The Women's Electronic
Communications and Action Network
Legislative Priorities
Colorado Women's Legislative Scorecard
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 Colorado Overview
In
every major area in Colorado, the real estate market is booming. Fields that as recently
as five years ago served as grazing land for cattle or homes for prairie dogs now sport
dense subdivisions filled with half-million dollar homes. Colorado communities are often
ranked near the top in the nation for growth in prices and in real estate activity.
- The US Department of Housing and Urban Development reports that In the last ten years,
average rents increased 75% in the Denver metro area. During the same period, average
wages in the area increased only 47%. ("Housing Trends and Indicators: Denver Metro
Area," 1999)
Even as luxury housing developments spring up in nearly every county,
the availability of affordable housing for low-income homeowners
and renters has been decreasing. Although Colorado's economy has demonstrated strong
growth, housing market appreciation exceeds wage increases, especially for low-paid
service and retail occupations generally held by women. U.S. Housing Markets ranks
Colorado as the third least affordable out of the fifty states. Statewide apartment
vacancies remain at dangerously low levels that may soon force major employers to find
their workers housing.
- According to a 1999 report from the Colorado Division of Housing, there is a need for
22,896 new affordable rental units for households earning below 60% of renter median
income, or $16,774.
Housing that is safe, decent, and affordable forms a foundation for a
higher quality of life for Colorado families. Around the state, thousands of men, women,
and children are homeless or live in substandard and
overpriced accommodations. Homeownership, which saves money in the long run and provides
some retirement security, remains out of reach for most renters: Families that qualify
frequently pay too much for monthly rent to make a down payment on a house.
Women, because of their disproportionately low income levels and their
need to care for dependent children, are particularly vulnerable to the rising costs and
the decreasing availability of decent, low-income housing. Nationally, female-headed,
one-adult households make up 33% of the households eligible for HUD assistance. The
Division of Housing and Urban Development reports that women living alone currently
comprise 25% of the population eligible for assistance, and elderly women living alone
comprise 15%. Of households with worst case housing needs, 2.9 million (59%) are women
living alone or with children.
Reforms to increase access to and aid for low-rent and low-cost housing are desperately
needed to help Colorado’s women and families.
Affordable Housing
Federal housing subsidy standards define "affordable housing" as not more
than 30% of a resident’s monthly income. That amount must include a monthly payment
of rent and utilities or (for homeowners) mortgage plus taxes. "Fair Market
Rent," which acts as a standard by which to judge housing costs for an area, is
defined as the dollar amount below which 40 percent of standard quality housing units
rent.
The National Low-Income Housing Coalition’s 1999 report on low-income housing,
"Out of Reach," provides extensive information on Colorado’s affordable
housing crisis:
| Income
Type |
Monthly Income |
Monthly Affordable Housing must cost NO MORE THAN: |
| 30% of CO median
income |
$1332.17 |
$399.65 |
| Minimum Wage |
$892.66 |
$267.80 |
| Supplemental
Security Income |
$512 |
$164 |
| Maximum TANF grant |
$356 (for a family
of three) |
$107 |
| Aid to Needy
Disabled |
$249 |
$74.70 |
In Colorado, fair market rent is $644 for a
two-bedroom unit and $492 for a one-bedroom unit.
- 45% of renters in Colorado are unable to afford fair market rent for a two-bedroom unit.
- A worker in Colorado would have to earn an hourly wage of $12.38, or 240% of the minimum
wage, to afford a two-bedroom apartment at fair market rent without foregoing other basic
necessities such as food, clothing, and health care. A worker earning the federal minimum
wage ($5.15 per hour) would have to work 96 hours per week in order to afford the same
unit.
Homelessness in Colorado
The Colorado Department of Human Services estimates the number of men,
women, and children who are homeless for any length of time in a given year in the metro
Denver area at approximately 16,800. Because many homeless families and individuals are
primarily in need of temporary and emergency assistance, the number of homeless people on
any given day is substantially lower: A point-in-time survey conducted by the Metropolitan
Denver Homelessness Initiative one day in June 1998 found nearly 6,000 men, women, and
children on the streets. Half of these people were part of homeless families. 73% were
single-parent families, and 98% of these were headed by women. Overall, 44% of the
homeless adults in metro Denver are women. ("Homelessness in the Denver Metro
Area," 1998)
Policy
Recommendations
- Increase acquisition and maintenance of "Section 8" housing, which rents for
30% of the renter’s income, and increase funding for section 8 vouchers. Provide
incentives to landlords who accept Section 8 vouchers. Oppose efforts to eliminate
affordable housing as HUD contracts expire.
- Require all rental applications funded by the Division of Housing to meet minimum unit
requirements for availability to very low income renters (households earning less than 30%
of the state’s median income).
- Encourage the acquisition of existing rental housing developments for use as low-rent
housing for households transitioning from welfare to work and for households transitioning
from homelessness into a permanently affordable unit.
- Provide assistance to low-income Coloradans attempting to buy their first home, and
provide financing for the construction of new, modest homes intended for occupancy by
families earning 60-80% of the state’s median income. Homeownership not only
stabilizes the housing needs of new purchasers, it is a valuable tool in reducing the
rental housing problem as well: Each renting household that purchases a home frees up one
rental dwelling.
- Enforce high quality standards for low-income housing units.
- Support private and nonprofit efforts to provide housing and physican and mental health
services to the homeless.
Resources
For more information, try the following web sites
and organizations:
Colorado State Division of Housing
www.communitychange.org
– Links and resources for HUD, community advocacy groups, and research and policy
articles related to housing programs, initiatives, and reforms.
National
Housing Institute - offers archive of newsletters, reports and research.
HUD report on
affordable rental housing crisis
Colorado Coalition
for the Homeless - provides services, education, advocacy, networking, and extensive
information on homelessness, poverty, and the housing crisis in Colorado. Find their
publications and fact sheets on the web, or contact their offices at (303)293-2217
National Low-Income Housing
Coalition - offers weekly updates and alerts on housing policy issues, state-by-state
or regional information, and extensive statewide and regional research reports. Reach them
on the web, or contact the Denver office at 303-820-5671.
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