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There are many statistics that describe affordable workforce housing in the Twin Cities. . Housing is considered to be affordable if the owner or renter is paying no more than 30% of his/her income toward the mortgage or rent. . Workforce housing means that employees can afford to live in the communities in which they work. As noted in the above definition it is usually a working resident making 80 - 120% of median income. . Affordable workforce housing is good for business: Each dollar of subsidy investment would stimulate a net gain of $8.13 in economic benefit to the entire Twin Cities region over the next 15 years. -- Maxfield Research Inc./GVA Marquette Advisors "Workforce Housing: the Key to Ongoing Regional Prosperity" 2001. o The housing crisis is an obstacle to business growth. Potential workers can't find housing within the community that they work. o Many jobs do not pay a high enough wage to allow families to find safe, stable housing within the community that they work. . Housing stability benefits families and children, reducing the need for other services. o "Research has shown that the housing crisis affects people who don't fit the stereotypes ofthe poor or homeless--bank tellers, dental hygienists and teachers--and dramatically affects chances for kids to succeed in school." Larry Stranghoener and Bill Rodriguez ofihe United Way, quoted in the Star Tribune - September 27, 2000 . Housing has not kept pace with population growth: Minnesota's population had its biggest gains ever during the 1990s with a population growth of over 500,000 people, while housing production had its smallest percentage increase since 1940 at only 12%, or a net increase of only 217,501 units of housing. -- Star Tribune, "Housing Fails to Keep Pace" May 232001. o Persons making $12.77 per hour can afford to pay $665 per monthfor housing (based on 30% of gross income)BUT...Average rentfor 2-bedroom = $822 AND... $665 would only support a mortgage a/approximately $100,000. o According to the Minnesota Employment Outlook to 2006, published by MN Dept. of Economic Security - September, 2000 -- 35% of existingjobs pay $1/hr - $11/hour, 63% of existing jobs pay less than $16/hour, The wages for 8 of the top 10 job growth industries are less than $15/hour, o Key Growth industries include: Licensed Practical Nurses earn $12. 77/hr, or $26,560 per year (full-time), Beginning school teachers earn $14. 18/hr, or $29,495 per year, Entry-level computer technicians and software programmers earn an average of$15.38/hr, or 31,990 per year. Affordable Workforce Housing Summary Page 3 of 4