From the Office of Senator Kerry

Wednesday, September 20, 2000

Washington, D.C. – U.S. Senator John F. Kerry today joined HUD Secretary Andrew Cuomo, Senator Jim Jeffords (R-VT) and National Low Income Housing Coalition President Sheila Crowley to announce the result of N.L.I.H.C's new study, "Out of Reach," analyzing authoritatively the lack of affordable housing for working families nationwide. Kerry, Cuomo,

Jeffords, and Crowley urged Congress to make critical investments in housing, including passing Sen. Kerry's Affordable Housing Trust Fund in the final budget bill this fall.

Out of Reach reveals that in no single jurisdiction in the United States can a minimum wage worker afford the Fair Market Rent for homes in their communities. In order to afford a two-bedroom rental unit in the U.S., a worker would have to either work 97 hours a week or earn a Housing Wage of $12.47 per hour, 242% of the current federal minimum wage of $5.15 per hour. The Housing Wage necessary to afford a two-bedroom unit in San Francisco, CA is $28.06, and a minimum wage worker must work 195 hours per week to afford the median rent. In Boston, those numbers are $18.83 and 126 hours. Far worse is the gap between income and housing costs for elderly and disabled people who depend on Supplemental Security Income (SSI) as their main source of income. In Colorado, for example, an SSI recipient, receiving $333.22 monthly, can afford monthly rent of no more than $99.97, while the Fair Market Rent for a 1 bedroom home in Colorado is $492.

"I am hopeful that we will bring about the day when we will be able to announce a new report, titled "Within Reach," signifying that working families can afford safe and decent housing," said Senator Kerry. "Despite our booming economy, someone earning the minimum wage in Massachusetts would have to patch together a 110 hour work week to afford a two-bedroom apartment. It is time for the Congress to come together a pass legislation to create a National Housing Trust Fund that would help alleviate this housing crisis."

"In this time of economic prosperity, there is no better time than now to invest in those who have not yet experienced the rewards of our great national wealth. All of our experience shows that safe, decent, and affordable housing is the key to family well-being, educational success, and productive work,"said Andrew Cuomo, Secretary of the U.S. Department of Housing and Urban Development, in Out of Reach's Preface.

"The fact that Congress is considering an increase in the minimum wage is a positive step forward," says NLIHC President Sheila Crowley. "But even with the proposed change, the minimum wage will still be far below the Housing Wage. Congress must also use the opportunity afforded by this era of unprecedented surpluses in the Federal Treasury to provide more housing assistance to the families who need it most."

Senator Kerry has introduced legislation to create a National Housing Trust Fund that would utilize some of the excess income generated by 2 federal housing programs, the Federal Housing Administration (FHA) and the Government National Mortgage Association (GNMA), to help alleviate the current housing crisis. The Trust Fund aims to create long-term affordable, mixed- income developments in areas with the greatest opportunities for low-income families.

The entire report, Out of Reach: The Growing Gap Between Housing Costs and Income of Poor People in the United States, is available from NLIHC at 202-662-1530, and on their website at http://www.nlihc.org/.