In August 2008, Affordable Housing Finance magazine wrote a feature story on the nation's shrinking affordable housing supply. According to the article, there are only 38 affordable and available units for every 100 extremely low-income households, accounting for a nationwide deficit of 6 million units.

Even for those earning up to 50 percent of their area's median income, the deficit is still a 5 million available, affordable units. Additionally, the number of households with "worst case" housing needs increased nearly 20 percent from 2001 to 2005. While demand grows, the supply is shrinking. According to the director of the Joint Center for Housing Studies at Harvard University, the last major federal production program standing is the low- income housing tax credit (LIHTC), and the number of units being produced under that program has been slipping. According to experts, this decline is not unique to the LIHTC. All housing production has been in decline with general housing assistance programs falling from 10 to 8 percent of the nation's dwindling domestic discretionary outlays from 1997 to 2007.

The author also highlights the Housing First program at 1811 Eastlake in Seattle (a program similar to our Lansing Inn site here in Troy) as an example of why affordable housing benefits the community at large. In its first year, residents were using about $2.5 million less in crisis and emergency health-care services. Medical expenses were down 41 percent and jail bookings declined 45 percent, according to findings from a preliminary study. The same is true for the Lansing Inn. Here too, the residents use of emergency services dropped dramatically. Their hospital stays became less frequent and their arrests dropped 99%. Understanding the benefits of affordable housing is critical for the industry, especially in raising support from policymakers. And support is needed, because the primary driver of homelessness is the lack of affordable housing. Source: NEAH, Joseph's House.