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Connecticut’s Housing Situation

Connecticut’s Housing Situation. May 2006. Affordable housing has been a problem for people who are homeless or very poor. Affordable housing is now an issue that affect middle-income residents. It is now an an economic growth issue , too.

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Connecticut’s Housing Situation

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  1. Connecticut’s Housing Situation May 2006

  2. Affordable housing has been a problem forpeople who are homeless or very poor. Affordable housing is now an issue that affect middle-income residents. It is now an an economic growth issue, too.

  3. A shortage of affordable housing causes other problems: • Transportation congestion • Classroom failure • Public safety risks • Family pressures

  4. The Blue Ribbon Commission to Study Affordable Housing reported in 2000 there was aneed for68,000 affordable units. CHFA has financed slightly fewer than 6,900 rental units and group home units (the vast majority rental) between 1999 and 2004 -- about 10% of the identified need. A new Partnership-sponsored study now concludes that 257,000 households in Connecticut are burdened by their housing situations.

  5. Housing prices have skyrocketed, particularly in areas that have traditionally been affordable: • Southeastern CT • Naugatuck Valley • South Central CT • Central CT Capitol Region Council of Governments (CRCOG) just reported: Only 21% of home sales were affordable to moderate- income buyers in 2005, down from 40% in 2001

  6. Between 2000 and 2005, housing prices have risen 63.6% while wages have risen 18.5%. The gap is widening

  7. CT Median Sales Price as of December 2005: $328,000(Source: CAR) Qualifying income: $74,000 (Source: CAR)$100,000 (Fannie Mae)

  8. The “housing wage” is what a person must earn per hour to afford a typical 2BR apartment without having to pay more than 30% of family income on housing. • In Connecticut the housing wage has gone from $14.22 to $19.30 in five years. • About $18.90/hour in the Hartford/New Britain metropolitan area (up from $15.60 in 2004) and $15.60 in the New London/Norwich metropolitan area • Housing wage is $28.88/hour in the Stamford/Norwalk metropolitan area.

  9. The median salaries for 294 of 630 occupations in the state don’t reach the housing wage…

  10. They include: Carpet layers Floor sanders Shipping clerks Telephone operators Medical secretaries Police dispatchers Tax preparers Lab technicians EMTs Home health aides Dental assistants Animal control workers Chefs Tree trimmers Pest control workers Bookkeepers Computer operators Travel agents Barbers and hairdressersFitness trainers Cargo supervisorsSchool bus driversMetal fabricatorsTailors and dressmakersTiming device assemblers Welders Woodworkers Plant and systems operators Printers Machinists Bakers Bookbinders Cabinet makers Radio mechanics Telephone linemen Watch repairers Auto mechanics Painters

  11. CBIA reported in January 2006 there are labor shortages in 14 skilled manufacturing occupations, from tool-and-die makers to plant managers and R&D staff. The reasons: applicants lacked skills or found the cost of living AND HOUSING COSTS too high.

  12. Connecticut’s population – and workforce – are getting older. We lost 20-34 year old workers at a rate much greater than the national average from 1990-2000, and the trend has continued. % Change in Age Category, 1990-2000 Census, CT vs. U.S. 55 to 59 45 to 54 35 to 44 25 to 34 20 to 24

  13. The new study concludes that 257,000 households in Connecticut can’t afford appropriate housing. The study assumes 10-15% of them – and some households making the median income or more – will leave Connecticut to find housing that’s affordable in other states, resulting in an annual state revenue loss of well over $100 million. In addition, workers and businesses won’t come to Connecticut because housing costs are so high. This “opportunity cost” will cost the state untold “tens of millions” of dollars in never-realized state revenues.

  14. It’s a supply problem… According to Fannie Mae, Connecticut was 47th in housing construction per capita in 2004.

  15. Misconceptions: Affordable housing will lower my property values A recent MIT study in eight Massachusetts communities found that multi-family, mixed-income housing development had no impact on property values. This replicates other studies.

  16. Misconceptions: Affordable housing will increase my town’s education costs Studies show 4-5-bedroom homes generate more school costs than mixed-income housing, especially if they include few 3-bedroom units. Northeastern Univ. study for Massachusetts legislature showed additional education cost of affordable housing is negligible. Connecticut’s school-age population (5-17) will shrink from 590,000 in 2000 to 562,000 by 2015.

  17. Misconceptions: Age restricted housing will avoid school costs As empty-nesters move into 55+ housing, typically in the same town, they often move out of a home that’s bought by a family, resulting in a net increase in students.

  18. States facing the same housing supply shortage as Connecticut are offering various incentives to their towns: • Massachusetts is providing cash grants to cover towns’ additional service costs if they zone for higher density housing. And its Commonwealth Capital program provides financing to towns that make zoning and land use policy less restrictive. • Illinois allows towns to develop regional affordable housing solutions – towns can pay other towns in their region to assume some of the affordable housing burden.

  19. HOMEConnecticut’s Goal:Keep families together and keep workers and businesses in Connecticut by increasing the supply of housing that’s affordable. • Provide municipalities with professional assistance, infrastructure needs and help them cover their costs. • Let public know that “affordable housing” has changed: beautifully designed, functional, lower density, needed by hard-working families and individuals. • Preserve existing affordable housing. • Develop rehab, rental, mortgage subsidies to make existing homes affordable.

  20. Old Farms CrossingAvon, CT Metro Realty Group

  21. Watch Factory CondominiumsCheshire, CT Berardino Realtors

  22. Heritage GlenFarmington, CT Metro Realty Group

  23. Southwood Square (HOPE VI public housing redevelopment)Stamford, CT Stamford Housing Authority

  24. before after Mortsen – Putnam HeightsHartford, CT Broad Park Development & Corporation for Independent Living

  25. before after 215/225 Sheffield AvenueNew Haven Neighborhood Housing Services of New Haven

  26. Flagg RoadWest Hartford West Hartford Interfaith Housing Coalition

  27. Hubbard WoodsGuilford, CT Mutual Housing Association of South Central Connecticut

  28. at The Lyceum227 Lawrence StreetHartford, CT 06106 860/244-0066david@ctpartnershiphousing.com David FinkPolicy Director www.ctpartnershiphousing.com

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