Research Report #6-07 LEGISLATIVE REVENUE OFFICE.

HOUSING AFFORDABILITY IN OREGON Research Report #6-07 LEGISLATIVE REVENUE OFFICE http://www.leg.state.or.us/comm/lro/home.htm

STATE OF OREGON LEGISLATIVE REVENUE OFFICE H-197 State Capitol Building Salem, Oregon 97301-1347 (503) 986-1266 Research Report # 6-07 October 2007 Housing Affordability in Oregon Executive Summary During the 2007 Legislative Session a number of measures, described in this report, were enacted that will provide more flexibility in financing construction, ownership or management of homes or rental units for low and moderate income families; and exercising these options can lower the cost of doing business which can be passed on to qualified homeowners and renters. The Legislature also enacted certain measures that will help stabilize a decreasing inventory of mobile homes in Oregon, which is a source of affordable homes for some lower-moderate income households. Oregon s affordable housing policies and programs help qualified households purchase or rent homes; but a large number of households today may be at risk for becoming homeless if housing costs continue to escalate while real income is decreasing. During the 2005 Interim, the Interim Senate and House Revenue Committees sponsored three public hearings to address the status of Oregon s affordable housing. This report summarizes some of the data presented at those hearings and examines data on affordability of housing in Oregon. These data are prior to the current 2007 housing downturn; but they paint a picture of Oregon s housing problem. The U.S. Census Bureau indicates that over one-third of Oregon s 1.425 million households that occupied some type of housing unit in 2005 paid more than 30% of their income on housing expenses. More than 235,500 households earned less than $20,000 annually and paid over 30% of their income on housing expenses. Based on federal poverty levels that are constructed from both income ranges and household size, many of these households earning less than $35,000 annually in 2005 were impoverished. LRO: 10/29/2007 1 Research Report #6-07

Overview of Oregon s Affordable Housing Conditions Relative to Other States (2004) Between 2003 and 2005, mortgage rates dropped to historically low levels which increased opportunities for many households to qualify for mortgages; but housing prices also escalated during this period which offset the effect of lower rates for many potential home-buyers. The U.S. Census Bureau ranks median housing values of owner-occupied housing units for 236 selected areas. Listing a few of these areas in Table 1 below, four counties in Oregon were among the top 150 more expensive areas in which to live in 2004. Table 1 Ranked Median Housing Values in 2004 for Selected Areas Rank Name Median Value 1 San Mateo County, California $678,433 31 Honolulu County, Hawaii $368,369 46 King County, Washington $295,493 63 Snohomish County, Washington $283,637 75 Clackamas County, Oregon $225,392 85 WA County, Oregon $214,623 94 Multnomah County, Oregon $197,788 132 Lane County, Oregon $159,437 236 Hildalgo County, Texas $56,087 In 2005, the National Home Builders Association (NHBA) ranked median sales prices of new homes against median family income for 161 selected areas across the U.S. Listing a few of these areas in Table 2 below, Salem and Corvallis were listed among the more affordable metropolitan areas in which to live in the U.S.; and Eugene, Portland, and Medford were ranked among the less affordable. This information is consistent with information published by the U.S. Department of Housing and Urban Development (H.U.D.) Office of Policy Development and Research. H.U.D. indicated that for the year ending September 2005, the median home sale price rose 15% to $224,300 in Oregon. In Coos and Jackson Counties, the median sale price increased 24%; and in the metro Portland area the median sales price rose 17% to $230,900. LRO: 10/29/2007 2 Research Report #6-07

Table 2 Ranked Estimates of Housing Affordability in 2005 for Selected Areas Metro Area Mansfield, Ohio Salem, Oregon Spokane, Washington Corvallis, Oregon Olympia, Washington Eugene- Springfield, Oregon Portland- Beaverton Oregon, Vancouver Washington Tacoma, Washington Bremerton- Silverdale, Washington Seattle- Bellevue- Everett, Washington Medford, Oregon LA-Glendale, California Share of Homes Affordable for Median Family in 2005 Median Family in 2005 (see Note #1) 3 rd Quarter 2005 Median Sales Price 91.40% $52,300 $95,000 1 68.20% $56,500 $169,000 47 66.90% $53,000 $150,000 53 63.30% $68,200 $210,000 58 52.80% $63,100 $221,000 82 51.40% $54,200 $195,000 87 50.70% $65,900 $240,000 90 41.40% $59,800 $233,000 102 41.10% $62,000 $245,000 103 34.70% $73,000 $325,000 115 22.70% $52,700 $260,000 134 2.40% $54,500 $495,000 161 Affordability Ranking (see Note #2) Notes- (1) Median Family is larger than median household income because one or more households may be included in a family unit. For example, the U.S. Census Bureau s estimates for 2004 median household income and median family income in Oregon are $41,794 and $51,011, respectively. The HUD Office of Economic Affairs, Economic and Market Analysis Division s 2005 estimates for median family income for all of Oregon, metropolitan areas and non-metropolitan areas are $58,600, $63,300 and $48,680, respectively (2) The NHBA uses an estimated monthly mortgage payment for a median priced home, financed with a fixed interest rate, and divides this estimate by monthly median family income in order to construct a ratio that can be used to rank affordability of home purchases. Housing affordability is determined by calculating the ratio of monthly housing expenses to a household s monthly income. For the purposes of this report, affordable housing is defined using the federal definition, as a cost that is less than 25%-30% of household income. Based on LRO: 10/29/2007 3 Research Report #6-07

this definition, housing affordability can change over time based on changes in the economy. Illustrating, the U.S. Census Bureau s estimates of the median value of owner occupied housing Oregon for 2000 and 2005 were $152,100 and $201,200, respectively. These housing values reflect an annualized growth rate over the five years ending in 2005 of 6.5%. Between 2000 and 2005, however, Oregon s median household income of grew by an average annualized rate of.9%, unadjusted for inflation. 1 Housing Affordability in Oregon between 2000 and 2005 The U.S. Census Bureau s survey data reveals that 28% of 899,196 homeowners and 47% of 528,515 renter-households paid more than 30% of their household income on housing expenses in 2004. In 2005, 30% of 908,247 homeowners and 48% of 517,810 renter-households paid more than 30% of their income on housing expenses. Oregon s housing price index climbed 28% over four years ending in 2004, at an annualized average increase of 7%; and it rose substantially by 17.45% during 2005. Table 3 provides a historical profile Oregon s households based upon their homeownership/renter status in 2000, 2004 and 2005. In 2005, among 908,247 households that were resident homeowners, the share that paid more than 30% of their income on housing was 30.4%, in 2004 it was 28.7% and in 2000 it was 24.8%. In 2005, among 517,810 renterhouseholds, the share that paid more than 30% of their incomes on housing costs was 48%, in 2004 it was 47.6%, and in 2000 it was 40%. These data reflect a continuous five-year decline in the share of housing that was affordable in Oregon, irrespective of household ownership/renter status. Housing affordability changes over time depending on many factors, one of which is the state of the economy. Illustrating, between 2000 and 2005, Oregonians felt the impact of an economic recession during which time the unemployment rate peaked at 8.1% in 2004. The 7.5% unemployment rate in 2005 was a slight improvement over 8.1%; but it was not as low as the 6.5% rate reported in 2000 when the state s economy was more robust. In real terms (i.e., with adjustments for inflation), median household income declined by 4.9% between 2000 and 2004; and it increased slightly by.21% from 2004 to 2005. In contrast, between 2000 and 2004, the median monthly cost of mortgaged homes, adjusted for inflation, increased by.74%; and it rose by another 3.86% from 2004 to 2005. Median rent, adjusted for inflation, increased between 2000 and 2004 by 2.28%; but the situation improved slightly for renters when the median rent declined 1.33% from 2004 to 2005. This time series of data does not reveal any significant improvement in affordable housing conditions before, during or after Oregon s economy began to recover from the national recession in 2004. 1 Adjusted for inflation, median household income was lower in terms of actual purchasing power because the average annualized inflation rate was about 2% for the U.S. and 2.7 % in Portland metro. (Source: www.oea.das.state.or.us/das/oea/docs/economic/econdata/other-annual.xls.) Housing costs and other major consumer expenditures are included in these two inflation indices. LRO: 10/29/2007 4 Research Report #6-07

Table 3 Oregon's Demographic & Affordable Housing Profile (2000, 2004 & 2005) 2000 2004 %change over 2000 2005 %change over 2004 Population 3,421,399 3,513,759 2.70% 3,560,109 1.32% Civilian Labor Force 1,740,298 1,795,137 3.15% 1,856,172 3.40% Unemployment Rate 6.50% 8.10% 24.62% 7.50% -7.41% Percentage of Families with < Poverty Level During Prior 12 Months 7.90% 12.50% 58.23% 10.00% -20.00% Percentage of population over 65 years 12.80% 12.50% -2.34% 12.57% 0.54% Median (current $s) $40,916 $41,794 2.15% $42,944 2.75% Median (real $s, base yr= 2000) $40,916 $38,919-4.88% $39,000 0.21% Occupied Housing Units, by Owner/Renter Status 1,333,723 1,427,711 7.05% 1,425,340-0.17% Number of Home Owning s 653,869 899,196 37.52% 908,247 1.01% Number of Homeowners with mortgages 485,655 634,420 30.63% 643,113 1.37% Number of Renter s 467,599 528,515 13.03% 517,810-2.03% Median Monthly Housing Cost - Owner Occupied Mortgaged Homes (current $s) $1,125 $1,217 8.18% $1,296 6.49% Median Monthly Housing Cost - Owner Occupied Mortgaged Homes (real $s, base year=2000) $1,125 $1,133 0.74% $1,177 3.86% Percent of Homeowners and Monthly Housing Costs Greater than 30% of 24.8% 28.7% 15.71% 30.43% 5.92% Gross Monthly Rent and Utilities(current $s) $620 $681 9.84% $689 1.17% Gross Monthly Rent and Utilities (real $s, base year=2000) $620 $634 2.28% $626-1.33% Percent of Paying More Than 30% of on Rent 40% 47.64% 19.06% 48.0% 0.77% Oregon House Price Index 264 338 28.11% 397 17.45% Median Value Owner-Occupied Homes (current $s) $152,100 $181,544 19.36% $201,200 10.83% Median Value Owner-Occupied Homes (real $s, base year =2000) $152,100 $169,056 11.15% $182,724 8.08% 2004 Percent (1) 2005 Percent (1) Number %Chg Number & Percentage of w. <$20,000 Who Paid More Than 30% of Their on Rent and Utilities 159,684 78.90% 156,566 80.10% -1.95% Number and Percentage of Home- w. Who Earned <$20,000 ly and Paid More Than 30% of Their on Housing Costs 42,663 98.99% 42,350 97.68% -0.73% Number and Percentage of Homeowners w. No Who Earned <$20,000 ly and Paid More Than 30% of Their on Housing Costs. 31,491 49.33% 36,587 53.08% 16.18% Total Across 3 Types 233,838 235,503 0.71% Source: U.S. Census Bureau's 2000 Decennial data; and the 2004 and 2005 American+A2 Community Surveys of Oregon. Notes: 1. The percentages reflect the number of households earning less than $20,000 and paying more than 30% on housing costs (numerator),divided by the number of households earning less than $20,000 in annual income (denominator). LRO: 10/29/2007 5 Research Report #6-07

Moreover, the slight improvement in rental prices for 2005 may be short-lived. Lower home mortgage rates available between 2000 and 2005 may have enabled some renters to purchase homes, and this would have left an excess supply of vacant rental units for a short period of time. That is, an excess supply of rental units in 2005 would have suppressed rental prices; but that situation may reverse itself if the sub-prime housing market continues to falter. Housing Affordability for Low-Moderate -Earning s, by Home hip/renter Status (2004 and 2005) Housing affordability differs substantially for households that fall within different incomeearning ranges. Therefore, Tables 3, 4 and 5 highlight differences in housing affordability over time, across different income-earning groups, by homeowner and renter status. Among the 1.428 million households in 2004 that lived in owner-occupied homes or rental units in Oregon, the lower portion of Table 3 reveals that 233,838 households (16.4%) earned less than $20,000 per household and paid more than 30% of their income on housing costs. The information presented in Table 4 indicates that 142,225 households (10%) earned between $20,000 and $35,000 per household while paying more than 30% of income on housing costs. For comparison, among Oregon s 1.425 million households in 2005 that lived in owner-occupied homes or rental units, the lower portion of Table 3 indicates that 235,503 households (16%) earned less than $20,000 per household and paid more than 30% of their income on housing costs. By federal standards many of these households were impoverished. The information presented in Table 5 indicates that 136,226 households (9.6%) earned between $20,000 and $35,000 per household while paying more than 30% of their income on housing costs. The two- year comparison of these lower to moderate income-earning households reveals that virtually no change (+.75%) in the status of housing affordability of households within the lower and moderate-income-earning ranges. Oregon s affordable housing policies partially address the needs of lower and moderate incomeearning households. However, to focus on areas of greatest need, it helps to sort the data by income and home-ownership/renter status. Sorting by income range and household type, Table 4 indicates that among 43,100 households with mortgaged homes in 2004 that earned less than $20,000, virtually all (99%) paid more than 30% of income on housing costs. For homeowners without mortgages in 2004 earning under $20,000, an estimated 31,491 (49%) paid more than 30% of their income on housing costs. For renters, 159,684 (78.9%) also fit this income, housing-expenditure profile. Sorting the 2005 U.S. Census data by the same income ranges and household types, Table 5 indicates that among 43,358 households with mortgaged homes in 2005 that earned less than $20,000, virtually all (99%) paid more than 30% of income on housing costs. For the 36,587 homeowners without mortgages, 53% paid more than 30% of their income on housing costs. For the 108,291 renters, 85% fit this income, housing-expenditure profile. LRO: 10/29/2007 6 Research Report #6-07

Table 4 Number of s in Oregon in 2004, by Range and Ratio of Housing Costs to Homeowners with Homeowners with No Rent as Share of Housing Cost as Share of with Housing Cost as Share of with No Low-Moderate Low-Moderate Low-Moderate <$10,000 per year 88,898 >30%<35% 2,263 >35% 64,018 >10,000 < $19,999 113,440 < $20,000 43,100 < $20,000 63,832 >30%<35% 10,707 >30% 42,663 >30% 31,491 >35% 82,696 >$20,000 < $34,999 142,279 >$20,000 < $34,999 81,386 >$20,000 < $34,999 61,137 >30%<35% 27,292 >30% 63,269 >30% 4,745 >35% 46,919 Subtotal -Low 233,895 Subtotal -Low 105,932 Subtotal -Low 36,236 Moderate Moderate Moderate >$35,000 <$49,999 82,414 >$35,000 <$49,000 98,517 >$35,000 <$49,000 50,341 >30%<35% 6,551 >30% 52,133 >30% 0 >35% 7,572 Subtotal -Low to Moderate I 427,031 Subtotal -Low to Moderate 223,003 Subtotal -Low to Moderate Inco 175,310 Subtotal -Low to Moderate 248,018 158,065 Subtotal -Low to Moderate 36,236 Upper Upper Upper >$50,000 101,484 >$50,000 407,008 >$50,000 87,993 >30%<35% 1,698 >30% 64,010 >30% 14 >35% 2,045 zero or neg. income 4,409 zero or neg. income 1,473 Total 251,761 Total w.mortg. 222,075 Total w.no Mortg. 36,250 Total Number of 528,515 Total with 634,420 Total w. No Mortg. 264,776 Source U.S. Census American Community Survey (Tables B25074 and B25101). LRO: 10/29/2007 7 Research Report #6-07

Table 5 Number of s in Oregon in 2005, by Range and Ratio of Housing Costs to Homeowners with Homeowners with No Rent as Share of %change over 2004 Housing Cost as Share of with %change over 2004 Housing Cost as Share of with No %change over 2004 Low-Moderate Low-Moderate Low-Moderate <$10,000 per year 87,068-2.06% >30%<35% 2,248-0.66% >=35% 62,583-2.24% >10,000 < $19,999 108,291-4.54% < $20,000 43,358 0.60% < $20,000 68,923 7. 98% >30%<35% 7,545-29.53% >30% 42,350-0.73% >30% 36,587 16. 18% >=35% 84,190 1.81% >$20,000 < $34,999 133,933-5.87% >$20,000 < $34,999 74,410-8.57% >$20,000 < $34,999 60,580-0.91% >30%<35% 24,534-10.11% >30% 60,593-4.23% >30% 4,165-12.22% >=35% 46,934 0.03% Subtotal -Low 228,034-2.51% Subtotal -Low 102,943-2.82% Subtotal -Low 40,752 12. 46% Moderate Moderate Moderate >$35,000 <$49,999 82,470 0.07% >$35,000 <$49,000 102,779 4.33% >$35,000 <$49,000 45,281-10.05% >30%<35% 8,640 31.89% >30% 59,760 14.63% >30% 192 #DIV/0! >35% 6,703-11.48% Subtotal -Low & Mod. 411,762-3.58% Subtotal -Low & Mod, 220,547-1.10% Subtotal -Low & Mod. 174,784-0.30% Subtotal -Low & Mod. 243,377-1.87% Subtotal -Low & Moderate 162,703 2.93% Subtotal -Low & Moderate 40,944 12. 99% Upper Upper Upper >$50,000 105,365 3.82% >$50,000 420,754 3.38% >$50,000 88,818 0. 94% >30%<35% 2,569 51.30% >30% 68,051 6.31% >30% 14 0. 00% >35% 2,359 15.35% zero or neg. income zero or neg. income 1,486 Total- 248,305-1.37% Total - w.mortg. 230,754 14.63% Total w.no Mortg. 40,958 12. 46% Total Number of 517,127-2.15% Total w.mortg. 641,301 1.08% Total w.no Mortg. 265,088 0. 12% Source U.S. Census American Community Survey (Tables B25074 and B25101). LRO: 10/29/2007 8 Research Report #6-07

Table 5 reveals that the scarcity of affordable housing in 2005 remained concentrated among renter households; but relative to 2004, the annual percentage decrease in affordable housing was most evident among a smaller group of homeowners who had no mortgages. Differences by type of homeowner/renter status, highlighted in Figures 1 and 2 below, are evident at the sub-state level; and those details are presented in the Appendix. Figure 1- Low & moderate -Earning s That Paid 30% of More on Housing in 2004 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Clackamas Lane Marion Multnomah Gresham Portland Washington Homeowners w. No Homeowners with Figure2- Low- s That Paid More Than 30% of on Housing Costs in 2004 60,000 50,000 40,000 30,000 20,000 10,000 0 Clackamas Lane Marion Multnomah Gresham Portland Washington Homeowners w.no Homeowners with LRO: 10/29/2007 9 Research Report #6-07

In conclusion, Oregon s current affordable housing policies partially cover issues that address the needs of its homeless, its disabled residents and other special need populations that are underserved by the private sector (e.g., elderly persons, ex-offenders, farm workers, and the mentally ill). Oregon s current policies also address the needs of qualified homeowners and renters who are the subject of this report. Among the households that lived in homes and apartments in 2005, renter households were the largest in number that earned less than $20,000 annually while paying more than 30% of their income on housing. Many of these renters and all that earned less than $10,000 annually were impoverished, based on federally established poverty guidelines. The scarcity of Oregon s affordable housing stock is attributable in part to the fact the median value of owner-occupied homes rose from $152,000 to $201,200 (+32.2% ) between 2000 and 2005, relative to median household income that increased from $40,916 to $42,944 (+4.96%) over the same period of time. In real dollars (i.e., adjusted for inflation), median household income actually declined during this year period. Therefore, higher housing costs were not driven by demand from the labor force. They were created by a combination of other factors: demand from non-labor force residents, demand from non-residents purchasing second homes, and higher supply side costs that are not all determined locally. As such, these are some of the major issues that have to be considered with respect to modifying Oregon's affordable housing policies and programs. Current Policies Public housing policies that are consistent with long term economic development goals attempt to ensure that sufficient affordable housing exists for all income, age, and ethnic groups if the private sector is periodically or consistently unable to respond to local demands for affordable housing. Oregon s current affordable housing policies help many households repair, purchase or rent homes; but a large number of existing lower and moderate-income homeowners may be at risk for joining the ranks of the homeless if they lose their homes because of the mortgage financing they obtained. represent the largest group of households in Oregon that have excessive, unaffordable housing costs and this finding appears to be consistent with housing statistics across the U.S., as reported to Congress in 2005 by the U.S. Department of Housing and Urban Development (H.U.D.). This H.U.D report also indicates that the shortage of rental units for lower-income households has been prevalent since 1991 (Affordable Housing Needs 2005, p. 14). During the 2007 Legislative Session a number of important measures were enacted into law that will provide more options for financing construction, ownership or management of homes or rental units that will lower the costs of doing business if the savings are passed on to homeowners or renters. Among the enacted measures that accomplished this and other objectives that will make housing more affordable, SB 777 extended the sunset date for a 10 year property tax exemption on rehabilitated buildings in Portland that are converted into housing, subject to the requirement that rehabilitation must be completed within the first two years following application for the exemption. LRO: 10/29/2007 10 Research Report #6-07

SB 461 raised the annual energy assistance funds available to low-income Oregonians from $10 million to $15 million. SB 994 extended the sunset date until 2026 for public purpose funds which maintain the housing trust fund dollars for the Oregon Housing and Community Development Department s low-income weatherization program. HB 2095 granted a housing authority the ability to own, operate and/or manage a mixed income-earning property by forming partnership agreements with limited liability companies (LLCs). HB 3201 raised the existing annual cap from $11 million to $13 million for the total value of lenders credits that may taken against income taxes, as an offset to loans that are approved at lower than market interest rates for rental housing projects or qualified households. The Legislature also enacted a number of other measures in an effort to stabilize the inventory of mobile homes that are a source of affordable homes for lower-moderate income households. A number of these parks closed over the past few years because of pressures to develop the mobile park sites for other uses. HB 3201 also guarantees a mobile homeowner a $5,000 refundable tax credit if he or she is forced to move or vacate his home due to a park s closure. HB 2096 authorized the formation of non-profit manufactured dwelling park cooperatives, and enables them to be eligible for existing housing and technical assistance programs. HB 2735 requires a mobile home park owner to pay each tenant a cash amount that is exempt from income tax ( $5,000-$7,000-$9,000 for a singlewide, doublewide or triplewide home, respectively) if the tenant is forced to vacate or move his mobile home due to the park s closure. HB 2735 also extended the previous sunset date from January 1, 2007 to January 1, 2013 for an income tax exemption that is granted to owners of mobile home parks on capital gains derived from the sales of these parks to mobile home tenant associations. HB 2735 was controversial because it established some controls over local authorities ability to enact mobile home park legislation. The passage of HB 2735 will create some degree of uniformity statewide with respect to the relief that landowners and homeowners receive when mobile home parks are closed. But, as a compromise to local governments, HB 2735 also granted these local authorities a short time frame within which amendments to existing local ordinances LRO: 10/29/2007 11 Research Report #6-07

could be grandfathered in if they provided homeowners with rights that were greater than or equal to the state s requirements. LRO: 10/29/2007 12 Research Report #6-07

Appendix Clackamas County: Number of s in 2004, by Range and Ratio of Housing Costs to Homeowners with Homeowners with No Rent as Share of with Low-Moderate Low-Moderate Low-Moderate with No <$10,000 per year 7,035 >30% 785 >35% 5,329 >10,000 < $19,999 5,556 < $20,000 3,144 < $20,000 4,851 >30% 0 >30% 3,144 >30% 2,862 >35% 5,132 >$20,000 < $34,999 11,081 >$20,000 < $34,999 4,548 >$20,000 < $34,999 4,350 >30% 2,359 >30% 4,076 >30% 849 >35% 5,305 Subtotal -Low 18,910 Subtotal -Low 7,220 Subtotal -Low 3,711 Moderate Moderate Moderate >$35,000 <$49,999 4,632 >$35,000 <$49,000 7,256 >$35,000 <$49,000 4,284 >30% 546 >30% 4,279 >30% 0 >35% 414 Subtotal -Low to Moderate 28,304 19,870 Subtotal -Low to Moderate 14,948 11,499 Subtotal -Low to Moderate 13,485 3,711 Upper Upper Upper >$50,000 12,779 >$50,000 56,472 >$50,000 9,709 >30% 913 >30% 12,484 >30% 14 >35% 220 0 zero or neg. income 0 zero or neg. income 256 Total Number of 41,083 21,003 Total Homeowners with 71,420 23,983 Total Homeowners with No 23,450 3,725 A 1

Appendix Lane County: Number of s in 2004, by Range and Ratio of Housing Costs to Homeowners with Homeowners with No Rent as Share of with Low-Moderate (see note #1) Low-Moderate (see note #1) Low-Moderate (see note #1) with No <$10,000 per year 10,947 >30% 0 >35% 7,921 >10,000 < $19,999 14,440 < $20,000 3,769 < $20,000 5,313 >30% 1,686 >30% 3,602 >30% 2,654 >35% 10,887 >$20,000 < $34,999 11,681 >$20,000 < $34,999 7,336 >$20,000 < $34,999 8,072 >30% 2,908 >30% 6,001 >30% 596 >35% 2,927 Subtotal -Low 26,329 Subtotal -Low 9,603 Subtotal -Low 3,250 Moderate Moderate Moderate >$35,000 <$49,999 6,536 >$35,000 <$49,000 12,389 >$35,000 <$49,000 5,610 >30% 1,234 >30% 5,295 >30% 0 >35% 729 Subtotal -Low to Moderate 43,604 28,292 Subtotal -Low to Moderate 23,494 14,898 Subtotal -Low to Moderate 18,995 3,250 Upper Upper Upper >$50,000 6,494 >$50,000 34,079 >$50,000 6,725 >30% >30% 4,162 >30% 0 >35% zero or neg. inc (see note #2) 393 zero or neg. income 185 Total Number of 50,098 28,292 Total Homeowners with 57,966 19,060 Total Homeowners with No 25,905 3,250 A 2

Appendix Marion County: Number of s in 2004, by Range and Ratio of Housing Costs to Homeowners with Homeowners with No Rent as Share of with Low-Moderate (see note #1) Low-Moderate (see note #1) Low-Moderate (see note #1) with No <$10,000 per year 6,523 >30% 0 >35% 4,905 >10,000 < $19,999 12,229 < $20,000 3,506 < $20,000 4,266 >30% 1,209 >30% 3,506 >30% 3,106 >35% 8,895 >$20,000 < $34,999 11,582 >$20,000 < $34,999 7,572 >$20,000 < $34,999 4,554 66 >30% 5,860 >30% 0 2,064 Subtotal -Low 17,139 Subtotal -Low 9,366 Subtotal -Low 3,106 Moderate Moderate 6,163 Moderate 3,109 >$35,000 <$49,999 3,983 >$35,000 <$49,000 2,978 >$35,000 <$49,000 0 >30% 539 >30% >30% >35% 0 Subtotal -Low to Moderate 34,317 17,678 Subtotal -Low to Moderate 17,241 12,344 Subtotal -Low to Moderate 11,929 3,106 Upper Upper Upper >$50,000 8,267 >$50,000 26,170 >$50,000 6,941 >30% 0 >30% 4,367 >30% >35% 187 zero or neg. inc (see note #2) 425 zero or neg. income 201 Total Number of 42,584 17,865 Total Homeowners with 43,836 16,711 Total Homeowners with No 19,071 3,106 A 3

Appendix Multnomah County: Number of s in 2004, by Range and Ratio of Housing Costs to Homeowners with Homeowners with No Rent as Share of with Low-Moderate (see note #1) Low-Moderate (see note #1) Low-Moderate (see note #1) with No <$10,000 per year 21,571 >30% 487 >35% 14,045 >10,000 < $19,999 26,154 < $20,000 8,768 < $20,000 10,430 >30% 1,664 >30% 8,660 >30% 7,329 >35% 20,785 >$20,000 < $34,999 28,699 >$20,000 < $34,999 12,902 >$20,000 < $34,999 8,906 7,067 >30% 10,994 >30% 1,199 9,795 Subtotal -Low 53,843 Subtotal -Low 19,654 Subtotal -Low 8,528 Moderate Moderate Moderate >$35,000 <$49,999 17,404 >$35,000 <$49,000 19,937 >$35,000 <$49,000 5,397 >30% 2,106 >30% 12,657 >30% 0 >35% 1,600 Subtotal -Low to Moderate 93,828 57,549 Subtotal -Low to Moderate 41,607 32,311 Subtotal -Low to Moderate 24,733 8,528 Upper Upper Upper >$50,000 19,861 >$50,000 80,615 >$50,000 15,208 >30% 445 >30% 14,678 >30% 14 >35% 450 zero or neg. income 433 zero or neg. income 268 Total Number of 113,689 58,444 Total Homeowners with 122,655 46,989 Total Homeowners with No 40,209 8,542 A 4

Appendix Washington County: Number of s in 2004, by Range and Ratio of Housing Costs to Homeowners with Homeowners with No Rent as Share of with Low-Moderate (see note #1) Low-Moderate (see note #1) Low-Moderate (see note #1) with No <$10,000 per year 7,212 >30% 154 >35% 6,347 >10,000 < $19,999 9,167 < $20,000 3,654 < $20,000 2,293 >30% 730 >30% 3,654 >30% 1,725 >35% 7,599 >$20,000 < $34,999 18,633 >$20,000 < $34,999 6,018 >$20,000 < $34,999 3,814 1,982 >30% 5,647 >30% 367 7,327 Subtotal -Low 24,139 Subtotal -Low 9,301 Subtotal -Low 2,092 Moderate Moderate Moderate >$35,000 <$49,999 12,124 >$35,000 <$49,000 12,651 >$35,000 <$49,000 4,639 >30% 1,239 >30% 9,013 >30% 0 >35% 2,046 Subtotal -Low to Moderate 47,136 27,424 Subtotal -Low to Moderate 22,323 18,314 Subtotal -Low to Moderate 10,746 2,092 Upper Upper Upper >$50,000 19,621 >$50,000 72,247 >$50,000 10,511 >30% 157 >30% 13,944 >30% 0 >35% zero or neg. income 0 zero or neg. income 357 Total Number of 66,757 27,581 Total Homeowners with 94,570 32,258 Total Homeowners with No 21,614 2,092 A 5

Appendix City of Portland: Number of s in 2004, by Range and Ratio of Housing Costs to Homeowners with Homeowners with No Rent as Share of with Low-Moderate (see note #1) Low-Moderate (see note #1) Low-Moderate (see note #1) with No <$10,000 per year 17,956 >30% 388 >35% 11,318 >10,000 < $19,999 22,180 < $20,000 7,120 < $20,000 8,288 >30% 1,566 >30% 7,065 >30% 5,760 >35% 17,395 >$20,000 < $34,999 24,561 >$20,000 < $34,999 10,206 >$20,000 < $34,999 7,236 >30% 5,604 >30% 8,911 >30% 759 >35% 8,608 Subtotal -Low 44,879 Subtotal -Low 15,976 Subtotal -Low 6,519 Moderate Moderate Moderate >$35,000 <$49,999+B293 14,235 >$35,000 <$49,000 15,766 >$35,000 <$49,000 4,396 >30% 1,459 >30% 10,144 >30% 0 >35% 1,560 Subtotal -Low to Moderate 78,932 47,898 Subtotal -Low to Moderate 33,092 26,120 Subtotal -Low to Moderate 19,920 6,519 Upper Upper Upper >$50,000 17,288 >$50,000 65,249 >$50,000 12,156 >30% 445 >30% 11,437 >30% 0 >35% 388 zero or neg. income 383 zero or neg. income 213 Total Number of 96,220 48,731 Total Homeowners with 98,724 37,557 Total Homeowners with No 32,289 6,519 A 6

Appendix City of Gresham: Number of s in 2004, by Range and Ratio of Housing Costs to Homeowners with Homeowners with No Rent as Share of with Low-Moderate (see note #1) Low-Moderate (see note #1) Low-Moderate (see note #1) with No <$10,000 per year 2,983 >30% 99 >35% 2,368 >10,000 < $19,999 3,759 < $20,000 1,136 < $20,000 1,348 >30% 59 >30% 1,083 >30% 914 >35% 3,259 >$20,000 < $34,999 3,504 >$20,000 < $34,999 1,936 >$20,000 < $34,999 1,034 >30% 1,214 >30% 1,411 >30% 228 >35% 1,049 Subtotal -Low 8,048 Subtotal -Low 2,494 Subtotal -Low 1,142 Moderate Moderate Moderate >$35,000 <$49,999 2,772 >$35,000 <$49,000 2,930 >$35,000 <$49,000 484 >30% 541 >30% 1,812 >30% 0 >35% 40 Subtotal -Low to Moderate 13,018 8,629 Subtotal -Low to Moderate 6,002 4,306 Subtotal -Low to Moderate 2,866 1,142 Upper Upper Upper >$50,000 1,746 >$50,000 8,472 >$50,000 1,729 >30% 0 >30% 1,646 >30% 0 >35% 49 zero or neg. income 0 zero or neg. income 0 Total Number of 14,764 8,678 Total Homeowners with 14,474 5,952 Total Homeowners with No 4,595 1,142 A 7