pinal county housing needs assessment & strategy unincorporated county & countywide march...

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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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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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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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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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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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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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?

pinal county housing needs assessment & strategy unincorporated county & countywide march...

Documents

kuehl enterprises llc

housing quality units

housing strategy steps

significant housing

housing variety singlefamily

housing committee meetings

county median median

future slide