AFFORDABLE HOUSING, breaking down the barriers A few thoughts by Town Planner, Sylvia von Aulock

7/7/2015Incentives = AffordablePage 2 Dispelling the Myths and Confronting Negative Perceptions Mobile homes are affordable and our town has enough. Affordable housing will degrade the neighborhood and look horrible. Affordable = multifamily and that means a public water and sewer system. Affordable Housing will invite crime or worse, children into our town.

7/7/2015Incentives = AffordablePage 3 What Was Exeter’s Motivator (Why was affordable housing a good idea?) Planning Board recognized that all new subdivisions which they were approving were creating homes they could not afford. Volunteer Board members had adult children that were leaving Exeter because their was no affordable housing stock.

Sylvia’s Observations Nothing happens because we want it to, or because it’s the right thing to do, or because the Master Plan recommends it. You must create incentives for what you want and give something in return. (aaaaaahhaaaaaa, making a “win-win”) Work with the developer to make the “numbers work’ but insist on good design.

7/7/2015Incentives = AffordablePage 5 What Effects the “Numbers” Land Costs Development Team (engineers, lawyers, specialists) Unpredicted issues (ledge, law suits, rising/falling market) Material Cost Increases Time Density

7/7/2015Incentives = AffordablePage 6 Zoning Regulations: (Most Risks are Imagined) 1. Allow for some flexibility within your zoning. (allow for conversions, duplexes, multi-family) 2. Create Incentives Ex. Provide a density bonus in exchange for “affordable housing” (15 % bonus if 20% of total is affordable) 3. Create Good Definitions for “Affordable Housing”: determine your threshold for affordability (ie 80% of median income, 120% of median income for your region) 4. Test out your ideas. Chat with a developer

7/7/2015Incentives = AffordablePage 7 Zoning “Baby Steps”: Duplexes Conversions

7/7/2015Incentives = AffordablePage 8 Zoning Allowances in Land Reuse: Reuse of failed commercial site into condominiums Redevelopment of an abandoned medical center.

7/7/2015Incentives = AffordablePage 9 Multi-family Zoning (not just on town water and sewer) AB C Affordable; due to location, due to age, due to zoning.

7/7/2015Incentives = AffordablePage 10 Changing zoning districts Increase multi- family district

7/7/2015Incentives = AffordablePage 11 Create Incentives – Trading Density for Workforce Housing Density bonus of 15% if 20% of total number of units proposed is “affordable”.

7/7/2015Incentives = AffordablePage 12 Define “Affordable” Housing that can be purchased under a conventional mortgage whereby the combined annual expenses for principal, interest, property taxes, homeowner’s insurance and condominium fees (if applicable) will not exceed 30% of household income.

How Do We Keep it Affordable? Exeter’s Examples: “Units will be 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 not to exceed more than the purchase prices plus two times the accumulated consumer price index.”

The Latest Tricks up Exeter’s Sleeve Zoning amendment that allows for a density bonus for rental units. Allow multi-use in commercial/office districts (two or more uses i.e. commercial at street level and residential above). Create reduction allowances regarding fees for school related impact fees for 1and 2 bedroom units.

7/7/2015Incentives = AffordablePage 15 Summary Deal with the Fear, Break Down Barriers and Make a Move Allow for Flexibility in Zoning –Allow for Various Housing Types –Create Incentives Define Affordable Test-out Regs, Chat With a Developer