Question: Allison: I am caught in the "affordable housing crunch". I can't believe that not more effort is being done. Couldn't there be some program where homeowners could create accessory housing on their property?

Answer: Here's an interesting idea:

According to an article in the Seattle Times, officials in Seattle are considering a pilot program that would allow property owners to create what is being called "detached accessory dwelling units," or DADUs.

These backyard apartments can be located in garages or servants' quarters or be built from scratch. They differ from "mother-in-law apartments" in that they are not connected to the main property.

The proposal is supported by neighborhood groups as a means of providing affordable housing in a city where 70 percent of the land is zoned for single-family use. Home owners also would benefit from DADUs, as they could rent out the units to generate extra income to make their monthly mortgage payments more manageable.

However, critics worry that DADUs will cause traffic and noise problems; lead to rampant on-street parking; and spur the construction of duplexes in neighborhoods comprised mainly of single-family houses, possibly leading to lower property values.

Under the Seattle proposal, the structures could not be taller than 23 feet or have more than 1,000 feet of living space. The property owner would have to live in the house or the detached apartment and supply one off-street parking space for the apartment.

Question: I'd love to buy my own home but the cost of taxes, rising energy costs and high monthly payments scares me. Am I the only one with this problem?

Answer: One out of three Americans worries that rising monthly payments - especially property taxes and energy costs - will force them to sell their home and buy a less expensive one, according to the fourth annual National Housing Opportunity Pulse, a survey released today by the National Association of Realtors (NAR) ®.

The survey also found that, by a 2-to-1 margin, Americans believe that high monthly payments rather than high downpayments are the greatest obstacle to buying a home. Rising property taxes are the leading concern associated with owning a home (34 percent), followed by increasing electrical, fuel, and other energy costs (28 percent). Only 14 percent said rising mortgage interest rates would keep them from becoming home owners.

"It's clear America is facing a crisis in housing opportunities with nearly two-thirds of families concerned about being able to find a home they both like and can afford," says Thomas M. Stevens, 2006 NAR president from Vienna, Va., and senior vice president of NRT Inc. "Many families are struggling to meet the high cost of home ownership, and increasingly those costs are property taxes and energy utilities."

In 2003, the average monthly mortgage principal and interest payment was $840. In 2005, families were paying 23.8 percent more, or $1,040 monthly. In the past year alone, the average monthly mortgage principal and interest payment has gone up 11.5 percent - from $1,015 in April 2005 to $1,132 in April 2006.

The Energy Information Administration estimates that in February 2006 the price of electricity was 12 percent higher than February 2005; natural gas was up 28 percent; and home heating oil was up 25 percent.

State and local property taxes for the 2004 fiscal year averaged $1,121 per person, up 13.8 percent from fiscal year 2003 when the average was $985, and 15.7 percent higher than the $969 average for the 2002 fiscal year, according to the U.S. Census Bureau.

The NAR survey found that more than 42 percent of Americans cite the lack of affordable housing in their community as one of their top three concerns, following high energy costs (82 percent) and the lack of affordable health care (53 percent). Nearly a third worry that the cost of housing is so unaffordable that they will never be able to buy a home and more than 58 percent are concerned that the cost of a home is becoming so unaffordable that it is hurting their local economy.

The lack of affordable housing also is affecting renters. More than two-thirds (68 percent) of Americans believe having enough money to pay rent every month is difficult for families in their community, up 7 percent from last year.

Support for affordable housing is high. Eight in 10 respondents would be willing to support more affordable homes being made available for people in their community and a record 68 percent would be more likely to vote for a candidate that worked to make housing more affordable in their area, up six percent in two years.

The annual survey is conducted by NAR's Housing Opportunity Program. The Housing Opportunity Program was created in 2002 with the mission of providing REALTORS® with the tools and information they need to promote housing opportunities in their community, in both the rental and homeownership sectors of the market.



For answers to your real estate questions, call Allison or Joyce at 970-468-6800 or (800) 262-8442, e-mail: Joyce@SummitRealEstate.com or visit their website at www.SummitRealEstate.com. Allison and Joyce are both long time locals in Summit County. Summit Real Estate - The Nenninger / Simpson Team is located at the Dillon Ridge Marketplace. Their long-time residency and years of real estate experience can help you make the most of any buying or selling situation. Both are Certified Residential Specialists (CRS), the highest designation awarded to a Realtor in the residential sales field. Their philosophy is simple, whether buying or selling, they understand that the most important real estate transaction is yours.