DRAFT Morrisville Affordable Housing Plan, September 23, 2019 version

DRAFT SEPTEMBER 23, 2019

Rent Assistance A rent assistance component would cover the gap between what an eligible employee can afford to spend each month on rent (30% of net household income) and their actual rent payment.

$38k/YR

Example

A teacher at Morrisville Elementary lives alone and makes $38,000. She currently rents in Raleigh but is eyeing an apartment in Morrisville that rents for $1,250 (on par with median rent in the town). 30% of her current income is $950 – which means that there is a $300 gap between what she can technically afford and what the new apartment would cost. She applies for rent assistance from the Town, makes the move, and receives a monthly payment to cover the gap – an amount that gets adjusted as her salary rises. Assistance is terminated if rent falls below 30% of net household income.

$950/mo.

30% of her income

$1,250/mo.

$300/mo.

Gap to close to rent the new apartment

$300/mo. Rent assistance from the Town (adjusts as her income rises)

New apartment is within reach and she makes the move.

Cost Scenarios

Assuming that the average recipient of rent assistance receives $250 per month (or $3,000 per year) … $25,000 would aid 8 employees per year

$50,000 would aid 16 employees per year

$100,000 would aid 33 employees per year

Affordable Housing Plan for Morrisville, NC | 2019

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