Dear City Manager Ferguson and County Manager Hager,

The Coalition for Affordable Housing and Transit (CAHT) is a grassroots organization with 612 supporters committed to supporting programs, initiatives, and policies that increase affordable housing and public transportation options in Durham City and its surrounding county.  Our advocacy encompasses consideration of all social drivers (i.e., housing inventory, rental availability, eviction avoidance, health outcomes, AMI household income levels, environmental impacts, etc.) to promote affordable homeownership, providing neighborhood stability, diversity, and equitable wealth-building, housing security, and safety for all Durham residents. As such, we would like to provide our local government leaders with input on specific items of interest for the FY2025- 2026 budget planning process.

The four FY2025- 2026 City, County, or County-only budget priorities that our organization has endorsed previously and continues to advocate for in this year’s budget process are as follows,

Request #1: Continue funding the GoDurham Free Fares program, which helps alleviate the financial pressure on individuals and families facing economic challenges. ($1.5M)

Please note that the Coalition also adamantly opposes $2.00 fare proposals, as the increased fares would harm Durham’s struggling residents, who tend to use public transportation.

Request #2: Fully fund the HEART program, which provides valuable outreach and tangible support for residents facing eviction and homelessness.

Request #3: Maintain the 2-cent tax increase to the property tax rate implemented in the FY2021- 2022 budget. This increase is needed for:

1. Maintaining progress on developing and redeveloping affordable housing in Durham’s transit opportunity area for households at or below 60% Area Median Income (AMI);
2. Expansion of supportive housing program opportunities;
3. Continuation of the Down Payment Assistance Program for homeownership;
4. Funding the Repairs program for Durham’s low-income seniors;
5. Establishing a contingency fund to enable short-term loans to non-profits and city programs expecting HUD reimbursements; and
6. Implementing a rental assistance program for low-income residents to help offset the loss of federal-funded vouchers and other lost funding, thereby supporting Durham’s most vulnerable citizens.

Request #4: Continue the Low-Income Homeowners Tax Credit Program at its current funding level.

Additionally, CAHT requests funding for the following budget items, which are new requests for FY2025- 2026,

Request #5: The redevelopment project for the 505 W. Chapel Hill Street police headquarters is progressing slowly. However, the Coalition requests that subsidies be included in the budget to increase the number of affordable housing units in the Peebles Corporation proposal from 110 to 130, representing a 20-unit increase that requires subsidies.

Request #6: The allocation of $5 million to thoroughly remediate toxic chemicals (i.e., lead) in the affected parks.

We appreciate your consideration of our coalition community budgetary requests and are available to answer any questions regarding the information in this document. Please reply to this email with any requests for more information.

Thank you in advance for consideration of CAHT's requests as a member of community of organizations concerned about Durham residents and the area's affordable housing.

Sincerely,

Cynthia

Cynthia Williams, Chair

The Coalition for Affordable Housing and Transit of Durham

WHAT DOES “AFFORDABLE HOUSING” MEAN?

Henry Sniezek

It was once said by a guy who ran for President in 2012, “the rent is too damn high.” And, for many, it still is. The current consensus is that housing in Durham and in many portions of the country is not “affordable.” But, what does “affordable” really mean? This short piece will review what “affordable housing” generally means to our government(s) and also the private sector housing industry. 

THE 30% RULE

Emerging from public housing regulations in the late 1960s and early 1970s was a standard that no more than 30% of gross income should go towards housing costs. Specifically, it was the Brooke Amendment (federal HUD legislation) passed in 1969, which capped public housing rent at 25% of income, later adjusted to 30%. The 30% standard generally includes rent or mortgage payments (principal and interest), and utilities (e.g. water, sewer, electricity). Sometimes, depending on the program or policy, property taxes, homeowner's insurance, and homeowner's association dues may be included in the total housing expense calculation. 

INCOME CATEGORIES

Affordable housing programs and policies often focus on the following income categories:

• Very Low Income (households earning up to 50% of the area median income)
• Low Income (households earning between 50% and 80% of the area median income)
• Moderate Income (households earning between 80% and 120% of area median income)
• Workforce Income (sometimes defined in overlap or similar to Moderate Income, but also known to reference households earning up to140% of area median income)

The definitions and percentages above are often used but they may vary by program or policy.  For instance “very low income” has been used to mean up to 30% of area median income.

The meaning of “area” may vary by program or policy as well, and be defined as a city or county boundary, a census block, zip code, neighborhood, or other defined geographic area. 

“Household” usually means people living together sharing common living arrangements and expenses in one housing unit. Housing assistance programs often issue a yearly chart of median income for differing household sizes. Often, a household size of 4 persons is used to describe data and findings in reports and assessments about housing affordability in communities. 

COST BURDENED

“Cost Burdened” is frequently used in housing affordability assessments to describe households that spend more than 30% of income on housing.  “Severely Cost Burdened” usually means households that spend more than 50% of income on housing. 

HOUSING & TRANSPORTATION

In areas (such as dense downtowns) that offer a significant and viable range of transportation options in addition to the automobile, such as light rail (e.g. subways), buses, and other multi-modal choices (including walking), affordable housing policy makers may consider an “affordability” rule-of-thumb higher than 30% of household income. The rationale is that the availability of multiple non-auto transportation choices can lower overall expected transportation costs, and therefore open up additional income for housing. The Housing and Transportation Affordability Index, developed by the Center for Neighborhood Technology, suggests a benchmark of 45% of income for housing and transportation costs. For example, if an average of 10% of household income is used for transportation in dense multi-modal areas, then a benchmark of 35% of income for housing costs may be acceptable. 

DURHAM DATA

21.3%         -    Cost Burdened Mortgage Holders 2023

                          (Source: Durham Neighborhood Compass)

45%            -    Cost Burdened Renters 2023

                          (Source: Durham Neighborhood Compass)

$79,501.     -   Median Household Income 2023

                          (Source: US Census)

$408,600. -  Median House Sales Price - February 2025

                          (Source: Realtor.com)

$1,895.       -   Average Rent - March 2025

                          (Source: Zillow)

March 5, 2025

Dear Honorable Members of the Durham County Commission:

As you do the difficult work to finalize a budget for the coming fiscal year, the People’s Alliance has several recommendations that we developed through a democratic approval process involving our membership which we share below. We urge you to adopt them together as a single set of proposals.

The People’s Alliance advances progressive issues and policies through research, organizing,  advocacy, and democratic engagement. We envision an inclusive Durham with fair social and economic conditions where. Each person and family will have the same rights and access to services that they need to thrive and Durham will lead the state and nation by partnering, energizing, and supporting progressive policy goals. 

Our County FY26 Budget Priorities include the following: 

Fully fund the Durham Board of Education Budget Request for FY 2026. The People's Alliance Education Team specifically supports the following priorities which, if not included in this year's BOE request should be included for consideration in the next fiscal year: 

• Provide funding for fully and faithfully implementing restorative practices within Durham Public Schools.
• Raise wages for DPS transportation staff to match Go Triangle. Adequately staff and support the DPS transportation department to ensure that all students who need bus service receive it.

Fund the newly formed 501(c)3 Carolina Parent Defenders in the amount of $250,000. The PA Child and Family Policy team supports an initial grant to the Carolina Parent Defenders (CPD) from the Board of Commissioners to help stabilize and reunify families in Durham County. CPD offers a holistic legal representation model combined with early defense to protect and stabilize families involved in the child welfare system and head off a family crisis if possible.

In addition, our board respectfully urges you to consider expanding the City’s HEART program to the County, and to pursue whatever budgetary, planning, and administrative activities may be necessary to accomplish this in partnership with the Sheriff.  

Thank you for your careful consideration of these recommendations. We would welcome the opportunity to discuss them with you in greater detail and respond to any questions or concerns you have.