Long Term Perspective for a Short Term World

Long Term Perspective for a Short Term World

The Tri-State Region New York-New Jersey-Connecticut • One of the World’s Largest Metropolitan Regions • Twenty Million Residents and a nearly • $1 Trillion Economy • A Global Center of Finance, Commerce, • Culture and Communications

The region is one of the most diverse places in America, encompassing New York City and hundreds of small and mid-sized cities, suburbs and rural communities.

Governance is divided among three states, 31 counties, 800 municipalities and hundreds of special districts andpublicauthorities.

Population Brooklyn 2,465,326 Bergen 884,118 Essex 793,633 Hudson 608,975 Union 522,541 Typical County 510,916 Sullivan 73,966 Source: Census 2000

Source: Census 2000

Median Income • Hunterdon $79,888 • Bergen $65,241 • Region $56,100 • Union $55,339 • Essex $44,944 • Hudson $40,293 • Bronx $27,611 Source: Census 2000, Median Income 1999

Race Source: “One Race” population from Census 2000 Redistricting Data. Please note: these numbers do not represent total population. See final slide in handout for complete breakdown.

In 1996, RPA released its Third Regional Plan, A Region at Risk. Equity Environment Quality of Life Economy

Five Campaigns from the Third Regional Plan • Governance • Mobility • Workforce • Centers • Greensward

The plan called for: a seamless 21st century mass transit system, creating a three-million acre Greensward network of protected natural resource systems, maintaining half the region’s employment in urban centers, and assisting minority and immigrant communities to fully participate in the economic mainstream.

RPA in New Jersey • Highlands • Mayor’s Institute • Transit Oriented Development

Housing Goalsfrom RPA’s Third Regional Plan • Acceptable housing for all residents regardless of race or income • Avoid housing excesses; build what is needed and can be paid for • Integrate all housing markets • New housing goes in existing centers • Reduce the cost of least-cost housing

What is “affordable” housing? • Housing is affordable when monthly housing costs (including utilities) are covered by 30% of the occupants’ gross monthly income. • Special Needs Housing: disabled, elderly, single mothers, homeless • Low-moderate income housing: 50% – 80% area median income • Middle Class housing: 80% – 120% area median income Source: HUD

How much does a 3-person “low income” family earn? • Warren $31,100 • Hudson $38,300 • Union $45,200 • Essex $45,200 • Bergen $45,200 • Fairfield $47,900 Source: HUD 2001

When Affordable Housing is Unattainable … • People spend more money than they should on housing • Businesses are not competitive due to additional labor costs, employee turnover, lost productivity • Overcrowding; low vacancy rates • Homelessness increases • Longer commutes • Concentrations of poverty and wealth • Exclusionary residential zoning

Housing Tenure Homeowners Renters Hunterdon 84% 16% Bergen 67% 33% Union 62% 38% Region 53% 47% Essex 46% 54% Hudson 31% 69% Bronx 20% 80% Source: Census 2000

Housing Cost Burden for Renters Percent of renters who pay more than 35% of their monthly income for rent Ocean County 40% Essex County 34% Typical County 33% Hudson County 31% Bergen County 31% Union County 31% Dutchess 25% Source: Census 2000

Housing Cost Burden for Owners Percent of Homeowners who pay more than 35% of their income in housing costs Bronx 31% Hudson 29% Essex 24% Bergen 23% Region 22% Union 21% Litchfield 17% Source: Census 2000

Value of Owned Homes Rank County Median Value #1 New York $361,100 #6 Bergen $240,800 #15 Essex $188,400 #17 Union $185,200 #21 Hudson $162,800 #31 Sullivan $ 90,400 Source: Census 2000

Population with Severe Housing Cost Burden • Bergen 73,417 • Essex 71,387 • Hudson 53,990 • Union 41,179 • Total in metro NJ 529,635 • Total in Region 1,888,086

* For these purposes, New Jersey includes only the 14 counties in the metropolitan region. Source: Census 2000

NJ State Plan “Provide Adequate Housing at a Reasonable Cost” Balance • Residential and Other Land Uses • Housing Types • Housing Tenures • Housing Costs

Approaching Solutions from RPA’s Third Regional Plan • Plan for affordability • Use incentives to create low cost housing • Use direct subsidies for households • Increase the role of private, nonprofit and community based organizations in planning, building and managing housing

Plan for affordability • Create local and county fair share plans that go beyond COAH requirements • Eliminate exclusionary zoning; make affordable housing part of mixed-use development • Reduce excessive government regulation and reviews Creates more compact and diverse neighborhoods, more open space can be preserved, deconcentrates poverty and wealth

Use Incentives to Create Low Cost Housing • Encourage linkage fees and other financial tools enabled by the Fair Housing Act • Create Housing Trust Funds, Workforce Housing, etc • Expand use of Low Income Housing Tax Credits Creates opportunities for low cost housing in more places, leverages public and private investment for widespread economic development

Use Direct Subsidies for Households • Property and mortgage interest tax deductions • Section 8 vouchers, rental assistance programs, rent control and stabilization • HOPE VI and other HUD programs • Subsidize operating costs Directly reduces housing cost burden thereby freeing income for the rest of the economy

Increase the Role of Private, Nonprofit and Community Based Organizations • CDC’s are developers, advocates, service providers • Intermediaries fill the gap • Employers can contribute expertise Builds strong communities which are necessary to mitigate the many social problems associated with poverty

RPA’s Regional Housing Initiative • Why did some urban neighborhoods flourish in the 90’s and not others? • How can we relate the housing needs of urban and suburban areas? • How can the region plan for the housing needs of the future?

Long Term Perspective for a Short Term World