Page 14 - Housing & Poverty In Malta With A Focus On The Southern Harbour Region

1,100 persons were residing in institutional facilities and would have liked to have their
own home.

Furthermore, the deterioration in the social fabric and the ever-growing drug abuse
problem both point to an inflating homelessness problem.

It was found that, of the 3,309 housing applicants in the year 2000, 2,815 had a yearly
income of less than 4,000, whereas 494 had a yearly income exceeding the same cipher.
Moreover, of the 2,815 whose income is below LM 4,000 per annum, 300 are single
persons and 700 are single persons with children.

According to Camilleri (2000), another alternative to using the poverty line benchmark is
to gauge the extent of family expenditure excluding rent and mortgage payments, which
system is similar to the one advocated in this paper earlier on. The difference between
household income and this sum is equal to the need for subsidy for that particular
household. Tabone (1995) found such an expenditure to be LM 200 per month for a 4/5
person family. By this measure, the number of households needing assistance would rise
well above that indicated by the poverty line yardstick. In this regard, roughly 25 to 30
percent of income above family expenditure should suffice to make housing affordable.
Subjection to social hardships (e.g. medical conditions) does not justify the meting out of
a household subsidy, but a specific subsidy tackling the exact nature of the problem if the
solution is to be both fair and equitable.

Camilleri also voices a concern that social housing schemes might not be reaching the
target population.

He suggests a modified valuation model distinguishing between real and capricious
affordability problems. To this end, he turns to the Housing Affordability Index (HAI). A
HAI of 100 means that the median family earning the median income just qualifies for the
median residence. When the HAI drops below 100, it means that the median family
earning the median income has to do away with other necessities in order to support
housing.

HAI For: Stood at: In (Year):
3-bedroom median apartment 77 1982
3-bedroom median apartment 65 1997
2-bedroom median apartment 110 1982
2-bedroom median apartment 101 1997

What is more, the international standard for affordable housing, this being 3.5 times the
median income is then determined. In Malta, the affordability benchmark was roughly
LM 18,000. Additionally, the average accommodation size is then measured, this being
roughly 110 metres squared, which is relatively high by international standards. And
thereafter a benchmark for a 100 metres squared of affordable property is established,

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