new report finds minimum wage earners in Michigan need to work the equivalent of nearly two full-time jobs to have enough money to pay for a two-bedroom apartment.

The annual "Out of Reach" report shows the wage needed to afford a modest and safe rental home without spending more than 30 percent of income on housing costs in Michigan is $16.85 per hour.

But the average renter earns just $14.27 per hour.

Jessica AcMoody, senior policy specialist with the Community Economic Development Association of Michigan, contends the gap is due to low wages and inadequate investment into affordable housing.

"We're really hoping that the Legislature takes a look at what's going on in Michigan and the problem of affordable housing,” she states. “You're seeing this across both rural and urban areas, so it's affecting everyone across the board."

According to the findings from the National Low Income Housing Coalition, Michigan households must have monthly earnings of about $2,800 in order to afford Fair Market Rent, which is $844 for a two-bedroom apartment and $661 dollars for a one-bedroom apartment.

AcMoody notes there are federal programs to help struggling Americans afford housing, including the National Housing Trust Fund, which provides block grants for the creation or rehabilitation of homes, and the Housing Choice Voucher Program for very low-income families.

"The problem is these programs have been underfunded for years, and so we're not seeing the resources go to them that need to be,” AcMoody states. “And actually, only one of four households in need of rental assistance receives any due to chronic underfunding."

Michigan's Housing and Community Development Fund was developed as a general appropriation in 2008 to help low-income people and families afford housing.

But AcMoody says it was cut after one year.

"We were able to secure $3.7 million from the Homeowner Protection Fund in 2012,” she adds. “Unfortunately only nine projects out of the 65 submitted received funding due to the limited resources."

AcMoody contends Michigan needs a larger, more secure funding source for affordable housing, such as a housing trust fund.

There are 58 housing trusts funds in place in 47 states and Washington, D.C., which are typically funded by a real estate transfer tax.

Michigan is ranked 28th in the U.S. for the highest housing wage.


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Rent for New Mexicans has increased 70% since 2017, while wages have only grown by 15%, which is one factor pushing more people into homelessness.

The state's Legislative Finance Committee reviewed a report this week, which showed nearly half of renters are cost-burdened and pay more than a third of their income on housing.

Kathleen Gygi, program evaluator for the Legislative Finance Committee, said new data showed the state's emergency shelter capacity has more than doubled in the past seven years, while the supply of affordable rental units has declined by 50% since 2020.

"Homelessness increased by about 48% last year over the year before," Gygi reported. "In addition, rising housing prices and lack of supply of housing units has increased the number of low-income New Mexicans who cannot afford their rent."

There are almost 4,000 homeless people in New Mexico after nearly a decade of declines. Gygi acknowledged while emergency shelter capacity has increased, especially in Albuquerque -- the state's largest city -- moving people into permanent housing has proved to be more difficult. She noted cost-burdened low-income residents face a high risk of losing shelter.

According to the report, January's "Point-in-Time" count of sheltered and unsheltered people experiencing homelessness showed there were plenty of beds available at many shelters across the state, but only about 50% were utilized.

Amy Whitfield, housing and homelessness adviser to the governor's office, said more work needs to be done to find solutions.

"We don't know the numbers that tell us exactly what to build, where to build it and how to build it," Whitfield pointed out. "We've got a lot of different ideas that say we need more permanent supportive housing, we need more multifamily housing. We don't really know for sure how much of that we need and which communities we need it in."

Last year the New Mexico Coalition To End Homelessness estimated about a quarter of those experiencing homelessness were coming from outside of state.

AARP Iowa is working to raise awareness of loans and grants the U.S. Department of Agriculture is making available to very low-income seniors for home repairs and improvements, known as the 504 Home Repair Program.

Theresa Greenfield, Iowa rural development director for the U.S. Department of Agriculture, said the program is available to people in communities of 20,000 or fewer to help them stay in their homes. She pointed out the money can be used for a wide variety of improvements.

"Roofs. Windows. Electrical issues. Plumbing," Greenfield outlined. "Seniors who -- maybe their life has changed -- they need a hip replacement. They're going to be using a walker more often, and they want to make upgrades to their bathroom for example to become more handicapped accessible."

Since people have to meet certain criteria to qualify, Greenfield recommended working directly with the USDA to determine eligibility, and also to attend a webinar on May 24.

The program operates on making very low-interest loans or grants available to Iowans who qualify.

Greenfield noted since many people do not know about the program, a lot of money stands to go unused.

"We do about $47 million worth of grants and about $28 million worth of loans, and we have plenty of resources here in Iowa to help folks," Greenfield explained. "Again, it's the goal to keep folks in their homes."

While the grants are available for Iowans 62 and older, there is no age restriction on the loans.

An eviction prevention program is working to ensure evictions do not happen in the first place.

The United Way of King County has provided $500,000 of flexible funding as aid for more than 1,000 affordable housing units across the county. It is a partnership with the affordable housing developer HNN Communities.

Marlo Klein, senior community impact manager for homelessness prevention for United Way of King County, said the goal of the pilot program is to ensure someone already in affordable housing does not lose it.

"We already have a homeless crisis going on and it's so important to keep people in their housing whenever possible; prevent the trauma of homelessness," Klein explained. "There's not enough space or resources for housing for folks to find that they can afford."

Klein pointed out the program provides funding for anything putting someone at risk of eviction, comparing it to a savings account.

For instance, she recalled a woman in one of the HNN units was having car trouble, preventing her from getting to work and child care. Funds from the eviction prevention program were able to help.

"Our money's being put to use in a lot of creative ways for household's unexpected needs that jeopardizes their ability to pay their rent on time, and we can fill that gap," Klein emphasized.

Klein noted the inspiration for the program came while she was managing a different eviction prevention program at the King County courthouse before the pandemic. She noticed a lot of people being evicted were coming from affordable housing programs and wondered what could be done to help.

"As a result of what we learned before the pandemic started at the courthouse, we decided to kind of move our work a little bit more upstream to help people avoid even getting an eviction in the first place," Klein concluded.