1. Pinal County Housing Needs Assessment & Strategy Unincorporated County & Countywide March 2008

2. Kuehl Enterprises LLC for Pinal County March 2008 2 Agenda 1.Process Overview 2.Significant Housing Conditions 3.First Steps & Foundation Actions 4.Discussion & Survey

3. Kuehl Enterprises LLC for Pinal County March 2008 3 Housing 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

4. Kuehl Enterprises LLC for Pinal County March 2008 4 Housing Strategy  Steps to address identified housing needs Trends & opportunities  One-year  Short-term (2-5 years)  Long-term (6-10 years)  Funding strategies

5. Kuehl Enterprises LLC for Pinal County March 2008 5 Background & 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

6. Kuehl Enterprises LLC for Pinal County March 2008 6 Key Concepts  Housing Needs Economic concept Need v. Demand  Housing Strategies Markets are regional Solutions are often local or jurisdictional Spectrum of solutions

7. Kuehl Enterprises LLC for Pinal County March 2008 7 Significant Conditions 1.Housing Variety 2.Housing Quality 3.Housing Affordability  Renters  Owners 4.Converging Market Trends  Looking to the future

8. Kuehl Enterprises LLC for Pinal County March 2008 8 Housing 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

9. Kuehl Enterprises LLC for Pinal County March 2008 9 Housing 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

10. Kuehl Enterprises LLC for Pinal County March 2008 10 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

11. Kuehl Enterprises LLC for Pinal County March 2008 11 Home Purchase Affordability  Median Price Asked 3 rd Qtr 2006 – 3 rd 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

12. Kuehl Enterprises LLC for Pinal County March 2008 12 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

13. Kuehl Enterprises LLC for Pinal County March 2008 13 Lending & 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?

14. Kuehl Enterprises LLC for Pinal County March 2008 14 Converging 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

15. Kuehl Enterprises LLC for Pinal County March 2008 15 Six 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 housing 6.Develop and deliver community-based programs

16. Kuehl Enterprises LLC for Pinal County March 2008 16

17. Kuehl Enterprises LLC for Pinal County March 2008 17 First 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

18. Kuehl Enterprises LLC for Pinal County March 2008 18 Foundation Actions  Goal: Capacity and coordination  Tracking process  Regional Board or Commission  Defined Role, Authority and Responsibility  Community Education Program

19. Kuehl Enterprises LLC for Pinal County March 2008 19 Foundation 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

20. Kuehl Enterprises LLC for Pinal County March 2008 20 Foundation Actions  Goal: Increase Land Opportunities a)Government-owned property b)Develop tracking system  Abandoned, vacant and foreclosed property c)Land zoned for a variety of housing types a)Multi-family or manufactured housing

21. Kuehl Enterprises LLC for Pinal County March 2008 21 Foundation 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

22. Kuehl Enterprises LLC for Pinal County March 2008 22 Foundation Actions  Goal: Encourage private investment in affordable housing a)Encourage partnerships  Planned development, government and nonprofit organizations b)Explore infill incentives close to existing infrastructure, shopping and services c)Upgrade infrastructure in existing areas d)Explore a tiered fee reduction program

23. Kuehl Enterprises LLC for Pinal County March 2008 23 Foundation Actions  Goal: Community-based programs a)One-stop shop for affordable housing production, rehabilitation and services b)Explore shared expertise and administration c)Explore regional and joint solutions d)Implement legal mechanisms to ensure long-term affordability and return of investments e)Sponsor and support efforts by third-parties to residents  Housing and financial counseling  Employment and job training services

24. Kuehl Enterprises LLC for Pinal County March 2008 24 Foundation 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

25. Kuehl Enterprises LLC for Pinal County March 2008 25 Your Input – Things to Consider Remember = 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?