Summary of Priority Housing Issues and Needs

Transcription

1 Summary of Priority Housing Issues and Needs A half-day housing forum was held in Roanoke on March 14, 2001 to solicit public input on housing needs and priorities in the small metropolitan and non-metropolitan urban areas in south central and western Virginia. Sixty-nine persons participated in small, facilitated discussion groups at the forum representing housing needs and interests in the Blacksburg, Roanoke, Lynchburg, Danville and Martinsville housing market areas. The following is a summary of the priority issues identified by forum participants that relate to housing needs in the Blacksburg area. Also included is a summary of additional issues identified through the housing needs analysis that directly relate to the six primary themes arising from public discussion at the forum. Six Major Themes and Associated Issues Identified at the Roanoke Forum 1. The availability of The affordable housing stock is in poor condition. Affordable housing is in substandard condition. The high cost of materials inhibits rehabilitation and repair. Some existing homes are deteriorating because owners do not have the financial resources for repair and maintenance, especially the elderly and others on fixed incomes. Many of these people live in older homes that require more costly repairs. The gap between incomes and housing costs is growing. People earning low wages or on fixed incomes have limited housing choices. High-value new construction is increasing the cost of housing for lower income individuals. Limited land available for development and rising real property taxes contribute to increased housing costs. In addition, upfront costs (such as deposits, advanced rents, etc.) hinder the working poor from finding suitable housing. Part IV.A Blacksburg Market Area

2 1. The availability of Related Issues Identified through Needs Analysis Declining vacancies have reduced housing choice. During the 1990s, the increase in the Blacksburg area's housing stock did not keep pace with the growth in households. Consequently, both homeowner and rental vacancy rates declined and, by 2000, the market had become relatively tight. Purchasing power is relatively weak. Although the Blacksburg area had an above-average rate of income growth during the 1990s, the level of per capita income is still lower than in other non-metropolitan urban markets, and the poverty rate is well above the state average. This weakens area purchasing power. The area has a relatively high use of manufactured homes. Weak home purchasing power and constraints on housing development are reflected in the area's relatively high use of manufactured housing, which provides an affordable alternative to site-built homes. The share of total units in the area that are manufactured homes is over twice the statewide average. Likewise, from 1990 to 2000, manufactured homes represented over twice as high a share of the increase in single-family homes in the Blacksburg area as they did statewide. Given the high use of manufactured homes in the region, the concerns expressed at the forum regarding zoning restrictions can be assumed to apply either to specific areas of the region or to difficulty in siting manufactured homes in preferred locations. A number of factors cause concern about housing costs despite improved overall affordability. For the average Blacksburg area household, rental housing is more affordable than for their counterparts in other markets in the state. The share of median income needed to afford a unit at the prevailing market rent is well below the statewide average. For low-income renters, the situation is different. The market has a ratio of assisted units per 1000 renter households that is below the statewide ratio despite the area's relatively low income level and above-average poverty rate. Part IV.A Blacksburg Market Area

3 1. The availability of 2. Rental properties are deteriorating and disincentives exist for maintenance and repair. During the 1990s, total assisted rental family units increased at a slower rate than non-elderly renter households. Consequently, the ratio of assisted family units per 1000 nonelderly renter households fell. In 2000, the area's ratio of assisted family units per 1000 non-elderly renter households was 88 percent of the statewide ratio compared to 115 percent in The area's ratio of elderly units per 1000 elderly renter households increased substantially, but is still just 63 percent of the statewide ratio. The area's ratios of family and elderly units with project-based deep subsidies per 1000 renter households are also below the statewide ratios, although the disparities are somewhat smaller. The market has a ratio of tenant-based deep subsidy units per 1000 renter households that is nearly half the statewide ratio. Consequently, the overall availability of deep subsidy rental units is low compared to the state as a whole. The ratio of total deep subsidy units per 1000 renter households is just 71 percent of the statewide ratio. Low-income households that do not live in assisted housing continue to face challenges in renting, purchasing and maintaining homes. Unassisted rental housing in the Blacksburg area remains unaffordable to the lowest income populations. There has been a small decline in the area's overall homeownership rate, and the homeownership rate for Blacks has declined substantially. One factor impacting affordability is household composition. The area's average household size (2.36 persons) is one of the lowest among the state's housing markets. During the 1990s, nearly three quarters of the net increase in households was made up of single -persons and non-married households with children. A large majority of the latter are single parents with one income. Generally, single -income households are more challenged in affording housing than are households with two incomes Rental properties are deteriorating. Some landlords, especially absentee landlords, do not care if buildings deteriorate. There are limited laws to hold property owners accountable and few staff to enforce codes and regulations. Some landlords and renters may not be aware of their rights, responsibilities, and obligations. Some Part IV.A Blacksburg Market Area

4 2. Rental properties are deteriorating and disincentives exist for maintenance and repair. renters do not care if buildings deteriorate and those that do care have no other alternatives There are disincentives to investment. It is sometimes more financially beneficial for owners of rental properties in cities to make cosmetic repairs and leave properties vacant than bear the repair and management costs of renting their property. Local property taxes favor deferred maintenance on rental properties. Housing disinvestment is hurting neighborhoods. Poorly maintained rental properties negatively impact surrounding areas, reduce the incentive for other owners to invest in maintenance, and have negative impacts on the neighborhood such as increased crime and sanitation problems. Vacant and abandoned properties are difficult to upgrade or replace at a reasonable cost. 3. Demand for housing for people with special needs is increasing. 4. Housing policies impact the affordability and supply of housing. The need for transitional and long-term housing is increasing. Hospital and rehabilitation discharge policies are increasing the number of low-income people with disabilities who are in danger of becoming homeless. This includes people with mental or physical disabilities, seniors, and others whose caregivers are aging or have passed away. Quality assisted living options are needed for the disabled with access to support system programs and services. Government policies limit housing choices. Local governments do not view housing needs as a priority. There is a perceived disinterest at the local, state, and national level in pro viding policy and financial resources that promote affordable housing, such as adequate/proper zoning laws and building codes. Local governments are not motivated to disperse low-income housing throughout the region because it is cheaper and easier to cluster. Zoning laws prevent manufactured housing development and insti- Part IV.A Blacksburg Market Area

5 4. Housing policies impact the affordability and supply of housing. 5. People in need are not always aware of or in a position to take advantage of available options for assistance. tute excessive hidden housing costs such as lateral utility hookups and fees. There is a dichotomy between the housing needs of low-income people and the interests of developers and local governments. The profit motivation of developers and landlords, and local governments' need to balance revenues and service costs, frequently diverge from the need of low-income people for decent, safe, and affordable housing. Consumers are unaware of available options. Some potential first-time homebuyers are unfamiliar with the home buying process or are not sure they can take on the responsibility of homeownership. New homeowners are not always aware of their rights and responsibilities or what is required for adequate maintenance and repair. Credit and financial counseling are needed. Many individuals do not understand the importance of their credit rating and do not do a good job managing their finances. Education is needed starting while people are still in school that will provide knowledge on basic budgeting and life skills. Training and support is needed on checkbook balancing, money management, and credit counseling. 6. Greater flexibility is needed within program guidelines. Program guidelines are too restrictive. The description of "family" according to VHDA guidelines creates serious problems in providing housing finance to low-income households. Approval guidelines are too strict and complicate the process. Credit rules do not take into account the financial difficulties within the low-income community. Flexible programs are needed for the elderly and disabled. Part IV.A Blacksburg Market Area