HOW IT WORKS (from the Universal
Living Wage Campaign website)
The Universal Living Wage Formula
The concept is simple. It is based on the premise that if a person
works 40 hours a week, then he/she should be able to afford basic
housing. We use two existing Federal guidelines to determine what the
Universal Living Wage should be. The first guideline (a HUD standard
also used by banking institutions across America) dictates that no more
than 30% of a person's gross monthly income should be spent on housing.
The second guideline, the Fair Market Rents (FMRs) are established by
HUD throughout the country for each municipality and all other areas.
Therefore, the Universal Living Wage will vary per area in accordance
with the FMR. FMRs are based on gross rent estimates which include
shelter, rent and the cost of utilities except telephone service.
We believe that this format, using already established government
guidelines, enables us to utilize existing government formulas to easily
justify specific Universal Living Wage figures that are based on the
need for housing and are appropriate to each municipality and outlying
areas.
We have devised a National formula that is based on each local economy
throughout the entire United States. The formula is designed in such a
manner that no matter whether you are in Austin, Boston, or L.A., if you
are willing and able to work a 40 hour week, you should at least be able
to afford the cheapest form of housing.
1. Work a minimum 40 hour week
2. Spend no more than 30% of income on housing
3. Index the minimum wage to the local cost of housing as set
each year by the US
Department of HUD (Fair Market Rents)
—EFFICIENCY APARTMENT—
1. HUD STANDARD: No more than
30% of a person's gross income should be spent on Housing.
2. HUD Fair Market Rent:(A)__Efficiency Apartment, or ____#
of bedrooms in the city/county of Delaware.
3. TOTAL MONTHLY INCOME:$(A)___divided by .3= $(B)____monthly
gross income necessary to afford basic housing.
4. PREMISE: Anyone working 40 hours per week should be able
to get housing and get off of the streets.
5. WORK HOURS: 40 hours/week @ 4.33 weeks/month = 173.33 work
hours/month, 173.33 work hours X 12 months = 2080 hours/year.
6. Total Gross Monthly Income of $(B)_________ X 12 months =
$( C )___________
(C)___________ divided by 2080 Hours/Year = NEW HOURLY WAGE of (D)
$________/hour
EFFICIENCY APARTMENT RENTS AND THE ULW
(DELAWARE)
Below are the figures for
Delaware for the Efficiency Apartment Standard:
| |
A |
B |
C |
D |
| Location |
Efficiency FMR |
Monthly |
Annual |
Hourly |
| Delaware |
$596 |
$1986.67 |
$23,840 |
$11.45 |
| Kent |
$511 |
$1703.33 |
$20,440 |
$9.83 |
| New Castle |
$643 |
$2143.33 |
$25,720 |
$12.37 |
| Sussex |
$473 |
$1576.67 |
$18,920 |
$9.10 |
THE UNIVERSAL LIVING WAGE AND HOMELESSNESS IN
DELAWARE
While housing supply is a major continuing factor in homelessness in
Delaware, the Universal Living Wage sets a standard of decency by
indexing the minimum wages
to the changing rental housing market in Delaware.
A person working 40 hours a week and spending now more than 30% of
her or his income on rent, should at the very least be able to afford
the rent on an efficiency apartment in some part of the state.
Currently, the FMR for an efficiency apartment in Delaware is $596.
This requires 74 hours per week of work at the state minimum wage.
The
efficiency apartment ULW for Delaware currently ranges from $9.10 in
Sussex County to $12.37 in New Castle County, with the average for the
state being $11.45. Even if the minimum wage were pegged to the lowest
(efficiency apartment) housing wage in the state, that of Sussex County,
it would rise from $6.15 to $9.10.
DELAWARE ENDORSERS OF THE ULW
- Better Homes of Seaford, Inc. (Seaford, DE)
- Delaware Housing Coalition
- Delaware Statewide Association. of Tenants (Smyrna, DE)
- Green Party of Delaware (Newark, DE)
- IBEW Local 1238 (Wilmington, DE)
- The Shepard Place (Dover, DE)
- Saint Paul Church (Wilmington, DE)
THE UNIVERSAL LIVING WAGE RESOLUTION
Whereas, according to the last two Conference of Mayors reports,
the federal minimum wage is insufficient to afford anyone housing in any
major city in America, and
Whereas, there are 10.1 million minimum wage workers in the United
States, and
Whereas, The 2000 Conference of Mayors Report described the minimum
wage as the most significant contributing factor of homelessness today
and,
Whereas, there are 2 million homeless citizens in this country, and
Whereas, homeless, minimum wage workers have (for no other reason than
because they are homeless), become the specific targets of hate crimes,
and
Whereas, their ability to work themselves off the streets of America
would remove them as targets of these hate crimes, and
Whereas, there is no single minimum wage dollar amount that can
simultaneously satisfy the need to house minimum wage workers in some
cities while not damaging small businesses in other cities, and
Whereas, a Universal Living Wage Formula has been crafted by House The
Homeless, Inc. of Austin, Texas, which is related to the local cost of
housing throughout the United States and ensures that any forty hour a
week, minimum wage worker, can afford housing, and
Whereas, the Universal Living Wage Formula as devised by House the
Homeless, Inc. can end homelessness for fully one-third of America’s
homeless citizens and prevent homelessness for all minimum wage workers,
therefore,
Be It Resolved, that [ ORGANIZATION NAME ], located in the city
of [ CITY NAME ] and the state of Delaware hereby endorses and
fully supports the adjustment of the federal minimum wage with the
Universal Living Wage Formula which ensures that a 40 hour a week,
minimum wage worker, can afford at least an efficiency apartment
anywhere in the United of States while not spending more than 30% of
their income on housing. Furthermore, be it resolved that [
ORGANIZATION NAME ] strongly recommends a similar endorsement by
their national organization.
Organization contact person: [ CONTACT NAME ]
telephone #: [ CONTACT NUMBER ]
e-mail: [ CONTACT E MAIL ]
from Universal Living Wage
PO Box 2312, Austin, TX 78768. All rights reserved.
www.universallivingwage.org
© copyright 2001