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Centre County Affordable Housing Needs Assessment: A Blueprint for Action -13- Introduction According to HUD’s rule of thumb, housing is affordable if the total costs do not exceed 30% of the household’s income. Unfortunately, in Centre County, due to the fact that housing costs are increasing more rapidly than household income, more and more families are finding it difficult to rent or purchase housing they can afford. One such family is that of Mark and his wife Christina who currently live in a three- bedroom apartment in Toftrees with their two children. This is their story as told in Mark’s own words: Family Christina, age 29, is currently a homemaker taking care of our two children. She does have a bachelor's degree but is not in the workforce so she can attend to our children. Our daughter, Gwyneth, age 2.5, is my first born, who like most children likes to play outdoors or indoors or really anywhere. My son, Ethan, age 1.3, is a little bit younger than my daughter and also enjoys the same activities. Living Situation Our three bedroom apartment offers more than 1,000 square feet and includes a walk through kitchen, eating area, a living room, and access to a 5'x7' storage unit located in the basement. Coin-op laundry is also located in the basement with no change machines. The apartment is located on the first floor where we have a small patio and access to the yard surrounding the building. This is where my children play, which can be problematic since the yard belongs to everyone, which means lots of dogs using our yard area as a bathroom. We cannot leave toys out in the grass area or they will be mowed over and we cannot fence the area in if we want the kids to stick around. The sight is pleasantly wooded but there are no sidewalks on the busy street (Toftrees Avenue), meaning anytime I want to walk my kids to the nearest playground (over a quarter of a mile away) I have to walk in the shoulder area amongst traffic moving at 35mph or greater through an intersection with no crosswalks. Financial Situation I am the sole bread earner for the family making in the low $40,000’s. We currently pay $825 a month for rent plus utilities, which leaves little room to save for a downpayment on a house as well as car payments, student loans (for me and my wife) and anything else unexpected. We have found that in the Centre Region this rent and our situation is pretty common. We have looked at just renting a house for a while and the costs associated with that are absurd. After being here for a little over two years, we have figured out what areas we would consider buying a house in and have concentrated our efforts on such areas (State College area, Bellefonte area and Philipsburg area). Roughly a year ago I started looking for homes in these areas as my lease was running out at my current location. I ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -14- began the search by using the multi-list serve and checking out a few local realtors (their names escape me at this point). A maximum price of $100,000, a minimum number of 3 bedrooms and the locations I listed above were my search criteria. Generally every time I did this search with those criteria I was given a couple of dozen homes to choose from, with the majority of them being either mobile homes or located in Philipsburg. (I just did another search at happyvalleyhomes.com, which yielded 33 results with 26 of them in the Philipsburg/Osceola Mills area). We really don't want to move to Philipsburg because of the distance to my job, so unless there was an unbelievable buy, which there isn't, we pretty much were left with a handful of houses to even consider, most of which we ended up writing off anyways because they just didn't have what we were looking for, such as a yard or in move-in condition. I also had difficulty getting pre-approved for a mortgage because of my salary, all the expenses I incur every month, and the fact that I have 2 kids and a wife to support, versus the amount we were asking for (I used $100,000 which is 2.5 times my gross salary) made it difficult to find any mortgage company to work with, we settled for one company but they were too slow on giving us the information we needed, so we gave up on looking for a house. Assessment I have little hope at best that my family and I will find a house in the Centre Region that we can afford to buy and we have only better hope for Bellefonte area. For now we will continue to rent and in fact we are thinking of moving to a townhouse soon where there are sidewalks and parks and maybe even a few less college kids. My long- term outlook isn't that great for finding a home in the Region either. My family's plan is to be permanently settled by the time the kids are in first or second grade, but if that doesn't happen we will probably move back home to Buffalo where you can buy two houses for the price of one here. ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -15- Purpose of the Study With stories like Mark’s in mind, the Centre County Board of Commissioners contracted with Diana T. Myers and Associates, Inc. to prepare a comprehensive, countywide Affordable Housing Needs Assessment. The assessment is intended to identify the county’s critical housing needs and to provide information that can be used to address those needs within the county’s 36 municipalities for a ten-year period. The report documents existing conditions, identifies critical housing needs, and provides options for addressing those needs. The Affordable Housing Needs Assessment provides the basis for future planning and economic and community development efforts in order to: • Develop new public policies and programs related to housing; • Facilitate the private sector’s development of affordable community housing by the provision of market data that can be used to appropriately design and acquire financing for residential projects; • Develop recommendations for ways to generate and allocate public and private resources for housing development; • Plan for future housing impacts connected with anticipated growth; • Monitor the effectiveness of housing programs and projects that might be initiated; and • Identify options for integrating affordable housing units within new and existing neighborhoods. The work tasks included: • Data collection • Data analysis • Identification of key findings • Coordination with and reporting to county and local officials and agencies • Preparation of a Housing Needs Assessment Final Report ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -16- Background on Centre County Centre County, located in central encompasses 1,112 square miles and contains 25 Townships and 11 Boroughs within its boundary. This diverse county is experiencing rapid growth due to increased development activity, the presence of the State University, and new highway construction. As a result, Centre County is faced with keeping pace with the growing population and changing economic conditions. From 1980 to 2000, the county’s population grew by 20%; however, the number of housing units increased by 34%. (The difference between the two figures may be attributed to the decrease in family size over the past 20 years). One of the most pressing challenges arising from the increased development activity is the continued provision of safe, sanitary housing for all of the county’s residents. While some areas of Centre County are experiencing rapid, new development, 17.4% of the county’s overall housing stock was built before 1939. In nine of the county’s 36 municipalities, the number of housing units built prior to 1939 exceeds 40%. In addition, data collected during the 2000 US Census indicates unsanitary conditions exist in 248 housing units, which lack complete plumbing. Housing affordability is an increasing concern. In 1980, 96% of the owner-occupied units were valued at $99,999 or less compared to 40% in 2000. The average cost of building a single-family home in 2000 exceeded $160,000 which does not include the price of land. With respect to rental unit affordability, 48.2% of renters were paying greater than 30% of their 1999 gross income for housing. The groups most affected by this are the workforce population, the elderly, people with disabilities and the homeless. In particular, in the RFP for this Housing Needs Assessment, the County noted that the impact of rising housing costs is especially troubling for homeless individuals and families. The average length of homeless shelter stays has increased from 30 to 60 days over the last five years. Bridge housing program managers report that the length of stay for some residents has increased from 12 to 24 months. Lack of affordable permanent housing is the stated reason for these increases. In light of these and other affordable housing needs that will be highlighted in this Housing Needs Assessment, the Centre County Commissioner’s engaged a consultant to recommend strategies to increase the availability of affordable housing in Centre County. ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -17- Methodology Diana T. Myers & Associates, Inc. utilized a broad range of methods, both quantitative and qualitative, to collect information and data for this report, including both primary and secondary sources. Every effort was made to verify information as we proceeded. Using multiple sources of information increased the validity and accuracy of the analysis and improved understanding of the challenges facing Centre County in increasing affordable housing. Interviews with local and county sources provided detailed information on existing resources, housing needs and concerns, development objectives, public policies, and regulations such as zoning that affect housing development. In addition, county representatives provided quantitative detail on housing permits and transfers, projected population growth and transportation zones. Federal census data provided detailed information on population, housing and housing cost burdens. Reports on Centre County from outside sources enhanced understanding of the county’s affordable housing needs. Finally, a small work group of key stakeholders was formed to review and comment on the interim and final reports. Interviews A series of formal face-to-face interviews and scheduled telephone interviews provided in-depth information on housing services and programs, county and municipal affordable housing concerns, developers’ economic objectives, the real estate market, large employers and government concerns, and the availability of nonprofit resources. (See Appendix A for a list of those formally interviewed.) These interviews took place early in the process to help focus the housing needs assessment. In total, 23 face-to- face interviews with stakeholders and 10 telephone interviews informed the process. Throughout the analysis period informal telephone and email communications continued the process of collecting information and verifying information. Local officials provided details on taxes, zoning and land use. Housing developers and providers supplied information on current and future housing developments. Real estate agents and property managers discussed development and maintenance concerns. Penn State Officials discussed future student housing development. If information gathered from different sources was inconsistent, we clarified the information through additional data analysis and follow-up telephone questions. In addition, the work group participants provided corrections and focus to the analysis. Documents A large number of documents added crucial information. The Centre County Planning Office provided access to the County Comprehensive Plan including the Housing Section that concluded Phase I of the process in addressing affordable housing. The Planning Office also supplied the Planning Region Summaries and links to the consolidated plans of the Nittany Valley Planning Region and the Penns Valley Region; maps of planning regions, infrastructure, transportation, and school districts; the County Subdivision and Land Use Ordinance, the Draft Housing Authority of Centre County ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -18- Administrative Plan, and a draft of the proposed zoning ordinance for Worth Township. Bellefonte Borough, State College Borough, Walker Township and Potter Township all provided copies of their zoning ordinances. In addition, State College Borough provided the Centre Region Growth Forecasts 2003 – 2030 and the State College Borough Consolidated Plan for 2005 – 2009. Many other documents supported the analysis. The Appalachian Regional Commission and the Federal Reserve Bank of Philadelphia produced reports on the economic and housing situation in the county. Likewise documents supplied by the Chamber of Business and Industry of Centre County and the Moshannon Valley Economic Development Partnership assisted in the analysis. The Department of Transportation website was used to obtain current information on the development of I99 on their website. Nonprofit organizations also provided documents about their programs and services. Visual Inspection Part of the qualitative data collection included physical inspection of different locales and buildings. Visits across the county provided a better understanding of topography, physical relationships between different municipalities, the size and age of existing homes, appearance of newer homes and the variety of density and design of residential buildings. Linda Marshall of the Centre County Planning Office provided a tour of existing low-income housing developments and public housing and of possible sites for locating workforce and other affordable housing developments. Quantitative data Quantitative data sources provided numbers to confirm and contrast with the qualitative data collected above. U. S. Census data are available on the web both in interactive formats and in data files that may be downloaded for analysis. Census data include the 1990 Census and Census 2000 data, the 2000 Public Use Microdata for Centre County, Small Area Income & Poverty Estimates and the special tabulations for the Comprehensive Housing Affordability Strategy (CHAS) data. The Department of Housing and Urban Development supplies Fair Market Rents. The Bureau of Labor Statistics provides information on wages by occupation. The State Data Center provides data on municipal population estimates. The Center for Workforce Information has data on occupational wages for the Central Workforce Investment Area. The Centre County Planning Office provides real estate transfer and permit data. Local municipal governments provide data on persons laid off due to plant closings. Penn State University provides numbers on employees living in Centre County and living outside Centre County and counts of students housed in student residential buildings. Data on homeless persons and families comes from the Point-in- Time Survey conducted by the Pa Department of Community and Economic Development. This wide variety of data created the background information necessary to conduct the data analysis. ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -19- Limitations of the Data The data detail, especially across ten-year periods, cannot be matched for some data sources. Census data on households do not count students living in university dormitories. Students in dormitories are counted as institutionalized populations not as separate households. The CHAS data are only available at the county level and for State College Borough in 1990, unlike the much more detailed 2000 CHAS data that are available by municipality and Census Designated Places (CDP). Data at the municipal and CDP level are highly inaccurate. To protect the confidentiality of residents in very small geographic regions, the smallest number recorded, other than a zero for none, for any particular information piece is four persons. Other numbers are rounded up as well. These data provide a guide to housing burdens, but do not supply specific information. The 1990 CHAS data also do not contain information on students housed in the county as the 2000 CHAS data do. Data at very fine detail are estimates and should be used with caution. Likewise, population estimates and projections are based on formulas and not true counts of persons. All information is subject to the limitations noted by the source. ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -20- Organization of the Housing Needs Assessment The Housing Needs Assessment consists of two volumes. The first volume is the actual report, which includes the following information: • Quantitative data analysis: This includes a discussion of countywide population trends, a description of the county’s housing stock, demographic information about targeted populations, an analysis of the seven planning regions of the county and a closer look at six specific municipalities. • Anecdotal data: This includes a summary of the information collected through both face-to-face and telephone interviews. It includes a discussion of the populations with the largest need for affordable housing, recommended housing models, community and opportunities, and community weaknesses and challenges. • Summary of the affordable housing needs: This is a summary of the county’s housing needs based on an analysis of both the quantitative and anecdotal data. • Recommendations: This section contains recommended actions in ten different areas: q strengthening the county housing delivery system; q facilitating affordable housing development; q increasing understanding and support for affordable housing; q developing a county housing policy; q reducing development barriers to the production of affordable housing; q continuing to increase homeownership options; q expanding the number of home improvement loans and grants; q promoting rental housing in targeted submarkets; q increasing housing opportunities for people with disabilities and homeless households; and q monitoring and evaluation programs and updating data. • Strategy and Prototypes: This section contains recommended strategies for expanding affordable housing in Centre County. It also contains descriptions of six different housing models including a definition of the housing model, the target population, potential sites, potential implementation partners, possible funding sources, examples of similar housing, and contacts for additional information. Prototypes are provided for: employer assisted housing, adaptive reuse, work force housing, countywide rental housing rehabilitation, scattered site housing and services for the elderly, and Fairweather Lodge. These are the “next steps” for the implementation of the recommendations in the Needs Assessment. Each of the projects included in the prototypes could be replicated at various locations throughout the county. ---PAGE BREAK--- Centre County Affordable Housing Needs Assessment: A Blueprint for Action -21- • Glossary: This contains brief definitions of technical terms used in the body of the report. • Appendices: This contains specific technical information referenced in the body of the report. Among the appendices are: the list of people interviewed, an inventory of assisted housing and housing resources for the homeless, descriptions of housing programs available in Centre County, a list of housing providers in Centre County, and data tables. The second volume is the Technical Supplement. It is divided into several sections: • The first contains the numerous detailed statistical tables providing demographic and housing data by county, planning region, local jurisdictions, and Census Designated Places. It also contains information according to income group. • The second section contains general information such as on Employer Assisted Housing and Fairweather Lodges. • The third section includes descriptions of housing finance programs.