IN LOUISVILLE, high utility bills ARE putTING affordable housing out of reach.
The Definition of Utility Affordability.
The Definition of Utility Cost Burden.
Utility Cost Burden is a deficit that is based on a resident’s spending in relation to their utility cost and income. Residents should not spend more than 6% of their income on energy costs, and no more than 4.5% on water and wastewater costs. Those who spend more are considered utility cost burdened.
Residents should not spend more than 6% of their income on energy costs, and no more than 4.5% on water and wastewater costs.
Those who spend more than 10.5% combined are considered severely utility cost burdened.
The Current State of Utility
Affordability In Louisville.
One out of every four Americans grapples with energy cost burdens, while in Louisville, 16% of homes bear an energy burden of 10% or higher.
17.7% of low-income households in Louisville experience water/wastewater cost burdens, meaning they pay more than 4.5% of their income on their water/wastewater bills.
Our building envelope is the physical separation between the inside of our homes from the outside. Poor building envelopes increase our energy usage and energy bills, and can affect our health through water infiltration, pests, and microbiological volatile organic compounds.
barriers to accessing affordable housing
The majority of the housing stock in Louisville was built pre-1960.
According to the Department of Housing and Urban Development (HUD), housing is affordable when no more than 30% of a household’s income is spent on housing and utilities. HUD, as well as the Metropolitan Housing Coalition, have always incorporated utilities such as, lights, gas, water and electric in our shared definition of what makes housing truly affordable.
For Jefferson County as a whole A.M.I. (for a family or household of four) is, as of 2023, approximately $89,800 annually (HUD Calculator). In Jefferson County, to be considered low income, a household for a family of four earns a gross annual income of no more than $71,750.
Based on MHC’s existing reports, there is a lack of at least 30,000 housing units, most of which need to be for those earning below 50% of AMI
Generally, “Affordable Housing” connotatively addresses households that are considered “Low Income,” which means household income is no more than 80% of the area median income.
14% of Louisville residents are living at or below the federal poverty line — 0r $30,000 annually for a family of four.
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