“Housing For A Healthy Economy”

Presentation Outline Workforce Housing Coalition of the

Greater Seacoast What is workforce housing?

– Rental– Homeownership

Who needs it? What is available?

– Seacoast region– Eliot

Ways to address affordability Long-term affordability

What Is The Workforce Housing Coalition of the

Greater Seacoast? An alliance of businesses,

government and community groups

A catalyst for the development of a range of housing options for the diverse workforce of the Greater Seacoast Region

What is

Workforce Housing?

A variety of housing options for working households

Incorporates quality design, placement and land use

Examples include…

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

Affordability is a function of income Housing should not require more than 30% of

monthly income The lower your income, the harder it is to find

housing that you can afford It’s not just very low income people who feel

the pinch. The shortage of affordable, workforce housing is an increasingly middle class problem

Understanding income lingo

AMI = Area Median Income. HUD publishes annually, based on region

Eliot is located in the Portsmouth-Rochester NH-York ME MSA

MSA includes Eliot, York, Kittery, Berwick, and S. Berwick

AMI = $71,900 (2007)

Workforce Housing: Who needs it?

% of median

60% 80% 100% 120%

1 person HH 30,180 40,250 50,300 60,300

2 person HH 34,500 46,000 57,500 69,000

3 person HH 38,820 51,750 64,700 77,640

4 person HH 43,140 57,500 71,900 86,280

Source: NHHFA

2007 Area Incomes

Portsmouth/Rochester/York MSA

Includes York, Kittery, Eliot, Berwick, and South Berwick

The Affordability ChallengeHousehold

income* % of AMIAffordable Rent &

Utilities**Affordable Sales Price

(PITI)***

$43,140 60% $1,078 $140,000

$57,500 80% $1,437 $191,000

$71,900 100% $1,797 $241,000

$86,280 120% $2,157 $276,000****

   

Actual rental median of homes for rent in Eliot

$1,319

Actual Median Price – homes sold in Eliot between 5/06-12/06:

$246,419

*Incomes shown for a4 person households.

**Median rent – 2-3 Bedroom, assumes 30% of monthly income for housing including utilities. Source: Seacoastonline.com April 17, 2007.

*** Assumes 30 fixed rate mortgage @ 5.3%, max. of 5% down payment**** Over MSHA income limit, use 6.0% interest rate.

We need more Workforce Housing: rental & homeownership

Workforce Housing targets households between

60-120% AMI Rental housing 60-80% AMI Homeownership 80-120% AMI

Seacoast region (2007)

Homeownership

100%

$71,900

120%

$86,280

80%

$57,500

60%

$43,140

Rental

WORKFORCE HOUSING

Example: Eliot family of four seeking to rent a home Income: $43,140 Affordable apartment: $1,078 Median price for a 2-3 bedroom apt. in

Eliot: $1,319 Income needed to afford median priced

apartment: $52,760 At this income, a $1,319 apartment

demands over 36% of monthly income

Example: Eliot family of four seeking to buy a home

Income $57,500 Affordable purchase price: $191,000 Median selling price for a home in Eliot:

$246,419 Income needed to afford a home priced at the

median selling price: $73,000 –27% more than what this family currently earns

Median price of home currently on the market: $393,900 (35 SFHs)

Municipally-Sponsored Solutions

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

Developer-Sponsored Solutions

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

is planned)

Examples of workforce housing:Pepperidge Woods

Pepperidge Woods, Barrington

44 manufactured/modular homes on 25 acres

Single family homes, all EnergyStar rated systems

Community center and playground Prices range from $164,000-$187,000

Watson Woods, Exeter

Watson Woods, Exeter

20 condominium units Used Exeter’s open space density

bonus ordinance Targets households earning 80 to 120%

of Area Median Income

Norton Street, South Berwick

Norton Street, S. Berwick, ME

20 rental apartments Targets households earning up to 60%

of Area Median Income Helped to revitalize a run down

neighborhood Lead to additional investments by

nearby property owners

15% Density-Bonus (Affordable Housing): for open space developments that guarantee:

 20% of the total # of units set aside as affordable                      – 15% or more of the units – initial sale at a price affordable to

households with income not more than 120% of the AMI– 5% or more of the units - initial sale at a price affordable to

households earning not more than 80% of the AMI                 

Units sold with deed restrictions and a recorded housing agreement that limit, for a period of 30 years renewable upon sale or transfer, the resale value of the unit to not more than the purchase price plus two times the accumulated consumer price index.

Exeter’s Workforce Housing Ordinance: promoting affordable homeownership

Portsmouth Affordable Housing Ordinance: promoting affordable

apartments, condos or single family homes

Up to a 50% density bonus for inclusion of workforce housing

Targets households earning 120% AMI or less

Resale restrictions used Limited to parcels of at least one acre in

GRB/GRA zones

Kittery Clustered Residential Development Ordinance

Allows minimum lot size of 20,000 square feet in areas without community sewage collection in return for preserving open space and creating recreational areas.

For more information contact:For more information contact:Diane HartleyDiane Hartley603-766-3231603-766-3231

Diane@seacoastwhc.orgwww.seacoastwhc.orgwww.seacoastwhc.org

Additional data sources:

http://www.keysregion.org/keys_ofbd/topics/.htm

http://www.keysregion.org/publications.htm