"The disappearance of naturally occurring affordable housing (NOAH) remains a persistent problem in high-cost metropolitan areas of the United States. The term NOAH refers to existing Class B and C housing built prior to the 1990s, which is generally affordable for middle- and low-income households. Rents charged for NOAH multifamily units are typically lower than those charged at market-rate units due to their age, condition, outdated design, location, and, in some cities, rent control laws. NOAH often serves as 'workforce housing' because it tends to be affordable for middle-income workers who earn between 80% to 100% of Area Median Income (AMI). This segment of the workforce usually includes teachers, accountants, office managers, and nurses who often are unable to afford rents charged at luxury buildings. In addition to subsidized affordable housing, NOAH is a critical piece to meeting the demand for affordable housing in high-cost cities."
[Author of this Policy Brief is UCLA Anderson School of Management MBA alumna Maya Saraf.]
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