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HOUSING STR ATEGYDub o i s Co u n ty
p h o t o c r e d i t : R o s s C h a p i n - Po c k e t N e i g h b o r h o o d s
J U N E 2 0 1 5
TABLE OF CONTENTS
page 4 | REGIONAL COMPETITION
population growth
commuting patterns
commuting populations
new housing construction
housing growth
share of housing
employment growth
share of manufacturing
manufacturing salar y
page 8 | LOCAL HOUSING MARKE T
local housing supply
recent sales trends
new construction
state -wide market
page 12 | LOCAL DEMAND
employment
employee salar ies
employee housing desires
rental affordabil ity
ownership affordabil ity
affordable supply
community as an attractor
employment projections
growth locations
page 18 | HOUSING STRATEGY
*conclusions
employee factor
housing factor
employee projections
key assumptions
community preferences
urban neighborhoods
*Jasper strategy
*Huntingburg strategy
*Ferdinand strategy
pocket neighborhoods
“rural by design”
page 28 | AC TION PLAN
*pilot projec t
project t imeline
par tner roles
sources & uses budget
page 32 | TOOLS & RESOURCES
organizational framework
tools & resources over view
IHCDA programs
employer assisted housing
*tools & resources
*housing tools in ac tion
community/employer loan
conventional loan
neighborhood loan
* indicates key por tions of the document
page 4 | Dubois County Housing Strategy
Dubois County continues to be a leader in the
region repor ting some of the higher growth totals
in employment and housing, but competit ion
from surrounding counties is increasing. While
the County has shown signs of recover y, that
recover y lags behind in several key categories
compared to other “strong” counties. This has
created a more competit ive environment that
makes resident and employee attraction and
retention much harder.
The current economic and demographic dynamic
of the Region shows a mobile employment base
that continues to take advantage of regional job
growth and low unemployment. Employees are
now able to make housing decisions independent
of employment and now base decisions even
more on qual ity of l i fe and housing choices.
Dubois County remains the employment center of
the Region, but increased competit ion within the
Region has affected the County ’s abi l i ty to retain
and attract new residents who now have more
choices than ever for jobs and housing.
REGIONAL COMPE TITIONu n d e r s t a n d i n g
D U B O I S CO.
DAV I E S S CO.
P E R RYCO.
P I K ECO.
WA R R I C K CO.
c h a n g e * c h a n g e c h a n g e c h a n g e c h a n g e
Po p u l a t i o n G r o w t hA n n u a l G r o w t h R a t e 0 . 4 3 % 0 . 9 1 % 0 . 4 3 % - 0 . 2 1 % 0 . 5 7 %
N e t G a i n + 7 2 8 + 1 , 1 5 0 + 3 3 4 - 1 0 7 + 1 , 3 5 7
C o m m u t i n g G r o w t hA n n u a l G r o w t h R a t e 2 . 8 0 % 1 2 . 7 % 6 . 4 0 % 8 . 3 0 % 0 . 6 0 %
N e t G a i n + 3 0 2 + 5 3 8 + 1 5 1 + 1 3 0 + 4 4
H o u s i n g G r o w t hA n n u a l G r o w t h R a t e 0 . 6 6 % 0 . 7 9 % 0 . 3 6 % - 0 . 0 7 % 0 . 7 9 %
N e t G a i n + 4 3 8 + 3 7 5 + 1 4 4 - 2 0 + 6 4 0
E m p l o y m e n t G r o w t hA n n u a l G r o w t h R a t e 0 1 . 3 1 % 1 . 7 8 % 3 . 2 0 % 3 . 0 5 % 1 . 6 8 %
N e t G a i n + 9 4 9 + 4 6 0 + 4 1 6 + 2 1 4 + 6 2 5
* i n d i c a t e s g r o w t h / l o s s b e t w e e n 2 0 1 0 - 2 0 1 3 , e xc e p t c o m m u t i n g d a t a 2 0 1 0 - 2 0 1 1i n d i c a t e s c h a n g e b e t w e e n “p r e - r e c e s s i o n” a n d “p o s t - r e c e s s i o n” c h a n g e
page 5 | Dubois County Housing Strategy
P O P U L AT I O N G R O W T H .
2 0 0 0 P O P U L A T I O N 2 0 1 4 P O P U L A T I O N
D u b o i s C o .
D a v i e s s C o .
P e r r yC o .
P i k e C o .
W a r r i c k C o .
6 0 , 0 0 0
7 . 4 %
1 0 . 0 %
4 . 1 %
- 0 . 8 %
1 6 . 5 %
Population growth in Dubois County slowed
coming out of the recent recession (0.43% annual
rate) , while several counties saw increased
population growth during this same t ime period
- including Daviess (0.91%) and Perr y (0.47%
up from 0.28%) Counties. Dubois County was
one of three other counties that saw population
growth rates s low after the recession. While
Dubois County remains one of the more populous
counties in the region, the rate of growth in
Daviess, Perr y and Warr ick indicate that this may
not be the case long-term.
D u b o i s C o .
D a v i e s s C o .
P e r r yC o .
P i k e C o .
W a r r i c k C o .
1 0 , 0 0 0
- 7 . 2 %
4 7 . 2 %
3 5 . 9 %
2 1 . 9 %
1 0 . 3 %
1 2 , 0 0 0
Because of the concentration of avai lable jobs
in Dubois County, the number of people who
commute into the County for work has remained
the highest in the Region, however the County has
suffered from a gradual decl ine - on average 0.80%
annually. This is in comparison to r is ing commuter
populations in the surrounding counties who have
seen the population grow anywhere from 1.14%
to over 5% annually. The commuter workforce in
Dubois County now accounts for only one -f i f th of
the total workforce compared to one - quar ter in
the ear ly par t of the last decade.2 0 0 2 C O M M U T E R S 2 0 1 1 C O M M U T E R S
The majority of commuters into Dubois County
come from Pike, Spencer and Perr y Counties
- approximately 4,000 out of the 11,000 total
commuters. However, because of the job
concentration and low unemployment rate,
employees commute from across the Southern
Indiana Region extending into Kentucky and I l l inois.
C O M M U T I N G PAT T E R N S .
C O M M U T I N G P O P U L AT I O N .
page 6 | Dubois County Housing Strategy
N E W H O U S I N G C O N S T R U C T I O N .
Overal l the Region showed improved construction
numbers for the f irst t ime since dropping during
the recession. In 2013 Dubois County accounted
for 12% of the regional units added, down from
19% in the previous decade. Daviess and Perr y
showed strong improvements in new construction
- gaining larger shares of the regional growth. A
majority of new construction within the Region
is s ingle -family, with Warr ick County building the
majority of mult i- family units (approximately 150
units) and Dubois County adding about 90 two-
family units in 2013.
D u b o i s C o .
D a v i e s s C o .
P e r r yC o .
P i k e C o .
W a r r i c k C o .
3 , 0 0 0
5 , 0 0 0
2 0 0 0 - 2 0 1 3 N E W U N I T S
2 0 0 0 - 2 0 1 3 N E W S I N G L E F A M I L Y U N I T S
D U B O I S C O .
D A V I E S S C O .
P I K E C O .
W A R R I C K C O .
P E R R Y C O .
O T H E R C O U N T I E S
S H A R E O F H O U S I N G .
O ther than Warr ick County, Dubois County
contains the largest share of housing and even
with slowed growth in new construction has
maintained their share (18%) of housing over
the last decade or more. As new construction
continues in counties l ike Daviess and Warr ick ,
Dubois County may begin to lose that share i f no
action is taken to remedy the issue.
Du
bo
i s C
o.
D a v i e s s C o .
P e r r y C o .
P i k e C o .
Wa
rrick
Co
.
O t h e r C o u n t i e s
2 0 0 0 H O U S I N G U N I T S 2 0 1 4 H O U S I N G U N I T S
Over the last decade and a half, Dubois and
Warr ick County have been leading the way
in housing growth. The recent recession has
changed growth patterns and now Daviess and
Warr ick County are growing at a nearly 1% annual
rate (Daviess pre -recession rate was 0.48%),
compared to Dubois County at 0.68% (previously
1.21% annually) . Dubois County continues to
grow its housing stock - with an approximate net
gain of 461 units between 2010 and 2014.D u b o i s C o .
D a v i e s s C o .
P e r r yC o .
P i k e C o .
W a r r i c k C o .
2 0 , 0 0 0
1 5 . 0 %
8 . 1 %
4 . 8 %
1 . 9 %
2 1 . 5 %2 5 , 0 0 0
H O U S I N G G R O W T H .
page 7 | Dubois County Housing Strategy
E M P L O Y M E N T G R O W T H .2 0 0 1 J O B T O T A L 2 0 1 3 J O B T O T A L
3 0 %
D u b o i s C o .
D a v i e s s C o .
P e r r yC o .
P i k e C o .
W a r r i c k C o .
4 0 %- 6 . 8 %
9 . 8 %
1 0 . 6 %
7 . 8 %
1 4 . 4 %
Dubois County remains the economic stronghold
of the Region, but has s lowly been losing its
employment edge. Since 2001, Dubois County
has lost nearly 7% of their employment. While
the County has suffered a net loss in employment
over the last decade and a half, post-recession
growth has al lowed them to remain strong within
the larger Region. Since 2010, Dubois County has
added nearly 1,000 jobs - more than any other
county in the Region, but they have not reached
pre -recession levels.
S H A R E O F M A N U FA C T U R I N G .
Dubois County ’s s lowed employment growth has
al lowed other counties to grow their share of
the Region’s employment - but the County has
been able to retain their share of manufacturing
employment within the larger Region,
approximately 30%. Perr y County is showing
signs of manufacturing growth - growing their job
numbers by 32% between 2001 and 2013. Perr y
County now accounts for 10% of the Region’s
manufacturing jobs, up from just 6% in 2001.
20
13
20
01
2 0 1 3 A V G . S A L A R Y
D u b o i s C o .
D a v i e s s C o .
P e r r yC o .
P i k e C o .
W a r r i c k C o .
$ 5 0 , 0 0 0
$ 7 0 , 0 0 0 M A N U FA C T U R I N G S A L A R Y.
The average annual pay for Dubois County
($41,078) is below the regional average ($45,957)
and well below some of the counties (Perr y, Pike
and Warr ick) that are competing with Dubois
County for employees. This adds to the diff iculty
of attracting and retaining production-level
employees at Dubois County businesses.
D U B O I S C O . D A V I E S S C O .
P I K E C O . W A R R I C K C O .
P E R R Y C O .
O T H E R C O U N T I E S
Du
bo
is C
o.
Da
vie
ss
Co
.
Pe
rry
Co
.
Pik
e C
o.
Wa
rric
k C
o.
Oth
er
Co
.
Du
bo
is C
o.
Da
vie
ss
Co
.
Pe
rry
Co
.
Pik
e C
o.
Wa
rric
k C
o.
Oth
er
Co
.
page 8 | Dubois County Housing Strategy
The housing supply in Dubois County is
dominated by single -family homes built over the
last 30-40 years. Predominately these homes are
owner- occupied and valued between $100,000 to
$250,000. The avai labi l i ty of alternative housing
options is l imited and more affordable options
are often older and of lesser qual ity than most
households would desire.
The recent recession affected housing markets
across the entire US and Dubois County cer tainly
felt i ts affects. The local housing market is in
a recover y mode, increasing sales activity and
home values over the last few years. The vast
majority of those transactions have occurred in
Jasper ; addit ional ly most new construction has
taken place in Jasper as well . New construction
has continued to increase coming out of the
recession, however the rate at which new homes
are built has s ignif icantly decl ined. Higher
pr iced homes are recovering much quicker, with
construction of new more “affordable” units st i l l
struggling to take hold in the current market
dynamic.
LOC AL HOUSING MARKE Td e f i n i n g t h e
S F = S I N G L E - F A M I L Y D E T A C H E D
D U B O I S CO.
C I T Y O F J A S P E R
C I T Y O F H U N T I N G B U R G
TO W N O F F E R D I N A N D
o w n e r - o cc o w n e r - o cc o w n e r - o cc o w n e r - o cc
H o u s e h o l d ( H H ) P r o f i l eA g e o f H H 4 5 - 5 4 4 5 - 5 4 3 5 - 5 4 2 5 - 5 4
Fa m i l y / N o n - Fa m i l y H H 7 7 % / 2 3 % 7 3 % / 2 7 % 7 6 % / 2 4 % 7 3 % / 2 7 %
Av e r a g e H H S i z e 2 . 6 7 2 . 5 3 2 . 7 5 2 . 7 5
M e d i a n H H I n c o m e $ 6 2 , 2 7 4 $ 5 9 , 5 1 0 $ 6 2 , 5 0 0 $ 6 0 , 5 4 7
Ye a r H H M o v e d t o U n i t 1 9 9 5 1 9 9 8 1 9 9 6 1 9 9 5
H o u s i n g P r o f i l ePr o d u c t Ty p e S F S F S F S F
N u m b e r o f B e d r o o m s 3 3 3 3
% O n e - B e d r o o m 2 1 % 2 4 % 2 0 % 2 5 %
% Tw o - B e d r o o m s 3 9 % 4 0 % 3 8 % 4 0 %
M e d i a n Ye a r B u i l t 1 9 7 7 1 9 7 4 1 9 5 9 1 9 6 8
Va c a n c y R a t e 1 . 9 % 2 . 8 % 6 . 3 % 2 . 1 %
s o u r c e : U n i t e d S t a t e s C e n s u s a n d D C I a n a l y s i s - d a t a r e p r e s e n t s a v e r a g e s a n d m o s t c o m m o n o c c u r a n c e si n d i c a t e s c o m p a r i s o n t o D u b o i s C o u n t y s t a t
page 9 | Dubois County Housing Strategy
s o u r c e : U n i t e d S t a t e s C e n s u s a n d D C I a n a l y s i s - d a t a r e p r e s e n t s a v e r a g e s a n d m o s t c o m m o n o c c u r a n c e s
D U B O I S CO.
C I T Y O F J A S P E R
C I T Y O F H U N T I N G B U R G
TO W N O F F E R D I N A N D
r e n t a l - o cc r e n t a l - o cc r e n t a l - o cc r e n t a l - o cc
H o u s e h o l d ( H H ) P r o f i l eA g e o f H H 2 5 - 3 4 2 5 - 3 4 2 5 - 3 4 6 0 +
Fa m i l y / N o n - Fa m i l y H H 5 4 % / 4 6 % 4 6 % / 5 4 % 6 2 % / 3 8 % 3 3 % / 6 8 %
Av e r a g e H H S i z e 2 . 3 2 2 . 1 2 2 . 8 3 1 . 6 1
M e d i a n H H I n c o m e $ 3 1 , 9 1 4 $ 3 4 , 5 3 1 $ 2 4 , 7 9 2 $ 3 1 , 5 0 0
Ye a r H H M o v e d t o U n i t 2 0 0 8 2 0 1 0 2 0 0 7 2 0 0 5
H o u s i n g P r o f i l ePr o d u c t Ty p e S F S F / D S F / M F S F / D
N u m b e r o f B e d r o o m s 2 2 2 . 5 1 . 5
% O n e - B e d r o o m 4 1 % 4 7 % 3 3 % 6 6 %
% Tw o - B e d r o o m s 2 5 % 2 1 % 1 6 % 1 8 %
M e d i a n Ye a r B u i l t 1 9 8 0 1 9 8 7 1 9 7 0 1 9 7 0
Va c a n c y R a t e 1 0 . 5 % 1 2 . 7 % 1 4 . 2 % 0 %
S F = S I N G L E - F A M I L Y D E T A C H E D D = S I N G L E - F A M I L Y A T T A C H E D / D U P L E X M F = S M A L L M U L T I - F A M I L Y
L O C A L H O U S I N G S U P P LY.
Within Dubois County there are approximately
18,000 housing units - 44% of those units are
located outside of the three major municipal it ies.
Jasper contains the largest share of housing and
with an annual growth rate of 1.06% it wil l l ikely
remain that way. This might be attr ibuted to the
fact that Huntingburg is home to just 14% of the
County ’s units and has a much slower growth
rate - 0 .26% annually. Addit ional ly, over the last
decade Ferdinand’s housing supply has grown by
0.95% annually, but with only 4% of the County ’s
housing that does not translate to a s ignficant
number of new units.2 0 1 3 H O U S I N G U N I T S
D u b o i s C o .
C i t y o f J a s p e r
C i t y o f H u n t i n g b u r g
T o w n o f F e r d i n a n d
2 , 0 0 0
6 , 0 0 0
1 0 , 0 0 0
2 0 1 3 S I N G L E - F A M I L Y U N I T S
i n d i c a t e s c o m p a r i s o n t o D u b o i s C o u n t y s t a t
page 10 | Dubois County Housing Strategy
Dubois County, l ike most of the US, saw home
values dramatical ly decl ine beginning in late 2007
and bottoming out in 2009. Since then, values
have improved with 2013 -2014 sales indicating
a recovering market. The submarkets ( Jasper,
Huntingburg and Ferdinand) fol low similar sales
trends with the exception of Huntingburg - where
homes values faired sl ightly better during the
recession, but have f luctuated greatly s ince then.
Year to year, sales trends ref lect a healthy market
with a ver y s imilar number of sales each year.
R E C E N T S A L E S T R E N D S .
2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4
$ 1 2 4 , 0 0 0
$ 1 2 8 , 0 0 0
R E C E S S I O N Y E A R S A V E R A G E S A L E S P R I C E
D U B O I S CO.
C I T Y O F J A S P E R
C I T Y O F H U N T I N G B U R G
TO W N O F F E R D I N A N D
To t a l N u m b e r o f S a l e s 3 6 6 2 4 9 5 6 1 6
M e d i a n S a l e s Pr i c e $ 1 2 6 , 7 5 0 $ 1 3 9 , 0 0 0 $ 7 6 , 0 0 0 $ 1 4 4 , 5 0 0
Av e r a g e # o f B e d r o o m s 3 . 1 3 . 2 2 . 9 3 . 1
Av e r a g e S q u a r e Fo o t a g e 1 , 7 2 3 1 , 7 6 3 1 , 6 1 6 1 , 7 0 4
D a y s o n M a r e k e t 1 0 7 1 0 6 1 1 9 6 9
* s o u r c e : M u l t i p l e L i s t i n g S e r v i c e ( M L S ) r e c e n t s a l e s d a t a t r a n s a c t i o n s p r o v i d e d b y l o c a l R E A LTO R
2 0 1 2 2 0 1 3 2 0 1 4
C L O S E D S A L E S P E R Y E A R
1 0 0 , 0 0 0
7 5 , 0 0 0
s o u r c e : M o n t h l y I n d i c a t o r s p r o v i d e d b y t h e I n d i a n a A s s o c i a t i o n o f R E A LTO R S - D e c e m b e r 2 0 1 4
2 0 1 2 2 0 1 3 2 0 1 4
A V E R A G E L I S T P R I C E
A V E R A G E S A L E S P R I C E
i n d i c a t e s c o m p a r i s o n t o D u b o i s C o u n t y s t a t
page 11 | Dubois County Housing Strategy
Indiana has experienced a s ignif icant
improvement in the residential real estate
market s ince the 2008/09 recession. However,
the number of sales in 2014 fel l shor t of 2013
by -1.6%. Median sales pr ices did increase
over 2014 to end the year at $126,000 a 5.2%
increase from December of 2013. Year after
year, the percentage of the or iginal l ist pr ice
received continues to improve. With a good
outlook for job growth projected in 2015,
the real estate market in Indiana should see
overal l improvements.
STATE-WIDE MARKE Tl e a r n m o r e
The construction cost per unit in Dubois County
has continued to cl imb post-recession, only
s l ightly dropping during the height of the cr is is
in 2008. The average construction cost in 2013
was $293,305, compared to just under $140,000 in
2000 and $186,587 going into the recession. While
the recession had l i tt le effect on the average
construction cost, the number of units bui lt
greatly decreased across the entire County. One
factor may be reduced construction of lower cost
homes, l ikely t ied to a changing housing market
and effects of the recent recession.
N E W C O N S T R U C T I O N .
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$ 2 0 0 , 0 0 0
$ 2 5 0 , 0 0 0
R E C E S S I O N Y E A R S A V E R A G E C O N S T R U C T I O N C O S T
* s o u r c e : U S C e n s u s - C e n S t a t s B u i l d i n g Pe r m i t s , n u m b e r s r e p r e s e n t a v e r a g e n u m b e r o f b u i l d i n g p e r m i t s p e r y e a r
D U B O I S CO.
C I T Y O F J A S P E R
C I T Y O F H U N T I N G B U R G
TO W N O F F E R D I N A N D
c h a n g e c h a n g e c h a n g e c h a n g e
A n n u a l C o n s t r u c t i o n R a t e Pr e - R e c e s s i o n ( 2 0 0 0 - 2 0 1 0 ) * 1 3 5 6 3 1 6 5
Po s t - R e c e s s i o n ( 2 0 1 0 - 2 0 1 3 ) * 3 4 2 8 2 4
2 0 1 2 2 0 1 3 2 0 1 4
M E D I A N S A L E S P R I C E P E R Y E A R
$ 1 2 5 , 0 0 0
+ 3 . 4 % + 3 . 3 %
i n d i c a t e s c o m p a r i s o n t o D u b o i s C o u n t y s t a t
page 12 | Dubois County Housing Strategy
The job market saw a drop in total employment
during the recession, but quick ly picked back
up, but has yet to reach pre -recession highs.
Unemployment, l ike employment, is improving as
Dubois County transit ions through its economic
recover y. Through conversations with employers,
many are struggling with employee recruitment
and retention - c it ing recruitment as their number
one chal lenge. Low unemployment rates and
growth in the surrounding counties continues
to affect the effor ts of Dubois County ’s largest
employers.
Even with the challenges they face, many of the
major employers are projec ting growth over
the next 3 to 5 years - with some estimates as
high as 1,500 new jobs over the next 5 years. The
majority of those jobs wil l l ikely be production-
type jobs with an average star t ing wage of $12.20
per hour, somewhat below the regional average.
Regional competit ion adds to the diff iculty of
attracting and retaining qual ity employees,
who often take advantage of the area’s high
concentration of jobs, var ying wages between
employers, thereby creating a c ycle of employee
trading and low tenure which al l adds to the cost
of doing business.
The projected growth is l ikely to attract low- to
middle -income residents seek ing affordable
housing options near centers of employment.
The avai labi l i ty of these homes is not the issue -
58% of the County ’s homes are “affordable” - but
product type, age, qual ity and location become
increasingly impor tant factors when look ing at
attracting a workforce to Dubois County.
LOC AL DEMANDe x am i n i n g
A L L R E S P O N D E N TS
P R O D U C T I O N R E S P O N D E N TS
ave ra g e * ave ra g e
D e m o g r a p h i c P r o f i l e% M a l e / Fe m a l e 5 0 % / 5 0 % 5 3 % / 4 7 %
Av e r a g e A g e ( i n y e a r s ) 3 5 - 4 4 4 5 - 5 4
% H i g h S c h o o l O n l y / C o l l e g e D e g r e e 3 0 % / 4 6 % 6 0 % / 1 3 %
% M g m t . / Pr o f e s s i o n a l / Pr o d u c t i o n 2 2 % / 3 6 % / 3 1 % n / a
T i m e i n C u r r e n t J o b ( i n y e a r s ) 5 - 1 0 1 - 2
H o u s e h o l d ( H H ) I n c o m e $ 4 5 , 0 0 0 - $ 6 5 , 0 0 0 $ 2 5 , 0 0 0 - $ 4 5 , 0 0 0
O n e - Wa y C o m m u t e ( i n m i n u t e s ) 1 0 - 2 0 1 0 - 2 0
* i n f o r m a t i o n d e r i v e d f r o m D C I s u r v e y o f t o p D u b o i s C o u n t y e m p l o y e r s ( Fe b r u a r y 2 3 - M a r c h 3 , 2 0 1 5 )
i n d i c a t e s c o m p a r i s o n t o “A l l R e s p o n d e n t s”
page 13 | Dubois County Housing Strategy
P r o f e s s i o n a l
P r o d u c t i o n
E M P L O Y E E S A L A R I E S .
Regionally, Dubois County ’s average
manufacturing wage ($41,078) is below the
regional average ($45,957) and signif icantly
below several of the County ’s peers - Perr y County
($51,338) and Warr ick County ($65,681) . The
hourly wages provided by several large area
employers indicate that an average entr y level
production worker would earn approximately
$25,000 a year (based on 40 hour work week) and
a senior level employee would earn $36,000 - both
well under the County ’s average. Professional
staff earn sl ightly more and are l ikely some of the
reason for the higher County salar y average.
E M P L O Y M E N T.
A majority of the top employers’ workforce is
made up of production level employees - 85%
on average. Accounting for 64% of the County ’s
jobs, over 14,000 workers are employed at the 16
companies who par ticipated - 12,000 of which
are production level employees. Jasper contains
the largest concentration of jobs - 67%, whereas
Huntingburg (19%) and Ferdinand (12%) have
smaller, yet st i l l s ignif icant job clusters.
P R O D U C T I O N E M P L O Y E E S P R O F E S S I O N A L E M P L O Y E E S
A V E R A G E H O U R L Y R A T E
E n t r y L e v e l P r o d u c t i o n
E n t r y L e v e l P r o f e s s i o n a l
S e n i o r L e v e l P r o d u c t i o n
$ 1 4 . 0 0
$ 1 8 . 0 0
J a s p e r
H u n t i n g b u r g
F e r d i n a n d
M U N I C I P A L I T Y B O U N D A R I E S
M A J O R E M P L O Y M E N T L O C A T I O N
page 14 | Dubois County Housing Strategy
* i n f o r m a t i o n d e r i v e d f r o m D C I s u r v e y o f t o p D u b o i s C o u n t y e m p l o y e r s ( Fe b r u a r y 2 3 - M a r c h 3 , 2 0 1 5 )
E M P L O Y E E H O U S I N G D E S I R E S .
Overal l , housing desires by the employees who
completed the sur vey were reasonable and closely
matched their exist ing housing choices. People
were more l ikely to choose a s ingle -family detached
unit and rural sett ing. Only 34% of the respondents
indicated they were l ikely to move in the future - of
those that did, only 38% had plans to move in the
next 5 years. When mak ing future housing decisions,
cost was given the most weight fol lowed by proximity
to work - this presents some oppor tunity to direct
those employees to modestly pr iced homes near
exist ing job clusters. The char t to the r ight shows
the breakdown of responses to the question “ I f your
average commute is longer than 20 minutes, what
was the pr imar y reason for your housing choice?”
Over whelmingly the choice was proximity to family
and fr iends, fol lowed by high housing cost and lack
of options near their current job.
A L L R E S P O N D E N TS
P R O D U C T I O N R E S P O N D E N TS
A L L R E S P O N D E N TS
ex i s t i n g ex i s t i n g d e s i r e d *
H o u s i n g P r o f i l e% R u r a l S e t t i n g 4 3 % 5 1 % 6 4 %
% S u b u r b a n S e t t i n g 2 0 % 1 4 % 1 2 %
% C i t y S e t t i n g 3 7 % 3 4 % 2 4 %
% O w n 8 1 % 7 1 % 8 7 %
% R e n t 1 9 % 2 9 % 1 3 %
H o u s i n g Te n u r e ( i n y e a r s ) 5 - 1 0 5 - 1 0 n / a
% Single -Family Detached / Attached 8 7 % / 8 % 8 1 % / 1 1 % 8 9 % / 1 6 %
% M u l t i - Fa m i l y 5 % 8 % 4 %
# B e d r o o m s 3 3 3
M o n t h l y H o u s i n g C o s t $ 5 0 1 - $ 7 5 0 $ 2 5 0 - $ 5 0 0 $ 5 0 1 - $ 7 5 0
E s t i m a t e d H o m e Va l u e $125,000 - $150,000 $100,000 - $125,000 $100,000 - $150,000
% H o m e Va l u e < $ 1 5 0 , 0 0 0 5 2 % 8 2 % 5 1 %
P R O X I M I T Y T O F A M I L Y / F R I E N D S
H O U S I N G C O S T T O O H I G H N E A R J O B
P R O X I M I T Y T O S P O U S E S J O B
R E C E N T L Y C H A N G E D J O B S
N O D E S I R A B L E O P T I O N S N E A R J O B
P R O X I M I T Y T O C H I L D ’ S S C H O O L
P r o x i mi t y t o
F a mi l y / F r i e n d s
Ho
us
i ng
Co
st
To
o H
i gh
N o D e s i r a b l e H o u s i n g
O p t i o n s N e a r My J o b
P r o x i m i t y T o
S p o u s e ’ s J o b
R e c e n t l y
C h a n g e d J o b s
P r ox i m
i t y T o
Ch
i l d’ s S c h
oo
l
page 15 | Dubois County Housing Strategy
R E N TA L A F F O R D A B I L I T Y.
< $ 2 5 0
$ 2 5 1 - $ 4 9 9
$ 7 5 0 - $ 9 9 9
$ 1 , 0 0 0 - $ 1 , 4 9 9
$ 5 0 0 - $ 7 4 9
Av
era
ge
Re
nt
Based on the entr y level production salar y
(est imated at $25,000 annually) an affordable rent
range for a s ingle earner household - one that
does not exceed 30% of total income - would be
$425 - $625. Approximately 60% of the exist ing
rental supply in Dubois County fal ls within or
below that range indicating there is a supply
of “affordable” units. However, the location,
avai labi l i ty and qual ity of that unit is unk nown
and may affect a renters decision to rent that unit
over one outside the County.
O W N E R S H I P A F F O R D A B I L I T Y.
The average entr y- level production worker could
afford a $150,000 mor tgage, assuming a 20%
down payment and no other income earners in the
household. This would al low that same household
to afford approximately 58% of the County ’s
housing supply, indicating there is suff ic ient
“affordable” product within the County. The age,
condit ion, location, type/size and avai labi l i ty of
these units is unk nown and may present some
issues for potential homeowners. There are areas
where a high concentration of units exist and areas
where it would be hard to f ind an affordable unit .< 2 5 % 2 5 - 3 4 % 4 5 - 5 0 % > 5 0 %3 5 - 4 4 %
% o f “ A f f o r d a b l e ” U n i t s ( < $ 1 5 0 , 0 0 0 )
A F F O R D A B L E S U P P LY.
< $ 1 5 0 , 0 0 0> $ 1 5 0 , 0 0 0
P R O D U C T I O N E M P L O Y E E S
P R O F E S S I O N A L E M P L O Y E E S
There are several factors that lead to housing
decisions - s ize/type, location, qual ity and age
of the unit . Without an in- depth analysis of the
exist ing supply it is hard to quantify how much
this impacts Dubois County ’s abi l i ty to regionally
compete for housing. While 58% of the County ’s
housing units are below $150,000, a large por tion
of those are l ikely older construction - average
value for a house built between 1950-1959 is
just $99,900. Due to the stabi l i ty of the market,
affordable housing is l ikely to be a long-term issue.
< $
25
0
$2
51
- $
49
9
$5
00
- $
74
9
$7
50
- $
99
9
$1
,00
0 -
$1
,49
9
page 16 | Dubois County Housing Strategy
M A S T E R B R A N D J A S P E R E N G I N E S & E N G I N E S
E M P L O Y M E N T P R O J E C T I O N S .
I f businesses meet their projections, i t is
est imated that there wil l be at least 900 to 1,100
new jobs created by the top 16 employers in
Dubois County, but possibly as many as 1,500.
Their abi l i ty to attract and retain employees has
gotten “somewhat ” to “much harder ” over the last
few years due in par t to low employment rates,
avai labi l i ty of qual i f ied employees and getting
people to move to the area. Init ial growth
is expected to be pr imari ly production level
employees at approximately 9 to 10 businesses.
On average, the growing companies expect to
hire around 50 new employees each year with the
exception of a few f irms who plan to add much
greater numbers i f candidates are avai lable.
2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9
3 5 0
4 5 0
2 5 0
2 0 0 1 J O B T O T A L 2 0 1 3 J O B T O T A L
page 17 | Dubois County Housing Strategy
One of the most impor tant factors to consider in any economic development effor t is
the people who wil l choose to make a decision to l ive or not l ive in your community.
This is especial ly impor tant for places l ike Dubois County, where the unemployment
rate is far below the national average and exist ing businesses identify relocation as
a cr it ical hurdle to growing their business. New studies have shown that investing
in a sense of place, qual ity of l i fe and community init iat ives offer greater returns
than tradit ional economic development incentives. Ball State Universit y ’s Center for
Business and Economic Research c ites four key components that affect a town or city ’s
abi l i ty to attract new, qual i f ied employees - K-8 schools, qual ity of place / l ivabil i ty,
responsive government and health care / healthy options. With plans already in place
to improve their downtowns and shared public spaces, Dubois County must continue
to focus on a hol ist ic, county-wide economic development init iat ive that improves the
area’s sense of place and al lows it to compete regionally for new employees, residents
and businesses.
COMMUNIT Y AS AN AT TR AC TION TOOLl e a r n m o r e
G R O W T H L O C AT I O N S .
Based on exist ing employment information
provided by the employers and their projections
for future growth, i t can be assumed that a
majority of the new job creation wil l be in
Jasper - approximately 1,000 new jobs (70%.)
Ferdinand wil l see the next largest increase in
jobs - approximately 400 (26%) with Huntingburg
capturing only a small por tion (5%) of projected
employment growth - approximately 70 new jobs.
Sh
are
of
Pro
jec
ted
Jo
bs
20
%
40
%
60
%
80
%
J A S P E R H U N T I N G B U R G F E R D I N A N D
page 18 | Dubois County Housing Strategy
There is an obvious shor t-term market
oppor tunity that can be capital ized on to
br ing new or rehabil itated “affordable” housing
options to Dubois County. While growth rates
for traditional housing indicators - population,
housing and employment growth - have been
anemic and less robust than other peer cit ies,
there is sti l l an oppor tunity to implement a
successful housing strategy in a thoughtful,
well- organized manner. A signif icant workforce
housing issue has been identif ied and the current
supply, while affordable, is not easy to identify
and is often scattered, dated and of lower qual ity.
Inventor y is not the issue in Dubois County.
Affordable s ingle -family options exist , but may
require some level of rehabil itat ion or renovation
to satisfy the County ’s potential customer base
- putting the burden on the home -buyer, who
is l ikely unexperienced or uncer tain of what
that entai ls. Addit ional ly there is no direct
connection between housing oppor tunit ies and
job concentrations.
A housing response in Dubois County must not
be just about building homes, but about l inking
oppor tunities to jobs and housing; reinforcing
communities with improved infrastruc ture,
home values and an influx of new residents
as well as suppor ting local employers who are
the economic back bone of the Region so they
are able to continue to do business in Dubois
County.
HOUSING STR ATEGYb u i l d i n g a
C O N C L U S I O N 1 .
Tradit ional market
indicators for
Dubois County
do not ref lect a
s ignif icant increase
in housing demand.
C O N C L U S I O N 2 .
There is l imited
oppor tunity
for s ignif icant
new housing
construction based
on past trends and
current, tradit ional
demand levels.
C O N C L U S I O N 3 .
The age and qual ity
of housing stock
may present an
oppor tunity for
a “replacement ”
housing strategy
within specif ic
neighborhoods.
C O N C L U S I O N 4 .
The current rental
inventor y is
inadequate in both
qual ity and options
within each of the
communities.
page 19 | Dubois County Housing Strategy
C O N C L U S I O N 5 .
The majority
of housing is
“affordable” to
the workforce,
but l imited in
age, qual ity and
location.
C O N C L U S I O N 6 .
Current commuters
are not l ikely to
dr ive s ignif icant
housing demand;
other factors
are inf luencing
their housing
decision besides
employment.
C O N C L U S I O N 7 .
Exist ing
development
standards, cost of
construction and
avai labi l i ty of land
impede and / or
dis incentivize new
workforce housing
construction.
C O N C L U S I O N 8 .
Employer job
growth projections
for the next 5 years
are an impor tant
component that wil l
impact the level of
housing demand in
the near future.
E M P L O Y E E FA C T O R .
The concentration of jobs, approximately
22,000 , within Dubois County is i ts greatest
asset and l ikely to dr ive any future housing
development. With only a l imited number
of employee sur vey responses indicating a
desire to move in the near future, the exist ing
customer base - while a potential customer
pool - is less l ikely to be a future housing
consumer than a new employee - one moving
from outside the Region. Of the exist ing
employees, there is some l ikel ihood that a small
por tion of the commuter population could be
enticed to relocate to Dubois County with high
qual ity, affordable options near employment
centers. But again the 1,000+ projec ted new
employees - 200 new employees a year - are
more l ikely to consume new housing and are
therefore the target market for a Dubois
County Housing Strategy .
H O U S I N G FA C T O R .
The Region’s housing market is growing -
by nearly 40% over the last few years - but
Dubois County is not keeping pace . The
County ’s share of new construction has
decreased from 19% (pre -recession) to just
12% (post-recession) . Addit ional ly, s ince 2010
new construction in Dubois County accounts
for just 13% of the new units added to the
Region . Within Dubois County, Jasper is the
housing driver, building approximately 84%
of the County ’s new units in 2013. However,
a majority of these new homes do not fal l into
what ’s been defined as “affordable” for the
growing workforce in the area. The average
construc tion value in 2013 was in excess of
$260,000 - $110,000 over the recommended
“affordable” pr ice threshold. While Dubois
County, and more specif ical ly Jasper, are
adding to the exist ing housing supply, they are
not providing a produc t that is accessible
to one of their largest consumer markets -
production level manufacturing employees.
page 20 | Dubois County Housing Strategy
f u t u r e e m p l o y e e s
1 0 - 1 5 %
The abil i ty of Dubois County and its communities
to capture new residents is dependent on several
factors - qual ity of housing product, pr ice points,
perceived value, neighborhood amenit ies and
the qual ity of l i fe present in each community.
Addit ional ly, capture rates (percent of the potential
market that can be attracted) wil l var y based on the
target markets as well as the proposed locations
for new housing within Dubois County. Based on
recent trends, sur vey responses and histor ic data it
is l ikely that both exist ing and future employees are
the most l ikely housing driver. To take advantage of
this potential housing customer base, pr imar y job
clusters and the neighborhoods in their immediate
vicinity should be targeted due to their proximity to
employment, community ser vices and amenit ies.
e x i s t i n g e m p l o y e e s
3 - 5 %
E M P L O Y M E N T P R O J E C T I O N S .e s t i m a t e d c a p t u r e r a t e s
g e n e r a l p o p u l a t i o n
0 - 1 %
J A S P E R2 3 1 J o b C l u s t e r
( 5 m i n . d r i ve t i m e D i v i s i o n & U S 2 3 1 )
H U N T I N G B U R G N e a r D ow n t ow n
J o b C l u s t e r( 2 . 5 m i n . d r i ve t i m e 9 t h S t . & C h e s t n u t )
F E R D I N A N DI n d u s t r i a l D r
J o b C l u s t e r( 2 . 5 m i n . d r i ve t i m e
3 r d S t . & S ce n i c H i l l )
# E m p l o y e e s 7 , 0 0 0 + / - 2 , 5 0 0 + / - 2 , 5 0 0 + / -
Pr o j e c t e d N e w J o b s ( i n 5 y e a r s ) 8 0 0 - 1 , 0 0 0 l i m i t e d 3 5 0 - 5 0 0
# H o u s e h o l d s 2 , 1 7 1 6 5 2 4 1 5
# H o u s i n g U n i t s 2 , 3 5 5 7 3 0 4 4 3
Va c a n c y R a t e 8 % 1 1 % 6 %
% O w n e r O c c u p i e d 7 0 % 5 3 % 7 9 %
% Renter Occupied 3 0 % 4 7 % 2 1 %
% R e n t a l i n S i n g l e - Fa m i l y U n i t s 5 0 % 1 3 % 2 %
M e d i a n H o m e Va l u e $ 1 1 9 , 3 0 4 $ 8 1 , 1 9 0 $ 1 2 2 , 9 1 7
M e d i a n R e n t $ 5 0 4 $ 4 9 6 $ 4 6 6
M e d i a n A g e o f H o u s i n g 1 9 7 1 1 9 4 8 1 9 7 6
page 21 | Dubois County Housing Strategy
K E Y A S S U M P T I O N S .
• Inventor y is not the biggest issue - location,
age and condit ion are key concerns.
• Affordable s ingle -family options exist in
Jasper and Huntingburg, but may require
some level of rehab or renovation to satisfy
today ’s customer.
• Ferdinand’s exist ing inventor y of housing is
l imited.
• Currently there are few l ink ages between
job clusters and housing oppor tunit ies.
• Land cost/avai labi l i ty, development
regulations/standards and better defined
“higher end” market act as barr iers to
affordable housing construction.
• Several key housing products are not
apparent in the Dubois County market -
affordable mixed-income, high qual ity mult i-
family product and affordable s ingle -family
housing in high amenity neighborhoods.
Ever y two years, the Urban Land Institute (ULI) completes
a community preference sur vey to gauge trends and
feedback on what Americans want in their community.
This national- level information is helpful as Dubois
County looks to attract new employees and households
from outside the Region. Based on employment
projections, the mil lennial (ages 18-36) population and
their housing and community desires becomes a cr it ical
market segment. They are l ikely to dr ive demand for
more compact, mixed-use developments and general ly
desire communities that are more walk able, bikeable and
diverse. Addit ional ly, 63% of those sur veyed want to
l ive in a community where they do not need to use their
car often. These trends reinforce the need to create new,
diverse housing oppor tunit ies near exist ing job clusters
that integrate community amenit ies and access to local
retai l and ser vices. Understanding and incorporating
these national trends into local community and economic
development policies wil l a l low Dubois County to
compete on a much broader level.
CO M M U N I T Y PREFERENCESl e a r n m o r e
C O M M U N I T Y F E AT U R E S .
want to be in walk able
neighborhoods with s idewalks,
crosswalks and other
pedestr ian-fr iendly features.
50% O F AM E R I C A N S
R U R A L L I V I N G .
desire to l ive in rural / small-
town areas - but st i l l desire
proximity to destinations and
ser vices.
42% O F AM E R I C A N S
D I V E R S I T Y.
repor ted a desire to l ive in
a community with a mix of
ages. Two-thirds prefer to l ive
in a community with a mix of
cultures and backgrounds.
78% O F AM E R I C A N S
s o u r c e : “A m e r i c a i n 2 0 1 5 : A U L I S u r v e y o f V i e w s o n H o u s i n g, Tr a n s p o r t a t i o n , a n d C o m m u n i t y ” - M a y 2 0 1 5
page 22 | Dubois County Housing Strategy
Herron Mor ton Place, a near-Downtown Indianapolis
neighborhood experienced a successful revital ization
by restoring / rehabbing its diverse housing stock
- which includes s ingle -family, duplexes, cour tyard
apar tments and small mult i- family buildings - as
well as integrating well- designed new construction
into the exist ing neighborhood fabric. This two-fold
approach has brought new l i fe to the neighborhood
and created greater density by reducing the number
of empty or underuti l ized lots. The integration
of diverse housing types provides something for
ever yone from large histor ic mansions, new modern
inf i l l homes, and affordable apar tments, condos and
town homes. Pr ices in the neighborhood range from
$140,000 condos just down the street from ful ly
restored homes priced upwards of $1 mil l ion dollars
and ever ything in between.
U R B A N N E I G H B O R H O O D Sc a s e s t u d y
J A S P E R S T R AT E G Y.
g o a l : Ta k e a d v a n t a g e o f J a s p e r ’s D o w n t o w n a n d a d j a c e n t n e i g h b o r h o o d r e v i t a l i z a t i o n e f f o r t s b y e n c o u r a g i n g i n - f i l l a n d n e w h o u s i n g i n v e s t m e n t i n t a r g e t e d a r e a s n e a r t h e “ 2 3 1 J o b C l u s t e r.”
2 2 5 - 3 7 5 u n i t sp o t e n t i a l 5 Y e a r D e m a n d f o r W o r k f o r c e H o u s i n g
The exist ing job base combined with
projected job growth creates a strong
argument for a well- defined, quantif iable
housing market in Jasper. With the average
cost of construction in 2014 at $260,000,
most entr y level employees - the job
categor y projected to grow - cannot afford
what is being constructed. Jasper should
consider focusing much of their effor ts
on a single -family initiative - both new
construc tion (120-230 units) and the
rehabilitation of existing units (30-50
units) to provide a diversity of housing
choices for its growing workforce . Mult i-
family development must also play a role to
ful ly address the gap in workforce housing.
Over the next 1-3 years, Jasper has the
potential to create an additional 50-100
new units of high quality apar tments or
other attached (townhomes, stacked flats,
lof ts, etc.) produc t .
I N D I A N A P O L I S , I N
page 23 | Dubois County Housing Strategy
B a s e N u m b e r.
Ca p t u r e R a t e.
Po t e n t i a l A n n u a l
D e m a n d.
J A S P E R 2 3 1 J o b C l u s t e r M a r k e t Po t e n t i a lE x i s t i n g J o b B a s e * 5 , 0 0 0 3 - 5 % 3 0 - 5 0
E s t i m a t e d A n n u a l J o b G r o w t h * * 7 6 5 1 0 - 1 5 % 1 5 - 2 5
E s t i m a t e d H o u s e h o l d G r o w t h 3 3 0 0 - 1 % 0 - 3
Po t e n t i a l N e w A n n u a l D e m a n d 4 5 - 7 5 u n i t s a n n u a l l y
* a c c o u n t s f o r a p p r ox i m a t e p r o d u c t i o n a n d s e r v i c e j o b s o n l y * * b a s e d o n p r o j e c t e d g r o w t h w i t h i n t h e 2 3 1 J o b C l u s t e r.
S T R AT E G Y 1 .
Focus new housing oppor tunit ies within a 5 minute dr ive of the 231 Job Cluster.
S T R AT E G Y 2 .
Create or reinforce qual ity neighborhoods with strong connection to community
amenit ies, ser vices, and employment oppor tunit ies.
S T R AT E G Y 3 .
Focus on a qual ity mult i- family project that reinforces targeted Downtown areas.
S T R AT E G Y 4 .
Identify s ingle -family blocks in near-Downtown neighborhoods that would
benefit from reinvestment and have rehab and inf i l l oppor tunit ies.
S T R AT E G Y 5 .
Identify a strategical ly located proper ty that would suppor t the development
of 30-50 new workforce homes in a hol ist ic neighborhood sett ing.
page 24 | Dubois County Housing Strategy
With the philosophy of “better rather than bigger,” Danielson
Grove in K irk land, Washington is set within a larger
neighborhood context where each home is constructed on a
pr ivate lot with shared access to park ing and common outdoor
areas. Home prices in this Seattle neighborhood star t in the
Mid-$500,000’s with homes ranging from 1,500-1,700 square
feet. People are wil l ing to pay the higher cost in return for the
community sett ing, amenit ies and dist inct detai ls that make
these homes unique. In some ways these homes are “affordable”
- more tradit ional homes in the area star t at $545,000 and exceed
the multi-mil l ion dollar mark . The compact design al lows for a
higher density development with a more spacious, community-
emphasized designed that encourages social interaction and
value -added amenit ies at a lower cost to the consumer.
P O C K E T N E I G H B O R H O O D Sc a s e s t u d y * S i t e S p e c s.
LOT
1 1 0 x 1 6 0 f t .
0 . 4 a c r e s
U N I T S
8 - 8 4 0 s q . f t .
D E N S I T Y
1 9 . 8 d u / a c r e
PA R K I N G
1 s p a c e / d u
S E T B AC K S
1 0 f t . f r o n t
5 - 6 f t . s i d e / r e a r
B U I L D I N G
2 4 x 3 5 f t .
* s p e c s n o t fo r D a n i e l s o n G rove d u = d we l l i n g u n i t
H U N T I N G B U R G S T R AT E G Y.
g o a l : M o d e r n i z e t h e C i t y ’s h o u s i n g i n v e n t o r y t h r o u g h a c o n c e n t r a t e d r e n o v a t i o n a n d n e w h o u s i n g p r o g r a m a s p a r t o f a l a r g e r e c o n o m i c d e v e l o p m e n t p r o g r a m , i m p r o v e i t s a b i l i t y t o c o m p e t e r e g i o n a l l y f o r r e s i d e n t i a l g r o w t h & r e i n f o r c e r e v i t a l i z a t i o n e f f o r t s .
7 5 - 1 2 5 u n i t sp o t e n t i a l 5 Y e a r D e m a n d f o r W o r k f o r c e H o u s i n g
The projected absorption of workforce housing is based
on the assumption that Huntingburg can capture some
por tion of the projec ted County-wide job growth . There
is some abil i ty to capture a greater share of the market i f
the City can capital ize on its qual ity of l i fe and create the
types of units needed to attract the employee market. A
majority of the shor t-term housing effor ts should focus
on bringing new single -family units onto the market. With
a decent housing stock to star t with, Huntingburg should
focus 50% of i ts effor t (35-70 units) on rehabilitation in
exist ing neighborhoods combined with infrastructure and
other neighborhood amenit ies. New construc tion (35-70
units) a lso presents an oppor tunity, i f the development is
within a well- designed neighborhood contex t located near
amenities, ser vices and employment clusters .
B a s e N u m b e r.
Ca p t u r e R a t e.
Po t e n t i a l A n n u a l
D e m a n d.
H U N T I N G B U R G N e a r D o w n t o w n J o b C l u s t e r M a r k e t Po t e n t i a l
E x i s t i n g J o b B a s e * 2 , 5 0 0 3 - 5 % 1 5 - 2 5
E s t i m a t e d A n n u a l J o b G r o w t h * * 1 , 2 7 5 0 - 1 % 0 - 3
E s t i m a t e d H o u s e h o l d G r o w t h * * * 1 - 2 1 0 - 2 5 % 1 - 2
Po t e n t i a l N e w A n n u a l D e m a n d 1 5 - 2 5 u n i t s a n n u a l l y
page 25 | Dubois County Housing Strategy K I R K L A N D , W A
S T R AT E G Y 1 .
Focus on a compact area near exist ing job clusters and the Downtown area.
S T R AT E G Y 2 .
Reinforce exist ing neighborhoods near job clusters - both emerging / newer
neighborhoods near 12th Street and the histor ic core south of Downtown.
S T R AT E G Y 3 .
Emphasize curb appeal and unique market features that al low the City to
market the community ’s diverse housing options and small town quality of l i fe.
S T R AT E G Y 4 .
Create neighborhoods with a var iety of housing choices that integrates or
physical ly connects to surrounding jobs, ser vices and recreational oppor tunit ies.
S T R AT E G Y 5 .
Evaluate the role of Main and Jackson Streets as potential improved nor th-
south connectors between neighborhoods and the Downtown core.
* a c c o u n t s f o r a p p r ox i m a t e p r o d u c t i o n a n d s e r v i c e j o b s o n l y
* * b a s e d o n p r o j e c t e d g r o w t h o f 1 , 2 7 5 p r o d u c t i o n l e v e l j o b s w i t h i n t h e C o u n t y
* * * b a s e d o n l i m i t e d h o u s e -h o l d f o r m a t i o n t h a t i s p r o -j e c t e d f o r H u n t i n g b u r g
page 26 | Dubois County Housing Strategy
Taken from Rural by D esign - “most residents
also l ive within walk ing distance of typical town
amenit ies, such as schools, shops, churches, and
playgrounds. They often feel a real attachment to
their neighborhood and a definite sense of place
about their street, where they k now many of their
neighbors. When queried about what they l ike about
l iving in a tradit ional town, the same items sur face
t ime and again: they enjoy the var iety, convenience,
and neighborl iness that comes with l iving in such
places.” These features, already evident in many
of Dubois County ’s towns and cit ies, should be the
focal point of redevelopment, revital ization and new
development effor ts. The authentic sense of place /
community and access to tradit ional town amenit ies
is something that can be marketed and promoted to
improve regional competit iveness. Rural by D esign
is a vast col lection of design t ips and guidance,
development standards and relevant best practices
and case studies from around the countr y that are
applicable to Dubois County ’s housing effor ts.
R U R A L BY D E S I G Nc a s e s t u d y
1 0 0 - 1 7 5 u n i t sp o t e n t i a l 5 Y e a r D e m a n d f o r W o r k f o r c e H o u s i n g
As one of the largest concentrations of
jobs and potential job growth, Ferdinand
- if desired - is in a position to grow its
residential population base . There is a
need for addit ional workforce housing, both
for-rent and ownership that is currently
missing from the market. The Town’s
low vacanc y rate and limited supply of
units indicates an abi l i ty to absorb new
housing units i f they were made avai lable.
Addit ional ly, the Town has a locational
advantage over other par ts of Dubois
County due to its access to I -64 which could
translate to an oppor tunity to attrac t
additional regional households . To
increase its residential base, the strategy for
Ferdinand focuses on predominately new
construc tion single -family (75-125 units)
and the modernization / rehabilitation of
existing homes (15-25 units) near Main
Street . With a rental vacanc y at 0% there
is an obvious demand for quality multi-
family units . The Town could l ikely suppor t
between 25-50 new multi-family units over
the next 1-3 years.
F E R D I N A N D S T R AT E G Y.
g o a l : R e i n f o r c e M a i n S t r e e t ( H w y 1 6 2 ) a n d t h e N o r t h Fe r d i n a n d G a t e w a y b y e s t a b l i s h i n g n e w h o u s i n g o p p o r t u n i t i e s t h a t u t i l i z e r e m n a n t a g r i c u l t u r a l l a n d , u n d e r u t i l i z e d i n d u s t r i a l p a r c e l s a n d i n f i l l l o t s i n d e s i g n a t e d t a r g e t a r e a s .
page 27 | Dubois County Housing Strategy
S T R AT E G Y 1 .
Establ ish goals and objectives designed to stabl ize and / or grow the population
and reintroduce Ferdinand as a qual ity option within the larger regional market.
S T R AT E G Y 2 .
Focus the Town’s 5 year housing and redevelopment program at the Nor th
Gateway target area.
S T R AT E G Y 3 .
Reconfigure industr ial and underuti l ized proper ties for future s ingle -family
development.
S T R AT E G Y 4 .
Introduce new housing products along Main Street that create appropriate scale
and attractive design while addressing the need for newer workforce rentals.
B a s e N u m b e r.
Ca p t u r e R a t e.
Po t e n t i a l A n n u a l
D e m a n d.
F E R D I N A N D I n d u s t r i a l D r. J o b C l u s t e r M a r k e t Po t e n t i a l
E x i s t i n g J o b B a s e * 2 , 5 0 0 3 - 5 % 1 5 - 2 5
E s t i m a t e d A n n u a l J o b G r o w t h * * 1 , 2 7 5 1 0 - 1 5 % 6 - 1 0
E s t i m a t e d H o u s e h o l d G r o w t h * * * 0 0 % 2 - 3 * * * *
Po t e n t i a l N e w A n n u a l D e m a n d 2 0 - 3 5 u n i t s a n n u a l l y
* a c c o u n t s f o r a p p r ox i m a t e p r o d u c t i o n a n d s e r v i c e j o b s o n l y * * b a s e d o n p r o j e c t e d g r o w t h o f 1 , 2 7 5 p r o d u c t i o n l e v e l j o b s w i t h i n t h e C o u n t y* * * b a s e d o n l i m i t e d h o u s e h o l d f o r m a t i o n p r o j e c t e d f o r Fe r d i n a n d* * * * t a r g e t e d e f f o r t s t o c h a n g e t r a j e c t o r y o f h o u s e h o l d g r o w t h a n d a t t r a c t r e g i o n a l h o u s e h o l d s
page 28 | Dubois County Housing Strategy
For Dubois County, economic development
is inherently l inked to the major employers’
abil ity to attrac t qualif ied employees and their
families to l ive and work in one of its many
cit ies and towns. A function of that abi l i ty is
the supply of housing, specif ical ly workforce
housing. For Dubois County to offer long-
term suppor t to one of i ts most valuable assets
- i ts high concentration of jobs - they must
adapt their economic development effor ts to
incorporate growing workforce housing options
near exist ing job clusters.
While tradit ional housing indicators are weak ,
employees represent an obvious shor t-term
market oppor tunity for housing development.
Exist ing options at affordable pr ice points are
dated, scattered and often lower qual ity units.
With average new construction values around
$260,000 per unit , local bui lders have primari ly
focused on meeting a higher income market
segment, leaving a gap in the much needed
workforce housing market. In order to br ing
new or renovated housing into the market, i t
must compete pr ice wise with these older, less
expensive options - identifying a need for some
type of inter vention. This inter vention wil l
l ikely come in as a “value -added” component of
a larger housing init iat ive. The response must
be as much about economic vital ity as i t is a
response to a specif ic housing need.
To this point, no one approach or tool wil l solve
Dubois County ’s current housing issues, but a
multi-faceted, organized approach wil l offer
the best results for not only the employers,
but the towns and cit ies, and ultimately the
residents who have already chosen Dubois
County as their home. By integrating economic
and community development, the recommended
approach aims to ser vice many different
constituent groups and improve the County ’s
abi l i ty to attract new residents and investments
in the future.
Independent of what direction is chosen
for future housing init iat ives, the selected
approach should be designed in a manner that
ensures both local community objectives are
met in addit ion to expanding housing options.
The community must define their individual
objectives but should focus on reinforcing
existing neighborhoods, developing new
neighborhoods with a sense of place, attrac ting
developers with the abil ity to provide desired
produc t types with added features at the right
price points and growing job clusters by mak ing
Dubois County a desirable place to l ive.
AC T I O N P L A No u t l i n i n g t h e
page 29 | Dubois County Housing Strategy
P I L O T P R O J E C T.
The goal of the proposed pi lot project is two-fold - define the market oppor tunities of the employee customer base and create local capacity that can transit ion into a long-term
county-wide housing init iat ive.
The housing market, most notably workforce housing, is not well- defined to those outside of Dubois County - but
presents a s ignif icant oppor tunity to those that understand it and k now how to take advantage of i t . Therefore,
investment of any scale has been l imited and does not adequately meet the needs of the exist ing employers and their
employees. There is a need to “prove” the market and help define the oppor tunit ies that exist within Dubois County.
By uti l iz ing a demonstration or pi lot program, the County wil l be able to effectively demonstrate the strength of the
employee market to potential developers, investors, employers and future customers. The project wil l a lso show how
community- or iented amenit ies l ike - mixed-use neighborhoods, open space, mix of product types and qual ity design -
become cr it ical pieces in attracting a regional market to Dubois County.
A pi lot project al lows those involved with local housing init iat ives and development a chance to build capacity
that currently doesn’t exist within any one municipal ity. The need to hire mult iple staffs and engage employers,
developers and customers individual ly is l imited and wil l greatly reduce the t ime commitment of each
implementation par tner. Even more, by par tnering several municipal it ies and organizations, the overal l burden and
potential r isk associated with a new housing program is l imited for the individuals. A pi lot project becomes a way to
“test ” out var ious methods and organizational structures with no long-term commitments or fear of tak ing on more
than any one organization can handle.
3 0 - 5 0 u n i t sp o t e n t i a l s c a l e o f 1 s t j o i n t e f f o r t
d e m o n s t r a t i o n p r o j e c t t o i n c l u d e o w n e r & r e n t e r p r o d u c t i n a l l 3 c o m m u n i t i e s
w h y c o u n ty - w i d e a p p r o a c h? To many
potential investors, employees and residents
Dubois County is viewed as one community.
As a diverse community of 42,000 people with
different l i festyle options for ever yone, Dubois
County competes better than it can as three
smaller communities with l imited options.
This requires cooperation between the cit ies
and towns with the shared goal of economic
prosperity for the entire County.
$ 1 5 0 , 0 0 0t a r g e t e d p r i c e p o i n t f o r o w n e r s h i p
w i t h p r i c e s r a n g i n g f r o m $ 9 0 , 0 0 0 - $ 2 0 0 , 0 0 0
$ 6 7 5 p e r m o n t ht a r g e t e d p r i c e p o i n t f o r r e n t a l u n i t s
w i t h m o n t h l y r a t e s b e t w e e n $ 3 5 0 - $ 1 , 0 0 0
3 : 2r a t i o o f n e w c o n s t r u c t i o n t o
r e h a b , b u t b a s e d o n s p e c i f i c n e e d , a v a i l a b i l i t y o f l a n d a n d p r o d u c t
page 30 | Dubois County Housing Strategy
2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9
K e y Ta s k Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4
D e f i n e G o a l s / O b j e c t i v e s o f D u b o i s C o u n t y H o u s i n g Pr o g r a m
O r g a n i z e Pa r t n e r s & B e g i n O u t r e a c h t o O t h e r Fu n d e r s
I d e n t i f y H o u s i n g Pa r t n e r & D e f i n e R o l e / E x p e c t a t i o n s
E s t a b l i s h H o u s i n g Pr o g r a m Fr a m e w o r k
D e f i n e & I d e n t i f y D e m o n s t r a t i o n / P i l o t Pr o j e c t
Ta r g e t S i t e s f o r A c q u i s i t i o n / L a n d C o n t r o l
Wo r k w i t h Lo c a l B a n k s t o D e v e l o p Fa v o r a b l e Fi n a n c i n g
B e g i n D i s c u s s i o n s w i t h D e v e l o p e r / B u i l d e r
B u i l d M o d e l U n i t s f o r b o t h R e h a b a n d N e w H o u s i n g Pr o d u c t
M a r k e t i n g & O u t r e a c h t o H o m e - B u y e r s
Pr e - S e l l U n i t s t o Q u a l i f i e d H o m e - B u y e r s
O n - g o i n g C o n s t r u c t i o n o f N e w a n d R e n o v a t e d U n i t s
E v a l u a t e O u t c o m e s a n d A d j u s t / E x p a n d t o M e e t D e m a n d
Pr o j e c t e d C o m p l e t i o n o f 5 0 u n i t D e m o n s t r a t i o n Pr o j e c t
P R O J E C T R O L E S .
P R O J E C T T I M E L I N E .
Pa r t n e r s.
K e y Ta s kD e f i n e G o a l s / O b j e c t i v e s o f D u b o i s C o u n t y H o u s i n g Pr o g r a m
O r g a n i z e Pa r t n e r s & B e g i n O u t r e a c h t o O t h e r Fu n d e r s
I d e n t i f y H o u s i n g Pa r t n e r & D e f i n e R o l e / E x p e c t a t i o n s
E s t a b l i s h H o u s i n g Pr o g r a m Fr a m e w o r k
D e f i n e & I d e n t i f y D e m o n s t r a t i o n / P i l o t Pr o j e c t
Ta r g e t S i t e s f o r A c q u i s i t i o n / L a n d C o n t r o l
Wo r k w i t h Lo c a l B a n k s t o D e v e l o p Fa v o r a b l e Fi n a n c i n g
B e g i n D i s c u s s i o n s w i t h D e v e l o p e r / B u i l d e r
B u i l d M o d e l U n i t s f o r b o t h R e h a b a n d N e w H o u s i n g Pr o d u c t
M a r k e t i n g & O u t r e a c h t o H o m e - B u y e r s
Pr e - S e l l U n i t s t o Q u a l i f i e d H o m e - B u y e r s
O n - g o i n g C o n s t r u c t i o n o f N e w a n d R e n o v a t e d U n i t s
E v a l u a t e O u t c o m e s a n d A d j u s t / E x p a n d t o M e e t D e m a n d
Pr o j e c t e d C o m p l e t i o n o f 5 0 u n i t D e m o n s t r a t i o n Pr o j e c t
D E V E L O P E R / B U I L D E R ( D )
P U B L I C S E C T O R ( P )
H O U S I N G P A R T N E R ( H )
O T H E R F U N D E R S ( F )
E M P L O Y E R S ( E )
(E) (P) (H) (F) (D)
*s e e p a g e 3 2 f o r i n f o r m a t i o n o n k e y p l a y e r s
page 31 | Dubois County Housing Strategy
To t a l Co s t .Pe r U n i t
Co s t . *
U s e s .a c q u i s i t i o n 1 $ 4 5 0 , 0 0 0 $ 1 0 , 0 0 0
c o n s t r u c t i o n 2 $ 5 , 4 6 0 , 0 0 0 $ 1 2 1 , 3 3 3
s i t e c o s t s $ 1 1 2 , 5 0 0 $ 2 , 5 0 0
a r c h i t e c t u r e & e n g i n e e r i n g ( A & E ) $ 2 1 8 , 4 0 0 $ 4 , 8 5 3
s o f t c o s t s $ 2 4 0 , 9 0 0 $ 5 , 3 5 3
c o n s t r u c t i o n m a n a g e m e n t $ 1 1 1 , 4 5 0 $ 2 , 4 7 7
f i n a n c i n g $ 3 5 , 0 0 0 $ 7 7 8
r e s e r v e s $ 6 7 , 5 0 0 $ 1 , 5 0 0
To t a l P r o j e c t Co s t $ 6 , 6 9 6 , 7 5 0 $ 1 4 8 , 7 9 4
S O U R C E S & U S E S B U D G E T.
D E V E L O P E R / B U I L D E R ( D )
H O U S I N G P A R T N E R ( H )
O T H E R F U N D E R S ( F )E M P L O Y E R S ( E )
H O M E - B U Y E R S ( B ) P U B L I C S E C T O R ( P )
To t a l Fu n d i n g.Pe r U n i t
Fu n d i n g. *
S o u r c e s .h o m e - b u y e r d o w n p a y m e n t $ 2 0 0 , 8 7 3 $ 4 , 4 6 4
l o c a l i n v e s t m e n t $ 8 0 3 , 4 9 0 $ 1 0 , 0 0 0
o t h e r p u b l i c i n v e s t m e n t $ 3 3 4 , 7 8 8 $ 1 6 , 6 6 7
c o n v e n t i o n a l d e b t $ 5 , 2 9 4 , 8 7 8 $ 1 1 7 , 6 6 4
To t a l P r o j e c t Co s t $ 6 , 6 9 6 , 7 5 0 $ 1 4 8 , 7 9 4
1 a s s u m e s a v e r a g e l a n d c o s t o f $ 3 0 , 0 0 0 p e r a c r e , a v e r a g e h o m e p r i c e o f $ 2 0 , 0 0 0 a n d r e q u i r e s s o m e t o s i g n i f i c a n t r e n o v a t i o n a n d $ 5 , 0 0 0 p e r u n d e v e l o p e d i n f i l l p a r c e l
2 a s s u m e s a v e r a g e n e w c o n s t r u c t i o n c o s t o f $ 9 0 / s q . f t . , r e n o v a t i o n c o s t o f $ 8 5 / s q . f t . a n d a v e r a g e h o m e s i z e o f 1 , 4 0 0 s q . f t .
* a s s u m e s 4 5 n e w o r r e h a b i l i t a t e d u n i t s a s p a r t o f t h e d e m o n s t r a t i o n p r o j e c t - 1 5 r e n o v a t e d u n i t s , 1 5 i n f i l l n e w c o n s t r u c t i o n a n d 1 5 n e w c o n s t r u c t i o n u n i t s i n n e w o r e x p a n d e d n e i g h b o r h o o d
page 32 | Dubois County Housing Strategy
TO O L S & R E S O U R C E Si d e n t i f y i n g
In order to achieve the key objectives of a joint
housing effor t , i t is necessar y to have a complete
“toolk it ” of resources and funding sources
to assist with the task . Tools can be used to
faci l i tate development, reduce f inancial r isk or
increase affordabil ity of units. With each tool
there is a different intended user - developers and
home -buyers - but some may be f lexible enough
for both. The tools provided are intended to
increase employment attraction in the targeted
job cluster areas, develop an economic and
housing development program that benefits
businesses and reinforces core neighborhoods
with addit ional investment and establishes an
effective public-pr ivate par tnership focused on
accomplishing those tasks.
E M P L O Y E R S . P U B L I C S E C T O R .
H O U S I N G PA R T N E R .
H O M E - B U Y E R S . D E V E L O P E R / B U I L D E R . O T H E R F U N D E R S .
The employers are a cr it ical component of identifying and attracting qual i f ied home -
buyers and wil l benefit from improved employee attraction and retention which wil l
faci l i tate their projected expansion plans.
The public sector wil l be pr imari ly responsible for infrastructure improvements, expedited
entit lement processes and pre - development activit ies. They wil l benefit from an improved
and expanded tax base as well as a greater abi l i ty to attract new residents and businesses.
The housing par tner may be an exist ing or newly created nonprofit or for profit entity that par tners with the employers and public sector to lead housing effor ts within Dubois
County. This organization or individual wil l be responsible for organizing and leading the housing init iat ives which may include activit ies such as col laborating with the par tners to meet broader community/ economic development goals, pre - development, marketing and
sales, construction management and transactions with potential home -buyers.
Home -buyers wil l benefit from an improved process
as well as a menu of f inancial resources that make Dubois County a
more desirable location.
Benefits to the builders wil l be both f inancial in
the form of incentives and ease of entit lement as well as identif ication of qual i f ied customers.
Federal, State and private funders wil l br ing resources
that meet their goals of affordabil ity, homeownership
and community/economic development.
D U B O I S CO U N T Y H O U S I N G P R O G R A M O R G A N I Z AT I O N F R A M E W O R K
page 33 | Dubois County Housing Strategy
Us e r. Pr ov i d e r.
To o l s a n d R e s o u r c e s *C o n s t r u c t i o n Fi n a n c i n g
D o w n Pa y m e n t A s s i s t a n c e ( D PA )H o u s i n g C o u n s e l i n g
H o m e - B u y e r I d e n t i f i c a t i o nH o m e O w n e r Ta x C r e d i t s
I n d i v i d u a l D e v e l o p m e n t A c c o u n t ( I D A )I n t e r e s t R a t e B u y - D o w n
L a n d A s s e m b l yL a n d Wr i t e - D o w n
Lo a n G u a r a n t e eS e c o n d M o r t g a g e
Ta x A b a t e m e n tWe a l t h B u i l d i n g
The Indiana Housing and Community Development Authority ( IHCDA)
has a var iety of programs and incentives for both housing developers
and home -buyers, with the goals of creating expanded housing
oppor tunit ies and revital iz ing neighborhoods. Several programs
would be beneficial in assist ing Dubois County grow their supply of
workforce housing. For more information vis it www.in.gov/ihcda.
• Affordable Home - below market interest rates
• My Home Conventional - low, f ixed interest rate
• Next Home - down payment assistance of up to 4%
• Mor tgage Credit Cer t i f icate - 20-25% tax credit on interest
• Development Fund - up to $500,000 loan on el igible activit ies
I H C D A H O U S I N G P R O G R A M Sl e a r n m o r e
* a d d i t i o n a l i n f o r m a t i o n o n e a c h t o o l p r o v i d e d o n t h e f o l l o w i n g p a g e s
H O U S I N G TO O L S & R E S O U R C E S O V E R V I E W
(H) (F) (P) (E)(D) (B)
D E V E L O P E R / B U I L D E R ( D )
H O U S I N G P A R T N E R ( H )
O T H E R F U N D E R S ( F )E M P L O Y E R S ( E )
H O M E - B U Y E R S ( B ) P U B L I C S E C T O R ( P )
page 34 | Dubois County Housing Strategy
TAX
AB
AT
EM
EN
T.
For many home -buyers the most diff icult period in adjusting to the expense of buying a home is in the
f irst few years. Tax abatement al lows a s ignif icant expense to be phased in over a period of t ime. The tax
abatement tool is a direct benefit to the home -buyer and can be used as a pol ic y tool to suppor t local
neighborhood revital ization objectives.
Employer Assisted Housing (EAH) comes in a var iety of forms from programming to
actual development and ownership of residential units. Typical ly i t comes in the form
of a f inancial incentive from the employer to the employee to assist with housing cost -
l ikely in the form of down payment assistance. Cash contr ibutions may be either grants,
loans or some type of matching that al lows employees to purchase housing around
employment centers. O ther EAH programs may involve providing funding for a nonprofit
organization to develop and manage a program, often in col laboration with other area
employers. While employers are providing f inancial incentives it can be a cost effective
means of providing a benefit to the employee. In some industr ies EAH programing costs
less than the cost associated with recruit ing and training new employees and assists
with attraction and stabil i ty of the workforce. Addit ional ly, i t al lows businesses to lead
community revital ization effor ts and build a better qual ity of l i fe for their famil ies as well
as their employees.
s o u r c e : E m p l o y e r - A s s i s t e d H o u s i n g R e s o u r c e G u i d e - G r e a t e r M i n n e s o t a H o u s i n g Fu n d
E M P LOY E R A S S I S T E D H O U S I N Gl e a r n m o r e
SE
CO
ND
MO
RT
GA
GE
.
A Second Mor tgage Program is a form of down payment assistance. I ts purpose is to both make it easier
for a homebuyer to qual i fy for a conventional mor tgage and to assure that the mor tgage payments are
affordable. The second mor tgage is normally offered by a local program sponsor and can be based on
household income and other program objectives. The second mor tgage amount var ies but typical ly fal ls
within 5% to 10% of the home purchase pr ice. The second mor tgage i f in loan form often carr ies more
favorable terms compared to a conventional mor tgage. A loan deferral or termination can occur i f program
condit ions are satisf ied often over a 5-10 year period. There are several potential funding sources to
suppor t a second mor tgage program. I t is not unusual to see Community Development Block Grant (CDBG)
or Home Investment Par tnership (HOME) monies used to fund this type of tool. These federal monies which
are avai lable directly to cit ies and/or the State of Indiana can be used to suppor t the housing needs of low
and moderate income famil ies. In addit ion, an employer assisted housing program can ser ve as a vehicle
for employer contr ibutions to be used for the purpose of providing second mor tgages to home -buyers.
L E A D
E X PA N D E D I N F O R M AT I O N O N H O U S I N G TO O L S & R E S O U R C E S
H O U S I N G P A R T N E R ( H )
P U B L I C S E C T O R ( P )L E A D
page 35 | Dubois County Housing Strategy
DO
WN
PA
YM
EN
T A
SS
ISTA
NC
E.
A down payment assistance program typical ly introduces a “new ” source of outside funds designed to
assist a homebuyer in meeting a mor tgage loan provider ’s down payment requirements while at the
same t ime reducing the mor tgage amount. The down payment assistance can range from a small token
contr ibution to satisfying the total funds needed. Often in those areas where housing prices are inf lated
or not at an affordable level the mor tgage assistance tends to be at the higher end.
There are often several rules or commitments that the home -buyer must agree to in order to be
considered for the assistance. They can include but are not l imited to the fol lowing -
• Must satisfy the programs objectives typical ly t ied to household income and/or geography,
• Must qual i fy for the mor tgage amount required to purchase the home,
• Must personally be able to provide a por tion of the down payment amount (often 3-10%),
• Must agree to l ive in the house for a specif ied period of t ime, and
• Must agree to par t icipate in housing counsel ing classes (subject to home -buyers experience.)
The down payment assistance can be provided as a loan or as a deferred loan/grant. I f a loan, i t is often
provided with favorable terms ( i .e. lower interest rate and extended t ime on principle payments) . I f the
latter, the home -buyer must be in good standing with mor tgage provider as well as in compliance with
the program requirements.
INT
ER
ES
T B
UY
-DO
WN
.
One tool that can be used to reduce the monthly housing expenses for lower-income homeowners is an
interest rate buy- down program. This program al lows a third par ty funder - potential ly a nonprofit housing
organization or employer - to either pay some por tion of a home -buyers monthly interest payment or to
pay an upfront fee, effectively lowering their interest rate. As the interest payments decrease, the amount
paid by the third par ty funder may be reduced or discontinued. This tool is most appropriate in higher
cost housing markets and when affordable product is in l imited supply.
MO
RT
GA
GE
AS
SIS
TAN
CE
. A Mor tgage Assistance Program is designed to help home -buyers secure affordable mor tgages. The
programs normally offer lower down payment requirements, below market interest rates and reduced
closing costs. Guarantees are also provided, in most cases through public-sector backed mor tgage
insurance programs that encourage lenders to loan to households that may be considered a s l ightly higher
r isk given the lender ’s under writ ing requirements. Both the United States Depar tment of Agriculture
(USDA) and the Indiana Housing and Community Development Authority ( IHCDA) offer programs that are
designed to secure mor tgage loans for households that are deemed to be reasonable credit r isk but are
f inding it dif f icult to qual i fy for conventional f inancing.
L E A D H O U S I N G P A R T N E R ( H )
L E A D H O U S I N G P A R T N E R ( H )
L E A D H O U S I N G P A R T N E R ( H )
page 36 | Dubois County Housing Strategy
HO
US
ING
CO
UN
SE
LIN
G.
A housing counsel ing program can be an effective tool to inform f irst t ime and inexperienced home -buyers
about the responsibi l i t ies and pitfal ls associated with home buying and ownership. Issues ranging from
avai lable f inancing programs to assessing a household’s housing needs to maximizing housing value can
be addressed in a well-structured housing counsel ing program. The housing counsel ing program may be a
col laborative effor t between f inancial inst itutions, local housing entit ies and public sponsors who have an
interest in promoting local housing init iat ives.
TAX
CR
ED
ITS
.
The Indiana Housing and Community Development Authority ( IHCDA) provides lower-income f irst t ime
home -buyers with an annual tax credit of up to $2,000 on their federal taxes over the entire term of the
buyer ’s mor tgage. The annual credit is based on a 20-35% tax credit rate on the buyer ’s yearly interest
payments and increases the amount of the home -buyers income that is avai lable for other expenses
such as home repairs, improvements or savings. Income l imits for the program are based on 125% of
the Area Median Income (AMI.) The Mor tgage Credit Cer t i f icate can be used with both conventional and
government mor tgages and can be paired with other IHCDA programs.
IDA
.
An Individual Development Account ( IDA) is a State or Federal matched savings account for households
earning less than 175% of the Federal Pover ty Guidel ines (2015: $42,437 for a family of 4) and are
employed. Households receive a $3 dollar match for each dollar saved up to $4,800 match over the
required 3 year period. Par t icipants are required to deposit $300 annually to remain in the program. This
program creates oppor tunit ies for individual and family wealth building and provides a structure and
incentive for saving for future home - ownership, down payments or other large investments.
LO
AN
GU
AR
AN
TE
E.
Loan guarantees can be offered to “ low r isk ” households that f ind it dif f icult to qual i fy for a conventional
mor tgage. The loan guarantee can be used to address perceived credit r isk by the lender. Often the loan
guarantee is not for the ful l mor tgage amount.
There are a number of loan guarantee programs designed to ser ve households either with l imited incomes
or credit issues. Loan guarantee program platforms can be through an exist ing institutional lender/
program entity such as the United States Depar tment of Agriculture (USDA) or established local ly by a
program sponsor.
L E A D H O U S I N G P A R T N E R ( H )
L E A D H O U S I N G P A R T N E R ( H )
L E A D H O U S I N G P A R T N E R ( H )
O T H E R F U N D E R S ( F )L E A D
page 37 | Dubois County Housing Strategy
LA
ND
WR
ITE
-DO
WN
.
Depending on the community, land can comprise 10-20% of the cost of a home. In urban in-f i l l areas there
may have been both an acquisit ion and site clean-up cost (demolit ion, s ite issue) that creates an addit ional
expense. In cer tain cases the land parcel may both be expensive as well as elusive – individual land parcels
may be diff icult to secure. Recognizing this, a public sector or mission driven entity may work to secure
targeted land parcels to make avai lable to either developers or home -buyers to encourage single -family
construction and homeownership. In such instances it is not unusual for the entity to write - down the cost
of the land to the builder/buyer. This can make a s ignif icant difference in enticing new home development
and also help the builder/buyer secure the necessar y f inancing for the building activity. The land write -
down is often t ied to specif ic program requirements and objectives. The assistance with land cost can also
be provided in some form of deferred payment.
CO
NS
TR
UC
TIO
N F
INA
NC
ING
.
New residential development programs often require that model homes be built and made avai lable for a
period of t ime. The homes are used to market an area or program and to inform the targeted home -buyer
market about the oppor tunit ies t ied to the new housing program.
Construction Finanncing Assistance (CFA) is intended to assist and incentivize the builder / developer
with their f inancing for new housing construction. I t is not unusual for bui lders to f ind it dif f icult
or undesirable to borrow monies to build on speculation or to provide model homes. In such cases
construction f inancing may either be diff icult to obtain or carr y an above market interest rate. In such
cases the builder feels as though he/she may be carr ying higher r isk than they wish to.
In the case of a CFA project, an entity ( i .e. public or program sponsor) wil l provide some level of guarantee
for the construction f inancing to build speculative or model homes. The assistance may range from help
with the interest rate paid by the builder during the t ime in which the home is under construction and
being marketed, to guaranteeing a por tion of the construction loan. Rarely wil l the guarantee be for more
than 50% of the loan amount and often much less. Both the f inancial inst itution and the builder wil l feel
the loan exposure rests somewhere between the construction loan amount and the minimum sales pr ice
required to real ize a sale. The guarantor wil l often require the builder/developer to leave its profit and
some por tion of i ts overhead in the home unti l the guarantee is no longer in place and/or the home is sold.
BU
YE
R I
DE
NT
IFIC
AT
ION
.
Having a readily avai lable pool of qual i f ied buyers can al leviate or manage some of the r isk developers
and home -builders face in an uncer tain market. Home -buyer identif ication may be a joint effor t by
par t icipating employers and the housing par tner to market oppor tunit ies and incentives to potential
buyers. This wil l require effor t on the par t of the employer to be sure that their employees k now the
resources and f inancial assistance are avai lable and how to access them. By connecting the qual i f ied
buyers with developers and builders, the employers are ser ving a cr it ical function - ensuring there is
suff ic ient demand to suppor t creation of new or improved housing units.
P U B L I C S E C T O R ( P )L E A D
O T H E R F U N D E R S ( F )L E A D
L E A D E M P L O Y E R S ( E )
page 38 | Dubois County Housing Strategy
There is no one tool, resource or incentive to get the job done, but l ikely a combination of two or three are
needed and wil l var y on a case -by- case basis. Below is an example of how the tools and funding sources
can be layered together to make purchasing a home in Dubois County a value proposit ion. Incentivizing
households to purchase homes within the County is a win-win for al l involved par t ies - i t expands the
municipal it ies’ tax base, improves the qual ity of l i fe in target neighborhoods and eases employee attraction
and retention effor ts of the local employers while strengthening the employer- employee bond.
The fol lowing three examples demonstrate how tools such as down payment assistance, second mor tgages
and tax abatement can effectively reduce the exist ing barr iers to affordable homeownership. The models
assume that most production level employees are unl ikely to have suff icient savings and f inancial standing
to suppor t a conventional loan and down payment. Using these assumptions a conventional, community/
employer loan program and neighborhood reinforcement model were developed and show potential savings
to the homeowners and includes a 3% program overhead charge to account for administer ing the programs.
Each model is to be used as an example and al l aspects - from interest rates to down payment amounts - are
subject to change based on the lending requirements of each f inancial inst itution.
The housing par tner and the home -buyer
would work with local banks to determine
a financing struc ture that satisfies local
mor tgage under writing requirements, while
sti l l creating a value proposition for the
employee. Under this scenario, the employee
would work directly with the selected housing
par tner to locate and purchase a qual i f ied home
- most l ikely within a targeted development or
neighborhood. This model would assume that the
employee would be required to occupy the home
for a specif ic period of t ime and would potential ly
also have requirements t ied to job tenure with
their current employer. This t ies the incentives to
the larger community and economic development
objectives such as homeownership, community
investment and employee retention.
This model assumes the homeowner is purchasing
a $150,000 home and receiving a forgivable loan
to assist with meeting under writ ing standards.
Te r m s.
C o m m u n i t y / E m p l o y e r L o a n .m o r t g a g e t e r m 3 0 y e a r s
i n t e r e s t r a t e 1 4 . 5 %
d o w n p a y m e n t 2 1 % / $ 1 , 5 4 5
s e c o n d m o r t g a g e 3 6 % / $ 9 , 2 7 0
t o t a l m o r t g a g e a m o u n t $ 1 4 3 , 6 8 5
m o n t h l y m o r t g a g e p a y m e n t $ 7 3 5
i n s u r a n c e ( P M I ) 4 0 . 2 5 % / $ 3 0
m o n t h l y p r o p e r t y t a xe s 5 1 % / $ 6 0
To t a l M o n t h l y P a y m e n t 6 $ 8 2 5t o t a l m o n t h l y s a v i n g s ( $ 1 1 5 )
s a v i n g s o v e r l i f e o f l o a n ( $ 4 1 , 4 0 0 )
C O M M U N I T Y / E M P L O Y E R L O A N .
1 a s s u m e s s l i g h t l y b e t t e r i n t e r e s t r a t e d u e t o c o m m u n i t y /e m p l o y e r p a r t i c i p a t i o n a n d i n v e s t m e n t
2 s i g n i f i c a n t l y r e d u c e d d o w n p a y m e n t a m o u n t t o b e s u p p l e m e n t e d b y a n o n - t r a d i t i o n a l s o u r c e o f f u n d i n g
3 a c t s a s f o r g i v a b l e l o a n i f a l l r e q u i r e m e n t s ( c o m m u n i t y o b j e c t i v e s , h o u s i n g a n d e m p l o y m e n t t e n u r e ) a r e m e t
4 a s s u m e s b a n k w i l l h a v e l e s s s t r i n g e n t r e q u i r e m e n t s d u e t o c o m m u n i t y / e m p l o y e r p a r t i c i p a t i o n
5 a s s u m e s a g r a d u a t e d t a x a b a t e m e n t e q u a l t o 5 0 % a v e r a g e r e d u c t i o n o v e r t h e 1 0 - y e a r t i m e p e r i o d
H O U S I N G T O O L S I N A C T I O N .
page 39 | Dubois County Housing Strategy
By uti l iz ing a conventional loan, an employee
must work directly with a real estate broker and
bank to locate and purchase a home. This is the
most traditional method of purchasing a home,
but may be unrealistic for many produc tion
level employees. Given the modest incomes of
many employees, down payment amounts and
the abi l i ty to satisfy loan under writ ing, may be
impediments to homeownership under this model.
This model assumes the homeowner is purchasing
a $150,000 home using current mor tgage rates.
C O N V E N T I O N A L L O A N .Te r m s.
C o n v e n t i o n a l L o a n .m o r t g a g e t e r m 3 0 y e a r s
i n t e r e s t r a t e 5 %
d o w n p a y m e n t * 1 0 % / $ 1 5 , 4 5 0
t o t a l m o r t g a g e a m o u n t $ 1 3 9 , 0 5 0
m o n t h l y m o r t g a g e p a y m e n t $ 7 5 4
i n s u r a n c e ( P M I ) 0 . 5 % / $ 6 0
m o n t h l y p r o p e r t y t a xe s 1 % / $ 1 2 9
To t a l M o n t h l y P a y m e n t $ 9 4 0
The Neighborhood (Reinvestment) Loan would
target inf i l l and rehabil itat ion oppor tunit ies
in exist ing neighborhoods adjacent to job
clusters. The public sector and housing par tner
would work together to identify distressed
single -family homes to purchase and renovate
to be made avai lable as par t of the employee -
purchase program. Employers would work
with the housing par tner and local banks to
determine a financing struc ture that satisfies
under writing requirements, while sti l l creating
a value proposition for the home -buyer. This
model incorporates occupanc y and employment
requirements that directly l ink the housing
incentives to larger community and economic
development objectives such as increased
homeownership, neighborhood stabil ization and
employee attraction and retention.
This model assumes the homeowner is purchasing
a recently renovated home ($131,000 *) and
receiving a forgivable loan to assist with meeting
under writ ing standards.
Te r m s.
N e i g h b o r h o o d L o a n .m o r t g a g e t e r m 3 0 y e a r s
i n t e r e s t r a t e 1 4 . 5 %
d o w n p a y m e n t 2 1 % / $ 1 , 3 1 1
s e c o n d m o r t g a g e 3 3 % / $ 3 , 9 3 3
t o t a l m o r t g a g e a m o u n t $ 1 2 5 , 8 5 6
m o n t h l y m o r t g a g e p a y m e n t $ 6 4 4
i n s u r a n c e ( P M I ) 0 . 5 % / $ 5 5
m o n t h l y p r o p e r t y t a xe s 1 % / $ 1 0 9
To t a l M o n t h l y P a y m e n t 6 $ 8 0 8t o t a l m o n t h l y s a v i n g s ( $ 1 3 2 )
s a v i n g s o v e r l i f e o f l o a n ( $ 4 7 , 5 0 0 )
N E I G H B O R H O O D L O A N .
1 a s s u m e s s l i g h t l y b e t t e r i n t e r e s t r a t e d u e t o c o m m u n i t y /e m p l o y e r p a r t i c i p a t i o n a n d i n v e s t m e n t
2 s i g n i f i c a n t l y r e d u c e d d o w n p a y m e n t a m o u n t t o b e s u p p l e m e n t e d b y n o n - t r a d i t i o n a l s o u r c e o f f u n d i n g
3 a c t s a s a f o r g i v a b l e l o a n i f a l l r e q u i r e m e n t s ( c o m m u n i t y o b j e c t i v e s , h o u s i n g a n d e m p l o y m e n t t e n u r e ) a r e m e t
* r e n o v a t e d h o m e p r i c e a s s u m e s a c q u i s i t i o n c o s t o f $ 5 0 , 0 0 0 , h o m e s i z e o f 1 , 2 0 0 , r e n o v a t i o n c o s t a t $ 6 5 / s q . f t . a n d a 3 % p r o g r a m f e e . I n o r d e r t o h a v e a r e a d y s u p p l y o f q u a l i f i e d h o m e s , i t i s a s s u m e d t h e h o u s i n g p a r t n e r - i n c o n j u n c t i o n w i t h t h e e m p l o y e r, p u b l i c a n d p r i v a t e s e c t o r s - w i l l b e r e s p o n s i b l e f o r a c q u i s i t i o n , r e h a b a n d o t h e r n e i g h b o r h o o d i n v e s t m e n t s n e e d e d t o c r e a t e m a r k e t - f r i e n d l y u n i t s f o r t h i s p r o g r a m .
L E A R N M O R E .
for more information please contact
ED COLE, PRESIDENT Dubois Strong 961 College Avenue Jasper, IN 47546 (812) 482-9650