This
report provides the information needed
to develop a plan of action for
providing affordable community housing
in adequate amounts to support a
sustainable economy in Valley County and
Adams County, Idaho. It can be used to
plan, finance and develop community
housing – both rental and ownership
opportunities targeting residents with
income levels not served by the private
market.
This
assessment of the community housing
needs examines factors that impact both
the supply and demand for housing. It
considers current market conditions and
how they have changed in recent years.
It includes estimates of the unmet
demand in 2005 for community housing
generated by recent development and
projections of demand that can be
expected in the future.
The
study provides information separately
for each county and municipality that
can be used to tailor strategies and
projects to meet the unique needs of
each area. It provides baseline data
that can be updated regularly to monitor
how market conditions and housing needs
change over time and evaluate progress
toward meeting agreed upon goals.
In
addition, this study can be used to:
·
Facilitate partnerships between public-
and private-sector organizations to
create housing that is suitable and
affordable for different population
groups;
·
Obtain construction and permanent
financing from private, federal and
state lending institutions that require
demographic and market information to
support grant and loan applications;
·
Plan
for future community housing impacts
associated with anticipated commercial
and residential growth;
·
Modify land use regulations and
development codes to provide both
incentives and mandates for community
housing; and,
·
Support various other planning-related
projects that can benefit from the
availability of up-to-date data
including transportation studies,
environmental impact statements, school
expansions, and parks/recreation plans.
This
study was funded by contributions from
Valley County, McCall, Donnelly,
Cascade, Adams County, Council and New
Meadows. The Valley County Economic
Development Council assisted with data
collection and oversight of the project.
Appreciation is extended for the
numerous hours contributed by public
officials, city and county staff,
employers, realtors, lenders, builders,
non-profit groups, state and federal
agencies, and concerned citizens.
This
report has 11 sections as follows:
I.
Key Findings
– A brief synopsis of the key
conclusions generated by this study and
recommendations on how to address
identified housing problems.
II.
Demographic Overview --
A
quantitative demographic summary on the
household population including number,
size, composition, age and income.
III.
The Economy
– Information on jobs, seasonality in
employment, jobs by industrial sector,
wages, and employment problems related
to housing.
IV.
Housing Inventory –
Information
on the supply of housing units in the
region including number, type, location,
occupancy and tenure.
V.
Market Overview –
An analysis of
current rental and ownership housing
market conditions and change in housing
costs since 2000.
VI.
Community Housing –
A
comparison of the demand for community
housing relative to its supply taking
into consideration housing that is now
affordable for owners and renters by
location and type and future development
of housing for employees.
VII.
Special Needs Populations
–
Information on the number of persons
with special needs and the
housing-related services and facilities
provided by non-profit agencies.
VIII.
Development Trends and
Forecasts -- Information
on residential and commercial
development.
IX.
Community Housing Demand
– Quantitative estimates of the number
of community housing units now needed
and how that number may change in the
future.
X.
Barriers to Community
Housing –
An assessment of a wide variety of
barriers that might be faced by those
who need community housing and those
that attempt to provide it for them.
XI.
Conclusions and
Recommendations –
A summary of conclusions
generated by the study and
recommendations to address the
identified housing needs that are
responsive to opportunities in the area.
This
report is supplemented by profiles on
each municipality and both counties with
2000 Census data on households and
housing, a comparison of key indicators
from 1990 and 2000, income estimates for
2005 and employment figures for 2000
through 2004. While these individual
community profiles provide baseline data
against which change can be measured,
growth since 2003 has been so rapid
compared to historical levels that
trends between 1990 and 2000 do not
adequately reflect current conditions.
The profiles should therefore be
interpreted with the information on
changes since 2003 contained in the main
report.
This
study incorporates information obtained
from more than 50 key informant
interviews and the following sources:
·
1990
and 2000 Census, plus CHAS special
tabulations and 2003 Census population
estimates for both counties and all
municipalities;
·
2005
Idaho Power population estimates for
Adams and Valley counties;
·
2005
Area Median Income estimates for Adams
and Valley counties published by the
Department of Housing and Urban
Development;
·
Employment estimates and forecasts
provided by the Idaho Department of
Commerce and Labor;
·
Job
and labor force estimates from the US
Bureau of Economic Analysis;
·
Building permit data from the Adams
County and Valley County building
departments;
·
Subdivision data from the County
Assessors in both counties;
·
Real
estate sales data from the Mountain
Central MLS;
·
Rental notice records from the Star News
in McCall; and,
·
Data
bases on commercial and residential job
generation rates created by The Housing
Collaborative, of which Rees Consulting,
Inc. is a member.
A
list of the persons interviewed as part
of this study is contained in the
appendix.
·
Community Housing -- This general term
is used to describe residential units
that are occupied by employees and other
residents as their primary home, are
affordable for low- to moderate-income
households and have restrictions that
will preserve affordability into the
future. As specific housing policies
and programs are developed, the term
should be more defined to target
specific income levels measured as a
percentage of the AMI Occupant
eligibility and deed restrictions will
be required to ensure affordability over
time.
·
Affordable Housing – Housing is
affordable when the rent or mortgage
payment does not exceed 30% of the
households’ gross income.
·
Disability -- A long-lasting physical,
mental, or emotional condition. This
condition can make it difficult for a
person to do activities such as walking,
climbing stairs, dressing, bathing,
learning, or remembering. This condition
can also impede a person from being able
to go outside the home alone or to work
at a job or business.
·
AMI
– An abbreviation for the area median
income, which is estimated annually by
the Department of Housing and Urban
Development (HUD) for each county. HUD
publishes income estimates as a
percentage of the median by household
size.
There is clearly a shortage of both
rental housing and homes available for
purchase in Valley and Adams counties at
prices affordable for housing for low-
to moderate- income households and an
inadequate supply of units available for
middle-income families. This deficiency
is resulting in a labor shortage that
reduces the economic benefits the region
is receiving from growth. The lack of
housing will be an impediment to
economic sustainability unless
development of affordable units catches
up and keeps up with job-generating
growth.
Evidence of the housing shortage
includes:
·
Rapidly increasing housing prices.
Rents have increased roughly 35% to 50%
since 2000. The median prices of homes
currently listed for sale are 48% to
116% higher than the median prices of
homes sold in 2004.
·
Limited availability. Rental vacancies
are negligible. All apartment projects
are maintaining wait lists for units as
they become available. The inventory of
homes available for purchase is small;
it is a seller’s market where purchase
prices are close to, equal or even
exceed list prices.
·
Unfilled jobs. Most of the employers
that were interviewed report that they
have been unable to fill jobs directly
as a result of housing. Employers are
finding it necessary to provide housing
for employees in order to attract and
retain employees.
·
Housing is not affordable for many
residents. Approximately 1,470
households in the two-county region
spend more than 30% of their gross
income on their housing payment.
·
Housing costs that are higher than
affordable for the typical household.
Purchase prices are generally above
$150,000, which is the most that
households with incomes at 100% of the
median (AMI) can afford. The median
price in 2004 was close to $200,000 in
McCall and New Meadows and over $150,000
in all areas except Cascade and
Council. While rents are now generally
affordable for households with incomes
at or below 80% AMI, they are too high
for renters with incomes at 50% AMI.
·
Mobile home parks are disappearing and
RV parks are being used to house
employees.
Changing demographic characteristics
will impact housing needs in the
future.
·
There will be an increase in unrelated
roommate households.
·
The
Hispanic population will grow creating a
need for rental housing with three or
more bedrooms priced to be affordable
for families with extremely low incomes.
·
The
relatively large senior population will
also grow in the future generating high
levels of demand for services and
housing for employees that provide those
services. At the same time, seniors
will compete with employees for
housing.
·
Incomes will increase but the percentage
of households with low incomes
(approximately 40% of all households in
2000 or an estimated 2,080 households in
2005) will probably not decrease.
·
The
homeownership rate will likely decrease
as proportionately more households are
unable to purchase and therefore must
rent.
Job-generating development, both
residential and commercial, that started
in early 2004 is fueling the demand for
housing yet the private market has not
responded by producing a sufficient
supply of units priced to be affordable
for employees.
·
Building permits were issued for nearly
1,800 new residential units between 2000
and May 2005. This equates to an
increase in housing units of
approximately 18% since the 2000 Census
was conducted.
·
In
2004, permits were issued for 531 new
residential units in Valley County,
which is more than three times the
number issued in 2000.
·
The
labor shortage is impacting all sectors,
from restaurants and retail to education
and medical care. Employers report that
all types of employees at all levels are
having difficulty finding housing.
·
The
greatest increase in employment has been
in the construction industry with
roughly 700 to 1,000 construction
workers in the region during the peak
summer season. Roughly 80% to 90% are
from outside of the region and compete
with lower-wage employees for housing.
·
Growth and construction will not end
when Tamarack is fully built out. Ample
land is available in the rest of the
region for development to continue into
the foreseeable future. The total
number of lots approved but vacant and
available for development in Valley
County could easily exceed 10,000 before
the end of the year.
In
order to address the housing shortage,
construction of new units specifically
targeting low- to middle-income
households will be required.
·
Based on development that has occurred
since 2003, new permanent jobs have
generated demand for approximately 210
housing units. Of these, 145 units or
69% should be affordable for low- and
moderate-income households and 65 units
or 31% should be target households with
incomes at or above the median. These
estimates do not include permanent or
temporary housing needed for
construction workers.
·
If
growth continues at the same level as in
2004 and the first five months of 2005,
approximately 200 additional units will
be needed in the next two years.
·
Based solely on the number of
applications on wait lists the number of
seniors occupying low-income family
apartments, 35 to 40 additional rental
units for low-income seniors are needed
at this time.
·
At
least 45% of the new residential units
in Valley County and 60% of the homes
that will be constructed in Adams County
should be occupied by residents rather
than used as seasonal/vacation homes.
·
Of
these primary homes, 40% of new units
should be affordable for low-income
households ( 80% AMI) and 21% should be
affordable for moderate- to
middle-income households (80% to 120%
AMI).
Barriers to the development of community
housing will be encountered including:
·
Zoning which does not allow densities
greater than four units per acre on most
land served by central water and sewer
systems and makes construction of
housing other than single-family homes
difficult;
·
Public perceptions that government
should not be involved in housing and
that community housing will have
negative impacts on property values
andneighborhoods;
·
Limited sewage treatment capacity; and,
·
Lack
of local funding, expertise and capacity
to coordinate and implement community
housing efforts.
In
order to provide a variety of housing
opportunities affordable for low- to
middle-income employees and persons with
special needs including seniors, a
combination of tools and techniques will
be required. A multi-faceted strategy
is needed to address affordable housing
comprehensively and equitably in a
manner that is both legally defensible
and acceptable to the community. Highly
effective affordable housing strategies
depend upon the involvement and
cooperation of the private sector, local
and county governments, employers,
non-profit agencies, a local housing
authority and residents themselves. The
responsibility and burden for providing
affordable housing should be widely
shared. The following specific
recommendations are offered:
·
Create local capacity possibly through a
housing authority to address current and
ongoing housing needs.
·
Implement inclusionary zoning
requirements requiring new subdivisions
to provide for a range of housing types
and prices.
·
Implement commercial and residential
linkage programs that make new
development responsible for at least
partially addressing the need for
housing directly generated by it.
·
