Long Term Perspective for a Short Term World

• One of the World’s Largest Metropolitan Regions

• Twenty Million Residents and a nearly $1 Trillion Economy

• A Global Center of Finance, Commerce, Culture and Communications

The Tri-State RegionThe Tri-State RegionNew York-New Jersey-ConnecticutNew York-New Jersey-Connecticut

The region is one of the most diverse places in America, encompassing New York City and hundreds of small and mid-sized cities, suburbs and rural communities.

Governance is divided Governance is divided among three states, 31 among three states, 31 counties, 800 counties, 800 municipalities and municipalities and hundreds of special hundreds of special districts anddistricts andpublicpublicauthorities. authorities.

PopulationPopulation

Brooklyn 2,465,326

Bergen 884,118

Essex 793,633

Hudson 608,975

Union 522,541

Typical County 510,916

Sullivan 73,966Source: Census 2000

Source: Census 2000

HunterdonHunterdon $79,888$79,888

BergenBergen $65,241$65,241

Region Region $56,100$56,100

UnionUnion $55,339$55,339

EssexEssex $44,944$44,944

HudsonHudson $40,293$40,293

BronxBronx $27,611$27,611

Median IncomeMedian Income

Source: Census 2000, Median Income 1999

Source: Census 2000

RaceRaceHudson

59%14%

10%

17%

Essex

46%

43%

4%

7%

Bergen

81%

5%

11%3%

Union

68%

21%

4%

7%

White Black

Asian Other

Source: “One Race” population from Census 2000 Redistricting Data. Please note: these numbers do not represent total population. See final slide in handout for complete breakdown.

In 1996, RPA released its In 1996, RPA released its Third Regional Plan, Third Regional Plan, A Region at RiskA Region at Risk..

Qualityof Life

Equity

Environment

Economy

Five Campaigns from the Five Campaigns from the Third Regional PlanThird Regional Plan

GovernanceGovernance

MobilityMobility

WorkforceWorkforce

CentersCenters

GreenswardGreensward

The plan called for: The plan called for:

a seamless 21st century a seamless 21st century mass transit system,mass transit system,

creating a three-million creating a three-million acre Greensward acre Greensward network of protected network of protected natural resource natural resource systems,systems,

maintaining half the maintaining half the region’s employment in region’s employment in urban centers, andurban centers, and

assisting minority and assisting minority and immigrant communities immigrant communities to fully participate in the to fully participate in the economic mainstream. economic mainstream.

RPA in New JerseyRPA in New Jersey

HighlandsHighlands

Mayor’s InstituteMayor’s Institute

Transit Oriented DevelopmentTransit Oriented Development

Housing GoalsHousing Goalsfrom RPA’s Third Regional Planfrom RPA’s Third Regional Plan

Acceptable housing for all residents regardless Acceptable housing for all residents regardless

of race or incomeof race or income

Avoid housing excesses; build what is needed Avoid housing excesses; build what is needed

and can be paid forand can be paid for

Integrate all housing marketsIntegrate all housing markets

New housing goes in existing centersNew housing goes in existing centers

Reduce the cost of least-cost housingReduce the cost of least-cost housing

What is “affordable” housing?

Housing is affordable when monthly housing Housing is affordable when monthly housing costs (including utilities) are covered by 30% of costs (including utilities) are covered by 30% of the occupants’ gross monthly income.the occupants’ gross monthly income.

Special Needs Housing: disabled, elderly, single Special Needs Housing: disabled, elderly, single mothers, homelessmothers, homeless

Low-moderate income housing: 50% – 80% area Low-moderate income housing: 50% – 80% area median incomemedian income

Middle Class housing: 80% – 120% area median Middle Class housing: 80% – 120% area median incomeincome

Source: HUD

How much does a 3-person “low How much does a 3-person “low income” family earn? income” family earn?

WarrenWarren $31,100$31,100

HudsonHudson $38,300$38,300

Union Union $45,200$45,200

Essex Essex $45,200$45,200

BergenBergen $45,200$45,200

Fairfield Fairfield $47,900$47,900

Source: HUD 2001

People spend more money than they should on People spend more money than they should on housinghousing

Businesses are not competitive due to additional labor Businesses are not competitive due to additional labor costs, employee turnover, lost productivitycosts, employee turnover, lost productivity

Overcrowding; low vacancy ratesOvercrowding; low vacancy rates

Homelessness increasesHomelessness increases

Longer commutesLonger commutes

Concentrations of poverty and wealthConcentrations of poverty and wealth

Exclusionary residential zoningExclusionary residential zoning

When Affordable Housing is When Affordable Housing is

Unattainable …Unattainable …

Housing TenureHousing Tenure

HomeownersHomeowners RentersRenters

HunterdonHunterdon 84%84% 16%16%

BergenBergen 67%67% 33%33%

UnionUnion 62%62% 38%38%

RegionRegion 53%53% 47%47%

EssexEssex 46%46% 54%54%

HudsonHudson 31%31% 69%69%

BronxBronx 20%20% 80%80%

Source: Census 2000

Housing Cost Burden for RentersHousing Cost Burden for Renters

Percent of renters who pay more than 35% of their monthly income for rent

Ocean County 40%

Essex County 34%

Typical County 33%

Hudson County 31%

Bergen County 31%

Union County 31%

Dutchess 25% Source: Census 2000

Source: Census 2000

Housing Cost Burden for OwnersHousing Cost Burden for Owners

Percent of Homeowners who pay Percent of Homeowners who pay more than 35%more than 35% of of

their income in housing coststheir income in housing costs

BronxBronx 31%31%

HudsonHudson 29%29%

EssexEssex 24%24%

BergenBergen 23% 23%

RegionRegion 22%22%

UnionUnion 21%21%

LitchfieldLitchfield 17%17%

Source: Census 2000

Source: Census 2000

Homeowners with High Housing Cost Burdens, by Income Bracket

0%20%40%60%80%

100%

Source: Census 2000

Value of Owned HomesValue of Owned Homes

Rank Rank CountyCounty Median ValueMedian Value

#1 #1 New York New York $361,100$361,100

#6#6 BergenBergen $240,800$240,800

#15#15 EssexEssex $188,400$188,400

#17#17 UnionUnion $185,200$185,200

#21#21 HudsonHudson $162,800$162,800

#31#31 SullivanSullivan $ 90,400$ 90,400Source: Census 2000

Source: Census 2000

Population with Population with Severe Housing Cost BurdenSevere Housing Cost Burden

BergenBergen 73,41773,417

EssexEssex 71,38771,387

HudsonHudson 53,99053,990

UnionUnion 41,17941,179

Total in metro NJ Total in metro NJ 529,635 529,635

Total in Region Total in Region 1,888,0861,888,086

High Housing Cost Burden in the 31-County Region

2% 4% 3%4%

8%

79%

Union 41,000

Essex 71,000

Hudson 54,000

Bergen 73,000

Remainder of NJ*142,000

Remainder of Region1,500,000

* For these purposes, New Jersey includes only the 14 counties in the metropolitan region.

Source: Census 2000

“Provide Adequate Housing at a Reasonable Cost”

NJ State PlanNJ State Plan

BalanceBalance

Residential and Residential and

Other Land UsesOther Land Uses

Housing TypesHousing Types

Housing TenuresHousing Tenures

Housing CostsHousing Costs

Approaching Solutions Approaching Solutions from RPA’s Third Regional Planfrom RPA’s Third Regional Plan

Plan for affordabilityPlan for affordability

Use incentives to create low cost housingUse incentives to create low cost housing

Use direct subsidies for householdsUse direct subsidies for households

Increase the role of private, nonprofit and Increase the role of private, nonprofit and

community based organizations in planning, community based organizations in planning,

building and managing housingbuilding and managing housing

Plan for affordabilityPlan for affordability

Create local and county fair share plans that go Create local and county fair share plans that go beyond COAH requirementsbeyond COAH requirements

Eliminate exclusionary zoning; make affordable Eliminate exclusionary zoning; make affordable housing part of mixed-use developmenthousing part of mixed-use development

Reduce excessive government regulation and reviewsReduce excessive government regulation and reviews

Creates more compact and diverse Creates more compact and diverse neighborhoods, more open space can be neighborhoods, more open space can be preserved, deconcentrates poverty and wealthpreserved, deconcentrates poverty and wealth

Use Incentives to Use Incentives to Create Low Cost HousingCreate Low Cost Housing

Encourage linkage fees and other financial tools Encourage linkage fees and other financial tools

enabled by the Fair Housing Actenabled by the Fair Housing Act

Create Housing Trust Funds, Workforce Create Housing Trust Funds, Workforce

Housing, etcHousing, etc

Expand use of Low Income Housing Tax CreditsExpand use of Low Income Housing Tax Credits

Creates opportunities for low cost housing in more

places, leverages public and private investment for

widespread economic development

Use Direct Subsidies for HouseholdsUse Direct Subsidies for Households

Property and mortgage interest tax deductionsProperty and mortgage interest tax deductions

Section 8 vouchers, rental assistance programs, Section 8 vouchers, rental assistance programs,

rent control and stabilizationrent control and stabilization

HOPE VI and other HUD programsHOPE VI and other HUD programs

Subsidize operating costsSubsidize operating costs

Directly reduces housing cost burden thereby freeing income for the rest of the economy

Increase the Role of Private, Nonprofit and Increase the Role of Private, Nonprofit and Community Based OrganizationsCommunity Based Organizations

CDC’s are developers, advocates, service CDC’s are developers, advocates, service

providersproviders

Intermediaries fill the gapIntermediaries fill the gap

Employers can contribute expertiseEmployers can contribute expertise

Builds strong communities which are necessary to

mitigate the many social problems associated with

poverty

RPA’s Regional Housing InitiativeRPA’s Regional Housing Initiative

Why did some urban Why did some urban neighborhoods neighborhoods flourish in the 90’s flourish in the 90’s and not others?and not others?

How can we relate the How can we relate the housing needs of housing needs of urban and suburban urban and suburban areas?areas?

How can the region How can the region plan for the housing plan for the housing needs of the future?needs of the future?