Greater Danbury, CT Housing Market Assessment Page I December 2008
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GREATER DANBURY, CT HOUSING MARKET ASSESSMENT Prepared For The Housatonic Valley Council of Elected Officials By Harrall-Michalowski Associates December 2008 TABLE OF CONTENTS Page INTRODUCTION……………………………………………………………………………. i PART A: STATISTICAL DATABASE FOR AREA HOUSING………………………... 1 Population and Employment Trends……………………………………………………… 1 Regional Housing Supply………………………………………………………………….. 9 Housing Sales and Rental Trends………………………………………………………... 10 Household Income and Relationship to Housing Cost – Regional Level…………….. 14 Household Income and Relationship to Housing Cost – Town Level………………… 18 Comprehensive Housing Affordability Strategy (CHAS) Data…………………………. 20 Subsidized Housing Inventory…………………………………………………………….. 21 Inventory of Elderly Housing………………………………………………………………. 25 Inventory of Special Needs Housing……………………………………………………… 25 Homeless Population……………………………………………………………………… . 26 Multi-Family Housing Inventory……..………………………………………………..…… 29 Journey-To-Work Data……………………………………………………………………… 30 Relationship of Housatonic Valley Region to Southwest Connecticut Region……….. 40 Relationship of Housatonic Valley Region to Central Naugatuck Valley Region……. 41 PART B: ADMINISTRATIVE DATABASE FOR AREA HOUSING…………………... 43 Affordable Housing Preferences – Legal Issues/Feasibility..……...…………………… 43 Model Deed Restriction………………………………………………………….…………. 47 Duration of Deed or Rental Restrictions………………………………………………….. 49 Use of State Median Household Income as Eligibility Guide…………………………... 50 Inventory Tracking of Income Eligibility and Sales Agreements Under 8-30g……...... 53 Inventory of Connecticut Statutes Encouraging Voluntary Affordable Housing……… 54 Tax Credit Programs Available for Affordable Housing………………………………… 59 PART C: POLICY DATABASE FOR AREA HOUSING…………………..…………… 62 Introduction …………………………………………………………………………………. 62 Review of Studies ………………………………………………………………………… 62 Implications For The Housatonic Valley Region………………………………………. .. 63 PART D: OVERVIEW OF ROLE OF 8-30g IN ADDRESSING HOUSING NEEDS IN THE REGION…………………..………………………………..…………………….... 65 Background…………………………………………………………………………………. 65 Relevance of 8-30g to Responsible Growth…………………………………………… .. 68 New Initiative………………………………………………………………………………… 69 PART E: QUANTIFICATION OF AFFORDABLE HOUSING NEEDS…………… .… 71 Affordable Housing Need for Current Residents of the Region…………………… ….. 71 Elderly Affordable Housing Need………..………………………………………………... 72 Indices for Adjusting Non-Elderly Affordable Housing Need – AHI and HELQ…… … 73 Adjusted Affordable Housing Need……………………..………..…………..…………... 75 Final Adjusted Affordable Housing Need for Current Residents - Summary………… 79 Final Adjusted Affordable Housing Need – 8-30g Impact………..…………………….. 81 “Workforce Housing” for Employees in the Region………..……………………………. 84 PART F: EXISTING AND POTENTIAL AFFORDABLE HOUSING OPTIONS…………………………………………..………………………………… …….. 91 Existing Zoning Regulations Supportive of Increasing the Housing Supply …………. 91 Existing Mixed Use Zoning Districts – Housatonic Valley Region…………. ………… 91 Conservation Subdivision Regulations – Housatonic Valley Region…………. ……… 92 Potential Zoning Regulations Supportive of Increasing the Housing Supply………… 92 City of Stamford – Below Market Rate (BMR) Units………..…………………………... 93 Successful Affordable Housing Efforts in Smaller Communities………..…………….. 94 Payment in Lieu of Affordable Units/Housing Trust Fund – Bethel and New Milford………..………………………………………………………….. 96 Payment in Lieu of Affordable Units – Stamford, CT………..………………………….. 96 Payment in Lieu of Workforce Housing Units – Norwalk, CT………..………………… 97 Payment in Lieu of Workforce or Affordable Housing Units – Westport, CT……….... 98 Inclusionary Zoning Fee – New Canaan, CT……………………………………………. 98 Payment in Lieu of Affordable Units – Other States………..…………………………... 98 Fees for Affordable Housing – New Milford Example………..…………………………. 100 PART G: SUMMARY AND RECOMMENDATIONS…………………………………… 102 Housatonic Valley Region Initiatives………..……………………………… ……………. 103 Local Government Initiatives………..…………………………………………………….. 104 Financial Resources For All Initiatives………..……………………………….…………. 108 APPENDIX A: Copy of 10/2008 Affordable Housing Resource Inventory on HVCEO.org website APPENDIX B: Visualizing Density in Connecticut LIST OF TABLES Page Table 1: Regional Population by Town, 1960-2006………….………..……… ………. 1 Table 2: Regional Projected Population by Town, 2010-2030………….………..…… 2 Table 3: Median Age by Town, 2000………….………..……………………………….. 3 Table 4: Regional Households by Town, 1970-2000………….………..……………… 4 Table 5: Persons per Household by Town, 1960-2000………..………………………. 4 Table 6: Change in Population vs. Change in Households 1970-2000………..…….. 5 Table 7: % of Household Types by Town, 2000………….………..…………………… 5 Table 8: Employment by Town, 2005………….………..………………………………. 6 Table 9: Top 20 Regional Employers, 2008………….………..……………………….. 7 Table 10: Employment By Industry, 2005 – Fairfield and Litchfield Counties………. 8 Table 11: Employment Compensation, 2005 – Fairfield and Litchfield Counties…… 8 Table 12: Regional Housing Supply………….………..………………………………… 9 Table 13: Units in Structure by Town, 2006………….………..………...……………… 10 Table 14: Median Sales Price - Single Family Homes, 2001-2007 Housatonic Valley Region………….………..……………………………………………. 11 Table 15: Median Sales Price - Condominiums, 2001-2007 Housatonic Valley Region………….………..……………………………………………. 12 Table 16: Fair Market Rents, 2001-2008 – Danbury HFMA………….………..……… 13 Table 17: Fair Market Rents, 2001-2008 – Litchfield County HFMA…………………. 13 Table 18: Median Family Income and Supportable Housing Costs, 2000-2007 – Danbury HUD Metro FMR Area………….………..……………………………………… 16 Table 19: "Affordable" Home Prices for 100%, 80% and 50% of 2007 Median Household Income – Housatonic Valley Region……………………………… 16* Table 20: Income Required to Support Fair Market Rents, FY 2008 Danbury Housing Fair Market Area………….………..…………………………………. 17 Table 21: Income Required to Support Fair Market Rents, FY 2008 Litchfield County Housing Fair Market Area………….………..……………………….. 18 Table 22: Income Required to Support Median Home Sales Price, 2007 Housatonic Valley Region………….………..……… …………………………………… 19* Table 23: "Affordable" Home Prices for 100%, 80% and 50% of 2007 Median Household Income by Municipality, Housatonic Valley Region………………………. 19* Table 24: Households Paying More Than 30% of Income for Housing in 2000, By Income Level & Municipality – Housatonic Valley Region ……………………………. 21 Table 25: DECD Affordable Housing Units by Municipality, 2007 – Housatonic Valley Region ……………………………………………………………………………… 22 Table 26: Subsidized Housing Units, Housatonic Valley Region…………………….. 23 Table 27: Elderly Housing Facilities, Housatonic Valley Region …………………….. 25* Table 28: Inventory of Apartment and Condominium Complexes, Housatonic Valley Region – 2008……………………………………………………………………… 29* Table 29: % of Residents Remaining In Town Of Residence To Work In 2000 ……. 31 Table 30: Commuters into Towns Originating from Within the Region, 2000 ………. 32 Table 31: Commuters Originating from the Housatonic Valley Region Not Including Town of Residence, 2000………………………………………………… 32 Table 32: Commuters Into the Region By Town And Point Of Origin, 2000………… 34 Table 33: Top Ten Places of Origin For Commuters Into the Region, 2000 ……….. 35 Table 34: Commuters From Outside the Region by Likely Route of Entry and Destination Community …………………………………………………………………… 35* Table 35: Commuters Out of the Region By Town And Point Of Destination, 2000………………………………………………………………………….. 36 Table 36: Commuters Out of the Region by Likely Route of Exit and Community of Origin ……………………………………………………………………… 36* Table 37: Top Ten Destinations For Commuters Out of the Region, 2000 …………. 37 Table 38: % of Jobs in Each Housatonic Valley Municipality Filled by Municipal Residents, 1970-2000…………………………………………………………………….. 39 Table 39: Deed Restriction Durations for Various State Statutes……………………. 50 Table 40: Deed-Restricted Affordable Housing Inventory Response to DECD by Municipality ………………………………………………………………………………… 54 Table 41: "Affordable" Homeownership Units Using 8-30g Standards – Housatonic Valley Region ………………………………………………………………... 66* Table 42: "Affordable" Rental Units and Total Units Using 8-30g Standards – Housatonic Valley Region………………………………………………………………… 66* Table 43: Elderly Affordable Housing Need by Community and Income/Cost Burden Category…………………………………………………………………………... 73 Table 44: Non- Elderly Affordable Adjusted Housing Need by Community – 50/50 Category…………………………………………………………………………….. 76 Table 45: Non- Elderly Affordable Adjusted Housing Need by Community – 80/50 Category…………………………………………………………………………….. 77 Table 46: Non- Elderly Affordable Adjusted Housing Need by Community – 50/30 Category…………………………………………………………………………….. 77 Table 47: Non- Elderly Affordable Adjusted Housing Need by Community – 80/30 Category…………………………………………………………………………….. 78 Table 48: Total Adjusted Affordable Housing Need by Community – 50/50 Category…………………………………………………………………………….. 79 Table 49: Total Adjusted Affordable Housing Need by Community – 80/50 Category…………………………………………………………………………….. 80 Table 50: Total Adjusted Affordable Housing Need by Community – 50/30 Category…………………………………………………………………………….. 80 Table 51: Total Adjusted Affordable Housing Need by Community – 80/30 Category…………………………………………………………………………….. 81 Table 52: Impact on 8-30g Town Percentage Calculation – 50/50 Category ………. 82 Table 53: Impact on 8-30g Town Percentage Calculation – 80/50 Category………. 82 Table 54: Impact on 8-30g Town Percentage Calculation