October 5, 2006                      NEXT MEETING: OCTOBER 19th, 7pm

Affordable Housing Committee

Julie Burger Pierson, Secretary pro tem

 

Present:  Rocky Martin, Dale Wernhoff, Kellie Stoll, Donna Constantineau

Carl Bohlen, Andrew Burton, Alan Norris, Julie Burger Pierson

 

Guests: Peter Erb, Carrie Fenn, Katy Demong

Speakers:  Brenda Torpey & John Howell, Champlain Housing Trust

 

Three topics presented:  -What is affordable housing?

                                       -Home Ownership Program

                                       -Rental program

 

What is affordable housing?

 

            Must look at need – cost of housing in relationship to wages.  Today

land costs exceed rise in wages; gap is growing.  In Vermont a plurality is paying up to 50% of family income in housing costs.  People are also driving farther to work,

adding to other costs.

           

            Level of affordability will differ among different income and age groups.

There is an affordability “tenure ladder” of decent, affordable housing. Crises happen to families, causing loss of income.  Housing costs are the biggest part of family budgets.

Wages are not keeping up with market prices. 

CHT tries to close the gap between wages and housing costs.

Affordability clause means money is recycled, thereby not increasing costs over time.

 

How does CHT do it?

 

Home Ownership Center –

 

            Land becomes steadily more valuable, is a finite resource.

Once established as affordable, it remains so in perpetuity.  450 families are living under a perpetual affordability covenant with CHT.

 

            There are Home Ownership Centers in Burlington & St. Albans.

 

            Orientation session – 2 hours.  Learn about CHT, decide whether to

                        proceed to:

            Workshop – 8 hours, abc’s of buying a home, how much loan for which a

family can qualify, etc.

            One on One counseling session if still interested – CHT works with

                        all banks, credit unions to help family with the purchase.  Some

                        may decide they are not ready to own a home.  If so, they receive

                        a newsletter, keep in touch, and may have a later workshop.

 

Page 2 –          Home Ownership Program (cont’d)

CHT helps a family increase its purchasing power (see blue sheet). 

 

There are down payment grants and other subsidies for the mortgage.

If the owner sells the home, he/she receives 25% of the appreciated value,

100% of any capital improvements the owner has completed since purchase and

100% of the amount of principal paid from the original mortgage.

 

Example presented showed CHT down payment grant of $35,000 and mortgage rate of 4.75% to increase purchasing power.

 

See pink sheet, booklet and summary sheet for resale numbers.

 

Very small number of foreclosures.

 

May sublet but rent must be affordable and owner must clear with CHT.

 

There are currently 9 CHT homes in Hinesburg.

 

Bissonette grant – CHT hopes to put some affordable housing there.

 

CHT works with families in the 50% to 100% of median income range

but does not focus primarily on this. 

 

Inclusionary zoning means such things as allowing a developer an extra unit

in exchange for including an affordable unit in a development.

 

There are federal and state tax credits for historic building renovation.

Naturally, the cost drops as one increases the number of homes.

 

Rentals –

 

            Requires balance between individual and community needs.

            Must be well managed, a very difficult job.

            An attractive physical environment encourages positive response,

                        good caretaking by renters

            Scale:  CHT prefers more than 20 units when feasible.

            Build in value:  if the units are small, make them pretty!

            How to keep rentals affordable?  There is a tax credit program with

            the IRS.  The credits can be sold to e.g. banks.  State funding is for

perpetually affordable.

            Economy of scale:  more units = more efficient.

 

            Assess goals:  go to housingdata.com for census data (e.g. how many

                        4 season homes, 1st & 2nd home, etc. in our area).

 

 

Page 3 –

 

Hinesburg –

 

Do we want to recommend changing Zoning? Density? Height restrictions?

 

Planning Commission would like us to make zoning recommendations by December

if possible. 

 

Go to hinesburg.com for info on local zoning.  Hopefully Alex will attend 

NEXT MEETING ON OCTOBER 19th to explain our zoning regulations.

 

Do we have any under-utilized buildings in the village?

 

We must set out specific regulations about zoning restrictions so developers cannot

do whatever they want.

 

Hinesburg has been named a “designated village center,” which makes us eligible

for tax credits.  This area includes Route 116, Commerce Street, Mechanicsville Road, back to Route 116.

Community Development Block grants (CDBG) are also available to us.

 

Housing Vermont is a non-profit developer, partners with local developers.

 

Shall we apply for a Planning Grant to help us move forward?

 

For next meeting, each committee member agreed to approach a town to obtain

zoning regulations which promote or mandate affordable housing.