“Housing For A Healthy Economy”

Presentation Outline n Workforce Housing Coalition of the Greater Seacoast n What is workforce housing? –Rental –Homeownership n Who needs it? n What is available? –Seacoast region –Eliot n Ways to address affordability n 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…

Apartments

Condominiums

Starter Homes

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 n Affordability is a function of income n Housing should not require more than 30% of monthly income n The lower your income, the harder it is to find housing that you can afford n 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 n AMI = Area Median Income. HUD publishes annually, based on region n Eliot is located in the Portsmouth- Rochester NH-York ME MSA n MSA includes Eliot, York, Kittery, Berwick, and S. Berwick n AMI = $71,900 (2007)

Workforce Housing: Who needs it? % of median 60%80%100%120% 1 person HH30,18040,25050,30060,300 2 person HH34,50046,00057,50069,000 3 person HH38,82051,75064,70077,640 4 person HH43,14057,50071,90086,280 Source: NHHFA 2007 Area Incomes Portsmouth/Rochester/York MSA Includes York, Kittery, Eliot, Berwick, and South Berwick

The Affordability Challenge Household income*% of AMI Affordable Rent & Utilities** Affordable Sales Price (PITI)*** $43,14060%$1,078$140,000 $57,50080%$1,437$191,000 $71,900100%$1,797$241,000 $86,280120%$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, *** Assumes 30 fixed rate 5.3%, max. of 5% down payment **** Over MSHA income limit, use 6.0% interest rate.

We need more Workforce Housing: rental & homeownership n Workforce Housing targets households between % AMI n Rental housing 60-80% AMI n Homeownership % AMI Seacoast region (2007) Homeownership 100% $71, % $86,280 80% $57,500 60% $43,140 Rental WORKFORCE HOUSING

Example: Eliot family of four seeking to rent a home n Income: $43,140 n Affordable apartment: $1,078 n Median price for a 2-3 bedroom apt. in Eliot: $1,319 n Income needed to afford median priced apartment: $52,760 n At this income, a $1,319 apartment demands over 36% of monthly income

Example: Eliot family of four seeking to buy a home n Income $57,500 n Affordable purchase price: $191,000 n Median selling price for a home in Eliot: $246,419 n Income needed to afford a home priced at the median selling price: $73,000 –27% more than what this family currently earns n Median price of home currently on the market: $393,900 (35 SFHs)

Municipally-Sponsored Solutions n Workforce housing overlay districts n Density incentives n Smaller lot requirements n Accessory apartments n Narrower road ways n Sidewalk waivers (eliminate one or both sidewalks) n Substitute for granite curb or eliminate curb n Reduced parking requirements, narrower spaces n Clustering to maintain rural feel n Community water and sewer systems

Developer-Sponsored Solutions n Use of manufactured/modular housing n Use slab vs. full basement n Smaller living spaces: 750 – 1,200 sq ft n Unfinished 2nd floors in capes n Foundation only for future garage (if one is planned)

Examples of workforce housing: Pepperidge Woods

Pepperidge Woods, Barrington n 44 manufactured/modular homes on 25 acres n Single family homes, all EnergyStar rated systems n Community center and playground n Prices range from $164,000-$187,000

Watson Woods, Exeter

n 20 condominium units n Used Exeter’s open space density bonus ordinance n Targets households earning 80 to 120% of Area Median Income

Norton Street, South Berwick

Norton Street, S. Berwick, ME n 20 rental apartments n Targets households earning up to 60% of Area Median Income n Helped to revitalize a run down neighborhood n Lead to additional investments by nearby property owners

n 15% Density-Bonus (Affordable Housing): for open space developments that guarantee: n 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 n 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 n Up to a 50% density bonus for inclusion of workforce housing n Targets households earning 120% AMI or less n Resale restrictions used n Limited to parcels of at least one acre in GRB/GRA zones

Kittery Clustered Residential Development Ordinance n 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: Diane Hartley Additional data sources: