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CHATHAM HOUSING CHATHAM HOUSING PRODUCTION PLANPRODUCTION PLAN

Chatham Affordable Housing Committee

Mary Stevens McDermott, Chair

Karolyn McClelland

Cindy Maule, Vice Chair

Bruce Beane

Shirley L. Smith, Clerk

Valerie Loveland

David WhitcombKaren Sunnarborg, Consultant

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Chatham Housing GoalsChatham Housing Goals

• Provide a wide range of safe and affordable housing opportunities to meet diverse housing needs

• Strive to reach the state 10% affordable housing goal

• Preserve the existing affordable housing stock

• Assure new housing production is harmonious with the existing community and the Local Comprehensive Plan

• Maximize local interest and investment in affordable housing, leveraging public and private funds to the greatest extent possible in the production and preservation of affordable housing

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What is Affordable Housing?What is Affordable Housing?

Affordable housing:

• Deed restricted

• Affirmatively marketed

• Available to households earning at or below 80% of area median income

Photo – CHA 705 Family Development

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What is Housing Production?

• State regulations under Chapter 40B offer communities greater local control over affordable housing development.

• First step is obtaining Housing Plan approval from the state. Plan must include affordable housing production goals of .50% of year-round housing stock (currently 17 units/year)or bi-annual goals of 1.0% of year-round housing stock (currently 34 units).

• Submit documentation to state for certification and community will be able to deny unwanted 40B applications for 1 or 2 years, depending on number of units produced.

What is Housing Production?

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Key Demographic TrendsKey Demographic Trends

• Recent population losses

• Declines in younger age groups and increases in older residents

• Increases in smaller households

• Higher income levels but growing income disparities and increases in poverty

• Photo – CHOP House

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Changes in Age Distribution: 1990 to 2010

237

748

360

728

808

592

865

2,241

193

686

291

491

820

933

938

2,273

163

586

224

394

526

781

1,143

2,308

0 500 1000 1500 2000 2500

0 to 4

5 to 17

18 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65 +

Number of Residents

2010

Census2000

Census1990

Census

Changes in Age Distribution

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• Slower housing growth

• High level of demolition/rebuild activity

• Predominance of owner-occupancy and single-family detached homes, more than half of which are seasonal units or second homes

• Decrease in persons per unit

• Prices remain high -- $560,000 for median single-family home

• Limited but pricey private rental housing stock

• 30% of all households were spending too much for their housing and 384 households were spending more than ½ their income on housing

Key Housing Trends

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Year-round and Seasonal Housing Units, 1970 to 2010

1,705

2,666

3,023

3,5963,460

2,238 2,337

2,748

3,147

3,883

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1970 1980 1990 2000 2010

Nu

mb

er o

f U

nit

s

Year-round

Seasonal

Year-round and Seasonal Housing Units

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What housing is “affordable” in What housing is “affordable” in Chatham?Chatham?

• Of the 3,460 year-round housing units, 168 units or 4.68% are currently considered affordable by the state.

• 83% of SHI units are rentals.

• Gap of 178 units to meet the 10% state target.

• The number of affordable units needed will increase over time based on housing growth.

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Priority Housing NeedsPriority Housing Needs

• Rental units are top need to create more affordable housing choices

• Hard to find a 2-bedroom rental unit for less than $1,100.

• $1,150 rent requires $32/hour or $51,400 annually assuming some utility costs.

• Average weekly wage is $726 or about $18/hour and $37,800/year.

• High up-front cash requirements.

• Few subsidized rentals for families.

• Substantial waits for CHA units.

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Priority Housing NeedsPriority Housing Needs

• Homeownership is next priority/needed to attract and retain workforce and families

• To afford the median priced home of $560,000 one would need to earn $130,000 with 95% financing/$105,000 with 80% financing.

• Affordability gap of approximately $217,000 – the difference between the median priced home and what a household earning at median income can afford.

• Gap widened by the likely need for more than $115,000 in cash for the down payment and closing costs.

• Affordability gap of at least $328,000 for those who are earning at or below 80% of area median income.

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• Older housing stock requires improvements – next priority need

• 2/3 of housing stock built before 1980.

• Homes built before 1978 are likely to have traces of lead-based paint which is hazardous to children.

• Most Chatham properties rely on septic systems, some of which likely require repair or replacement.

• Residents with limited incomes have difficulty keeping up with home maintenance needs.

Priority Housing NeedsPriority Housing Needs

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Priority Housing NeedsPriority Housing Needs

• People with disabilities and special needs are next priority need

• More than 1,500 residents claimed a disability

• Affordability gap is widest for the disabled

• Need more group homes and congregate settings with services

• Few available handicapped accessible units

• Increasing aging population will require more supportive services and handicapped accessibility

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Potential Strategies

• Capacity building strategies

• Zoning and regulatory strategies

• Production strategies

• Direct assistance strategies

• Photo – MCI Rental/Escrow Program

Housing Strategies

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Build Local Capacity

• Capitalize the Affordable Housing Trust Fund

• Conduct ongoing community education

• Establish a working relationship between the AHC and EDC as well as the Planning Board

• Photo: Sweat equity at a Habitat for Humanity site

Capacity Building Strategies

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Planning and Regulatory Reforms

• Modify existing bylaws – accessory apartment, small lot development and inclusionaryzoning

• Explore tax relief for year-round rentals

• Promote mixed-use development

Photo – Lake Street

Zoning and Regulatory Strategies

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Housing Production

• Make publicly-owned property available for affordable housing

• Promote “friendly 40B” development

• Encourage special needs housing

• Photo – Bell Road, Lake Street

Production Strategies

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Housing Preservation and Direct Assistance

• Continue funding local housing programs

• Help qualifying residents access housing assistance

Photo: MCI Rental/Escrow Program

Direct Assistance Strategies

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• Finalize draft Plan

• Present draft to Planning Board and BOS for approval

• Finalize Plan

• Submit to DHCD

• Secure state approval

• Photo – Main Street Village

Next Steps

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For more information, visit the Town’s web site at http://www.town.Chatham.ma.us

Photo -- Elkanah Street CHOP