The Affordability Gap (2016)
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HOME ENERGY AFFORDABILITY IN CONNECTICUT: The Affordability Gap (2016) Prepared for: Operation Fuel Karen Adamson, Executive Director Bloomfield, Connecticut Prepared by: Roger D. Colton Fisher, Sheehan & Colton Public Finance and General Economics Belmont, Massachusetts December 2016 Table of Contents Table of Contents Table of Contents ....................................................................................................................................................................... i Table of Tables ......................................................................................................................................................................... iii Introduction ............................................................................................................................................................................... 1 Methodology ......................................................................................................................................................................... 3 Changes in “Second Series” Affordability Gap Analysis. ..................................................................................... 4 Part 1: Home Energy Affordability in Connecticut in 2016 ................................................................................... 6 An Overview of the Statewide Affordability Gap ................................................................................................... 6 Five Important Findings .................................................................................................................................................. 8 Part 2: Home Energy Affordability by Income ......................................................................................................... 10 Affordability Gap by Poverty Level ........................................................................................................................... 10 Affordability at the Lowest Income Levels ........................................................................................................ 12 Affordability at the Highest Income Levels .......................................................................................................... 14 Measuring Energy Burdens rather than Dollar Gaps .............................................................................................. 16 Six Important Findings ..................................................................................................................................................... 17 Part 3: Home Energy Affordability by Geography ................................................................................................... 18 Six Important Findings ................................................................................................................................................... 20 Part 4: Multi‐Family Housing in Connecticut ............................................................................................................. 22 Energy Efficiency in Multi‐Family Buildings. ........................................................................................................ 22 The Attributes of Connecticut’s Multi‐Family Buildings. ................................................................................. 24 Table of Contents i | Page Connecticut’s Multi‐Family Housing Units Occupied by Low‐Income Households. ............................. 26 The Attributes of Connecticut’s Low‐Income Multi‐Family Housing Stock .............................................. 29 The Attributes of Connecticut’s Low‐Income Multi‐Family Housing Occupants ................................... 32 Policy Implications for Connecticut .......................................................................................................................... 38 Eight Important Findings .............................................................................................................................................. 39 Sources of Information for Connecticut ....................................................................................................................... 41 U.S. Census Tables (American Community Survey) .............................................................................................. 41 Data on Children Well-being .......................................................................................................................................... 41 Data on Employment and Wages .................................................................................................................................. 42 Data on Energy and Fuel .................................................................................................................................................. 42 Data on Housing Affordability ....................................................................................................................................... 43 Data on Poverty and Income ........................................................................................................................................... 43 Data on Working Households/Families/Persons ...................................................................................................... 44 Table of Contents ii | Page Table of Tables Affordability Gap and Number of Households by Ratio of Income to Table 1. 11 Poverty Level (2016)……………………………………………………................. 2016 Affordability Gap by State Legislative House Districts (By Poverty Table 2. 13 Level)……………………………………………………………………………….. 2016 Average Per-Household Gap and Aggregate Gap by Selected Poverty Table 3. 15 Level Ranges……………………………………………………………………….. House Districts by Energy Burdens of Households at Selected Poverty Table 4. 16 Ranges (2016)………………………………………………………………………. Home Energy Affordability Gap by Congressional District Table 5. 19 (Connecticut) (2016)……….……………………………………………………….. Home Energy Burdens and Per-Household Affordability Gaps by Table 6. Congressional District and by Selected Poverty Levels (Connecticut) 19 (2016)………………………………………………………...................................... Aggregate Home Energy Affordability Gap by Congressional District Table 7. 20 and Selected Poverty Levels (Connecticut) (2016)…………………………………. Table 8. Number of Units in Building (Connecticut: 2015) (all incomes)……………………. 25 Table of Tables iii | Page Percentage of Dwelling Units by Single-Family/Multi-Family Status Table 9. 26 (all incomes) (Connecticut 2015)……………………………………………………. Distribution of Persons by Number of Units in Building and by Tenure Table 10. 27 (at or below 200% of Poverty Level) (Connecticut 2015)…………………………… Distribution of Persons by Number of Units in Building and by Tenure Table 11. 28 (at or below 50% of Poverty Level) (Connecticut 2015)…………………………….. Average Poverty Level by Tenure and Number of Units in Building Table 12. 29 (at or below 200% of Poverty) (Connecticut 2015)………………………………… Multi-Family Residents by Number of Bedrooms by Tenure Table 13. 30 (at or below 200% of Poverty) (Connecticut 2015)………………………………… Multi-Family Units by Tenure and Heating Fuel Table 14. 31 (at or below 200%of Poverty) (Connecticut 2015)…………..................................... Multi-Family Residents by Tenure and Year Unit First Constructed Table 15. 33 (at or below 200% of Poverty) (Connecticut 2015)………………………………… Renters by Gross Rent as Percentage of Income by Number of Units in Table 16. 34 Building (at or below 200% of Poverty) (Connecticut 2015)……………………… Low-Income Multi-Family residents by Mobility of Resident Table 17. in Past 12 Months, Tenure and Units in Building (at or below 200% 36 of Poverty) (Connecticut 2015)……………………………………………………… Renters by Units in Building and Time When Moved In Table 18. 38 (at or below 200% of Poverty) (Connecticut 2015)………………………………….. Table of Tables iv | Page Introduction Even though Connecticut’s Home Energy Affordability Gap declined somewhat in 2016, home energy costs continue to pose a crushing burden to low-income residents of the state. Particularly for households with incomes in “Deep Poverty,” home energy costs threaten not only the ability of Connecticut households to retain access to energy services, but also threaten access to housing, food, medical care and other necessities of life. The fact that the Home Energy Affordability Gap in Connecticut can decrease by more than $70 million, and still leave an aggregate Gap substantially higher than available assistance resources, indicates the extent of the Affordability Gap crisis in Connecticut. Home energy unaffordability in Connecticut is a statewide phenomenon. It affects areas of the state both rural and urban. It affects areas of the state both North and South, both East and West. The discussion below continues a series of annual reports examining home energy affordability in Connecticut. The Home Energy Affordability Gap seeks to quantify the extent of energy unaffordability in Connecticut. The Affordability Gap measures the dollar amount by which actual home energy bills exceed affordable home energy bills. In this respect, “affordability” is examined in terms of home energy burdens, bills as a percentage of income. If a Connecticut household has an annual income of $12,000 and an annual home energy bill of $3,000, that Home Energy Affordability: Connecticut 2016 1 | Page household has a home energy burden of 25% ($3,000 / $12,000 = 0.25). An affordable home energy