General Plan - Moreno Valley

CHAPTER 8 – HOUSINGMORENO VALLEY GENERAL PLANTABLE 8-10Households Overpaying for Housing – All IncomesMoreno Valley95% TotalMedian Median Median Median MedianRenters 1,342 1,227 1,374 438 423 4,804Owners 557 810 2,081 1,651 6,289 11,389Total Households 1,899 2,037 3,455 2,089 6,712 16,193Source: “Draft Regional Housing Needs Assessment 1999,” Southern California Association of Governments, p.56.The correlation between increases inincome above 80% of median and adecrease in the number of renterhouseholds overpaying for housing is adrop in the number of householdsoverpaying. In Moreno Valley, the rentalmarket is such that most households atabove 80% of median have a variety ofchoices that do not always compel them tooverpay for rental housing. Possibly, atabove 80% of median, most householdschoose to buy rather than to continuerenting. Among owner households, thelargest number overpaying for housing isthat group above 95% of median income.Given their income, the city can onlyassume that these households do not havea “housing problem” per se, but perhaps aburdensome personal choice.A total of 7,391 low-income households areoverpaying for housing or 19% of the39,155 total households in the city. Incomeas a limiting force on choice must be theprimary criteria when establishing numbersthat indicate a form of cost burden onhouseholds. The gap analysis developedin this document is important in tailoringassistance programs to alleviate housingoverpayment among potential lowerincomeowner households, whose choicesare limited by their income status.Overpayment for housing is not merely ahousing problem, but one that hasimplications for the creation of jobs thatallow households to afford a decentlifestyle.8.3.3 OvercrowdingOvercrowding is a measurement of theadequacy of housing units to accommodateresidents. Overcrowding is determined by astandard based on the number of personsper room within a unit. The standard isestablished at 1 person per room or less.Housing units are considered slightlyovercrowded when the occupancy per roomis 1.01 to 1.50 persons per room. Units areconsidered severely overcrowded whenoccupancy per room is 1.51 persons ormore.SCAG estimates that 1,502 renterhouseholds in the city of Moreno Valley livein overcrowded conditions, while 1,737owner households live in overcrowdedconditions.Of the 1,502 renter households, 1,074 or72% are low-income households. Amongowner households, 485 or 28% are lowincome(Table 8-10).Households will rent or purchase inadequatehousing units in an attempt to make theirhousing costs affordable. According toSCAG, a wage earner needs to make $9.40per hour and work forty hours a week, toafford a fair market rent, one bedroomapartment in Riverside County. To afford atwo-bedroom fair market rent apartment awage earner needs to make $11.48 an hourand work forty hours a week, as shown inTable 8-12. A low-income householdearning less than the $9.40 to $11.48 perhour is forced to rent an inadequate unit.Page 8-15 July 11, 2006