FHCE 3300 Lecture Notes - Lecture 10: Mortgage Underwriting, Exclusionary Zoning

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 3300
• Professor: Kim Skobba

Document Summary

Understand the concept of housing affordability and how it applies to households and communities. Understand how housing affordability is related to the housing continuum. Challenge that households face in balancing the cost of current or potential housing with cost of non-housing expenditures (stone, 2006) A household should spend no more than 30% of its total income on housing costs, including mortgage or rent payments & utilities. Evolved from the u. s. national housing act of 1937 started as public housing income guidelines, income could not exceed 5-6 times the rent. 1940 maximum rent standard 20% of income. 1969 public housing rents increase in response to rising maintenance and operation costs. Housing affordability guidelines are used in the following ways: Help consumers choose housing that is within their means. Serve as guideline for government and non-profit housing programs. Provide analytical tool to look at the match between demographics and housing in community, understand community housing needs.