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HomeMy WebLinkAbout2012-07-25 Housing PACKET Ashland Housing Commission Regular Meeting Agenda July 25, 2012: 4:30 – 6:30pm Council Chambers – 1175 East Main Street 1. (4:30) Approval of Minutes (5 min) June 27, 2012 2. (4:35) Public Forum (5 min) 3.(4:40)Fair Housing Ordinance Review/Update (15 min) 4.(4:55) Preliminary review of the draft 2012 Housing Needs Analysis (30 min) 5. (5:25) Clay Street Review Discussion (10 min) 6. (5:35) Secondary Goal Discussion (10 min) Zoning Manufactured Housing 7.(5:45)Liaison Reports discussion (20 min) Liaison Reports Council (Carol Voisin) Staff(Linda Reid) General Announcements 8.(6:05)RVTV-New PSA Discussion (15 min) nd 9.(6:20)August22, 2012 MeetingAgenda Items (5 min) Commissioner items suggested(5 min) Quorum Check – Commissioners not available to attend upcoming regular meetings should declare their expected absence. 10.(6.25)Upcoming Events and Meetings th First Reading of the Fair Housing Ordinance, City Council-Aug. 7, 2012 Next Housing Commission Regular Meeting 4:30-6:30 PM; August 22, 2012 11. (6:30) Adjournment In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Community Development office at 541-488-5305 (TTY phone is 1-800-735-2900). Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to the meeting(28 CFR 35.102-35.104 ADA Title 1). ASHLAND HOUSING COMMISSION DRAFT MINUTES June 27, 2012 CALL TO ORDER ChairRegina Ayars called the meeting to order at 4:30 p.m. at the Council Chambers located at 1175 East Main St. Ashland, OR 97520. Commissioners Present:Council Liaison Regina AyarsCarol Voisin, arrived at 5:00 p.m. Brett Ainsworth Barb Barasa Staff Present: Evan LasleyLinda Reid, Housing Specialist Ben Scott Carolyn Schwendener, Admin Clerk Commissioners Absent Richard Billin APPROVAL OF MINUTES Ainsworth/Lasley m/s to approve the minutes of the May 23, 2012 regular Housing Commission meeting. Voice Vote: All Ayes minutes were approved as presented. NEW OFFICER ELECTION The Commissioners reviewed the Ashland Municipal Code section 2.10.050, the Election of Officers, Secretary and Subcommittees. It was determined that it was not necessary for the Commissioners to elect new officers at this time. Ayars will remain the Chair and the Commission will discuss the election of new officers at the January 2013 meeting. PUBLIC FORUM James Dills, previous Housing Commissioner, who worked on a video discussing the Ashland Housing Trust Fund, was present to show his new edited version. His video is currently on YouTube and he will send the link to Reid who will then find out if it’s possible to put the link on the City of Ashland website. Dills showed his thirteen minute video to the Commissioners with the changes; more local pictures of affordable housing units, business and community activities within the City. Dills used more descriptive words on the screen this time rather than just audio questions. His hard work has been greatly appreciated. FAIR HOUSING MATERIALS FOR NEW STUDENT ORIENTATION AND FAIR HOUISNG ORDINANCE UPDATE Lasley will see to it that the educational packets containing Fair Housing information get distributed with the Student Orientation for SOU students. The Commissioners discussed different events at the college that would be appropriate to distribute the fair housing information. It was suggested to give the information to the Student Government at SOU who could distribute it when doing outreach. Reid spoke with Diane Hess from the Fair Housing Council of Oregon who is putting together a job description for a new Fair Housing Outreach Coordinator for our area. Hess is hoping when she comes down in the Fall to do 1 training she will be able to proceed with the interview process. Reid will be on the interview panel for this new employee. The goal is to have the person hired by September. Reid provided examples of information from the Fair Housing Council for college students. The Commissioners discussed the different choices and decided that the one entitled “Important information for college Students” along with the Flow Chart would be the most appropriate. Reid will see if she can get additional copies from the Fair Housing Council and then give them to Lasley who in turn can provide them to the Student Government at SOU. Reid said the Fair Housing Ordinance Update is on the agenda for the City Council meeting on August 7, 2012. 2012 GOAL REVIEW The Commissioners reviewed and updated their goals. 1. Education and Outreach – RVTV Project In July this goal was accomplished though the Commission would like to see it continue. Past Commissioner Dills finished the first educational video about the Housing Trust Fund. Barasa will work on this in the future but she has some roadblocks, filming equipment, editing equipment, software. It was suggested that the next topic be about what the Housing Commission does. They would like a more variety of interviews perhaps people on the street. It was suggested that one of the film classes at SOU might be interested in taking on this project. Put this on the August agenda. 2. Preservation of vulnerable properties – Have done everything they can do. 3. Landlord Tenant Brochure – This was a project that Billin was working on. Since Billin is gone this evening the Commissioners will check in with him next month to get an update. 4. Housing Trust Fund Innovative Funding Source – Currently the Commission has no consistent revenue stream for the Housing Trust Fund. Reid confirmed that the money from the sale of Chitwood property to the parks department did get transferred into the Housing Trust Fund account. ($125,000) The Commissioners discussed the different sources of revenue that might be available for the Housing Trust Fund such as Business License renewal fee and the Transient Occupancy Tax. Ainsworth is on the HTF subcommittee and will bring some ideas for revenue sources to the August meeting. 5. Implement Action Plan steps based on the results of the Updated Housing Needs Analysis - Reid is almost finished with the Housing Needs Analysis Update. After Bill Molnar does his final review the update goes to the Planning Commission Study Session and then back to the Housing Commission for recommendations and then to a regular Planning Commission meeting and then on to City Council. The initial draft should come back to the Housing Commission in July. Should be to the Council by fall. The Commissioners agreed they are still comfortable with these five goals and will continue working on them. PRESERVATION PROPERTY UPDATE Ayars gave an update after approaching the property owners of the Expiring Use Units in Ashland. Ashley Apartments, 245 Tolman Creek, Ashley Senior, 2301 Siskiyou, Sun Village, 721 N Main and Donald E. Lewis Retirement Center, 500 YMCA Way. Ayars and Reid met with the owner of Sun Village who has owned that property for over thirty years. The owner was quite clear that she is opting out of the program so sometime in 2013 the units will no longer be affordable. She is retiring and would like to sell the property. The Housing Authority of Jackson County did approach her with an interest to purchase the property but they could not agree on a price. 2 Ayars spoke with Dena Smith, the Vice President of Housing for Pacific Retirement Service which is owned by the Rogue Valley Manor Housing Corporation. They manage/own the Donald E Lewis retirement community located next to the YMCA. Smith acknowledged that they are renewing the affordability annually. Though they have no long term contract they have made an agreement to keep these units affordable for the next fifteen years. Ayars said that the Ashley Apartments as well as the Ashley Senior Units are owned by CBM which is located in Auburn California. They are under a Rural Development Contract and after a certain period of time, twenty years, they have the option to sell. If they choose to sell they go through a process of offering it to non profits for a certain period of time at which time Rural Development can come back and ask them to stay in the program and offer them some incentives to do that. JACKSON COUNTY HOMELESS COUNT OVERVIEW Reid explained that this year’s data has been put in a different format making it difficult to compare to prior years. This data is available on the ACCESS website for anyone who would like to review it. As in prior year’s one of highest reason for causes of homelessness is the lack of ability to afford the rent due to unemployment. The largest age group experiencing homelessness is 24 to 44 years old. Reid is currently working on a power point presentation to present to different councils throughout the county. The presentations will be done by the end of the year. She also has a ten year plan brochure to distribute. Reid reminded the Commissioners that a lot still needs to be done in regard to issue of chronic homelessness, mental health, drug addiction and health issues. Agencies like Maslow, Community Works and ACCESS are not mental health providers or drug and alcohol councilors, they are emergency safety organizations. One thing Reid noticed from the report was when the housing market crashed and the unemployment rate went up we saw people leaving their households due to domestic violence and alcohol abuse. There has been a huge increase of single parents with children. LIAISON REPORTS DISCUSSION Council –No report Staff – Reidreported that Project Community Connect served a total of 629 people which was more than in any prior years. The name was changed from Project Homeless Connect to Project Community Connect so that more families on the brink might attend. A survey of event participants looked at prior year attendance. 42% of participants said they had not attended, 15% said they had. On a positive note there were a lot of good interactions with vendors and service providers, many providers set up follow up appointments with event participants. There were a lot of dental extractions and department of human service appointments scheduled. The purpose of the event is to get people connected to the services they need so they can get their life stabilized to move on to a better place in their life. JUNE 27TH, 2012 MEETING AGENDA ITEMS Quorum check; everyone will be available for the meeting UPCOMING EVENTS AND MEETINGS th First Reading of the Fair Housing Ordinance, City Council-Aug 7, 2012 Next Housing Commission Regular Meeting July 25, 2012 4:30-6:30 PM ADJOURNMENT - The meeting was adjourned at 6:10 p.m. Respectfully submitted by Carolyn Schwendener 3 Housing Commission Memo Title:Fair Housing Ordinance Review/Update Date: July 25, 2012 Submitted By: Linda Reid, Housing Program Specialist Legal is reviewing the draft ordinance I will hand out copies of the ordinance at the meeting. Housing Commission Memo Title:Clay Property Options Date: July 25, 2012 Submitted By: Linda Reid, Housing Program Specialist Background At the September 6, 2011 regular City Council meeting the Council reviewed the options put forward by staff regarding the next steps with the remaining property located at 360 Clay Street and the recently available Chitwood property, and made a recommendation to sell the Chitwood property to the parks department and to re-evaluate the options for the Clay street property next year. The Housing Commission reviewed the staff proposed options at their regular meeting on July 27, 2011 and forwarded the following recommendation to the council. Housing Commission Recommendation Issue an RFP for both the Clay Street and Chitwood properties to develop a mixed income development that includes affordable rental and ownership housing targeted to households at 120% Area Median Income and below. Staff Proposed Options Option #1: Land Bank-Given current land values, in the event the property is to be sold in whole or in part for market rate development the Commission, and ultimately the Council, may want to consider delaying a sale until a later date when market conditions have improved in order to maximize returns. Further, delaying a final decision on disposition may be an alternative should the Commission or Council desire to complete a detailed analysis of housing needs prior to determining the mix of income and unit types to be provided. Option #2: Sell the land for Market Value- Determine market value of property (see comparable property estimates attached) Public hearing on disposition of public property Execute purchase and sale agreement Option #3: Soliciting a proposal for an affordable/mixed-income development- Determine development potential Develop RFP for property HC review of RFP Council review and issuance of RFP Developer selection HC recommendation/Council decision Public hearing on disposition of public property Execute purchase and sale agreement Project Development phase 2012 Housinng Needs Analyysis (WORKINGG DRAFT June 2012) 1 pg Findings pg Recommendations City Accomplishments Section I: Introduction pg pg pg Section II: Framework/Community Context Section III: Housing Trends and Existing Conditions Section IV: Housing Inventory Section V: Housing Needs Section VI: Baseline Forecast of Housing Demand Section VII: Meeting Housing needs to 2040 pg pg Appendix 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 2 The 2012 Housing Needs Analysis provides a summary of housing and demographic trends within the City of Ashland in an effort to allow the City to meet the populations housing needs in the future. This report is intended to provide an evaluation of housing trends in Ashland since the last detailed housing assessments were completed including the 2002 Housing Needs Analysis and the 2007 Rental Needs Analysis. The following is a review of those trends, a brief summary of what steps the City has taken to address the findings and recommended actions identified in the prior housing assessments, and evaluate what the results of those actions have been. Ashland is growing-but relatively slowly: The City of Ashland has grown in population from 16,234 in 1990 to 20,078 in 2010 according to the US Census. This 0.79% historical growth rate is largely consistent with the City’s Comprehensive Plan and Jackson County’s population estimate for the City of Ashland that predicts the population will continue to grow at an average annual rate of approximately 0.75%.Between 1990 and 2000 Ashland’s population grew by 20% while the population grew by only 2.8% in the decade between 2000 and 2010. This marked disparity in population growth between these past two decades may suggest that the actual annual growth rate is trending toward a diminishing growth rate and if that proves to be the case it will be a trend which bears close monitoring. Growth has not occurred evenly in all age groups: The population growth rate of individuals 65 years old and older grew at a faster rate in Ashland than in the rest of the State, while the population of individuals between the ages of 35 and 44 actually declined. In the last decades Ashland has also seen a substantial decrease in the population of nearly all age groups between 15 and 55 (one exception was the 25-34 age groups which saw a 3.4% increase between 2000 and 2010). The populations of age groups 55 years old and older see growth with the exception of that age group of 85 years old and older. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 3 Figure 1. Ashland Persons per Age Cohort 2000-2010 ЌЎЉЉ ЌЉЉЉ ЋЎЉЉ ЋЉЉЉ ЊЎЉЉ ЊЉЉЉ ЎЉЉ Љ Ў ƚǝĻƩ ǤĻğƩƭǤĻğƩƭǤĻğƩƭǤĻğƩƭǤĻğƩƭǤĻğƩƭǤĻğƩƭǤĻğƩƭǤĻğƩƭǤĻğƩƭǤĻğƩƭ В ƓķĻƩ ЊЍЊВЋЍЌЍЍЍЎЍЎВЏЍАЍБЍ ğƓķ Ў ЊЉЊЎЋЉЋЎЌЎЍЎЎЎЏЉЏЎАЎ ǤĻğƩƭ БЎ ЋЉЉЉ {/ĻƓƭǒƭЋЉЊЉ {/ĻƓƭǒƭ This trend of an aging citizenry should persist into the future as the largest population growth has been and will continue to be in the age groups represented by the large baby boom cohort. This group which was in their 40”s and 50’s in 2000, and their 50’s and 60” in 2010, (where those groups saw increases of 110% and 85% respectively), will be in their 70’s and 80’s by 2020. Overall the forecast for the State of Oregon (Source: OREGON’S DEMOGRAPHIC TRENDS February 2010, State Office of Economic Analysis) anticipates there will be 53% more elderly in 2020 than in 2010. Given Ashland’s desirability as retirement destination such trending indicates Ashland will likely see a continuation Fewer households own housing in Ashland compared to other areas: The 2010 Census showed 51% of Ashland households own their homes and 49% are in renter occupied housing. Ashland has a lower percentage of homeowners and a higher percentage of renters than Jackson County with a 63.3% ownership rate, the State of Oregon with a 63.8% ownership rate or the Nation as a whole with at 66.6% homeownership rate. The 2000 Census data showed 52.3% of housing units in Ashland were owner occupied and 47.7% of units were renter occupied. This regional rental/owners disparity could be affected by the presence of the University which increases the student age population that is typically in the market for rental housing, but also shows a greater demand for rental units relative to the rest of the region. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 4 The fastest growing employment sectors in Ashland do not pay enough for a household to afford fair market rents: Individuals employed in the fastest growing employment sectors in Ashland, services and retail jobs; do not make enough money to pay fair market rent in Ashland. However, this trend is not specific to Ashland; in general wages have been outpaced by housing costs since the 1980’s. The number of low-income households has decreased since 2000 after having increased between 1998 and 2000: Between 2000 and 2010 the estimated number of families and individuals living below the poverty level has decreased from 12.5% to 11.5% and from 19.6% to 18.8% respectively. Although the decrease is slight, it may signal a reversal in a trend identified in the 2002 housing Needs Analysis which found an increase of 2.7% in the estimated number of low-income households between 1998 and 2001. The 2010 Census now reports a decrease in the number of households who report having an annual income of less than $75,000 a year while the number of households reporting an income of over $75,000 has increased. This increase may be due to the ageing of the Ashland population and continued identification as a retirement destination. Housing sales prices increased nearly 50% between 1998 and 2001 and have remained higher than the regional average: Housing prices in the early part of the decade rose precipitously, and in 2001 this trend was just getting started. In 2007 at the height of the housing boom, the average home price in Ashland was $438,750. With the fall out of the housing market in 2008 and the ensuing foreclosure crisis, housing prices in most areas fell drastically. Housing prices also fell in Ashland during the recession, though not as significantly as in other parts of the county. According to the Roy Wright Appraisal Service, 85 housing units sold in Ashland in 2011 the average sales price was $285,000. The median home sales price in Ashland is not affordable to households with median incomes: the 2012 median household income for a family of four in the Medford/Ashland Metropolitan Statistical Area is $58,500. In order to afford a median priced home in Ashland a household would have to earn $75,000 a year. Only 23.8% of the population reports having an income over $75,000 a year, while 50% of the ownership housing stock is targeted to this group. It is clear that there is an excess of ownership housing on the market at price ranges which are not commensurate with the income groups seeking ownership housing. The largest dwelling unit gap exists for households earning less than $10,000 annually: The findings of the Housing Needs Model for the City of Ashland using 2010 Census Data shows that the City lacks an adequate number of rental units affordable to those residents with the lowest incomes; those making less than $10,000 a year. Households making 30% of the Area Median Income or less make up approximately 12.2% of all Ashland households. Only 3.05% of the City’s rental housing stock (approximately 152 units) is considered affordable to this population. The City’s current need for rental housing in a price range affordable to those with the lowest income is estimated to be 955 units; this leaves a gap of approximately 803 units 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 5 needed to for these very low income households. Housing Units affordable to these populations, which include predominantly households under the age of 35, and to a lesser extent over the age of 55, could be offset by Housing Choice (formerly section 8) Vouchers. The 729 households under the age of 35 that report having an income of under $10,000 a year may be due in part to the presence of Southern Oregon University, which includes a high percentage of non-traditional students. Ashland has a large deficit of affordable owner-occupied housing units: The 2002 HNA found that 46% of Ashland households earning below the median income could not afford to purchase a house in Ashland. This number has grown to approximately 57% of Ashland households; over half of the current population cannot afford to purchase a home in Ashland. The Housing Needs Model shows that there is a deficit of housing stock costing less than $279,300, only 22% of all housing units for sale in Ashland, while there is a surplus of 2,255 units above that price. Few multi-family units were built between 2001 and 2010: The 2002 HNA found that only 9% of the building permits issued between 1990 and 2001 were for multi-family housing types. (how are they counting this ??). Between 2000 and 2010, 19.6% of all building permits issued were issued for multiple family units (two-family units to five or more). Though single family units tend to get developed at a rate twice that of multi-family units, the City has seen a significant increase in the development of multi-family units in the past ten years. However, not all of the newly built multi-family units were rental units, and many rental units were lost in the same period to condominium conversion. Ashland is falling short of providing the housing types identified in the 2002 Housing needs analysis: The 2002 HNA found that more single-family units were being built than was estimated to be needed, while both multi-family housing and government assisted housing types were either falling short or not being built at all. It is clear that single-family ownership housing development remains the most prevalent type of housing development within Ashland, while the housing types most needed, including multi-family rentals and government assisted housing are not being developed in accordance with needs. Ashland has a relatively small inventory of land zoned for multi-family housing: The 2011 Buildable Lands Inventory identified an existing capacity for up to 1384 Multifamily units within the Urban Growth Boundary. The Housing Needs Model anticipates up to 1759 housing multifamily units will be needed to satisfy the anticipated demand for multifamily by the year 2040. Without changes to allowable densities, increases in mixed use developments, or an increase in land zoned for multi-family the City may exhaust the supply of land available for multi-family housing by the year 2034. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 6 Implications of previous housing trends: The number of affordable units in Ashland causes households to compete against each other for housing. Land zoned for multiple-family is being consumed for single family ownership units such as townhomes and condominiums. Housing costs are forcing Ashland workers to live in other communities Housing costs may be contributing to reductions in school enrollment. Housing costs may place greater demands on transportation systems and parking (i.e. with more people commuting). Housing costs may limit economic development Following is a summary of potential land use strategies for addressing key housing issues identified in the 2012 HNA. Encourage more multi-family housing: Promote policies that will increase the development of multi-family housing and provide more affordable rental housing to meet the needs of the population. The 2002 HNA also recommended an increase in multi-family housing, and in the last decade the historic development of multi-family rental housing has continued to be insufficient to satisfy demand. Suggestion:Increase the land supply. The BLI data suggest that the City has capacity for about1384 multi-family dwellings whereas it is anticipated that 1759 units will be needed by 2040.Approaches to encourage apartment development is to designate more land for higher concentrations of residential units (High and Medium Density zones). Suggestion:Promote development of residential units in commercial and employment zones.The BLI assumes commercial developments within employment and commercial zones would only utilize 50% of their allowable residential capacity on average. Increasing the prevalence of mixed use developments (beyond the 50% expectation) will effectively increase the net supply of land and the total capacity for multifamily units. Suggestion:Consider restricting uses in certain zones to apartments. The building permit data suggest that a significant amount of land designated for high-density multifamily housing has been developed as single-family attached types that are owner occupied units. Designating certain lands for rental units would encourage development of apartments. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 7 Suggestion: Consider policies that encourage redevelopment of adaptive reuse of structures. The location of rental units is also important. Increasing the supply of rental units near employment centers and the University will make these units more attractive. Suggestion:Develop more government-assisted housing: The data show a need for nearly 800 dwelling units that are affordable to households with annual incomes of $10,000 or less. About 30% of these households, however, are in the 18-24 age range and another 25% are age 65 or over. The data suggest the City would need to develop as many as 50 units per year for the next 20 years to address this need. Given the number of total housing units developed in the City in any given year is typically less than 100, it is unlikely such a target could be met. A more realistic target would be a target based on a percentage of total units developed in collaboration with local housing organizations, would be 10-15 units annually. Encourage more affordable single-family housing types. The average sales price of a single- family residence was over $277,000 in 2001. Following are some approaches that can increase more affordable single-family housing types: Suggestion: Zone more land for small lot development. The data show a strong correlation between lot size and housing value. The City could consider reductions in minimum lot sizes in certain residential zones, or could take an approach like the City of Corvallis, which requires a certain percentage of small lots (lots between 2,500 and 3,500 square feet) within subdivisions and planned unit developments. Suggestion:Evaluate land use requirements to reduce barriers for manufactured housing. The City has identified a need of 2.4% of all future housing to be manufactured homes in subdivisions and parks. Revising existing policies to more readily enable the placement of manufactured homes is one potential approach to encouraging more affordable single family housing. Suggestion:Evaluate land use incentives to promote affordable single family housing. The City should evaluate existing density bonus allocations to better incentivize the voluntary inclusion of affordable single family housing in future developments Suggestion:Consider allowing Accessory Residential Units as a permitted use in single family zones. The integration of ARUs into existing neighborhoods provides for small dedicated rental units serving single or two person households, and could also be a resource for more affordable housing types. The City should evaluate existing density bonus allocations to better incentivize the voluntary inclusion of affordable single family housing in future developments 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 8 Suggestion:Reduce development fees for low-income projects: The City should conduct a careful review of the components of housing cost and calculate the percentage of total unit cost that is a result of development fees. Following the Completion of the 2002 Housing Needs Analysis and Housing Action Plan the City has completed a number of actions that directly address the recommendations identified in the prior analysis including the following: Developed land use policies and incentives to encourage the development of affordable and needed housing types; o Passed annexation and zone change ordinance requirements to require the inclusion of affordable housing in new developments of a type commensurate with the market rate units provided, o Passed condominium conversion ordinance requirements that help preserve multifamily rental housing and affordable housing, o Passed minimum density ordinance requirements to ensure multifamily zoned properties are developed at a minimum of 80% the base density and are thus not developed as large single family lots, o Passed an ordinance amendment permitting small accessory residential units to be located on small lots in multifamily zones. Develop more government-assisted housing; o Coordinated with the Housing Authority of Jackson County to develop 60 new units of government assisted affordable rental housing and assisted the project through joint acquisition of land, CDBG awards, and reduced development fees. Reduced development fees for low-income projects; o Amended the City’s Affordable Housing System Development Charge waiver program to ensure a minimum period of affordability of 30 years for assisted units, o Amended the City’s Community Development and Engineering fee waiver program to make affordable units automatically eligible for the waivers, o Developed a Housing Trust Fund framework for the dedication of resources to assist the City in meeting housing needs. Develop Organizational Capacity for Affordable Housing; o Dedicated General Fund and Community Development Block Grant (CDBG) resources to maintain a full time Affordable Housing Program staff position to work with providers of affordable housing to develop more government assisted housing locally, 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 9 o Prioritized the use of CDBG funds to support the development of affordable housing consistently awarding the funds to projects that increase the supply of affordable housing. City efforts, in collaboration with the local organizations providing affordable housing, have resulted in over 10% of all housing units developed since 2002 have been secured as 1 affordable to low-moderate income households. This percentage equates to a total of 178 units secured as affordable over the last decade. The housing needs analysis serves as a background report to the Housing Element of the City of Ashland’s Comprehensive Plan. The purpose of undertaking an analysis of housing needs is to increase the probability that needed housing types will be built and to ensure that the city has a suitable amount of land to meet the housing development needs. A housing needs analysis should include a comprehensive analysis of factors affecting housing needs and an up-to-date knowledge of trends affecting housing. Such factors along with household income and cost information, affect the need for various housing types in a community. Background-Oregon Planning Requirements for Housing ORS 197.296 contains two key objectives. These relate to housing and land, as follows: Housing: Ensure that development occurs at the densities and mix needed to meet a community’s housing needs over the next 20 years; Land: Ensure that there is enough buildable land to accommodate the 20 year housing need inside the urban growth boundary (UGB). The City of Ashland is not required by state planning requirements to undertake a periodic review of housing need since ORS 197.296 only applies to communities with a population of 25,000 or more. However, as a guide to providing for the current and future housing needs of its citizenry, a housing needs analysis is a valuable tool. A housing needs analysis provides elected and appointed officials and city staff with the necessary data to make decisions that balance the needs of the community with regard to housing, redevelopment, annexation and growth management, the preservation of farm land and rural areas with the need to accommodate 1 See chart “Affordable Units per year” in Appendix D 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 10 population growth and economic development. This analysis reviews current conditions and sets the framework for policy discussions on housing needs. Purpose-Housing Need versus Housing Demand No one would argue that that everyone should have access to decent, safe and affordable housing, but what does that really mean? Historically the evolution of housing and the housing market have not always provided those basic elements of housing which many of us now take for granted. The market has not always had an incentive or a mandate to provide those basic elements nor was there always agreement on what constituted decent, safe, or affordable when applied to housing units. Decent Housing: The term decent housing speaks to the physical condition of housing units. Housing that includes adequate bathroom facilities, electricity, basic plumbing and heating and is free of open exterior holes or cracks, and infestation meets the basic criterion for decent housing. One measure of safe and decent housing is the Housing Quality Standards (HQS) checklist developed by HUD (see appendix D). Safe Housing: Prior to 1927 there were no building codes, with the evolution of homeowner’s insurance and the fallout of multiple tragedies due to fire, many communities adopted Uniform Building Codes to create safety standards and regulate the building industry to ensure that such tragedies were averted. In the 1990’s the ICC (International Code Council) codes were adopted in most states across the country in an effort to standardize the accepted safety of residential and commercial buildings nationwide. Affordable Housing: Affordable housing refers to a household’s ability to find housing within their financial means. The standard measure of affordability as defined by the U.S. Department of Housing and Urban Development (HUD) is when the cost of rent and utilities (gross rent) is less than 30% of household income. When gross rent levels exceed 30% of income, particularly by a large percentage, it places a significant burden on household finances. Householders who pay more than 30% of their income toward housing costs are called “Cost burdened”. Householders who pay more than 50% of their income toward housing costs are called “severely cost burdened”. When households are housing “cost burdened” their ability to pay for the other necessities of life are compromised. “Needed housing”: As used in ORS 197.307, “needed housing” means housing types determined to meet the need shown for housing within an urban growth boundary at particular price ranges and rent levels, including the following housing types: o Attached and detached single-family housing and multiple family housing for both owner and renter occupancy; o Government assisted housing; o Mobile home or manufactured dwelling parks as provided in ORS 197.475 to 197.490; 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 11 o Manufactured homes on individual lots planned and zoned for single-family residential use that are in addition to lots within designated manufactured dwelling subdivisions. Growth Management and Housing Affordability While state policy does not make a clear distinction between need and demand, it is instructive to make such a distinction based on housing policy: Housing Need is based on the broad mandate of Goal 10 that requires communities plan for housing that meets the needs of households at all income levels. Thus, Goal 10 implies that everyone has a housing need. However standards defined by public agencies that provide housing assistance (primarily HUD), identify several need components: financial need, housing condition, crowding, and needs of special populations. Housing Market Demand is what households demonstrate they are willing to purchase or rent in the market place. Growth in population leads to a demand for housing units that is usually met primarily by the construction of new housing units by the private sector based on developer’s best judgments about the types of housing that will be absorbed by the market. It is the role of cities under Goal 10 to adopt and implement policies that will encourage the provision of housing units that meet the needs of all residents. It is unlikely that the housing market in any area will provide housing to meet the needs of every household. However, it is incumbent upon the jurisdiction to endeavor to meet the basic housing needs of its citizenry. At the extreme there is homelessness: some people do not have any shelter at all. Close behind follows substandard housing (with health and safety problems), space problems (the structure is adequate but overcrowded), and economic and social problems (the structure is adequate in quality and size, but a household has to devote so much of its income to housing payments that other aspects of its quality of life suffer). Moreover, while some housing is government assisted housing, public agencies do not have the financial resources to meet but a small fraction of that need. New housing does not and is not likely to fully address all these needs because housing developers, like any other business, typically try to maximize their profits. A common assumption concerning the impact of growth management policies is that by limiting the supply of developable land, such policies reduce the supply of housing. Basic economic theory suggests that if housing supply is low relative to demand, than the price for it will be high, reducing its affordability. However, this is a simplistic view. Housing prices are determined by a variety of complex factors, such as the price of land, the supply and types of existing housing, the demand for housing, the amount of residential choice in the region, and household mobility. Further in a community like Ashland, that is an attractive destination for both tourism and 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 12 retirement, the “demand” for housing in the community is not isolated to the existing residential base. Rather national market forces are also factors in establishing local housing prices as the potential buyers of Ashland’s housing stock come from many areas around the country. A report by the Brookings Institution Center on Urban and Metropolitan Policy entitled “The Link between Growth Management and Housing Affordability: The Academic Evidence,” by Chris Nelson, Rolf Pendall, Gerritt Knapp and Casey Dawkins. The report, a comprehensive review of the academic literature on the link between growth management and housing affordability, found that: Market demand, not land constraints, is the primary determinant of housing prices. Whether growth management programs are in place or not, the strength of the housing market is the single most important influence on housing prices. For example, Portland’s growth in housing prices is more attributed to increase housing demand, increased employment and rising incomes than to its urban growth boundary. However, both traditional land use regulations and growth management policies can raise the price of housing, but they do so in different ways: Traditional zoning and other planning and land use controls limit the supply and accessibility of affordable housing, thereby raising home prices by excluding lower-income households. Such policies, already widespread in the U.S., include requirements for low-density, rules on minimum housing size, or bans against attached or cluster homes. Growth management policies improve the supply and location of affordable housing and accommodate other development needs, thereby increasing the desirability of the community and thus the price of housing. However, higher housing prices are often offset by lower transportation and energy costs and better access to jobs, services, and amenities. Since housing prices may increase in any land use environment, the decision for local governments is between good and bad regulation to improve housing choice. Traditional land use practices tend to zone for low-density, expensive homes that exclude lower- income households. Good growth management policies tend to incorporate policies that increase housing densities, mandate a mix of housing types, and promote regional fair 2 share housing. The housing needs assessment contained in this report will be used by the City of Ashland Community Development Department and the Ashland Housing Commission to develop a set of strategies to address housing needs in Ashland. The overarching goal is 2 The Brookings Institute, 2002. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 13 to ensure the development of a stable supply of housing for current and future residents of Ashland at all income levels, and household types. More specifically, this report is intended to present an evaluation of housing trends in Ashland since the last detailed assessment was completed in 2002, and project current and future housing needs based on 2010 Census data, community questionnaires, and the Housing Needs Model created by former Oregon Housing and Community Services Economist Richard Bjeeland. Specifically, the report: Describes socioeconomic characteristics and trends that affect housing; Describes recent housing development trends; Describes housing condition, tenure, and sales; Assesses trends in jobs/housing location; Quantifies housing needs by type and density, and compares it with household incomes and other factors. Housing Needs Analysis Organization Following the introduction are sections presenting population trends and forecasts, rental housing and ownership housing development trends, forecasts based on population growth, affordability needs, and employment trends with relation to population changes and housing needs. Next the analysis will detail the City’s existing housing inventory, its current gaps and surpluses with future housing need projections based on the data from the Housing Needs Model and reconcile those projections with existing and proposed land inventory. Lastly the needs analysis will propose possible policy options for insuring that the City meets the housing and land use needs of the population well into the future. Oregon Housing and Community Services (OHCS) and the Department of Land Conservation and Development (DLCD) worked together to identify data and methodology gaps in implementing the State’s housing goal. The result is the Oregon Housing Model, which specifically links income and age to housing need and affordability. The analysis uses this housing model as a starting point for projecting Ashland’s housing needs to 2040. The analysis will examine Ashland’s housing stock in conjunction with the 2011 Buildable Lands Inventory 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 14 (BLI) and will then evaluate Ashland’s housing need by type and price. Housing needs will be translated into residential land need based on project densities and housing types. This analysis has been compiled using the following data sources: U.S. Census Data Analysis of current market conditions Community and property owner/manager questionnaire The Housing Needs Model Coordinated Population Projections from Jackson County Population Data from Portland State University’s Population Research Center Employment data from the Oregon Employment Department Housing and Development data from the City of Ashland and Jackson County All other citations and resources are referenced in the footnotes and attached bibliography. Historic Population Trends Incorporated in 1874, Ashland had a population of just 300. Located on a stage line with established woolen and lumber mills, the economy of the city at that time was predominantly agricultural. By 1900 the City had a grown to 3,000 residents. Ashland became the division point for the Southern Pacific’s San Francisco-Portland rail line. The city experienced a population boom with the coming of the rail road. In 1899 a normal school was established. Over time the institution became known as Southern Oregon State College and eventually Southern Oregon University. The University has helped attract diverse populations to the community contributing to both the economic and cultural development of the community. Between 1900 and 1950 the population grew steadily to 7,739. Then with the emergence of the timber industry in the Rogue Valley, the city once again experienced a population boom almost doubling in size to 12,342, by 1970. The decade between 1970 and 1980 saw heavy migration to Oregon from other states, in that time the City’s population increased by approximately 2,600 people. By the late 1970’s the main economic support for the Ashland community came from the growth of the tourism industry spurred by the popularity of the Oregon Shakespeare Festival. The travel/tourism industry helped to establish a base for the hospitality industry, retail shops, and restaurants, as well as other cultural and artistic venues. By 1980, population growth tapered off as the City experienced the impacts of a statewide recession and the decline in the timber industry. The city long known for its cultural attractions and quality of life became an ideal spot for retirees. At the same time, mills were closing taking with them the living wage jobs that they had provided to many area families. Despite the presence of Southern Oregon State College, the number of people aged 15-29 began to decrease. By the mid 1990’s an alarming trend of elementary school closures swept the city as families moved away in search of living wage jobs and affordable housing in neighboring cities. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 15 3 Jackson County has a retirement population that exceeds the state average. This is especially true of Ashland which has been an attractive area for retirees. A demographers report completed for the Ashland School District by Portland State University’s Population Research Center noted that; “the largest population growth has been and will continue to be in age groups represented by the large baby boom cohort.” In 2000 there was an influx of people in the 40-50 age range, and it is estimated that by 2020 the largest growth in the population will be in the 60-70 age 4 This trend, illustrated in Table 1.1 below, is seen in retirement communities throughout group. the nation as the Baby Boomers, America’s largest generation ages. This has had a disproportionately greater impact on areas like Ashland and the rest of Southern Oregon, as they are popular areas for retirement. It is expected that the retirement population will continue to grow, at the same rate or faster than it has in the past two decades. The impact of a significant retiree population has had a marked affect on several aspects of the Ashland Community. The needs of a largely older, retired population have significantly affected the types of employment found in Ashland and surrounding areas. There has been a significant increase in the number of health care, medical, and support service jobs due to this trend. Similarly, the rise in retail and service sector jobs is associated with this trend. Unfortunately these new employment opportunities on average offer relatively low wages. While the increase of the retirement population has created a demand for low wage jobs, it has also driven up the cost of living, specifically with regard to real estate. Lastly, as mentioned above, the increase in retirement age residents and the high cost of living has created a situation whereby families are finding housing and/or employment elsewhere, which is having an impact on local schools. Table 2.1 5 ASHLAND POPULATION BY AGE GROUP 1990% of 2000% of 2008% of 2010 % of total totaltotaltotal Under age 5 7934.8% 8024.1%1,3156.3%1068 5.3% Age 5-9 5,39133.2% 9234.7%1,0655.1%1002 5% Age 10-14 1,1445.9%9514.6%1206 6.0% Age 15-19 1,9069.8%1,6137.8%1655 8.2% Age 20-24 2,31411.9%2,25110.8%1885 9.4% Age 25-34 5,12631.5% 2,17411.1%2,87313.8%2248 11.2% Age 35-44 2,37812.2%2,09610.1%1918 9.5% Age 45-54 1,5459.5% 3,24916.6%2,07210.0%2694 13.4% Age 55-59 5513.3% 1,0425.3%1,8228.8%1806 9.0% Age 60-64 5953.6% 6943.6%1,3186.3%1406 7.0% Age 65-74 1,2797.8% 1,2726.5%1,6718.0%1562 7.8% 3 Southern Oregon Workforce Housing Summit, February 2006, pg. 23. 4 Population Research Center, Portland State University, Ashland School District Population and Enrollment Forecasts 2009-10 to 2018-19, (Demographer Report), December 2008, Pg. 7. 5 United States. Bureau of the Census. 2006-2010 American Community Survey 5-Year Estimates and 1990, 2000 statistical abstract of the United States. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 16 Age 75-84 7714.7% 1,1435.9%1,2796.2%1259 6.3% 85 and over 1841.1% 4812.5%4562.2%394 2.0% Total16,234100% 19,522100%20,782100%20,103 100% Population Total3,38020.8% 7,88140%8,61841%6,427 32% Population 55 and older Economic Conditions As noted in the narrative above, the City’s economic development grew out of its location along major transportation routes, agricultural pursuits, and natural and cultural resources. As industries based on natural and agriculture resources waned, those farm and factory/mill jobs were replaced by predominantly service sector employment and health care driven by a shift in the population toward an older demographic (see table 1.2 above). Often these service sector jobs offer lower wages, fewer benefits, and less steady employment. These factors contributed greatly to a decrease in living wage jobs within the city, prompting many young families to seek employment elsewhere and lowering the median income of the area significantly. The 2006- 2010 American Community Survey 5-year estimates the median household income for the City of Ashland at $40,140. This is lower than the median household income of Jackson County as a whole which is estimated to be $44,142, and significantly lower than the median income of the average American household, at $51,914. Similarly, the percentage of families and individual living below the poverty level is substantially greater in Ashland than in Jackson County, in the State of Oregon or in the rest of the Nation. See table 1.2 below for details. Table 2.2 PERCENT IN POVERTY Household type Ashland Jackson State of United CountyOregon States Percentage of families in 11.5%9.9%9.6% 10.1% poverty Percentage of Individuals 18.8%14.0%14.0% 13.8% in poverty Data taken from the 2006-2010 American Community Survey 5-year Estimates 6 According to 2000 Census Data the highest proportion of low- and moderate-income households are found in the central areas of the city north of Siskiyou Blvd, primarily in census tracks 19.1, 19.2 and 18.4. This area has a larger proportion of the city’s multi-family properties and is located near the University. Census data does not account for or identify the student or seasonal status of populations in relation to census tracts, so no conclusions can be drawn about how the student population affects these census tracts. Census data does show however that 6 2010 Census information at that level is not yet available. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 17 these census tracts have the highest percentage of minority populations and can be considered a concentration of minority population in the city with 18, 15, and 15 percent minority populations in each census tract respectively. Income in Oregon has been below the national average for the last quarter of a century. There are four basic reasons that income has been lower in Oregon and Jackson County than in the rest of the U.S. Wages for similar jobs are lower; The occupational mix of employment is weighted toward lower paying occupations; A higher proportion of the population in Jackson County consists of seniors who receive only social security; Due to a higher proportion of seniors in the population, there is a lower proportion of 7 working age residents. 7 City of Ashland, Planning Department, Economic Opportunities Analysis 2007. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 18 Table 2.3 Household Income 2000-2010 Household Income # 2000 % 2000 # 2010 % 2010 All Households 8,552 100% 9,339 100% 1,173 13.7% 906 9.7% Less than 10,000 918 10.7% 677 7.2% $10,000 to $14,999 $15,000 to $24,999 1,300 15.2% 1,203 12.9% 1,090 12.7% 1,286 13.8% $25,000 to $34,999 $35,000 to $49,999 1,141 13.3% 1,490 16.0% $50,000 to $74,999 1,309 15.3% 1,553 16.6% 789 9.2% 779 8.3% $75,000 to $99,999 $100,000 to $149,999 545 6.4% 819 8.8% $150,000 to $199,999 166 1.9% 294 3.1% 121 1.4% 332 3.6% $200,000 or More Median Income $32,670 $40,140 U.S Census Bureau Employment Census counts estimate that 16,564 residents are over 16 years and over; of that number 10,322 are in the labor force. The unemployment rate in Ashland at the time of the American Community Survey 2006-2010 5-year estimates was 8.1%. However, current Oregon Employment Department data shows the unemployment rates for Jackson County in March of 2012 were 10.6% down from 11.3% in March of 2011. The unemployment rate for the State of Oregon is slightly higher than that of the rest of the country; though significantly lower than that of Jackson County at 8.6%. Between 2000 and 2007 Jackson County added 10,246 jobs, twelve percent over the seven year period. Growth slowed in early 2008 and in October 2008 the country began to post year to year job losses. By 2010, employment had fallen below its 2004 level, mainly due to the loss of 9,550 8 jobs between 2007 and 2010. In a recent press release, the Oregon Employment Department stated. “As the recovery from the Great Recession continues, unemployment rates continue their slow downward drift. Unlike Oregon overall, job growth has yet to resume in the Rogue Valley. But we were in a deep hole and it will take a number of years to gain back all of the jobs lost. As government sectors are continuing to grapple with revenue losses, these sectors are poised for 9 continued job cuts.” Though all sectors of the economy have experienced severe job losses and contraction, the public sector, construction and the hospitality industry, three major employers in the region and in Ashland have been hard hit by the recent economic downturn. It would be difficult to estimate the true impact that the economic downturn has had on the employment 8 Current Employment by Industry,” Oregon Employment Department, OLMIS. Average annual non-farm employment in Jacskon County was 83,910 in 2007, 75,640 in 2008, and 74,360 in 2010. 9 Recent Trends: Region 8, Guy Tauer, Published April 1, 2012, Oregon Employment Department, Worksource qualityinfo.org 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 19 trends in the City of Ashland at this time. However, it is easy to surmise that there is a delicate balance to an economy based on health care, education, tourism, and recreation. Industries that rely on discretionary income often are the first to suffer in an economic downturn. Within the City of Ashland the hospitality industry, food service, retail trade, and entertainment top the list of industries in which a majority of area residents are employed. See table 1.4 below. 10 Table 2.4 EMPLOYMENT AND INDUSTRY %%% Jackson % State of Industry AshlandMedford CountyOregon Education Services, Health Care, 27.9%20.1%21.1% 20.9% Social Assistance 16.6%11.7%10.5% 9.2% Arts, Entertainment, Recreation, Accommodation, and food service 11.9%18.2%16.3% 12.3% Retail Trade Professional, Scientific, Management, 13.1%8.9%9.1% 10.0% Administrative, waste management 4.9%8.8%8.8% 11.8% Manufacturing Construction4.8%6.1%7.3% 7.0% Finance, Insurance, Real Estate, 3.3%6.9%5.5% 6.4% Rental and Leasing. Table 2.4 shows that the predominant industries in Medford and Ashland are largely similar, but that the macro-economies of Jackson County as a whole and the State of Oregon show a more equitable distribution of employment throughout several diversified industries, though all employment within the state relies heavily on Education, Health Care, and Social Assistance. All of the predominant industries in the state show a particular vulnerability toward the housing and stock markets collapse and the ensuing economic downturn. This no doubt accounts for the State of Oregon having one of the highest unemployment rates in the country. 10 United States. Bureau of the Census. 2006-2010 American Community Survey 5-Year Estimates. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 20 Table 2.5 11 ASHLAND’S LARGEST EMPLOYERS Business # of Employees % of Population Southern Oregon University Approx. 7503.6% Ashland Community Hospital 4101.9% Oregon Shakespeare Festival 3981.9% Ashland Public Schools 3501.6% City of Ashland 2291.1% Butler Ford Approx. 1600.7% Pathway Enterprises, Inc. 130-1500.6% Ashland Food Co-Op 1300.6% Pro Tool Approx. 1000.4% Linda Vista Approx. 750.3% Albertsons 720.3% Plexis Approx 700.3% Safeway 650.3% Town and Country Chevrolet 500.2% Cropper Medical 500.2% Bi-Mart 450.2% Many Ashland Residents are employed outside of the City, and conversely many employees of Ashland business live outside of the Ashland Community. The 2006-2010 American Community Survey estimates that 68.6% of workers 16 years old and older commute an average of 16 minutes to get to their place of employment. The majority of those commuting to work drove alone, 6.2 percent carpooled, 1.3 percent took public transportation, and 18 percent used other means. The remaining 13.3 percent worked at home. This number has grown since 2000, 11 City of Ashland, Chamber of Commerce website: www.ashlandchamber.com. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 21 when 65.2% of workers reported commuting to work. Workers who routinely commute to work put added strain on both the environment through the production of pollution and the demand for fossil fuels, and public infrastructure such as roadways and parking. The City of Ashland continues to experience issues with traffic congestion, pedestrian safety, and parking. The lack of housing which is affordable, accessible, and located near employment options continues to strain the city’s resources and hamper its economic development.In the 2006 Workforce Housing Summit Workbook, Guy Tauer, Regional Economist with the Oregon Employment Department stated “Many communities and businesses have realized that their future economic prosperity is dependent on being able to provide adequate and affordable housing for their 12 workforce, and have taken a proactive approach to dealing with this impending crisis.” In 2011 the Ashland City Council Adopted an Economic Development strategy which was the result of an extensive public process guided by two sub-committees appointed by the Mayor and confirmed by the Council. The subcommittees consisted of representatives from the business community, economic professionals, regional and state economic development agencies and community stakeholders. The Economic Development strategy identifies several strengths and weaknesses in the current economic environment. Namely, the City’s primary economic industry which once consisted of mill/factory work has been replaced by tourism. The nature of tourism in the region is seasonal and the wages are traditionally low. Two factors stand out as having an adverse impact upon the potential for economic development in Ashland; housing affordability, particularly the lack of workforce housing and the limited land 13 supply for industrial development. The City adopted a Buildable Lands Inventory update in 2011 which has since determined that the current supply of developable commercial lands is 14 greater than the land need projected by the EOA. \[Insert Table 3.3 from the BLI: Buildable acres: UGB & City Limits\] Community Visions and Values In April 2009, the Ashland City Council began work on goals to guide the City’s work for the next 18 to 24 months. To guide their goal setting, the City Council first defined their values. They described, in positive terms, the things they use to make decisions about what is good for the community and good for the City of Ashland as an organization. As members of the Ashland City Council, we value: Participatory government. We value government that is open, accessible, honest and democratic. We value responsive and visionary leadership by elected officials. We have professional, high quality staff. We seek to be efficient and effective with public funds. 12 Southern Oregon Workforce Housing Summit, February 2006. 13 Economic Opportunity Analysis for the City of Ashland, Eco-northwest, 2007. 14 City of Ashland, Planning Department, Buildable Lands Inventory 2001, pg 11. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 22 Our citizens are engaged with their local government as volunteers and in critical community decisions. Natural Environment. Our town is part of nature’s community. We seek to enhance the quality of water, land, air, and wildlife. We actively support energy conservation and alternative energy generation. Our parks and open spaces provide habitat for plants and animals and access to nature for our residents. Responsible Land Use. We value sustainable use of land, water, energy, and public services; our architectural heritage; and buildings with quality design and construction. We value a vibrant downtown, Lithia Park and strong neighborhoods. We support transit, bicycling, and walking throughout our land use plans. Free Expression. We invite the exchange of diverse ideas. We value the social, economic, and creative contributions of the arts, cultural activities, and community events. Diversity. We are a welcoming community that invites and respects the individuality and contributions of all people. Economy. We value an economy that creates wealth for all. We strive to nurture homegrown business and to connect local consumers to local products. Our economy supports arts and culture, connects to Southern Oregon University, and supports high quality public services. We value a business community in tune with the environment and that provides good wages and economic choices for individuals and families. Distinctiveness. Ashland is a unique part of the Rogue Valley. We depend on partnerships in our community and region to meet many of the needs of our residents. At the same time, we value our ability to develop innovative approaches and to chart our own course. Education. We value lifelong education. We value the social, economic, cultural, and civic contributions of strong, integrated educational institutions. Basic Needs. We believe each person needs public safety, water, sanitation, adequate food, clothing, housing, transportation, and health care. Community. We believe Ashland is a unique and special place. Residents participate in community life and feel a sense of belonging. Community gardens, neighborhoods, schools, volunteerism, and events bring our residents together. Residents look out for each other and support those in need. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 23 What objectives do housing policies try to achieve? The development of new housing units is primarily driven by the private market and are built and owned privately. While land use powers of local governments can impact the development of certain housing types, the primary role of local governments has been on regulation to promote public health and safety and to provide for the installation of infrastructure. Housing policies work to address housing in four categories: Community Life. From a community perspective, housing policy is intended to provide and maintain safe, sanitary and satisfactory housing with efficiently and economically organized community facilities to service it. In other words, housing should be coordinated with other community and public services. Although local policies do not always articulate this, they are implicit in most local government operations. Comprehensive plans, zoning, subdivision ordinances, building codes, and capital improvement programs are techniques most cities use to manage housing an its development. Local public facilities such as schools, fire and police stations, parks, and roads are usually designed and coordinated to meet demands created by housing development. Social and equity concerns. The key objective of social goals is to reduce or eliminate housing inadequacies affecting the poor, those unable to find suitable housing, and those discriminated against. In other words, communities have an obligation to provide safe, satisfactory housing opportunities to all households, at costs they can afford, without regard to income, race, religion, national origin, family structure, or disability. Design and environmental quality. The location and design of housing affect the natural environment, residents’ quality of life, and the nature of community life. The objectives of policies that address design and environmental quality include neighborhood and housing designs that meet: household needs, maintain quality of life, provide efficient use of land and resources, reduce environmental impacts, and allow for the establishment of social and civic life and institutions. Most communities address these issues though local building codes, comprehensive land use plans, and development codes. Stability of production. Housing is a factor in every community’s economy. The cyclical nature of housing markets, however, crates uncertainties for investment, labor, and builders. The International City Manager’s Association suggests that local government policies should address this issue-most do not. Moreover, external factors (e.g. interest rates, cost building materials, etc.) that bear upon local housing markets tend to undermine the effectiveness of such policies. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 24 Analysis of historical development trends provides insights into how the local housing market is working. The housing type, mix, and density of past trends are key variables in forecasting future land need. To undertake such an analysis the following parameters are established: Determine the time period for which the data must be gathered. Identify types of housing to address (all needed housing types). Evaluate permit/subdivision data to calculate the actual mix, average actual gross density, and average actual net density of all housing types. In completing this analysis the City reviewed the housing mix and density of development that occurred from 2000 through 2011 (as the 2002 HNA reviewed that data through 2001). This long term analysis provides greater insight into the functioning of the local housing market than would a typical five year period given fluxuation especially in consideration of the national housing market collapse following the subprime mortgage crisis that began in 2008. Table 3-1 shows the actual type distribution of new housing units developed between 2000 and 2011. Table 3.1 Housing mix by Permit Issued 2000-2011 Housing Type BuildingsUnitsPercent of Units 1159 1159 80.3% Single-Family 19 38 2.6% Two-Family Three and Four-Family 14 45 3.1% 30 202 13.9% Five or More 1222 1444 100% Total U.S. Census Bureau buildings permit data According to Census Data, Ashland added 1,444 new dwelling units between 2000 and 2011. This is an increase of 16%, down from 26% from the previous ten year period. As seen in the table above, the trend identified in both the 2002 HNA and the 2007 RNA, of single family development over multi-family development has continued. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 25 Residential Construction Trends Housing development trends identified in the 2002 HNA have persisted. Namely single family housing development has continued to outstrip the development of multi-family housing by a significant margin. The need for multi-family housing continues to grow, while the development of multi-family housing continues to lag. Rental units in price ranges affordable to those with the lowest incomes are in the most demand. Lastly, ownership housing affordable to those making median income to 120% of Area Median Income in Ashland despite recent gains is still out of reach. Single Family In 2000 the estimate of one-unit detached, and one-unit attached dwelling units represented 65.3% of the housing stock. The 2008-2010 ACS estimates that one-unit attached and detached units make up 71.9% of the City’s housing stock. This is an increase of 6.6% over the past decade. There has been and continues to be a clear trend of the development of single-family housing type over all other housing types. Multi-family The 2008-2010 ACS estimates that Ashland’s housing stock is made up primarily of single family units, with only 29.4% multi-family units. This disparity in the development of single family versus multi-family development is shown in table 3.1 above. Condominium Ownership The City allows conversion of existing apartments to ownership units only in cases where 25% of the units converted are affordable and where the current residents have first right of refusal. The Affordable Housing Program parameters under resolution 2006-13 establish that rental apartments converted into condominiums are to be affordable at the 80% income level for a period of not less than 30 years. Since 2003, ninety-two units have converted from rental units to condo-minimized ownership units. Twenty-eight of those units which have converted have been deed restricted as affordable. In that same period 63 new Condominium units have been developed. Since 2008 no new condominium units have been built or converted. Retirement and assisted living The City of Ashland has three large retirement/assisted living facilities and one nursing home. Altogether these facilities comprise 293 dwelling units and maintain an average occupancy rate of approximately 82%. These facilities were developed primarily in the 1980’s and early 1990’s. No new facilities have been developed in the last decade. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 26 Group care homes The City currently has a total of four group homes able to accommodate up to 20 individuals. The University has several group housing units on campus offering a total of ??? beds. The university is currently in the process of building a new residence hall which is estimated to house ??? people with ??? beds. Table 3.2 2006-2010 ACS 5-Year Estimates Housing Units by Type Units In 20002000 % 20102010 % % StructureEstimate EstimateChange Total Housing Units 9,071 100% 10,230 100% 12.8% 1-Unit, detached 5,375 59.3% 6,503 63.6% 21% 1-Unit, attached 544 6.0% 853 8.3% 56.8% 2 Units 458 5.0% 526 5.1% 14.8% 3-4 Units 641 7.1% 530 5.2% -17.3% 5-9 Units 609 6.7% 513 5.0% -15.8% 10-19 Units 380 4.2% 405 7.3% 6.6% 20 or More Units 821 9.1% 746 7.3% -9.1% Mobile Home 225 2.5% 154 1.5% -31.6% Table 3.3 Homeownership/Rental Rate Comparison % Renters 2000 % Owners 2000 % Renters 2010 % Owners 2010 Ashland47.7% 52.3% 49% 51% 33.5% 66.5% 36.7% 63.3% Jackson County State of Oregon 35.7% 64.3% 36.2% 63.8% U.S. Census Bureau Income and affordability of Housing Housing costs are influenced by several factors; including lot size, land cost, availability of materials, labor, interest rates, and supply and demand. Housing Choice is often driven by a household’s income. Similarly, income is a key indicator of a households’ ability to find and retain safe, decent housing. Income is also the main determinant in most householders’ housing choice.A household which is cost burdened by a rent or mortgage payment (an amount which requires a 30% or more of a household’s income) is less stable and more susceptible to losing that housing should some disruption to employment, health crisis or other unexpected circumstance arise. These vulnerable households can then fall into homelessness, or require state or federal assistance to become stable again. Ability of a household to afford monthly rent or mortgage costs will, for the most part, also is the determining factor in where a householder chooses to live. Often the household will forego other housing priorities, such as square footage, 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 27 bedroom size, household amenities, commute time to work and other quality of life choices due to housing affordability. Renter households are two times more likely to be cost burdened than owner households. Approximately 2,737 or 63% of renter households experience cost burden, while only 1,352 or 48% of homeowners experience cost burden from housing costs. This can be attributed in part to a higher percentage of low-income rental households than owner households. In 2000, 37% of Ownership households paid less than 15% of their incomes toward mortgage costs, while a full 15 45% of renters paid more than 35% of their incomes toward housing costs. In the ensuing decade the rapid rise in housing values has substantially increased the costs of homeownership, but even with that increase homeowners as a group still tend to experience less cost burden than renters. As seen in Section II- Framework for Housing Needs-Community Context, the City of Ashland has a higher percentage of families and individuals living below the poverty level than Jackson County or the State of Oregon as a whole. The City also has a higher proportion of lower paying service sector jobs and a higher percentage of seniors in the population than in other parts of the County or State. These factors contribute to the large percentage of households experiencing cost burden. Income Level Income Range All Households 1 person Household Number Percent Extremely-Low Income 0-0-$12,300 1,242 13.3% >30% Low-Income$12,300-$20,500 1,246 13.3% 31%-50% Moderate-Income $20,500-$32,800 1,248 13.4% 51%-80% Moderate -Median Income $32,800-$40,140 933 9.9% 81%-100% Median Income $40,140 4,670 50% 100% Total Households 9,339 100% According to the State Housing and Community Services Department, housing cost in 1990 was increasing at a rate of 9% while household income increased at an annual rate of 2%. Between 2000 and 2010 median mortgage costs for homeowners in Ashland went up by 53%. Rental costs for Ashland residents increased 47% in that same period. While median Household income 16 increased by only 22.9%. This long term trend of housing costs outstripping incomes has 15 2006-2010 American Community Survey 5-Year Estimates and 2000 Census. 16 Ibid. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 28 exacerbated the demand for affordable housing throughout the state. The increasing need for affordable housing units has taxed the traditional methods of funding affordable housing and cannot be sustained into the future should the trend continue. Rental Units 2008-2010 ACS estimates that 48.2% of all occupied housing units or 4,498 are renter occupied units. Fair Market rents for Jackson County as established by the Department of Housing and Urban Development mandate the maximum amount that projects developed using Low Income Housing Tax Credits (LIHTC) or Tax-Exempt bonds are allowed to charge. These amounts correspond to the HUD income guidelines for that area. In 2012 the Fair Market rent for a two bedroom unit was $807 a month. In order for an individual to afford a rental unit at that rate, and not experience cost burden, they would need to earn $15.13 an hour.Currently the 2008-2010 ACS estimates that the median income for a worker in Ashland is $19,042 per year or $9.92 an hour. Currently a HUD regulated two bedroom unit in Ashland is mandated to rent for $590 a month. In 2012 the City of Ashland posted a questionnaire on the City’s website that looked as specific housing related questions some of which corresponded to questions posed in the 2007 Rental Needs Analysis’ random call survey conducted by Riley Research. The City also sent out a business reply mailer to a selected list of rental property owners and property management companies compiled from two sources; the City’s business license registry which included all businesses who rent six or more units, and the list of rental properties developed by SOU planning students in 2007. The information gathered from the community questionnaire and the direct mailing are cited throughout this document. One question posed asked respondents to rate rental housing options in three areas on a scale of one to ten. Of the 110 respondents answering the question posed, the majority believed that the availability of rental options, the quality of rentals, and rental pricing were all less than satisfactory.While the majority of the respondents felt that rent availability and quality were satisfactory, the overwhelming majority of respondents felt that rental pricing was unsatisfactory. Chart 3.1 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 29 Extremelly-Low Incoome (Less thhan 30% ofAArea Mediann Income): As shown inn Chart 3.2 below, thhe findings oof the Housinng Needs Moodel for the City of Ashlland using 22010 Census Data, thee City of Ashhland has a sshortage of rrental units aaffordable to those resideents with thee lowest inncomes; thosse making less than $10,000 a year. According to the Housiing Needs Analysis, only 3.05%% of the Cityy’s rental houusing stock mmeets the neeeds of this ppopulation att approximmately 152 unnits. The Ciity’s current need for renntal housing in a price raange affordabble to those wwith the lowwest income iis estimated to be 955 unnits; this leavves a gap offapproximateely 803 to mmeet the needds of these veery low income househoolds. Housinng Units affoordable to theese populatioons, which innclude predoominantly hoouseholds unnder the age of 35 and too a lesser exttent over the age of 55, coould be offseet by Housinng Choice (foformerly secttion 8) Voucchers. The 7729 househollds under thee age of 35 thhat reports hhaving an inccome of undder $10,000 aa year may bbe due in paart to the presence of Souuthern Oregoon Universitty, which inccludes a highh percentagee of non-tradiitional students. Currentlly there are aapproximateely 100 housseholds who receive a rental subsidyvvoucher fromm the Departtment of Houusing and Urrban Develoopment to offffset housingg costs. Thhere are 142 project baseed subsidized rental unitts located wiithin the Cityy of Ashlandd. Of these uniits 73 are sett to expire wwithin the nexxt 5 years annd the waitinng list for porrtable vouchhers throughtthe Housing Authorityoof Jackson Coounty is appproximately tthree to fourr years out. Households making 330% of the AAMI or less make up appproximately 12.2% of alll Ashland househollds. Low-Incoome (Betweeen 30% andd 50% of Areea Median IIncome): Thhe current suupply of houusing units affoordable to loow-income ppopulations rrepresents appproximatelyy 5.68% of thhe City’s renntal housingsstock or 283 units. The current estimmated need ffor housing aaffordable too this incomee 2012 Housinng Needs Analyysis (WORKINGG DRAFT June 2012) 30 group is 1,052 units; leaving a gap of approximately 769 units. The proportion of households represented by this income group is fairly evenly dispersed though all age groups and represents 11.3% of all households. Moderate Income (Between 50% and 80% of Area Median Income): The current supply of housing units affordable to moderate income populations represents approximately 49.3% of the City’s rental housing stock or 2,453 units. This is by far the majority of the City’s rental housing stock, however at the low end of the income scale (50%) nearly half of the units that fall in this rental category would not be affordable. The need for rental units at this price point is in far less demand as the current need is estimated to be 1,420 units, leaving a surplus of 1,034 rental units affordable to people making between 50 and 80 percent of the AMI. Median Income and above (100% and above): The current supply of housing units affordable to the population making above 80% AMI represents approximately 42% of all rental housing units. At 2,088 units, rental housing units in this price range (approximately $898-over $1,133 a month) are in the least demand, with current need estimated to be approximately 840 households able to afford units in this price range, creating a surplus of 1,248 units. The surplus in units may be due to the fact that households that are able to afford a higher rent may be opting for a unit below that which that household may be able to afford, thereby exacerbating the deficit of rentals at the lower end of the income scale. Chart 3.2 CurrentHousingBalanceRentalUnitsbycostrange ЋЉЉЉ ЊЎЉЉ ЊЉЉЉ ЎЉЉ Љ ЉυЊВЍυЊВЎυЍЋЋυЍЋЌυЏЎЎυЏЎЏυБВАυБВБυЊЊЌЋυЊЊЌЌњ ЎЉЉ ЊЉЉЉ IƚǒƭźƓŭ{ƷƚĭƉ/ǒƩƩĻƓƷbĻĻķ/ǒƩƩĻƓƷ{ǒƩƦƌǒƭ 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 31 Ownership Units Extremely-Low Income (Less than 30% of Area Median Income): An individual making 30% of AMI or $12,300 a year according to the 2012 HUD income guidelines would be able to afford a to purchase a housing unit for a maximum of $51,115. There is very little availability of housing at this income level, Rogue Valley Habitat for Humanity provides housing targeting extremely low-income households, but with the extremely low purchase price the private market is unable to provide ownership units at this level. Some Mobile and Manufactured home units in a park might be within this price range. Low-Income (Between 30% and 50% of Area Median Income): The Housing Needs Analysis estimates that there are 150 existing units available for $72.3 thousand and below, and an estimated need of 401 units at this level. This leaves a gap of 251 ownership units affordable to households earning 30%-50% of the AMI. Moderate Income (Between 50% and 80% of Area Median Income): The number of ownership units available that are affordable to people making 50% to 80% of AMI is estimated to be approximately 260. The estimated need for ownership units costing between $72K-$185.3K is 2,070. The units at the high end of the price scale would be unaffordable to those earning below 50% of AMI. Median Income:There is a limited supply of ownership units affordable to those earning median income. According to the National Association of Home Builders Affordable Housing 17 Price Calculator, a household making the median income for the Medford/Ashland area could afford to purchase a house for $163,126. The calculator assumes a 20% down payment, current interest rates on a 30 year fixed loan assuming a 90% loan to value ratio. The Housing Needs Model estimates that there are approximately 410 units available between $185,300 and below. While many households earning median income could qualify for a loan to purchase a house at the lower end of the scale, those same households would be cost burdened it they had to pay a mortgage on a housing unit of over $163,000. Over 78% of the City’s ownership housing stock consists of units of costing $279,300 and above, while the demand for housing units in that price range is only 1,750. From Chart 3.3 below it is clear that the private market has provided a surplus of high cost housing, over 2,255 units, while the remaining 22% of the housing stock available for sale costing less than $279,300 is in such demand that there is a housing gap of 3,147 units. The highest demand is for those units affordable to households making the 100% AMI to 120% AMI at 1,332. 17 National Association of Homebuilders affordability calculator: http://www.nahb.org/generic.aspx?genericContentID=78355 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 32 Chart 3.3 CurrentHousingBalanceOwnershipUnits ЎЉЉЉ ЍЉЉЉ ЌЉЉЉ IƚǒƭźƓŭ{ƷƚĭƉ ЋЉЉЉ /ǒƩƩĻƓƷbĻĻķ ЊЉЉЉ /ǒƩƩĻƓƷ{ǒƩƦƌǒƭ Љ ЊЉЉЉ While it is clear that it is not profitable for the private market to build housing targeting those households at the 50% of AMI and below, housing units targeting 50% to 100% AMI while slightly more feasible still requires some incentive and subsidy to make the development feasible. Further, these units will have to compete with units of a similar price in the nearby markets of Talent, Phoenix, and Medford, which while requiring a longer commute time, can often offer more house for the same or even a lower price. At the same time the only entities that can provide ownership housing targeting moderate and low-income households are affordable housing providers, which utilize federal, state and local tax credit and subsidy programs in order to develop such units. These entities are few in a small region like Southern Oregon and must compete with the rest of the state for the funds. Capacity building for these affordable housing entities can be difficult as affordable housing financing can be a complex and highly competitive process, and more so in a time of shrinking federal and state funding for such programs. Buildable land supply Land supply affects land price and by extension, housing price.Statewide Planning Goal 10, and ORS 197.296, requires communities to maintain a 20-year supply of buildable residential land within their Urban Growth Boundaries. The City of Ashland’s supply of buildable lands was recently quantified in the 2011 Buildable Lands inventory adopted in November 2011 . The land availability component of a Buildable Lands Inventory needs to be compared to the expected demand for various housing types to ensure a minimum 20 year availability. This Housing Needs Analysis provides a detailed assessment of precisely what mix of housing types 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 33 will be needed through 2040 (see Table___). Using this projected housing type need , and correlating it to the land availability in each Comprehensive Plan designation we can ascertain whether sufficient land will be available over the next 20 years or longer. The 20011 BLI demonstrated the following land availability by Comprehensive Plan designation Table ___Buildable Acres: UGB and City Limits combined NetExpectedNeeded Comprehensive YearSurplus BuildableDwelling Units PlanSupply or deficit Acres Units Distributed Per Airport Airport 0 Master Plan Commercial 15.8 252 Croman Mill 62.8 340 Downtown 2 53 Employment 105.1 221 HC 1.4 15 HDR 8.9 162 Industrial 12.1 0 LDR 38.1 70 MFR 30.8 323 NM 17.7 118 SFR 214 875 SFRR 48 103 Per SOU SOU 19.5 Master Plan Suburban R 42.3 311 Woodland 4.3 10 Totals622.8 2853 Note:Expected Dwelling Units on Commercial and Employment Lands have been reduced by 50% from what would be permitted as such units are not required. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 34 The City estimates vacant buildable lands in all designations that allow residential uses have a total capacity of 2853 dwelling units. This estimate includes a 50% reduction for residential on Commercial and Employment Lands as such units are not required and it is unlikely that all future commercial development will incorporate a residential component. Single Family and Manufactured housing, detached 2010 ACS estimates that there are 10,203 total units housing units within the City of Ashland. Of that total 6,710 are 1 unit detached, and 46 are Mobile home units on individual lots. Between 1990 and 2010 there has been a marked increase in the supply of attached and detached single family units. Between 1990 and 2000, the number of single family detached units increased by 52%, between 2000 and 2010 that increase was 21%. While the number of mobile home units in the City decreased by 1.5%. (See Table 3.2 on page 24). Manufactured housing units in parks As mentioned above the number of mobile home units located in the City has decreased in recent years after remained fairly consistent over the previous 10 year period between 1990 and 2000. Between 1990 and 2000 the number of mobile home units in the City increased by 18%, then between 2000 and 2010 the number of mobile home units decreased by 9% for an overall 20 year decrease of 1.9%. There are currently two mobile home parks within the City. A park formerly located across the street from “Upper Pines”, known as “Lower Pines” was sold and the purchasers redeveloped the land in to a mixed use commercial development, the loss of this park may account for the decrease in units between 2000 and 2010. Multiple or single-family units, attached; 2010 ACS estimates that there are 810 1- unit attached, 424 duplexes (2-units), and 2,194 units of three or more, down from 2,451 just ten years earlier. All together multi-family and single family attached housing types make up 38.2% of the total housing stock. Another trend which is highlighted in the Table 3.2 on page 24, has been the decrease of medium and large scale multi-family developments. The number of multi-family units consisting of more than 4 housing units has decreased significantly between 1990 and 2005. Complexes consisting of between 5 and 19 saw a decrease of 2% between 1990 and 2000, similarly complexes consisting of more than 20 units saw a 9.1% decrease between 2000 and 2010. This is due in part to the conversion of multi-family rental properties to saleable condominium units, caused by the high land values 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 35 of the past decade within the City of Ashland. In 2006, the City passed a condominium conversion ordinance in an effort to mitigate the loss of existing affordable and market rate rental properties which were not being replaced by the market. In 2007, a comprehensive inventory of multifamily housing units was completed by Southern Oregon University. This inventory also took into account additional uses of properties located in these multi-family zoned areas. This inventory allowed the City to see patterns of development within these areas. One pattern that stood out from the data collected was that single family units on single parcels were the most common housing type found in these multi-family zones. Single family homes comprised one third of all housing units in these zones. This highlights another predominant problem with the development of multi-family properties, the majority of the property zoned for multi-family, higher density development does not build out as such contributing to a lack of more affordable housing types. Government assisted housing (below market-rate housing) Most people think of government assisted housing as Public housing or subsidized housing through the Housing Choice Voucher (formerly known as the Section-8 program) program However, there are several different avenues in which the government assists developers to provide affordable housing. Many large scale developments utilize a combination of the funding sources in order to complete a project. Detailed below are a few of the most prevalent types of government assisted housing programs: Low-income Housing Tax Credit Program (LIHTC):The Federal Low-Income Housing Tax Credit Program assists both for-Profit and non-profit housing developers in financing affordable housing projects for low-income families and individuals. Some local developers of affordable housing are eligible to apply to Oregon Housing and Community Services which allocates funds based on a statewide Consolidated Plan. The City of Ashland has two projects that were totaling 66 units developed using LIHTCs and expects to see another six unit tax credit project developed in the near future. Public Housing Assistance-Section 8 Housing Choice Voucher Program: The Housing Authority of Jackson County is the local provider of HUD funded housing programs such as the Housing Choice Voucher program and the Public Housing program. Currently the Housing Authority receives approximately 1390 Housing Choice Vouchers for all of Jackson County. Just over 100 of those vouchers are provided to City of Ashland residents. There are no public housing units in Jackson County. Home Program: The City of Ashland is not currently a participating jurisdiction for HUD’s HOME funds. Some local developers of affordable housing are eligible to apply to Oregon Housing and Community Services which allocates funds based on a statewide Consolidated Plan. USDA Rural Development Mutual Self Help Home Loans/SHOP: The Department of Agriculture’s Rural Development offers several loan options to assist low to moderate income 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 36 households attain homeownership. In recent years the City of Ashland has awarded Rogue Valley Community Development Corporation CDBG funds to help leverage funds and initiate two Self help homeownership projects comprising 30 units that utilized funds from Rural Development programs. Rogue Valley Community Development Corporation has utilized Self Help Ownership Program (SHOP) grant funds awarded to Community Frameworks from HUD on these projects. Similarly USDA Rural Development also offers low-interest loans and grants to assist low to moderate homeowner’s complete health and safety repairs on their homes. The City also contains three large scale multi-family projects financed with Rural Development loan funds. All together these units account for 153 units of below market rate and subsidized housing within the City. The City of Ashland is a Participating Community Development Block Grant Funds (CDBG): Jurisdiction for the Community Development Block grant program and as such receives and annual allocation of funding from the Department of Housing and Urban Development to undertake a variety of activities including the provision of affordable housing. The City has often prioritized the use of CDBG funding in support of affordable housing projects. Table 4.1 Government Assisted Rental Units Property Name Property AssistanceNumberNumberIncomeContract TypeTypeof Units ofLimitExpiration AssistedDate Units Ashley Garden Family RD 40 20 60% RD Ashley Senior Senior RD 62 41 60% RD Stratford Family Section 8 51 17 100% RD 18 Chief Tyee Family Section 8 32 29 30% 7/31/09 Donald E. Lewis Senior Section 8 40 40 30% 5/11/10 Star Thistle Disabled Section 8 12 12 50% 9/30/09 Sun Village Family Section 8 12 12 30% 1/20/13 19 Takilma Village Family Section 8 14 14 60% 8/31/09 20 Johnston Manor Senior Section 8 34 34 60% 12/26/08 TOTAL 297 219 Seasonal Units The City of Ashland has a thriving tourism industry. Consequently many housing units in the City are utilized on a seasonal rather than year round basis. It is difficult to discern the actual 18 The owners of the Chief Tyee complex opted out of their HUD contract in 2009. This complex is no longer mandated to be affordable although it was initially developed using HUD funding. 19 The owners of the Takilma Village complex opted out of their HUD contract in 2010. 20 The owners of the Johnston Manor complex opted out of their HUD contract in 2009. This complex is no longer mandated to be affordable although it was initially developed using HUD funding. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 37 number of seasonal and vacation rental units there are in the City, due to the proliferation of unregistered units, however the City does keep a database of businesses registered as travelers accommodations located within the City. In May of 2012 a total of seventy five businesses have registered with the city as having a traveler’s accommodation or vacation rental units; these units come in many forms, from hostel, motels, and hotels, to individual cottage units and bed and breakfasts. Many of these units represent units not meant for year round occupancy, so although counted by census in the total housing, these units are counted as vacant units. Between 2000 and 2010 the number of these units has doubled, and they now represent 3.8% of the City’s housing stock. These units will not contribute to the overall housing inventory available to meet the types of housing need quantified in this analysis. Owner Occupied units Owner occupied units represent 51.6% of all occupied dwelling units. There are 4,856 owner- occupied dwelling units in Ashland occupied by approximately 10,210 individuals. The average household size for owner-occupied dwelling units is 2.10 people per unit. Rental Units Renter occupied units represent 48.4% of all occupied dwelling units. There are 4553 renter- occupied dwelling units in Ashland occupied by approximately 8,907 individuals. The average household size for renter-occupied dwelling units is 1.96 people per units, slightly less than the household size of the average owner occupied unit. Housing Age and Condition The majority of housing in Ashland, 59.6%, was built prior to 1979; with 16.6% or 1,695 units being built prior to 1939. Despite the relative age of much of the housing stock, there are very few units which lack basic amenities. Only 1.9% of all occupied housing units lacked complete plumbing or kitchen facilities. 47.6% of all housing units were built between 1970 and 2000, 21 with the most new building activity taking place between 1990 and 2000. Though there are many other factors that contribute to housing considered to be substandard those factors are not accounted for in the Census information. There is little other comprehensive data to gain an accurate picture of substandard housing conditions within the City. Lead Based Paint Hazards: The age of the housing unit is a leading indicator of thepresence of lead –hazard, along with building maintenance. Lead was banned from residential paint in 1978. Of the 10,319 total housing units in the City of Ashland 68% (7,000) were built prior to 1980. The 1999 national survey found that 67% of housing built before 1940 had significant LBP hazards. This declined to 51% of houses built between 1940 and 1959, 10% of houses built 21 United States. Bureau of the Census. 2006-2008 American Community Survey 3-Year Estimates. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 38 22 between 1960 and 1977 and just 1% after that. Based on those estimates, over 3,300 homes pose potential lead-based paint hazards in Ashland. Vacancy Rates Since 2000 vacancy rates have been relatively low. Survey results, census data, and American Community Survey (ACS) estimates show that the vacancy rates in Ashland typically range between 3% and 4%. A recent survey/questionnaire conducted by the City showed the current rental vacancy rate to be 1%. This rate is below that of the overall rate for Jackson County at 3% and for the state of Oregon as a whole at 5.6%. The overall impact of a low vacancy rate is that there are fewer options in the rental market when people are looking for a unit to rent. Housing Value Housing value is a key indicator of housing affordability. The housing market has been extremely volatile in the past decade since the last Housing Needs Analysis was completed. However, despite a housing boom and the ensuing bust that played out in the intervening decade, the findings of this recent effort are much the same as they were in 2002. In the decade since the last HNA was completed housing costs within the City of Ashland have grown at a rate much faster than that of Jackson County, and the State of Oregon as a whole. The 2002 HNA reported an average home price of $277,742, which was an increase of 50% from 1998 (MLS reported and average sale price of $187,258 at that time). At the height of the housing boom in 2007 the median price for an existing home in Ashland was $438,750; by April of 2012 the median price for an existing home was $282,500; a reduction of 36% in a five year 23 period. So while home prices rose precipitously, they fell equally so, ending with the City’s housing price at a 14 year gain of 50.9%. Owner Occupied unit values: According the 2006-2010 ACS 5-year estimates, the Median Home price for Ashland is $408,400 while the individual median income for workers is $19,042. In order to afford a home in Ashland at the median price a household would have to earn $75,000 a year, which is well above Median Household, Median Family and Median worker’s income at $40,140, $52,940, and $19,042 respectively. In 2011 the average sales price according to the Roy Wright appraisal service, was $285,000, while this number is substantially lower than the median compiled by the census in 2010, it is still out of reach for households earning the median income in Ashland. The 2012 median household income for a family of four in the Medford/Ashland Metropolitan Statistical Area is $58,500. In order to afford a home in Ashland at the 2011 median price a household would have to earn $75,000 a year. Only 23.8% of the population reports having an income over $75,000 a year, while 50% of the ownership housing stock is targeted to this group. Conversely for a home to be affordable to a median household 22 Clickner, R. et al. (2001) National Survey of lead and Allergens in Housing, Final Report, Volume 1: Analysis of Lead Hazards. Report Office of Lead Hazard Control, US Department of Housing And Urban Development. 23 SOMLS Home sale statistics. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 39 with an income of 58,500 a house could cost no more than $220,000. At this price there are 31 units out of 212 currently listed as available for sale within Ashland. Residential Home Sales: Recent data from the Southern Oregon Multiple Listing Service (SOMLS) shows that the median residential home sale price of a home in Ashland has dropped considerably since the peak of the housing boom in 2007 by 36.2%; from a high of $438,750 to a low in 2012 of $282,500. The 2010 Census estimates the median home price at $408,400, which may reflect the market at a higher point when census data was collected, than the more recent SOMLS data. Chart 4.1 Existing Home Sales-Ashland/Jackson County ЎЉЉͲЉЉЉ ЍЎЉͲЉЉЉ ЍЉЉͲЉЉЉ ЌЎЉͲЉЉЉ ЌЉЉͲЉЉЉ 9ǣźƭƷźƓŭIƚƒĻ{ğƌĻƭ ЋЎЉͲЉЉЉ aĻķźğƓ ЋЉЉͲЉЉЉ /ƚǒƓƷǤ9ǣźƭƷźƓŭIƚƒĻ {ğƌĻƭ ЊЎЉͲЉЉЉ ЊЉЉͲЉЉЉ ЎЉͲЉЉЉ Љ ЋЉЉЉЋЉЉАЋЉЊЊЋЉЊЋ Projecting Ashland’s Housing need Section III looked at housing and economic trends that effect housing demand in Ashland. Section IV evaluated the existing housing stock targeted to various demographic groups within the population. This section will assess the City’s housing stock based on the current needs and those likely to persist or arise into the future. Section I, makes the distinction between housing need and housing demand. Housing demand is housing that the market built or is likely to build in the future. Housing need is based on the broad mandate of Goal 10 that requires communities plan for housing that meets the needs of households at all income levels. This section focuses on 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 40 two specific need components: housing needs by housing type and density as implied by households’ ability to afford housing, and the needs of special populations. Methodology The following analysis uses a methodology suggested by Planning for Residential Growth: A Workbook for Oregon’s Urban Areas produced by the Transportation and Growth Management Program (TGM). The steps outlined in that document have been followed where feasible. City staff also contracted with former State of Oregon Economist, Richard Bjelland, to update the Housing Needs Model he created for Oregon Housing and Community Services (OHCS) and which has been used as a basis for projecting housing needs throughout the state in numerous Housing Needs Analysis. The Housing Needs Model utilized a methodology based on housing tenure, price, and housing type choices to determine housing needs, rather than a market or demand driven approach which was commonly used to define housing needs for an area. Rather than looking at historic housing production trends then projecting them forward, the Housing Needs Model looks at the age/income demographic of a study area and projects those demographic trends into the future as the market driven method will show development trends, those historic trends may not have been meeting the housing needs of the population to begin with . Where needed data obtained from the Housing Needs Model was supplemented with data obtained from a City conducted survey of property owners and an online questionnaire, and census data comparisons. Populations Projections The components of population change are births, deaths, and migration. In compiling data on population rates for the city of Ashland four main sources of data were used. The Certified population counts provided by Portland State University’s Population Research Center, the 2005- 2010 American Community Survey 5-year estimates, 2010 Census, and the coordinated population estimates through Jackson County’s Comprehensive Plan.??? The primary indicator of future housing need is the projected population growth and the demographics of that population. The City’s Comprehensive Plan projects an approximate population growth rate of 0.75% per year. This equates to approximately 187 new residents per year. Tables 5.1 and 5.2 below look at population change over the past two decades and compares the differences in the population projections between the PSU population Research Center and the U.S. Census data with the Comprehensive Plan Projections. The Census data from the twenty year period is in line with the City’s comprehensive plan projections for population growth, while the PSU population counts based on the 2000 Census estimates a slightly (though not significantly larger) growth rate across the board. It is also clear from the tables below that the City of Ashland grows at a much slower rate than that of Medford or the County as a whole. If the trend continues into the next three decades then Ashland’s population should grow by approximately 6,000 and be slightly below the 28,670 projected by the County’s coordinated population estimate. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 41 Table 5.1 City19902000% Change 2010% Change AAGR 1990-20002000-2010 Ashland16,234 19,532 20% 20,078 2.8% .79% Medford 46,951 63,154 34.5% 74,907 18.6% 1.98% 146,389 181,269 23.8% 203,206 12.1% 1.29% Jackson County U.S. Census. AAGR is average annual growth rate Table 5.2 CityEstimate Census April Change 2000-% Change AAGR July 1, 20101, 200020102000-2010 Ashland21,460 19,5221,9389.9% 0.9% 77,485 63,68713,79821.7% 2.2% Medford Jackson County 207,745 181,26926,47614.6% 1.5% PSU Population Research Center data estimate based on 2000 Census Data Table 5.3 Age Groups 1990 %2000 %%2010 %%AAGR ChangeChange Under 19 6,184 38% 4,775 24.5% 14.6% 4,931 24.5% 3.3% 0.33% 20-24 2,314 11.9% 1,885 9.4% -18.5% -1.85% 25-34 5,126 31.5% 2,174 11.1% -11.2% 2,248 11.2% 3.4% 0.34% 35-44 2,378 12.2% 1,918 9.5% -19.3% -3.13% 45-54 1,545 9.5% 3,249 16.6% 110% 2,694 13.4% -17.1% 3.72% 55-64 1,146 6.9% 1,736 8.9% 51.5% 3,212 16% 85% 9.01% 65-74 1,279 7.8% 1,272 6.5% -0.5% 1,562 7.8% 22.8% 1.11% 75+955 5.8% 1,624 8.4% 70.4% 1,653 8.3% 1.8% 3.65% Total16,234100% 19,522 100% 20.3% 20,103 100% 3% 1.19% population U.S. Census Bureau Age of Householder and age of projections There is a direct correlation between age of householder, income of householder and housing type. For example, an individual 35 years old to about 65 years old earning area median and above is more likely to move from rental housing to ownership housing because that individual has the means to purchase housing and the ability to maintain that housing and live independently. Similarly, households that are considered moderate income and below (80% AMI) have higher rental rates due to an inability to purchase housing despite other factors including ability to maintain that housing and to maintain an independent lifestyle. Those populations considered elderly move from homeownership to renter as they lose the ability to maintain their housing units and an independent lifestyle. As shown in table 5.3 above, the group represented by ages 25-44 in 1990 was the largest age group at 31.5%. A decade later that population counted toward the 45-55 age group, which grew 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 42 in that ten year period by 110% accounting for the aging of the existing population, but also an in-migration of a substantial number of peoples in that age group. In that same period the City saw a distinct shift, from a population more evenly distributed between all age groups to a population more heavily populated by peoples in age groups of 45 years old and older. The last decade saw these age groups grow by double digits while younger age groups experienced little or even negative growth (-11.2 in the 35-44 age group). By 2010 nearly all age groups under 45 years old saw negative growth rates, with the exception of age groups under 19 years and 25 through 24. However, these age groups grew at a rate of less than one third of the overall annual average population growth, while age groups represented by 55-64 year olds grew at a rate nearly 10 times that of the general population. These projections show that the trend pointed out in the 2002 HNA still bears out; though the Ashland population is growing at a steady (albeit slow) rate, this growth is not divided evenly across all age groups. If this trend of aging households in Ashland continues into the future, housing targeting those populations 75 years old and older will need to be developed. That is housing that accommodates aging in place and ADA accommodations. The housing needs of elderly populations could also require units with less square footage and fewer bedrooms and with little to no landscape maintenance. Lastly, as householder’s age, homeownership becomes less economically advantageous and often homeowners opt to rent. Consequently the market for large single family houses on large lots could decline as the largest segments of the population ages. Theoretically, as older householders move out of existing single family units, the ownership housing freed up will serve as more affordable options for the next generations moving out of rentals and into homeownership. But if these population trends continue that may not be the case. For as those existing households age out of their current residences the population replacing them, those households 44 years and under, are showing growth rates below that of the general population and in some instances negative growth rates, which will lead to less demand for and a surplus of existing ownership units. The population is projected to grow by 8,567 individuals over the next 30 years. The Housing Needs Model estimates that the City will need to add 2,657 new housing units to accommodate the increased populations. If the trends of the past few decades bear out, the majority of these new housing units will be targeted to older households. Housing ownership by age of householder The 2012 to 2022 Ashland School District Enrollment Forecast shows a long term trend of declining birth rates within the Ashland School district. Similarly the forecast shows a general declining population of younger households with children over the last decade and partially 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 43 24 attributes this to an inability of young families with children to afford housing in Ashland. The school district demographic report also cites low birth rates and in migration of householders 45 years old and older as other factors which contribute to the general aging of the Ashland 25 population and consequently the reduction in school district enrollment. These trends point to an increasing percentage of ownership housing being occupied by older householders. It is clear in table 5.4 below that the two biggest factors in determining homeownership are income and age of householder. As household income increases among all age groups so too does the rate of homeownership. This is also true of age, showing older householders with the highest percentages of homeownership despite income. Table 5.4 Percentage of Homeownership by Age and Income, 2010 HNM HouseholdAge of Head of Household Income 15-2525-3535-4545-5555-6565-7575+ <10K2.9% 7.9% 16.0% 25.0% 43.0% 46.1% 40.0% 10<20K3.6%12.7%25.0%37.0%47.0%61.0%56.2% 20<30K6.0% 16.6% 36.0% 45.0% 54.0% 73.2% 67.1% 30<40K7.9%23.9%48.0%53.7%60.0%74.4%70.1% 40<50K10.8% 32.9% 58.1% 62.4% 80.0% 91.0% 84.0% 50<75K22.5%49.9%72.0%82.9%88.6%92.1%91.2% 75K+32.0% 75.0% 83.0% 92.0% 96.0% 97.0% 93.0% Household Income The Oregon Housing Needs Model Methodology states that “household income is the key variable in determining the affordability component of housing need and is strongly correlated with housing tenure”. The Housing Needs Model estimates that there is currently a significant gap of housing units at price ranges affordable those with the lowest incomes and surplus of housing units affordable to those making above the area median income. Households who experience cost burden are more vulnerable and at a higher risk of homelessness. As seen in tables 5.4 and 5.5 age and income are the two biggest factors in housing choice. Table 5.4 above shows the relationship between age and income on homeownership rates; homeownership rates rise with increasing income and as householder’s age. Whereas the relationship of age and income to rental units is the converse; as incomes and ages rise rental rates decrease. 24 Ashland School District. Ashland School district Enrollment Forecasts 2009-10 to 2018-19. Portland State University Populations Research Center. December 2008, page 1. 25 Ashland School District. Ashland School District Population and Enrollment Forecasts 2012-13 to 2021-22. page 12. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 44 Table 5.5 Percentage of Renters by Age and Income, 2010 HNM HouseholdAge of Head of Household Income 15-2525-3535-4545-5555-6565-7575+ <10K97.1% 92.1% 84.0% 75.0% 57.0% 53.9% 60.0% 10<20K96.4%87.3%75.0%63.0%53.0%39.0%43.8% 20<30K94.0% 83.4% 64.0% 55.0% 46.0% 26.8% 32.9% 30<40K92.1%76.1%52.0%46.3%40.0%25.6%29.9% 40<50K89.2% 67.1% 41.9% 37.6% 20.0% 9.0% 16.0% 50<75K77.5%50.1%28.0%17.1%11.4%7.9%8.8% 75K+68.0% 25.0% 17.0% 8.0% 4.0% 3.0% 7.0% Income Projections Household income is difficult to predict. Based on past trends, incomes are expected to increase slightly (Median Household Income increased by 22.9% over the past decade). Poverty Status In 2000 12.5% of Ashland families, and 19.6% of all individuals lived below the federal poverty level. By 2010 those numbers have declined slightly to 11.5% and 18.8% respectively. Household Size and composition Household size within the City of Ashland has been decreasing slowly over the past two decades. Currently the average household size is estimated to be 2.08 persons per unit for owner-occupied households and 2.06 for renter households. The 2000 census estimated the average household size of owner-occupied units to be 2.30 and for renter occupied units to be 1.98. The average estimated household size for all housing types was 2.14. The Housing needs model uses a current household size of 2.119 and for forecasting purposes uses the same estimate. The 2007 RNA conducted property interviews with five property managers and from that information and the information gathered from a needs analysis conducted concurrently, Ferrarini and Associates determined that the greatest need in Ashland at that time was for the development of more studio apartments followed by a need for a relatively modest number of one bedroom and three bedroom units. The analysis also showed that there was an oversupply of 26 two-bedroom rental units. The following table is from that report and illustrates their findings. 26 City of Ashland Rental Needs Analysis. Ferrarini & Associates, Inc 2007. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 45 Table 5.6 City of Ashland Rental Housing Need by Unit Type RNA 2007 TypeDemandSupply Net Need Studio1,039 392 647 1,290 1,188 102 1 Bedroom 2 Bedroom 872 1,676 (804) 3+ Bedroom 900 846 54 Total4,102 4,102 0 27 Source: US Census and Ferrarini & Associates An updated analysis of household size and type found much the same thing. There is a definite lack of studio units for the growing percentage of 1-person households among both renter and owner-occupied households, both of which grew at two and three times the rate respectively of the total populations of all renter and owner households. This could be attributed to three factors; the disproportionate growth of older households, a nearly 50% reduction in the number of 1-room dwelling units between 2000 and 2010, and the disparate increase in one and two person households. One factor that is estimated to have a substantial impact on the housing market is the steep decline of all owner occupied households larger than two individuals. These findings were further substantiated in the property owner and manager questionnaires sent out by the City in early 2012 which showed that studios were most in demand, while two bedrooms were in least demand. Table 5.7 Housing Units by Room Size Rooms 2000% 2000 2010%2010% Change 493 5.4% 247 2.4% -49.9% 1 Room 2 Room 692 7.6% 515 5.0% -25.6% 3 Room 870 9.6% 1,252 12.2% 43.9% 4 Room 1,856 20.5% 2,043 20.0% 10.1% 1,822 20.1% 2,168 21.2% 19% 5 Room 1,498 16.5% 1,601 15.7% 6.9% 6 Room 827 9.1% 1,387 13.6% 67.7% 7 Room 624 6.9% 521 5.1% -16.5% 8 Room 389 4.3% 469 4.8% 20.6% 9 or More U.S. Census Bureau 27 Ibid. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 46 Table 5.8 Owner Occupied Units by Household Size HH Size 20002000%20102010%% Change 4,456 100 4,856 100% 9% Total 1-person 1,117 25.1% 1,460 30.1% 30.7% 1,946 43.7% 2,212 45.6% 13.7% 2-person 3-person 647 14.5% 623 12.8% -3.7% 532 11.9% 412 8.5% -22.6% 4-person 5-person 157 3.5% 103 2.1% -34.4% 45 1.0% 34 .7% -24.4% 6-person 7 or more 12 0.3% 12 .2% 0% U.S. Census Bureau Table 5.9 Renter Occupied housing by household size HH Size 20002000%20102010%% Change Total4,081 100% 4,553 100% 11.6% 1,722 42.2 2,086 45.8% 21.1% 1-person 2-person 1,361 33.3% 1,336 29.3% -1.8% 594 14.6% 646 14.2% 8.8% 3-person 4-person 262 6.4% 305 6.7% 16.4% 90 2.2% 118 2.6% 31.1% 5-person 6-person 33 .8% 41 .9% 24.2% 19 0.5% 21 0.5 10.5% 7 or more U.S. Census Bureau Table 5.10 Estimate of Rental Units Needed by Household Size and Type 28 Units Needed Needs Analysis No. of HH Studio 1 Bedroom 2 Bedroom 3+ Bedroom 2,086 1,252 834 1-person 2-person 1,336 601 601 134 646 291 355 3-person 4-person 305 31 274 118 118 5-person 6-person 41 41 21 21 7-person Demand 4,553 1,252 1,435 923 943 255 1,506 3,647 4,822 Supply Surplus/Deficit (997)71 2,724 3,879 U.S. Census Bureau 28 Estimated household preferences based on percentages from the 2007 RNA-derived from Riley Research community survey. (60%-studio, 40% & 45%-1bdrm, 45%,40% & 10%-2bdrm, 10%,60%,90%&100%-3+bdrm) 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 47 This section concludes with a baseline forecast of housing demand. The baseline forecast represents our best estimate of how the market will perform over the next twenty years. The forecast assumes no changes in current City policy. In summary it is intended to provide a rough estimate of what the housing market will build in Ashland over the next twenty years. The forecast relies on the County’s coordinated population forecast as its foundation but also utilizes assumptions about average household size, persons in group quarters, and housing trends from a variety of sources including prior years census information and the Housing Needs Model Table 6.1-Baseline forecast of Housing Demand 2010-2040 Variable Value Current Future Change 20,07828,6708,492 Population 9611,450489 Persons in Group Quarters Occupied DU 9,40912,9623,553 Single Family Dwelling Units 29 71.9%73.9% Percent Single Family DU 7,3569,5912,235 Number of Single Family DU 30 14,93320,1415,208 Persons in single family HH Aggregate Vacancy Rate 2.5% Total New Single Family needed 2,235 Multiple Family Dwelling Units 26.6%25.5% Percent Multi-Family DU 31 2,7203,311591 Number of Multiple-family DU 5,5226,9851,463 Persons in Multiple-Family HH 2.5% Aggregate Vacancy Rate New Multiple-Family DU 591 Totals - Total occupied dwelling units 2.032.1 Aggregate HH size - 583 Vacant dwelling units -2,657 Total new Dwelling units needed 88.6 Dwelling units needed annually 29 Future projections based on 2009ACS units by tenure and HNA Template 2-projected future housing status as of 2040. 30 Persons in household is calculated using aggregate household size per 2006-2010 ACS, the occupancy of the unit is not determined to be either rental or ownership households. 31 Same as above. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 48 Table 6.1 is a baseline forecast of housing demand. That is to say that the table extrapolates the housing mix that would occur in the future based on past trends and market demand. The forecast utilizes data from two sources; the 2010 Housing Needs Model (which uses the county coordinated population projection) estimates for housing occupancy, household size, and vacancy rate, and the 2007-2009 American Community Survey estimates of total population in occupied housing units by tenure by units in structure (see appendix). This projection is solely based on housing demand and past trends, and predicts what the housing market demand would provide in the next 20 year period. However, housing market demand does not correlate to the housing needs of the community, as can be seen from the table. The housing market would continue to provide a surplus of single family housing units further intensifying the need for multi-family housing and housing that is affordable to the majority of Ashland’s residents. To base the housing needs of future populations upon historic trends would be to continue the inequities of the past into the future, and that is not the goal of this needs analysis. Instead, the needs analysis will use this baseline forecast to show how development trends within the city should be modified in order to meet the needs of the population rather than the demands of the private market. Housing needs by type and density We begin our analysis of housing need by reviewing the housing needs identified in the City’s 2002 HNA. The results show some profound differences between identified need by type and permits issued by type. The number of single-family permits issued in the decade between the last HNA and this current effort shows that the number of Single Family units continues to be developed at a rate nearly double that of multi-family. The 2002 study identified needed housing for the 20-year period between 2000 and 2020. At this point, the City is one-fifth of the way through that planning period. While some differences between identified need and what housing has been built can be explained by the cyclical nature of the housing market, particularly in multiple family housing, the development of the most needed housing types, low-cost ownership and government assisted and affordable rentals, lack the funding and support to develop at the levels that the community needs. These trends will continue, as long as the private market is driven by profit and the federal budget for affordable housing continues to be reduced. In Summary, the City is continuing to fall short of providing needed housing types as identified in earlier studies. The baseline forecast however, is a forecast of housing demand. Other data presented in Section III, suggest that the market is not meeting the housing needs of many Ashland residents and workers. The continued disparity in the increase in housing costs compared to the increase in wages has aggravated the problem. Moreover, even if housing prices increase at a slower rate, the types of jobs forecast to grow in Ashland will not allow workers to afford housing. In summary, the financial need is substantial and a large deficit of lower cost units exists several points should be kept in mind when interpreting this data: 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 49 Because all of the affordability guidelines are based on median family income, the percentage of households meeting the income criteria are comparable in all jurisdictions. For example, 36% of households earn 80% of the area median income. Thus, the income guidelines provide a rough estimate of financial need and may mask other barriers to affordable housing such as move-in costs, competition for housing from higher income households, and availability of suitable units. The ratios applied in the HUD income guidelines are defined such that somewhere around 40% of households will always be considered low income. Ashland will add more than 8,492 households between 2010 and 2040. Assuming 36% of these new households are considered low-income by HUD, about 3,057 of these new households will be low-income. 4 ¡«¤ΕȁΑ2¤­³ «5­¨³²­¤¤£¤£¡¸4¸¯¤ 4¸¯¤$¤¬ ­£3´¯¯«¸.¤³.¤¤£ȝ3´±¯«´² 3³´£¨®ΐǾΑΔΑΑΔΔΘΘΖ ΐ"¤£±®®¬ΐǾΓΒΔΐΔΏΕΖΐ Α"¤£±®®¬ΘΑΒΒΕΓΖΑǾΖΑΓ Βχ"¤£±®®¬ΘΓΒΓǾΗΑΑΒǾΗΖΘ Housing Affordability The standard measure of affordability as defined by the U.S. Department of Housing and Urban Development (HUD) is when the cost of rent and utilities (gross rent) is less than 30% of income. When gross rent levels exceed 30% of income, particularly by a large percentage, it places a significant burden on household finances. Householders who pay more than 30% of their income toward housing costs are called “Cost burdened”. Householders who pay more than 50% of their income toward housing costs are called “severely cost burdened”. When households are housing “cost burdened” their ability to pay for the other necessities of life are compromised. Historically a large percentage of renters in Ashland expend more than 30% of their income on housing costs. The 2009-2010 American Community Survey data showed that 63% of renters in Ashland were cost burdened, of the 4,313 renter households in Ashland 2,714 pay more than 30% of their income toward housing costs. This is a 10% increase in the number of renters who were identified as housing cost burdened by the 2000 Census at 56%. The Housing Needs Model estimates that the City needs 1,163 units targeting those with those lowest incomes, with rents below $195 a month, 1,166 units with rents between $195-422, and 243 units with rents 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 50 between $423-655. It is expected that the City will have a surplus of all units with rents at $656 and above. The Housing Needs Model shows that the majority of the rental units will need to be targeted to those households earning 50% AMI and below. (See appendix) Homeowners experience less cost burden than renters, but there continues to be a deficit of housing for moderate to above median income households and a surplus of units targeting those earning $75,000 a year and above, which is less than 25% of the population. The Housing Needs Model estimates that the City will need; 402 housing units available under $72.3k, 950 units with sale prices between $72.3k-110.1k, 916 units with sale prices between $110.1k-147.6k, 745 units with sale prices between $147.6k-185.3k, and 1,594 units with sale prices between $185.3k- 279.3k. The majority of the ownership units will be targeted to those making the area median income to 120% of the AMI. The model assumes a surplus of units priced at $279.3k and above. (See appendix) Housing Density Figure 6.1,on page 50, show housing density in terms of units per acre mapped by census block. The City is comprised primarily of land zoned for single family dwelling units. Due to the high cost of land in the City of Ashland, most developments maximize the allowable density. One exception is land zoned for multi-family. Thought there is more land zoned for single family development, land zoned for multifamily developments is often developed as single family attached due to market forces, high end multifamily developments such as condominiums and townhouses are more economically attractive to private market developers looking to maximize density and profits. This has made it difficult for non-profit and for-profit developers to construct affordable and market rate multifamily complexes which was shown to be the housing type most in demand by the 2007 RNA within the city. Similarly many of the existing affordable and market rate units are HUD expiring use properties, once the HUD contract has expired the units can convert to market rate rentals or be condo minimized. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 51 Figure 6.1 The findings of the Housing Needs Model and an analysis of income and housing cost indicate that: A median family household cannot afford to purchase a home in Ashland. The largest dwelling unit gap exists for households earning less than $10,000 annually. The city needs approximately 803 additional units costing less than $200 per month. These units fall in the category of government assisted housing. Only 232 owner-occupied units in Ashland are valued, under $110,000 or about 4.5% of all owner occupied units. The small number of owner-occupied units valued under $110,000 limits ownership options in Ashland for households earning less than $40,000 annually. In summary, our evaluation of housing mix, density, and affordability suggests that the City continues to struggle with issues of affordability and needs to plan for a larger share of multiple 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 52 family housing, and for a greater number of single family housing types on smaller lots. Housing tenure remained fairly constant at 52% and 48% respectively for owners and renters, though the ownership rate for Ashland is lower than that of the surrounding areas. Figure 6.2 Owner Occupied units by affordability ЋЎЉЉ ЋЉЉЉ ЊЎЉЉ ЊЉЉЉ hǞƓĻƩƭŷźƦ ƓźƷƭ9ǣźƭƷźƓŭ hǞƓĻƩƭŷźƦ ƓźƷƭbĻĻķĻķ ЎЉЉ Љ Figure 6.3 Rental Units needed by affordability ЊЋЉЉ ЊЉЉЉ БЉЉ ЏЉЉ9ǣźƭƷźƓŭwĻƓƷğƌ ƓźƷƭ bĻĻķĻķwĻƓƷğƌ ƓźƷƭ ЍЉЉ ЋЉЉ Љ Numberof ЉЊВЍЊВЎЍЋЋЍЋЌЏЎЎЏЎЏБВАБВБЊЊЌЋЊЊЌЌњ Units RentalAmountinDollars 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 53 Housing needs of special populations Oregon Housing and Community Services (OHCS) identify several “special populations” that have housing needs distinctly different than the general population. These include the frail and elderly, farm workers, peoples with disabilities, persons recently released from state institutions, and persons infected with the HIV virus, among others. The housing needs of these special populations are highly dependent on individual circumstances. It is not uncommon for the same individual to be classified into two or more of the categories. As such, it is very difficult to develop an estimate of the number and type of housing units needed to accommodate these special populations. In this section we estimate the number of persons with such disabilities and provide projections based on data provided by the 2010 Needs Analysis Priorities for Special Needs Populations compiled by OHCS. Senior housing The 2010 Needs Analysis Priorities for Special Needs Populations completed by Oregon Housing and Community Services to prioritize funding for new affordable housing units throughout the state looks at the number of housing units available to and the population of various special needs households by County. The OHCS Needs Analysis Priorities for senior housing is detailed in Table 6.3 below. Table 6.3 Senior Housing vs. Population Special Needs populationExisting Units Population% of Housing Housing Available Available Gap 1,119 8,047 13.9% 6,928 Elderly Frail Elderly 8 919 0.9% 911 Section IV-Ashland’s Housing Inventory, details the number of existing retirement and assisted living units within the City. The 2010 Housing Needs Model estimates that a total of 257 new units will need to be added to the City’s existing stock to house populations’ ages 65 years old and older. Of those units 83 rentals and 174 ownership units will be needed to accommodate the housing needs of seniors. Special needs housing The 2010 Needs Analysis Priorities for Special Needs Populations completed by Oregon Housing and Community Services to prioritize funding for new affordable housing units throughout the state looks at the number of housing units available to various special needs households by County. The OHCS Needs Analysis Priorities for Special Needs Populations estimates that that there are very few housing units currently in existence throughout the county 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 54 for the majority of the people who could be categorized as having special needs. See table 6.4 below for details. Table 6.4 Special Needs Housing vs. Population Special Needs Population Existing Units Population% of Housing Housing Available Available Gap Alcohol & Drug Rehab 54 4,440 1.2% 4,386 47 2.842 1.7% 2,795 Chronically Mentally Ill 44 794 5.5% 750 Developmental Disability Domestic Violence 33 170 19.3% 137 77 3,735 2.1% 3,658 Farm workers 4 136 2.9% 132 HIV/AIDS Physically Disabled 44 497 8.9% 453 Released Offenders 0 194 0.0% 194 As seen in the table above there is currently a significant housing gap to serve special needs populations. If a proportionate percentage of the population were to be extrapolated forward to the 2040 population projection for the County, peoples with special needs would be an estimated 6.3% of the County’s population or 11,031 people. As the population increases it is evident that the number of housing units available to serve populations with special needs will continue to fall far short of the need for such housing unless a concerted effort to develop housing is encouraged. Housing Stock available to persons with Disabilities Census data reports that 2,379 people 5 years old and older with disabilities resided in Ashland in 2000. Peoples with Disabilities made up 12.8% of the population at that time. The 2010 Census and the 5-year American Community Survey estimates do not provide updated information about peoples with disabilities. However, as the City of Ashland has a greater percentage of the population which is 50 years old or older it can be expected that as the population ages housing that meets the changing needs of the population will need to be provided. Currently the extent of housing stock available to peoples with disabilities is not known. However four complexes representing 148 units designated for seniors and peoples with disabilities are listed on the preservation property list which are in danger of expiring as dedicated affordable housing for seniors and peoples with disabilities. Housing Stock available to persons with HIV/AIDS Information on the housing stock available for persons with HIV/AIDS is currently unavailable for the Medford/Ashland MSA. State of Oregon department of health services records show that 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 55 32 there are 149 people with HIV/AIDS living in Jackson County. The number of people with HIV/AIDS living within the City of Ashland is not known. Consequently, the City does not prioritize or track the development of housing stock available to persons with HIV/AIDS. Homeless Needs It is estimated that in 2008, 1 in every two hundred people in the state of Oregon was homeless. Data from the Point in Time homeless Count conducted across the State of Oregon and throughout the U.S. in January 2008 showed that Oregon has the highest concentration of homeless people of any state at .54 percent or 20,653. The 2011 Point in Time homeless count for Jackson County totaled 1,049 people. Totals are not broken out per jurisdiction but are for the entire Continuum of Care region. Of the 1,049 respondents 39% identified themselves as chronically homeless (continuously homeless for a year or more or had at least four episodes of homelessness in the past three years), 48%, or 502 respondents were families with children. The majority of the respondents 26% cited “couldn’t afford rent” at the reason for leaving their last living arrangement. Ashland School District An article published in the Ashland Daily Tidings reported on a rise in poverty in rural areas. Specifically, the article cited dramatically increased poverty rates among children in areas deeply 33 The Ashland School District affected by the recession including Medford and Ashland. reported that for the 2010-2011 school year 84 children currently attending school within the district report being homeless. This number is up from 62 the previous year. Figure 5 32 State of Oregon, Department of Health Services Website: http://www.oregon.gov/DHS/ph/hiv/data/docs/Livingcounty.xls 33 Hammond, Betsy. “Rural Students most likely to live in poverty Some Southern Oregon districts see high rates.” Ashland Daily Tidings 01 Dec. 2009. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 56 2011OneNightHomelessCountforJacksonCounty SingleAdultMen OneParentFamilyWith Children Couplewithoutchildren TwoparentFamilywith Children UnaccompaniedYouth(17or under) Other Oregon Housing and Community Services receive federal and state resources to be used to support services for homeless populations. They include: Emergency Housing Account, Emergency Shelter grants, State Homeless Assistance Program, Shelter Plus Care, and Supplemental Assistance for Facilities to Assist Homeless. Additionally, under the Federal Continuum of Care program administered by HUD, local governments and agencies can apply for federal funding for programs and services to prevent and combat homelessness. The Continuum of Care has been the recipient of McKinney Vento funds. The City of Ashland does not directly receive any funds to assist homeless persons or persons at risk of becoming homeless, and there is no longer a local organization that provides services to homeless populations; however City of Ashland residents can access available services, programs and funds through ACCESS, Inc. the regional CAP agency that serves Jackson and Josephine Counties. Similarly, many non-profit agencies that provide housing or support services for homeless populations are eligible to apply for funds through Oregon Housing and Community Services or through the Jackson County Continuum of Care. In 2007, Interfaith Care Community of Ashland (ICCA), the sole provider of homeless services located within the City of Ashland, closed its Ashland location and consolidated its operations to that agency’s Medford office. Since the loss of ICCA the City passed an ordinance to set up an emergency shelter in times of inclement weather. Several local faith based organizations including Peace House a local non-profit offer weekly hot meals, showers, and occasionally a place to sleep. Though there are limited local housing resources for the City’s homeless populations, there are several organizations that provide emergency shelter, transitional housing, and other resources and supportive services for homeless individuals in Medford, but many of the City’s homeless lack the resources for or have transportation to get to those providers in Medford which is 19 miles away. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 57 Rental units at price ranges affordable to those with the lowest incomes (>$10,000 a year) would serve to reduce homelessness. The 2010 Housing Needs Model shows this population has the greatest need for housing. It is known that households who experience cost burden, those who pay a disproportionate percentage of wages toward housing costs, are the most vulnerable, and have an increased risk for falling into homelessness. Similarly, individuals and families transitioning from homelessness often have little or no ability to pay housing costs. These individuals and families need housing that is either subsidized or extremely affordable in able to work toward stabilization and self-sufficiency. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 58 Housing Distribution Strategy In order to meet housing needs of the community over the planning period (Through the year 2040), some modification in the current distribution of housing that is being developed by the demand driven market will be required. The proposed modification is shown in Table 7.1 below. Table 7.1 HousingFinalTotalCurrentNeededEstimate of Future TypeDistributionHousingApprox.DistributionExistingNeeded/ 35 of Housing UnitsDistributionto meet UnitsGap 34 by Type in Neededby Typefuture units 2040in 2040 65.80% 8,91380.26%45.50%7,356 1,557 Single Family 2.40% 325-5.0%154 171 Manufactured DU in Park 3.10% 4202.63%N/A526 -106 Duplex Units Tri-Quad4.20% 5693.12%1.1%530 39 Units 5+ Multi-24.50% 3,31913.99%48.4%1,655 1,655 Family 100% 13,545100%100%10,230 3,315 Total This distribution modification is further exemplified by the 2010 Housing Needs Model outputs for unit type based on income and affordability. Based on Census data for income, the City needs many more low cost rental units, which are often multi-family units and government assisted housing units whether through tax-credits, loans, or subsidies in the form of project based or portable housing vouchers. The City has a deficit of ownership units below $279k. The Housing Needs Model shows a total deficit of 2,719 ownership units affordable to people making below $75,000 annually. 34 Number derived from Census Building Permit Data 2000-2011. See Appendix for details. 35 From 2006-2010 American Community Survey. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 59 Table 7.2 Estimate of Income and Affordability HNM 2010 Rentals/monthly rent Number of Existing Current Needed Current UnitsUnitsSurplus/Gap 0-$194152955 -805 $195-4222831,052 -769 1,052940 112 $423-655 $656-8971,401480 922 830557 273 $898-1132 1,258283 975 $1133+ Total 4,9764,266 710 Ownership Unit Values 150401 -251 <$72.3k $72.3k<110.1k82749 -667 18665 -648 $110.1k<147.6k 160656 -497 $147.6<185.3k $185.3k<279.3k6761332 -656 40041750 2255 $279.3k+ Total Units 50895552 -463 Challenges and Recommendations Challenges If the 2010 Housing Needs Model projections are representative of Ashland’s future housing needs, then City may be faced with the following challenges of the next 20 years: How and where to zone and “protect” land for affordable rental and ownership housing as well as multiple-family housing at all levels. How to encourage developers to build what Ashland needs (by price/affordability), rather than the products they are comfortable building. How to continue to create and sustain Albany’s great neighborhoods. House to create a variety of housing types and incomes in neighborhoods. How to encourage effective partnerships to increase funding for low-income housing and provide responsive, coordinated and effective housing choices and service. Goals To provide for the needs of the expected population growth in Ashland over the next 20 years and maintain a diversity of income, cultural, and age groups in Ashland’s population, consisten with other plan goals. 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 60 Objectives Strive to maintain a diversity of population groups in Ashland, especially if increased growth pressure leads to more expensive housing. Concentrate on population groups that are important o Ashland’s character, such as students, artists and actors, employees of the city, school district, and college, service personnel who work in the tourism industry, hourly wage earners in local industries, and local residents who have not retired an live on fixed income. (Ashland Comprehensive Plan) Increase owner-occupied households to comparable levels with county and state ownership averages. Recommendations The City needs to look ways to encourage; Rental housing at rates affordable to low to moderate income households, Ownership housing opportunities that are targeted to the 76% of the population that earns less than $75,000 a year, More housing types targeted to seniors and peoples with disabilities, More studios and one bedroom units, More multi-family housing types, Manufactured housing in parks and on single family lots. Challenges To ensure a variety of dwelling types and provide housing opportunities for the total cross- section of Ashland’s population, consistent with preserving the character and appearance of the city. (Ashland Comprehensive Plan) Objectives Conserve land and reduce the impact of land prices on housing to the maximum extent possible. Recommendations Encourage the development of vacant available lots within the urban area. Consider mixed uses wherever they will not disrupt and existing residential area. Support efforts for rehabilitation and preservation of existing housing and neighborhoods Consider allowing and encouraging accessory apartments in new and existing neighborhoods as an outright permitted activity in single family zones? Consider no longer allowing detached single family residential units in multi-family zones? 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 61 Challenges The local economy does not provide wages that are commensurate with housing costs. 49% of homeowners with mortgages, 14% of homeowners without mortgages, and 63% of renter households spent more than 30% of household income on housing costs. Objectives In order to provide for the long-term self-sufficiency of Ashland’s low- and moderate-income households, the issue of affordable housing must be addressed in a comprehensive manner. In addition to the land use related actions already identified, the following actions may help meet the objectives of decreasing the percentage of households who experience cost burden. Recommendations Provide more economic opportunities for Ashland residents by improving the local economy and attracting more “family wage” jobs to Albany. Support efforts of affordable housing providers, including; the Housing Authority of Jackson County, Rogue Valley Habitat for Humanity, Access, Inc. Ashland Community Land Trust, and Umpqua Community Development Corporation. To provide affordable housing, financial assistance, and services to Ashland, low and moderate income, elderly, and special needs households. Dedicate Community Development Block Grant funds as projects and needs arise. Work with employers to better understand the demographics and housing preferences of their workforce. Challenges The identification of a set of land use policies that will lead to development of more affordable housing while achieving other community goals is difficult at best. Ashland however, is not the only community in Oregon, or the United states that is facing housing affordability problems. A considerable body of literature exists on land use policy and affordable housing that summarizes approaches that communities have used to address the housing affordability issue. In general, communities should review policies to ensure that (1) they do not create barriers or exclude to any housing types, and (2) they reduce the cost of housing. This section summarizes some of the policy approaches that communities can consider to address housing affordability. Objectives Recommendations 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 62 Remove Barriers: Barriers to construction of needed housing or efficient use of land are those that public policy has imposed. A jurisdiction would select measures in this category if it has evidence that the market wants to build needed housing types or densities but is kept from doing so by public policies. The City should review policies to weed out ineffective policies, obsolete design standards (ie. Manufactured housing) unnecessarily burdensome permitting processes and inadequate or inappropriate zoning. Provide Incentives: Incentives are measures that increase the likelihood developers will provide needed housing or use land efficiently as a result of reduced costs. A community would select measures in this category, if it has evidence that the market might be willing to build a certain type or density of housing, but there is uncertainty about the success in the market place and/or current economic conditions for such development are less than optimal. Costs can be reduced by these measures(?) including costs of public services and facilities, development fees, and other processing costs. An example of a less commonly considered incentive includes working with neighborhood groups to address concerns. If successful, this can reduce costs of lengthy appeals to the developer. Require Performance: These measures are mandatory plan policies and code requirements affecting development. A jurisdiction would select measures in this category if it has evidence that the market is not likely to respond, at the level of incentive that a community can provide. The public sector is not directly producing the housing. Therefore, estimates of the likely effect of these measures should be qualified by some uncertainty about exactly how the private sector will respond. For example, if higher density requirements or mandatory design standards are perceived by the development community (designers, builders, lenders as unprofitable or unmarketable, the desired housing may not get built in the community. In the case of up-zoning for higher densities, this may result in no housing development instead of housing at lower densities. For this reason, jurisdictions should seek a balance in adopting regulations and try to redirect, not stifle market forces that produce most of a community’s housing. In many cases, requirements should be applied uniformly on all developments so that no particular development gains a competitive advantage. This will encourage developers to find ways to produce the product within market constraints. Review development standards? Lot size typically impacts the price of lots and may affect the size of housing units allowing and the overall price of housing units. Evaluate minimum lot sizes and setbacks, maximum heights and lot coverage of all zones? Evaluate compatibility standards, particularly for multiple-family developments and infill sites. Create and sustain great neighborhoods for all Residents 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 63 BREAKDOWN OF HOUSING BY TYPE, ASHLAND 1990-2010 ChangeChangeChange Type of Unit 1990 Census 2000 Census 2006-10 American 1990-2000-1990- Community Survey 200020102010 Number % Number % Number % Single Family 4,764 66% 5,919 65% 7,356 71.9% 24% 24.2% 54.4% Detached 4,519 63% 5,375 59% 6,503 63.6% 19% 21% 44% Attached 245 3% 544 6% 853 8.3% 122% 57% 248% 2,171 30% 2,909 32% 2720 26.6% 34% -6.5% 25% Multi-Family 838 12% 1,099 12% 1,043 10.2% 31% -5% 24.5% 2-4 Units 1,006 14% 989 11% 918 9% -1.6% -7.2% -8.7% 5-19 Units 20+ Units 327 5% 821 9% 746 7.3% 151% -6% 135% Mobile Homes 190 3% 225 3% 154 1.5% 18% -9.1% -1.9% Other 70 1% 18 1% 0 0% -74% -1% -1% Total 7,195 100% 9,071 100% 10,230 100% 26% 12.8% 42.2% Bedrooms 2010 %2010 No Bdrm 255 2.5% 1 Bdrm 1,506 14.7% 2 Bdrm 3,647 35.7% 3 Bdrm 3,617 35.4% 4 Bdrm 1,025 10.0% 5 or More 180 1.8% 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 64 Housing demand /capacity comparison by unit type SFRMultifamilyTotals Existing Dwelling Unit Capacity (2010 ЊЍЏВЊЌБЍЋБЎЌ BLI) Needed Units per Housing Gap Analysis 1557 ЊАЎВЌЌЊЏ through 2040 -88 -375 -463 Deficit by 2040 55.6 ЏЋ͵БЊЊБ͵Ѝ Annual units needed through 2040 26.422.024.1 Total Year Supply 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 65 Table X>X Future Needed Unit Distributed by Comprehensive Plan Designation Dwelling Units by Type Existing Dwelling distributed into existing capacity Net Buildable Comprehensive Plan Unit Capacity (2010 Acres BLI) SFRMultifamily Per Airport Airport 0 0 0 Master Plan Commercial 15.8 252 0 252 Croman Mill 62.8 340 0 340 Downtown 2 53 0 53 Employment 105.1 221 0 221 HC 1.4 15 0 15 HDR 8.9 162 0 162 Industrial 12.1 0 0 0 LDR 38.1 70 70 0 MFR 30.8 323 0 323 NM 17.7 118 100 18 SFR 214 875 875 0 SFRR 48 103 103 0 SOU 19.5 SOU Master Plan 0 0 Suburban R 42.3 311 311 0 Woodland 4.3 10 10 0 Totals622.8 2853 1469 1384 2012 Housing Needs Analysis (WORKING DRAFT June 2012) 66