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Last revised July 24, 2014 <br />income, the region has 460,000 affordable owner -occupied units and 309,000 affordable rental units <br />that are not subsidized.6 However, many of these housing units are occupied by households earning <br />more than 80% of area median income, increasing the gap in the supply of units affordable and <br />available to lower -income households. <br />Looking ahead, the Council forecasts that our region will add 110,000 households with incomes less <br />than 60% of area median income by 2040.7 Even if we are successful at addressing today's housing <br />cost burden, the challenges will continue to grow with the region's ongoing population growth. <br />Construction of New Affordable Housing, 1996-2012 <br />7000 <br />6000 <br />5000 <br />4000 <br />3000 <br />2000 <br />1000 <br />0 <br />0 A RD � b < b 'b O N <br />O0OO000O OOO OOO0OOOO\ <br />(1,(1�(1, (1,(rlf <br />rO (1,O <br />Choice, Place and Opportunity <br />Renter (60% AMI) <br />Renter (50% AMI) <br />■ Owner (80% AMI) <br />■ Owner (60% AMI) <br />By 2040, 40% of the Twin Cities population will be people of color, compared to 24% in 2010. However, <br />significant disparities along racial and ethnic lines —in income, poverty, and homeownership —persist <br />just as our region is becoming more racially and ethnically diverse. Concentrations of poverty magnify <br />these disparities and seriously hinder access to opportunities for people of color who are <br />disproportionately represented in these impoverished areas. If today's disparities by race and ethnicity <br />continue, our region would likely have 186,000 fewer homeowners and 274,000 more people living in <br />poverty in 2040 when compared to the outcomes if residents of color had the same socioeconomic <br />characteristics as today's white residents. Unchallenged, these disparities jeopardize the future <br />6 This estimate of naturally -occurring affordable owner -occupied units was calculated using 2014 parcel data to <br />identify units whose sales prices or assessed value would produce monthly mortgage payments (including <br />principal, interest, property taxes, and insurance) at or below 30% of the monthly household income of a <br />household earning 80% of the area median income. This estimate of naturally -occurring affordable rental units <br />was calculated using the 2007-2011 Comprehensive Housing Affordability Strategy (CHAS) data. <br />This excludes seniors who own their home free and clear and are not cost -burdened. Including those, the <br />number is 143,000. <br />2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL <br />DRAFT RELEASED FOR PUBLIC COMMENT Part I: Introduction I Page 8 <br />