Presentation Outline Workforce Housing Coalition of the
Greater Seacoast What is workforce housing?
– Rental– Homeownership
Who needs it? What is available?
– Seacoast region– Eliot
Ways to address affordability Long-term affordability
What Is The Workforce Housing Coalition of the
Greater Seacoast? An alliance of businesses,
government and community groups
A catalyst for the development of a range of housing options for the diverse workforce of the Greater Seacoast Region
What is
Workforce Housing?
A variety of housing options for working households
Incorporates quality design, placement and land use
Examples include…
Workforce Housing: Who needs it?
• Entry-level teachers, firefighters, police officers
• Municipal employees
• Nursing assistants and other medical workers
• Hospitality employees
• Retail employees
Housing is not affordable for many Seacoast employees
Affordability is a function of income Housing should not require more than 30% of
monthly income The lower your income, the harder it is to find
housing that you can afford It’s not just very low income people who feel
the pinch. The shortage of affordable, workforce housing is an increasingly middle class problem
Understanding income lingo
AMI = Area Median Income. HUD publishes annually, based on region
Eliot is located in the Portsmouth-Rochester NH-York ME MSA
MSA includes Eliot, York, Kittery, Berwick, and S. Berwick
AMI = $71,900 (2007)
Workforce Housing: Who needs it?
% of median
60% 80% 100% 120%
1 person HH 30,180 40,250 50,300 60,300
2 person HH 34,500 46,000 57,500 69,000
3 person HH 38,820 51,750 64,700 77,640
4 person HH 43,140 57,500 71,900 86,280
Source: NHHFA
2007 Area Incomes
Portsmouth/Rochester/York MSA
Includes York, Kittery, Eliot, Berwick, and South Berwick
The Affordability ChallengeHousehold
income* % of AMIAffordable Rent &
Utilities**Affordable Sales Price
(PITI)***
$43,140 60% $1,078 $140,000
$57,500 80% $1,437 $191,000
$71,900 100% $1,797 $241,000
$86,280 120% $2,157 $276,000****
Actual rental median of homes for rent in Eliot
$1,319
Actual Median Price – homes sold in Eliot between 5/06-12/06:
$246,419
*Incomes shown for a4 person households.
**Median rent – 2-3 Bedroom, assumes 30% of monthly income for housing including utilities. Source: Seacoastonline.com April 17, 2007.
*** Assumes 30 fixed rate mortgage @ 5.3%, max. of 5% down payment**** Over MSHA income limit, use 6.0% interest rate.
We need more Workforce Housing: rental & homeownership
Workforce Housing targets households between
60-120% AMI Rental housing 60-80% AMI Homeownership 80-120% AMI
Seacoast region (2007)
Homeownership
100%
$71,900
120%
$86,280
80%
$57,500
60%
$43,140
Rental
WORKFORCE HOUSING
Example: Eliot family of four seeking to rent a home Income: $43,140 Affordable apartment: $1,078 Median price for a 2-3 bedroom apt. in
Eliot: $1,319 Income needed to afford median priced
apartment: $52,760 At this income, a $1,319 apartment
demands over 36% of monthly income
Example: Eliot family of four seeking to buy a home
Income $57,500 Affordable purchase price: $191,000 Median selling price for a home in Eliot:
$246,419 Income needed to afford a home priced at the
median selling price: $73,000 –27% more than what this family currently earns
Median price of home currently on the market: $393,900 (35 SFHs)
Municipally-Sponsored Solutions
Workforce housing overlay districts Density incentives Smaller lot requirements Accessory apartments Narrower road ways Sidewalk waivers (eliminate one or both sidewalks) Substitute for granite curb or eliminate curb Reduced parking requirements, narrower spaces Clustering to maintain rural feel Community water and sewer systems
Developer-Sponsored Solutions
Use of manufactured/modular housing Use slab vs. full basement Smaller living spaces: 750 – 1,200 sq ft Unfinished 2nd floors in capes Foundation only for future garage (if one
is planned)
Pepperidge Woods, Barrington
44 manufactured/modular homes on 25 acres
Single family homes, all EnergyStar rated systems
Community center and playground Prices range from $164,000-$187,000
Watson Woods, Exeter
20 condominium units Used Exeter’s open space density
bonus ordinance Targets households earning 80 to 120%
of Area Median Income
Norton Street, S. Berwick, ME
20 rental apartments Targets households earning up to 60%
of Area Median Income Helped to revitalize a run down
neighborhood Lead to additional investments by
nearby property owners
15% Density-Bonus (Affordable Housing): for open space developments that guarantee:
20% of the total # of units set aside as affordable – 15% or more of the units – initial sale at a price affordable to
households with income not more than 120% of the AMI– 5% or more of the units - initial sale at a price affordable to
households earning not more than 80% of the AMI
Units sold with deed restrictions and a recorded housing agreement that limit, for a period of 30 years renewable upon sale or transfer, the resale value of the unit to not more than the purchase price plus two times the accumulated consumer price index.
Exeter’s Workforce Housing Ordinance: promoting affordable homeownership
Portsmouth Affordable Housing Ordinance: promoting affordable
apartments, condos or single family homes
Up to a 50% density bonus for inclusion of workforce housing
Targets households earning 120% AMI or less
Resale restrictions used Limited to parcels of at least one acre in
GRB/GRA zones
Kittery Clustered Residential Development Ordinance
Allows minimum lot size of 20,000 square feet in areas without community sewage collection in return for preserving open space and creating recreational areas.
For more information contact:For more information contact:Diane HartleyDiane Hartley603-766-3231603-766-3231
Additional data sources:
http://www.keysregion.org/keys_ofbd/topics/.htm
http://www.keysregion.org/publications.htm