Workforce Housing In Londonderry Financial Feasibility Analysis Londonderry ZBA Presentation February 20, 2013 Russell Thibeault Applied Economic Research Workforce Housing In Londonderry1

Scope of Analysis Evaluate financial feasibility of town’s workforce housing provisions: – 75% of units workforce housing, affordable to renters with incomes at 60% or less of area median and paying no more than 30% of their income on rent, including utilities. Two scenarios – 15 buildings, 16 units each, 75% workforce housing. Cost= $37.3 million – 10 buildings 24 units each, 50% for workforce housing. Cost=$33 million. Workforce Housing In Londonderry2

What Can Market Units Rent For? Workforce Housing In Londonderry3

What Are Comparables Renting For? Workforce Housing In Londonderry4 Average = 1,300/month without utilities. New 2 Bedroom in Amoskeag Millyard will have monthly rent of $1,400 per month Without utilities. Conclusion: New 2 Bedroom Units in Londonderry Can Rent for $1,375 per month without utilities

What is Allowable Workforce Housing Rent In Londonderry? $1360 per month with utilities, $1,100 per month per month without utilities Workforce Housing In Londonderry 5

What Income is Available To Support Investment? Workforce Housing In Londonderry6

How Much Investment Can Be Supported? Workforce Housing In Londonderry7

Is The Return Adequate To Justify The Investment? Workforce Housing In Londonderry8

Conclusions It would cost more to build the proposal with 75% workforce housing than with 50% workforce housing; The 75% workforce housing scenario would generate less income than the 50% workforce housing scenario; The 75% workforce housing scenario is not feasible; The 50% workforce housing scenario is feasible. Workforce Housing In Londonderry9