Housing Initiatives of Princeton (HIP)

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FAQ

What is transitional housing?

Transitional housing is temporary housing for an individual or family who is homeless or facing imminent homelessness.

What is affordable housing?

A rental or owned unit is considered affordable if it costs no more than 30% of the household income. For renters that include rent & utilities; for owners that includes mortgage, taxes, insurance, and condominium fees where applicable.

What is the HIP model?

• A focus on very low and low-income working individuals and families in our community.
• Housing is provided for an intermediate length of time (i.e. 12-24 months).
• Housing is coupled with supportive services (i.e. case manager, budgeting, skills upgrade, etc).
• Assists in locating permanent affordable housing, and will help with the first month’s rent and security deposit if needed.

What does it take financially to live in Princeton or Mercer County?

• In Mercer County the Fair Market Rent (FMR) for a two-bedroom apartment is $1,152.*
• Within Princeton, the average rent for a two-bedroom apartment jumps to $1,761.**
• In order to afford this rent without paying more than 30% of income, a household must earn $46,100. annually in Mercer County or $70,481. annually in Princeton.

What can a minimum wage worker afford?

• In NJ a minimum wage worker earns $7.25 hourly.
• In order to afford the FMR for a two-bedroom apartment in Mercer County, one minimum wage worker would have to work 122 hours per week, 52 weeks per year!
• It would take three minimum wage workers sharing the two-bedroom apartment, each working 40 hours per week, 52 weeks per year, for the apartment to be affordable!

How difficult is it for HIP clients to afford to live in Princeton or surrounding towns where they work and/or children attend school?

• HIP clients have included local retail, restaurant, office, health care and educational support workers who had managed to live in Princeton or surrounding towns until a life event such as a divorce, illness, or job loss caused them to fall behind in their rent.
• At the point they faced homelessness, these workers had found it impossible to stretch their income to cover housing, food, medication, school supplies, transportation and other life necessities.

Where do families go after Prescott House?

• One became a homeowner utilizing an employee assistance program at their work and by implementing recommendations on budgeting from a HIP board member.
• Several have moved to a permanent affordable apartment with the assistance of HomeFront.
• The average length of stay at Prescott House has been twenty-one months. Finding a permanent affordable unit is a major challenge for our clients. The waiting lists for affordable units in Princeton and neighboring towns can be several years long.

What is the outlook for the future?

Transitional housing bridges a critical gap between homelessness and affordable housing. However, it is a respite only. Long term solutions must include an increase in the number of affordable and low-income housing units, and low wage workers must be paid a “living wage”.

*source: Policy Development and Research (a Housing & Urban Development program)

**source: www.MyApartmentMap.com