Idea Transcript
HAMILTON, MT
GROWTH POLICY
HOUSING PART 1: EXISTING CONDITIONS 1. Number and Type of Units According to the 2000 U.S. Census there were 1,915 housing units within the city limits of Hamilton. Just over half of these units were single-family detached structures. There were 165 mobile homes comprising almost 9% of the housing stock. Multifamily apartments (buildings with 5+ units) accounted for 402 of the housing units in the city.
Source: U.S. Census Bureau, 2000 Population of the Census
2.
Year
# SF
# MF Units
2000
22
6
2001
22
6
2002
21
55
2003
20
40
Half of the housing units within the city were constructed before 1960 (50.4%). Another 27.6% units were built between 1960 and 1990. One in every four homes in the city in the year 2000 census was constructed from1990 to 2000.
2004
29
16
2005
41
38
2006
45
0
2007
35
17
Between the year 2000 and 2008, 445 new units have been a to the Hamilton housing stock for an increase of 22% over an eight year period. Single-family units comprised 57% of new units that were built in the city during this time period.
2008
21
11
Total
256
189
There were almost as many housing units within the planning area as in the city limits. (1,904). A windshield survey of the planning area indicates that the majority of units in the planning area are single-family homes. Older homes tend to be concentrated in the southern part of the planning area. Figure 1: Housing Types in Hamilton
Table 1: Building Permits
Home Ownership
Source: U.S. Census Bureau, censtats.census.gov
Figure 2: House in core area of Hamilton
In 2000, homeowners comprised 51% of households in the City of Hamilton. This compared to a homeownership rate of 76% for the County and 69% for the State of Montana. One reason for the difference in homeownership rates may be that multi-family housing, which is more likely to consist of rental units, locate in the city to access water and sewer utilities. Housing—1
HAMILTON, MT
GROWTH POLICY
3. Housing Conditions The Montana Department of Commerce - Housing Division, conducts a periodic "Housing Condition Study" to collect information in support of the Montana Consolidated Plan for housing. The purpose of the study is to evaluate the current stock of housing in Montana and better understand what type of housing structures are available to rent and purchase. The data was compiled from the database of buildings in Montana that is maintained by the Montana Department of Revenue (MDOR). It includes single family dwelling units and mobile homes. The database does not include multi-family structures. The rating is based on the overall physical condition or state of repair, and the condition of such features as foundations, porches, walls, exterior trim, roofing, and other attributes. The rating system follows: Unsound
Indicating that the dwelling is structurally unsound, not suitable for habitation, and subject to condemnation. Poor Indicating that the dwelling shows many signs of structural damage (sagging roof, foundation cracks, uneven floors, etc.) combined with a significant degree of deferred maintenance. Fair Indicating that the dwelling is in structurally sound condition, but has greater than normal deterioration relative to its age. (Significant degree of deferred maintenance) Average - Indicating that the dwelling shows only minor signs of deterioration caused by normal "wear and tear". Good Indicating that the dwelling exhibits an above ordinary standard of maintenance and upkeep in relation to its age. Excellent - Indicating that the dwelling exhibits an outstanding standard of maintenance and upkeep in relation to its age. Of the dwelling units in Hamilton, less than 2% are rated as unsound or in poor condition. This compares to the statewide average of 9.2% percent of housing units are that are in poor or worse condition. Most single family housing units in the city, 92%, were rated as average or good condition. Table 2: Hamilton Housing Condition – 2005 Rating
Condo
Mobile
Single
Total
Unsound
0
0
3
3
Very Poor
0
0
1
1
Poor
0
2
9
11
Fair
5
3
36
44
108
6
481
595
26
3
435
464
Very Good
0
0
25
25
Excellent
0
0
1
1
139
14
991
1144
Average Good
Total
Source: Montana Department of Housing, "Montana Housing Condition Study – Appendix 1, Housing—2
HAMILTON, MT
GROWTH POLICY
4. Housing Costs—Owners In 2006, the average home price in Ravalli County was $235,000. HUD defines a cost burden as that level of income at which housing costs consume more than 30% of household income. Housing costs include monthly payment for rent or mortgage. The following graphic indicates that the average household could only afford a mortgage of $135,152. Compared to data from the year 2000, the affordability gap in Ravalli County has increased and is projected to continue to widen over the next 10 years. Recent economic trends may slow down the increase in housing prices but the affordability gap is expected to remain. Figure 2: Housing Affordability Gap
Source: Montana Department of Commerce, http://housing.mt.gov/Includes/HCT/Final_White_Paper.pdf
5. Housing—Renters Fair market rent is established periodically by HUD based on rent surveys in the county. In Ravalli County, the fair market rent for various size units are as follows: Table 3: Fair Market Rents in Ravalli County—2007 Efficiency
1 BR
2BR
3BR
4BR
5BR
6BR
$536
$576
$693
$793
$865
$936
$1,007
Source: Montana Board of Housing, http://housing.mt.gov/Includes/HM/AdminManual/Chap7/HMChap07Exh7E-07.pdf Anecdotal evidence suggest that Hamilton rents are higher that the county-wide average.
Housing—3
HAMILTON, MT
GROWTH POLICY
6. Housing Assistance The Federal Housing and Community Development Act establishes the definition of "low and moderate income person" which is used to determine the eligibility of families and local governments for Community Development Block Grant (CDBG) assistance. For CDBG purposes, “moderate income” is defined as from 50% to 80% of median family income while for CDBG “low income” includes family income below 50% of median family income. Table 4: 2008 HUD Income Limits (effective Feb. 13, 2008) - Ravalli County 1 Person
2 Person
3 Person
4 Person
5 Person
6 Person
7 Person
8 Person
Extremely Low Income
10,850
12,400
13,950
15,550
16.750
18,000
19,200
20,450
Low Income
18,100
20,700
23,250
25,850
27,900
30,000
32,050
$34,100
Moderate Income
28,950
33,100
37,200
41,350
44,650
47,950
51,250
54,600
Source: Montana Department of Commerce – Community Development Division, http://comdev.mt.gov/Includes/CDBG/LMI/HUDIncomeLimits.pdf
Following is a list of housing complexes that accommodate low-to-moderate income residents and special needs populations. There is a waiting list for almost all of the subsidized units. •
Canyon View Apartments (519 N. 10th Street) — Subsidized by USDA Rural Development. Income eligible pay 30% of income.
•
Valley Villas (819 River Street)- Housing for low income singles, families, elderly or disabled. Income verification required. 34 1 and 2 bedroom units. Not all units are subsidized. Rent based on income on subsidized units. Wait list.
•
Parkside Apartments (121 State Street) - Affordable housing for low-income, age 62 and older. 1 and 2 bedroom units. Utilities included. Income verification required.
•
Willow Court (150 Skeels Ave.) - Affordable housing for low-income, age 55 and older. 1 and 2 bedroom units. Income verification required. Wait list.
•
Mountain View (460 Stonegate Drive) - Affordable housing for low-income families. 36 units, 2 and 3 bedroom. Income verification required. Wait list. In the fall of 2008, a third building was under construction that would provide 46 units. There are plans to eventually build a fourth building with an additional 46 units. (www.summitmanagementgroupinc.com)
•
Terrace Apartments (500 N. 8th Street) - Housing for elderly and disabled (62+) or adult disabled (18+) who meet guidelines.
Housing—4
HAMILTON, MT
GROWTH POLICY
7. Housing Programs A. Human Resources Council - District XI HRCD (www.hrcxi.org) Missoula, MT Branch Office: Hamilton, MT (406) 728-3710 (406) 363-6101 Serving: Mineral, Missoula, and Ravalli Counties. Rental Assistance – Section 8 Rental Housing Vouchers. Income based need. Homeowner Rehab and Repair Loans - Loans up to $24,500 with 5.5% interest for low to moderate income. First Time Home Buyer Assistance - Deferred payment simple interest second mortgage with no payment until first mortgage is satisfied. Energy/Weatherization - Conducts home energy audits. Administers the Low-Income Energy Assistance Program (LIEAP) to help with monthly fuel bills. Administers Energy Share of Montana Program to assist with emergency energy related costs. B. USDA Rural Development, Missoula Area Office (www.rurdev.usda.gov/mt/mso.htm) Missoula, MT 59808 (406)829-3395 Serving: Granite, Mineral, Missoula, Ravalli and Sanders Counties 502 Direct Loans - Loans for low- and very low-income households to obtain 100% financing for purchase of an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. 504 Repair and Rehabilitation Loans - Loans are available to very low-income rural residents who own and occupy a dwelling in need of repairs to improve or modernize a home, or to remove health and safety hazards. Rural Housing Repair and Rehabilitation - A grant is available to owner/occupant who is 62 years of age or older. Funds may only be used for repairs or improvements to remove health and safety hazards, or to complete repairs to make the dwelling accessible for household members with disabilities. 523 Mutual Self-Help Housing Loan - Targets very low- and low-income households who are unable to buy clean, safe housing through conventional methods. Families participating in a mutual self-help project perform approximately 65 percent of the construction labor on each other's homes under qualified supervision. Guaranteed Rural Housing (GRH) Loan Program - Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories. Mutli-Family Housing—Rental Assistance Program (Section 521) - Provides a number of finance options to developers of low-income rental housing. C. Montana Home Ownership Network (MHN) (http://www.nwmt.org/) MHN is an affiliate of Neighborhood Housing Services of Great Falls. MHN works with local service partners throughout the state to provide homebuyers education, one-to-one housing counseling, loans for down payment and closing costs, and due-on-sale loans for “gap financing.
Housing—5
HAMILTON, MT
GROWTH POLICY
8. Housing Programs—Seniors In addition to low - to moderate-income subsidized units, there are several housing programs targeted to senior citizens and disabled adults. Social service providers report an increase in the number of residents under age 62 and in the referrals by the mental health providers and those with disabilities.
•
Sapphire Retirement Center. Has 60 units. Must be income eligible to reside at the center. The Manor - Housing for elderly and disabled (62+) or adult disabled (18+) who meet guidelines, must have verification. 60 units, 1 and 2 bedroom. Rent based on income. Wait list.
•
Remington
•
9. Homelessness An annual point-in-time survey of Montana’s homeless population is sponsored by the Intergovernmental Human Services Bureau of the Department of Public Health and Human Services (DPHHS), the Human Resource Development Council (HRDC) Association and the Montana Continuum of Care Coalition. It is administered statewide on dates consistent with those established nationally by the Department of Housing and Urban Development (HUD). Statewide the number of homeless individuals increased between 2005 and 2006 by 10%. Ravalli County is located in District 11 along with Missoula and Mineral counties. The homeless population increased by 50% in this region from 2005 to 2006. (Source: Montana Council on Homelessness, “Homeless in Montana: A Report on the State of Homelessness and a 10 year Plan to end It—2006-2014”, www.mtcoh.org/images/ stories/montana_plan_for_homelessness_chapter_one.pdf) In Ravalli County, services for the homeless population are located in Hamilton. They include the following: •
SAFE—Emergency shelter for women and children. Total of nine beds.
•
Salvation Army—Operates emergency food and shelter program through FEMA and HUD. Offers 3-night emergency stays. Works with Churches on the program.
The Montana Continuum of Care (MT CoC) Coalition for the Homeless is a statewide collaboration of diverse homeless service providers, nonprofit organizations, and local and state governments. The coalition was formed to address homelessness with very few resources to cover Montana's vast geographical area. The system includes representatives from local and state government, public housing authorities, regional HRDCs, and other nonprofit organizations representing the homeless, housing and service providers, emergency shelters, domestic abuse shelters, veterans' organizations and mental health centers. The Coalition has filed an application with the U.S. Housing and Urban Development for funds to address homeless issues in the State.
Housing—6
HAMILTON, MT
GROWTH POLICY
PART 2: TRENDS Trend 1: New Construction is Not Meeting Affordable Needs Construction of new homes is not adding affordable units to the housing stock. According to U.S. Census Building permit data, the average construction cost for single-family homes from 2005 to 2007 was $90,000. With land costs, permit fees, and other closing costs, new homes generally end up being well above the $150,000 threshold that is considered affordable. The Arbors, for example, is a newer subdivision that offers homes in a more affordable range yet those homes typically sell for $200,000 to $280,000. Following are observations made by the community regarding affordable housing: • • •
Development of large homes in planning area Affordable housing is an issue in recruiting employees The housing being built is being marketed to out-of-town and retirement market and is not affordable.
One reason for the affordability gap is the product type that is being constructed is generally large-lot single family. Nationwide, the demand for this type of housing is declining. This trend is due, in part, to housing costs but can also be attributed to an aging population that is looking to downsize as they retire.
Trend 2: Rental Housing Shortage
Montana Board of Housing “In the most rapidly-growing areas of Montana, land costs contribute the greatest share of the increase in housing costs for those housing units available to our homebuyers. For example, it was not unusual for the lot beneath a modest home in an urban area to have cost about $15,000-$20,000 not too many years ago, but to be valued at $70,000 or more now. If new homes are to fit the price range of MBOH buyers, the land beneath the homes must be more affordable, most likely resulting in smaller lots. All rapidly-growing communities need to consider higher density housing developments (lowering per unit land costs) on public water and sewer systems to offer the only opportunity for new construction homes to fit the incomes of many MBOH buyers. Construction of additional housing on land already served by public water and sewer (infill) also helps to lower the cost of housing.” (Source: http://housing.mt.gov/ Includes/CP/PDF/MBOHHsgAffdStmt_06-2006.pdf)
A number of employers and social service agencies noted that there was Figure 3: Rent as a Percent of Income a shortage of rental units in Hamilton. They commented that many apartment subsidized complexes have waiting lists. There is a need for workforce housing especially for low-wage earners. Rents are increasing and creating an affordability gap for renters. Additionally, the costs of security deposits or requirements for credit checks are difficulties that households may face in obtaining rental housing. According to the Montana Department of Commerce, Housing Coordination Team, the average rent for senior citizens in 2006 consumed more than 50% of their income. By 2020, the average rent for all renters will exceed 50% of their income. Employers also noted the lack of rental units that would be attractive to young professionals relocating to the area. Housing—7
Source: MT DOC, Housing Coordinating Team
HAMILTON, MT
GROWTH POLICY
Trend 3: Energy Costs Becoming Bigger Factor in Housing Costs As noted previously, half of the homes in the Hamilton City limits are over 50 years old. Older homes often lack energy efficient features and result in higher heating bills. Due to rising fuel cost, heating bills are
Selected Statistics on Energy Costs Ravalli County •
Average Monthly Bill (2 BR apartment) = $156
•
Home energy bill as percent of Fair Market Rent in 2003 = 19.2%
becoming a larger portion of housing costs. According to the following data, heating costs for the aver-
•
Home energy bill as percent of Fair Market Rent in 2007 = 25.5%
•
Primary Heating Fuel: Natural Gas
age renter in Ravalli County have risen from $94 a month in 2003 to $156 dollars a month in 2007. In addition to energy costs, participants in focus group meetings noted that the rising costs of gas has in-
www.homeenergyaffordabilitygap.com/05_Current_ State_Data2.html
creased commuting costs for residents. As a result, homes in or close to town are becoming more desirable.
Trend 4: Neighborhood Revitalization The core area of Hamilton is comprised primarily of older homes built before 1970. Problems with older homes include deferred maintenance and costly improvements to upgrade the home with modern features. Another concern with older homes is lead based paint. Any home built, or more specifically, painted, before 1978 may have lead based paint. Lead paint becomes hazardous when it chips off or turns to dust. It is a significant risk to every component of the population, but especially to young children. General property maintenance factors such as weeds, debris, abandoned vehicles, fences or garages in disrepair, and unsightly storage of recreational vehicles or construction materials can contribute to neighborhood decline. Input from the community indicated that the neighborhood directly north of downtown has a concentration of these issues. While some gentrification has occurred, this neighborhood could use more attention. Mobile home parks were another type of residential area that that was noted as needing attention.
Figure 4: Mobile Home Park in Hamilgon
The planning area also has older residential areas that were developed without adequate infrastructure. Some of these areas that are completely surrounded by the city are in the process of being annexed. The cost to finance improvements to services such as water, sewer and street infrastructure to bring them up to City Code is a challenge.
Housing—8
HAMILTON, MT
GROWTH POLICY
PART 3: Opportunities, Resources, Projects, & Best Practices 1. Senior Cooperative Housing Riverside Crossing Senior Coop is developing a 38 - units on senior cooperative housing project on three acres of land adjacent to the Ravalli County Council on Aging. Cooperative housing means joint ownership and operation of a housing development by those who live in it. Cooperative members are, in effect, their own landlords, enabling the cooperative community to be built and operated at a very affordable cost. Each member purchases a share in the limited equity corporation. These shares provide the equity to secure a mortgage. These individual shareholding members have equal voting status in electing the cooperative board of directors from their membership. The project is anticipated to be annexed into the City and to break ground in 2010. (http://riversidecrossingcoop.com)
2. Ravalli County Neighborhood Housing Organization Ravalli County Neighborhood Housing Organization is a non-profit organization that constructs affordable housing units in Hamilton. The organization was started by a local developer and Ravalli County Bank. They work with the high school to build one house a year. The bank sells the house to a qualified buyer and the buyer gets a down payment that is forgiven after five years. The program is limited due to lack of administrative staff to expand program.
Figure 5: House built by High School
3. Community Reinvestment Act The Community Reinvestment Act, passed by Congress in 1977, encourages financial institutions to help meet their communities' needs through safe and sound lending practices and by providing retail banking and community development services. Federal regulators monitor whether banks and thrifts are fulfilling their CRA obligations. Many communities have worked with local banks on community development projects that help the institutions comply with CRA standards.
Housing—9
HAMILTON, MT
GROWTH POLICY
4. Mix of Product Types The following excerpt form the International City/County Management Association (ICMA), “Getting to Smart Growth”, describes the benefits of a variety of housing choices. “Housing choices in new developments can be diversified by modifying land-use patterns for greenfield sites. Existing neighborhoods, too, can benefit from a wider range of choices by changing zoning and building codes to increase the type and quantity of units provided. This can also lead to other benefits. Integrating single- and multifamily structures in new housing developments and existing neighborhoods can help reduce the concentration of poverty. The addition of units—through attached housing, accessory units, or conversion to multi-family dwellings—to existing neighborhoods creates opportunities for communities to slowly increase density without radically changing the landscape. New housing construction can be an economic stimulus for existing commercial centers that are currently vibrant during the workday but suffer from a lack of foot traffic and consumers in evenings or weekends. Most importantly, a range of housing choices allows all households to find their niche in a smart growth community—whether it is a garden apartment, a row house, or a traditional suburban home—and accommodates growth at the same time.”
5. Building Affordable Units Following are examples of programs that housing agencies, non-profit organizations and cities have used to construct affordable units. •
VOLUNTEER LABOR OR STUDENT LABOR: Homes are built using volunteer or student labor which reduces the cost of the home. Habitat for Humanity is internationally known for this model. Habitat for Humanity has built a few homes in Hamilton.
•
OWNER-BUILT HOUSING: The largest example of this program is USDA’s mutual self-help program. . Owners put 1,000 hours into their own homes, usually in groups of 8 to 10 families. Owner equity at the time of the move averages about $25,000, essentially the value of their labor and the economies of scale in building 8 -10 homes at once.
•
INCLUSIONARY ZONING/CITY INCENTIVES: Some communities have provided developers with density bonuses (allowing smaller lots) and/or mandated a proportion of new developments be allocated for affordable housing as a requirement for approval of a new subdivision. Some cities have reduced costs for utilities and impact fees in exchange for affordable prices.
6. Community Land Trust A Community Land Trust (CLT) model creates and perpetuates affordable housing. The model consists of a 501 (c)(3) that owns the land and a homeowner that purchases the house. All homeowners are members of the CLT and pay a monthly ground lease towards its operation. When a homeowner chooses to sell, proceeds from the sale are split between the CLT and homeowner using a pre-agreed upon formula. The formula ensures a fair profit to the homeowner while also allowing the home to be resold to another low-income household at an affordable price. Information on the CLT model can be found at www.iceclt.org.
Housing—10
HAMILTON, MT
GROWTH POLICY
PART 4: GOALS & POLICIES Goals 1: Expand affordable housing programs. A. Achieve the production of affordable housing on vacant, infill sites to the greatest degree possible. B. Work with housing agencies to create a clearinghouse for educational materials and programs for home ownership, rehabilitation, home maintenance, financial education, credit counseling and other topics to promote successful home ownership. C. Work with housing agencies and lenders to apply for grants to increase the pool of funds for assistance with down-payment and closing costs. D. Provide development incentives for creating affordable units with mechanisms to set-aside these units for low to moderate income households. E. Develop a policy for the deferred-until-sale payment of certain fees in exchange for a guarantee of affordable housing such as a deed-restriction. F. Promote the development of workforce housing in or close to town. G. Work with housing partners to expand rental assistance programs to off-set the rising costs of rents and security deposits in the area. H. Work with non-profit partners to construct homes for low to moderate income families on in-fill lots using “sweat equity” to provide opportunities for home ownership.
Goal 2: Promote innovative housing design. A. Evaluate land development regulations and update as needed to allow for accessory apartments and higher density mixed used residential development where appropriate. B. Promote new housing types such as small lot, zero lot-line, modular homes and attached single-family to meet the increasing demand of downsized residential units and affordable homes. C. Review policies to allow for reduce street pavements, right-of-ways and other techniques that can reduce overall infrastructure costs while still meeting public health and safety goals. D. Promote energy efficient designs and new construction technologies that are compatible with best practices that promote cost efficiencies and conservation designs. E. Promote pedestrian friendly design elements in new housing developments. F. Promote accessible designs for residents and to promote “visitability”.
Housing—11
HAMILTON, MT
GROWTH POLICY
Goal 3: Work with community groups to promote healthy neighborhoods. A. Preserve the residential character of downtown neighborhoods and historic homes B. Improve the quality of existing housing through code enforcement and residential rehabilitation programs. C. Maintain high property maintenance standards in parks, right-of-ways, alleys and other public spaces to encourage residents to do likewise. D. Combine code inspection and enforcement efforts with public information campaigns to make residents and property owners aware of areas that do not meet property maintenance standards and encourage the voluntary correction of these problems and on resources to dispose large waste such as appliances. E. Encourage citizen groups and neighborhood efforts to enhance properties in their areas through activities such as city-wide clean-up days, matching volunteers to assist senior citizens with property maintenance, recognition of exemplary rehab efforts and other similar activities. F. Review existing zoning regulations to ensure that districts are consistent with neighborhood objectives and amend regulations where appropriate. G. Eliminate unpaved swales on side of streets in older neighborhoods.
Goal 4: Promote energy efficiency and weatherization. A. Provide assistance to reduce housing costs through measures such as replacing doors and windows with energy efficient designs and conducting energy audits for residents in older homes. B. Compile a resource directory of weatherization and energy programs through the State, utility companies, and senior services. C. Work with housing agencies to expand housing programs that assist low-income residents with energy costs. D. Encourage energy audits and education on energy-saving tips. E. Review city codes to determine if there are regulatory barriers for homeowners to install alternative energy systems and revise codes to allow as long as other public health, safety and welfare goals are met.
Goal 5: Work with agencies to serve special needs populations. A. Work with service clubs to construct ramps and other “stay-in-place” remodeling projects for seniors and adults withbe disabilities. There should energy efficient affordable housing. Try to encourage central affordable housing to replace needs. B. energy Research funding resources that can assist low-income elderly with remodeling projects. that allow seniors to live independently C. Work with housing partners to identify funding and incentives for affordable assisted living projects for the aging population. D. Promote the construction and design of accessible residential units for those with disabilities.
Housing—12