Download - Pinal County Housing Needs Assessment & Strategy Unincorporated County & Countywide March 2008
Pinal County Pinal County
Housing Needs Assessment & Housing Needs Assessment & StrategyStrategy
Unincorporated County & CountywideUnincorporated County & Countywide
March 2008
Kuehl Enterprises LLC for Pinal County March 2008
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AgendaAgenda
1. Process Overview
2. Significant Housing Conditions
3. First Steps & Foundation Actions
4. Discussion & Survey
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Housing Needs AssessmentHousing Needs Assessment
Comprehensive overview of housing needs Incorporated and unincorporated County Demographics
Low-income households & workforce households Ages and family types
Construction trends & development patterns Housing market
Ownership Financing risks
Rental Housing affordability & gap analysis Regulatory barriers
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Housing StrategyHousing Strategy
Steps to address identified housing needs Trends & opportunities
One-year Short-term (2-5 years) Long-term (6-10 years) Funding strategies
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Background & ProcessBackground & Process
Project Began - May 2007 Public meetings
June – July 2007 March – April 2008
Data collection & analysis August 2007 – December 2008
Documents Data & Conclusions Draft - January 2008 Strategies Menu & Action Plan - February 2008 Final – March 2008
Housing Committee Meetings January - March 2008
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Key ConceptsKey Concepts
Housing Needs Economic concept Need v. Demand
Housing Strategies Markets are regional Solutions are often local or jurisdictional Spectrum of solutions
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Significant ConditionsSignificant Conditions
1. Housing Variety
2. Housing Quality
3. Housing Affordability Renters Owners
4. Converging Market Trends Looking to the future
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Housing VarietyHousing Variety Single-family Predominates
72% unincorporated 65% countywide 90% of 2000 – 2006 growth unincorporated 88% of 2000 – 2006 growth countywide
Community & Economic Impacts Generally least affordable housing type Future Quality - 20 yrs from now > ½ of stock Proximity to
Employment Transportation Services
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Housing QualityHousing Quality
Units built prior to 1980 Countywide 49,800 units (36%) Unincorporated County 20,000 units (29%)
Lead paint Pre-HUD Manufactured Housing Major systems
50% renter-occupied Community & Economic Impacts
Concentration? = Survey = Revitalize Variety – competition with new stock Affordability – maintenance & upkeep
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Renters & Rental Affordability (2000)Renters & Rental Affordability (2000)
18% of households Median income $24,416 (68% of County median) Median rent is affordable
But units needed for HH earning < $14,999 (rent < $375)
Age of Renter-occupied Units 24% built < 1980 20% built 2000 - 2006
Renter Households 49% of Single-parent HH 26% of Married-couples with dependents Age 44 or less = 28% renters / Age 45+ = 17% renters
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Home Purchase AffordabilityHome Purchase Affordability Median Price Asked 3rd Qtr 2006 – 3rd Qtr 2007
Resale $211,000 ($75,300 income) - $193,000 ($68,900 income) New Construction $229,000 ($81,800 income) – 196,000 ($70,000 income)
Workforce Home Purchase Affordability -1.5 earners (2006) Manufacturing - $112,692 (median wage $26,847) Retail Trade - $94,335 (median wage $20,291) Public Administration - $126,420 (median wage $31,750)
Community & Economic Impacts Local workforce ≠ local purchase Investors - invested in community? Approx. 1.5 times County median income needed to purchase
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Homeownership Affordability (2006)Homeownership Affordability (2006)
Two-thirds of households have mortgages Paying > 50% of income for housing
15.5% (8,505) with a mortgage 6.6% (1,732) with no mortgage 12.6% (10,327) of all owners
Community & Economic Impacts Quality – maintenance? Financing & Affordability – volume of ARMs and subprime? Employee retention, schools, services
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Lending & ForeclosureLending & Foreclosure
Subprime Lending (2000 – 2004) 15.8% of loans Nationwide – 54% of foreclosures
Foreclosure or Pre-foreclosure (Jan 06 – Sept 07) 9.54% of all units
1,567 already foreclosed 4,287 pre-foreclosure (50% foreclosure rate)
Foreclosure Risk Additional 4,185 units (2000 – 2006)
Community & Economic Impacts $95 Million loss in Property Values – property tax revenue? $57 Million less in spending (6 cents per dollar value lost) Quality – maintenance?
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Converging Market TrendsConverging Market Trends
Slowing market 18-month supply (Maricopa County) Pinal County 2006 - 2007
Permitting activity 50% Resales 26.5% New Construction 32.6%
Prices – Pinal County 2006 – 2007 Resale 8.5% New Construction 14.7%
Tightened Lending Criteria Refinancing New purchases
Opportunities
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Six GoalsSix Goals
1. Increase capacity / coordination of housing programs and projects
2. Increase availability of and access to a variety of funding resources
3. Increase availability and dedication of land for future affordable housing production
4. Incorporate affordable housing development and housing affordability into planning and zoning processes and decisions
5. Encourage private investment in affordable housing6. Develop and deliver community-based programs
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THE HOUSING SPECTRUM Income (family of 4) Up to $19,250 $19,251 to $32,100 $32,101 to $51,350 $51,351 to $64,200 $64,201 and more
% of median income 0% to 30% 31% to 50% 51% to 80% 81% to 100% 100% or more
Affordability Range Rent <$480 Mortgage <$53,900
Rent <$800 Mortgage <$89,900
Rent <$1,280 Mortgage <$143,800
Rent <$1600 Mortgage <$179,800
Rent >$1,600 Mortgage >$179,800
Housing Type Public/Subsidized Affordable Conventional
Typical Beneficiary Those on fixed incomes, special needs populations Working families, those with limited housing choice, in need of temporary assistance
Those with broad housing choice and capable of helping themselves
Type of subsidy or assistance
Monthly subsidy for all or part of rent. Subsidy to owner (project-based) or to landlord/tenant.
Often combined with development subsidy. Tenant typically pays 30% of income towards rent &
utilities.
Subsidy to developer/owner/investor for development of homeownership or rental units that
are rent/mortgage and occupancy restricted. Various defined secondary market criteria.
Mortgage interest and real estate tax deductions. Depreciation and other tax advantages.
FHA/VA/USDA loan guarantees for qualified households and housing units.
Various defined secondary market criteria.
Primary Delivery System
Public Housing Authorities Nonprofit organizations
Private developers (mixed income/use)
Public Housing Authorities Nonprofit and private corporations
Units of government
Nonprofit organizations (mixed-income/use, revitalization)
Private corporations and individuals
Primary Funding Sources / Programs
HUD, USDA Rural Development Public Housing Authority, CDBG, State Housing Fund,
Special Needs Programs (development subsidy OR tenant assistance)
State of Arizona, HUD, USDA Rural Development, IRS, FHLB, Secondary market
State Housing Fund, LIHTC, Special Needs (mostly through HUD), Homes for Arizonans,
Multi-family bonds, Mortgage Revenue Bond/Mortgage Credit Cert.
State of Arizona, HUD, USDA Rural Development, VA, IRS, Secondary market
Mortgage Revenue Bond/Mortgage Credit Certificate,
Mortgage and real estate tax deductions.
Increase Capacity & Coordination
Increase access to resources
Develop & deliver community based programs
Historical Local Solutions
Increase available/dedicated land
Housing affordability as policy incorporated into planning and decision-making processes
Additional Solutions for the Future
Encourage private investment
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First StepsFirst Steps
Begin with Housing Policy Statement Affordable housing and housing affordability as stated
goals Program decisions Regulatory decisions
Focus on Coordination, capacity and education Examination and exploration of policies and processes
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Foundation ActionsFoundation Actions
Goal: Capacity and coordination Tracking process Regional Board or Commission
Defined Role, Authority and Responsibility Community Education Program
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Foundation ActionsFoundation Actions
Goal: Availability of and access to funding Support projects and programs pursuing State, Federal
private funding Explore permit and impact fee incentives Explore programs with financial institutions
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Foundation ActionsFoundation Actions
Goal: Increase Land Opportunitiesa) Government-owned property
b) Develop tracking system Abandoned, vacant and foreclosed property
c) Land zoned for a variety of housing typesa) Multi-family or manufactured housing
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Foundation ActionsFoundation Actions
Goal: Incorporate housing / affordability into planning and zoning processes / decisions Stated goal: maintaining and increasing the supply of affordable
housing a) Impact of land uses & regulatory policy on housing affordability
b) Variety of zoning districts, including mixed-use, traditional neighborhood and cluster housing districts
c) Reevaluate uses adjacent to major transportation corridors
d) Identify & explore redevelopment or revitalization areas
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Foundation ActionsFoundation Actions
Goal: Encourage private investment in affordable housinga) Encourage partnerships
Planned development, government and nonprofit organizations
b) Explore infill incentives close to existing infrastructure, shopping and services
c) Upgrade infrastructure in existing areasd) Explore a tiered fee reduction program
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Foundation ActionsFoundation Actions
Goal: Community-based programsa) One-stop shop for affordable housing production, rehabilitation and
services b) Explore shared expertise and administrationc) Explore regional and joint solutionsd) Implement legal mechanisms to ensure long-term affordability and
return of investmentse) Sponsor and support efforts by third-parties to residents
Housing and financial counseling Employment and job training services
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Foundation ActionsFoundation Actions
Goal: Develop and deliver community-based programs Foreclosure
Explore a loan pool or bond to acquire and sell or rent as affordable and/or workforce housing
Explore short-term assistance to stabilize families displaced as a result of foreclosure
Explore a loan pool to aide in refinancing for households delinquent or in pre-foreclosure
Sponsor foreclosure prevention seminars
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Your Input – Things to ConsiderRemember = County
Which goal categories or key actions are most appropriate to expand the supply of quality housing affordable to a broad range of households?
What goals or key actions would help you to increase access to quality housing affordable to a broad range of households?
Do you know someone who is negatively impacted by housing quality, variety, or affordability? What would make a difference for them?
Do you know someone who is positively impacted by housing quality, variety, or affordability? What made it possible?