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HomeMy WebLinkAbout_Housing Needs & Assessment Workshop 6 Chapter 1: Community Vision The public engagement process revealed important themes that became the guide for the development of the Oshkosh Housing Study. These themes were distilled from input received from the stakeholder listening sessions, committee discussions, and the community and landlord surveys. In summary, overall qualitative themes fell into: 1. Lack of existing inventory on the market • A point the market data in the next chapter validates. 2. Rental gaps at less expensive ends of the scale • Not surprising as these are units that cannot be produced by the private market alone, also validated in the next chapter. 3. Influence of 2020-2021 material costs on affordability • A point made more in the qualitative listening sessions and concern about the uncertainty these price increases bring for future housing production. 4. Major need for new development in the $200-300K range • With other factors raising the cost of construction, people see the need and feel new housing in the middle price ranges becoming hard to produce. EXECUTIVE SUMMARY 5. Generational issues in the building community • Expressed in the listening sessions as a main factor for housing supply lagging behind housing demand. 6. Maintenance provided communities/“condos” are in demand • There is value and opportunities in Oshkosh for a variety of ownership options beyond traditional single-family homes. 7. Interest in alternative housing types – owner-occupied duplexes as an example • People are open to moving into “different” housing models to achieve the price points they want a lifestyle they seek - either by necessity or choice. 8. Development still runs into neighborhood opposition even when most people are aware of the need for more affordability • People know the amount of “house” people can afford is getting less but when other options are proposed, people voice opposition. 9. Executive housing happening more in rural surroundings • Many express a desire to have more land and live in rural areas. Thus the feeling of higher-end options only being available outside of the city. 10. Employers understand the need and may be willing to engage in housing market development • However, none appear to be devoting resources to help solve housing challenges quite yet. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 7 Chapter 2: Demographic and Economic Atlas TAKEAWAYS: 1. Steady Growth, Lagging the Region Oshkosh continues to add population. However, when compared to growth in Winnebago County, the percent of people living in Oshkosh is trending downward. Its regional peers are also growing faster. 2. Dropping Vacancies The total vacancy rate of rental and owner- occupied housing is falling in Oshkosh, generally a good thing for a community. The current rate is healthy at between 5%-6%. This likely reflects lower new construction and inventory since the 2008 recession as people fix up homes or dilapidated homes get demolished. 3. Affordability Burden on Renters Renters continue to be more cost burdened than owners, a situation in many communities. However, in Oshkosh more renters are cost burdened than in peer cities. This is partially related to the student population that is living in rentals but have low incomes (rent is supplemented by parents, student loans, or both). However, the higher renter cost burden is also an indication of low supply of rentals affordable to more income groups. 4. Competition for Same Housing Products and Price Points A shortage of homes exists for the lowest income households in Oshkosh and households making more than $75,000, likely indicating that these upper income households are out-competing middle income households for the same housing products. Middle income households are then faced with more affordability challenges while upper income households may prefer to live in housing that better matches their income and amenity preferences, if available. 5. Lower Home Values versus Median Incomes Housing values in Oshkosh are generally self- sustaining to support new development. Housing in other cities is valued higher, but median incomes are also higher. For example, the value of homes over $200,000 as a percent the populations in Neenah and the rest of the MSA are higher than Oshkosh which may mean higher income households are choosing to live outside of Oshkosh. This could be because of community preferences or simply lack of options in Oshkosh. 6. Low Inventory of Homes for Sale The supply of available homes for sale is at historic lows, a trend not unique to Oshkosh. The effects in Oshkosh may mean more demand for home rehabilitation or living in substandard units. 7. Underproduction of Single-Family Units Oshkosh’s overall single-family unit production remains low for a community over 65,000 people. Between 2010 and 2020, the market produced some 263 new single-family units at an average rate of about 24 new units per year. This is similar to Neenah, which is about a third the size of Oshkosh. 8 Chapter 3: Market Assessment TAKEAWAYS FOR SUCCESS: 1. Consider Oshkosh’s potential to satisfy regional needs The Fox Valley is growing rapidly, and even though Oshkosh is growing at a more moderate pace, the city provides valuable employment, educational, civic, and housing opportunities to the region. As such, the region offers these and other amenities to Oshkosh. Satisfying demand for housing takes a holistic approach. The forecast in this study show Oshkosh to grow by over 3,200 permanent residents by 2030. To accommodate this population, Oshkosh will need to produce almost 1,700 new housing units. This demand equates to about 160 units annually. 2. Production must be balanced across price points to prevent further affordability issues However, housing construction must be balanced across price points to ensure that Oshkosh does not continue its shift toward becoming unaffordable. To achieve a healthy balance of housing opportunities, the most significant number of owner-occupied units should target the middle- income price-points, with owner units being sixty percent of all new units. 3. Production must be balanced across ownership and rental types Permit data shows that Oshkosh is under- producing single-family housing units compared to peer cities in the region. This means more options for homeowners in other cities looking to move to or within the region. Therefore, the program in this chapter targets sixty percent of new homes as owner-occupied, and 40% as renter-occupied. This ratio will favor owner units in the market over what exists today as a 55%/45% owner/renter split. Additionally, an emphasis should be placed on generating various owner and renter housing types such as small, medium, and large single- family homes, duplexes, townhomes, and condominiums in addition to apartments and independent senior living options. 4. The availability and affordability of the housing market will continue to limit the growth of the city The economy is limited by the ability to recruit and retain employees for jobs at all economic levels. It may be necessary to provide incentives to encourage the development of the workforce and entry-level housing. The housing market is limited by the shortage of housing units which drive-up the cost of housing without driving an increase in the quality of existing housing. The addition of new units - both ownership and renter options - would increase housing quality. OSHKOSH HOUSING NEEDS ASSESSMENT AND STRATEGY PLAN 9 Chapter 5: Housing Program QUESTIONS FOR SUCCESS: • How do we build the capacity to develop “affordable, attainable” housing and a healthy housing market? • How do we encourage housing products and options that retain our households? • How do we conserve our neighborhoods and preserve their housing fabric? • How do we address the needs of people who are unhoused or inadequately housed? Policy Directions Based on Affordability • Overall Policy Direction: Public policy should focus on encouraging development of affordable moderate and medium-cost housing, where financing gaps and challenges are more likely to keep the market from satisfying the need. Policy Directions Based on Location and Retention • Overall Policy Direction: Policy should encourage development that 1) provides options for people now moving outside Oshkosh to find their place in the city and 2) that uses infill sites or contiguous greenfield sites effectively to provide these options. Policy Directions Based on Innovation and New to Market Products • Overall Policy Direction: Policy should encourage and moderate the risks of non- conventional or emerging forms of residential development that accommodate emerging markets but are unfamiliar to many conventional developers and builders. Policy Directions Based on Reinvestment • Overall Policy Direction: Policy should provide strong, positive incentives for housing and mixed use investment in targeted reinvestment areas. Chapter 4: Opportunity Assessment HOUSING ASSETS AT A GLANCE • Emerging developer interest in new housing types • Consumer interest in alternative forms of housing • Employers understanding the need to engage in workforce housing • General community support • Neighborhoods and urban housing quality • Opportunities to develop • Opportunities on the waterfront for density • Downtown and community character • Demand for older adult communities HOUSING CHALLENGES AT A GLANCE • Lack of existing inventory on the market • The cost of construction • Infrastructure development • Township and urban service areas • Infill opportunities • Housing conditions • Program diversity and funding • Nonprofit development capability • Unseen homelessness • Shortage of builders and workers HOUSING STUDY IMPLEMENTATION HOUSING STUDY IMPLEMENTATION Overview HOUSING STUDY IMPLEMENTATION Continuum of Housing HOUSING STUDY IMPLEMENTATION Increase home ownership opportunities *$51,282 x 2.5 = $128,205 is affordable in the City of Oshkosh $128,205/$225.00 = 569 sq. ft. home City of Oshkosh Median Income Loan Ratio * Source: Census Data & American Community Survey, 2020 New Construction Cost HOUSING STUDY IMPLEMENTATION Today’s Topics •Zoning •Subdivision Ordinance / Policy •Policy & Project Development HOUSING STUDY IMPLEMENTATION ZONING HOUSING STUDY IMPLEMENTATION Accessory Dwelling Units (ADU) •Residential Districts •SR-5, SR-9, DR-6, TR-10 Consider allowing accessory dwelling units HOUSING STUDY IMPLEMENTATION Remove or lower parking minimum from multi–family zoning •Current code: 2 spaces per dwelling unit +1 per units for guests •Potentially negative impact on small unit urban infill developments Parking Requirements HOUSING STUDY IMPLEMENTATION Consider changes to promote mixed density and additional density in the urban area •Consider reductions of minimum lot size and width requirements •Consider allowing duplex or twin homes residential districts •Consider changes to allow greater flexibility for unit type of setbacks within multi-family districts Density Changes HOUSING STUDY IMPLEMENTATION HOUSING STUDY IMPLEMENTATION Subdivision Ordinance/ Policy HOUSING STUDY IMPLEMENTATION Current requirements per ordinance- 1,100 square feet per single family unit and 900 square feet per multi family unit of parkland dedication or $400 per dwelling unit$330 per unit/multi-family Parkland requirements HOUSING STUDY IMPLEMENTATION Parkland requirements Current ordinance only applies to development that require a Certified Survey Map (CSM) or Subdivision Plat Current requirements per ordinance- HOUSING STUDY IMPLEMENTATION Potential Solutions Balance land dedication vs fee in lieu of requirements Requirements apply for all developments regardless of requiring CSM or Plat HOUSING STUDY IMPLEMENTATION Subdivision Development Currently developer pays 100% of upfront costs of subdivision development vs City defers some development costs to property owner at time of installation HOUSING STUDY IMPLEMENTATION Infrastructure *Based on 1800 sq. ft. home Source: Harbor Homes HOUSING STUDY IMPLEMENTATION Village Center –Village of Howard Village of Howard –3rd phase. Village of Howard uses TIF to finance infrastructure HOUSING STUDY IMPLEMENTATION Land bank: Neenah buys 130 acres to help developer proceed with large residential subdivision City of Neenah buys land Area Development Plan Area Development Plan HOUSING STUDY IMPLEMENTATION Potential Solutions City contributes towards new infrastructure costs City considers land banking for future residential development HOUSING STUDY IMPLEMENTATION Policy and Project Development HOUSING STUDY IMPLEMENTATION Very Low Income •Community Partnerships •Evaluate funding sources Community Based Development Organizations (CBDO) •Evaluate opportunities for working with recognized CBDO Programs and Policies HOUSING STUDY IMPLEMENTATION Existing Housing programs •Increase City housing program budget •Increase financial assistance •Expand programing to encourage alternative housing options Programs and Policies HOUSING STUDY IMPLEMENTATION Concentrated approach •Evaluate targeted revitalization opportunities in conjunction with ongoing redevelopment efforts •Potential opportunities •Near schools •Shoulder neighborhoods •Build upon current neighborhood initiatives •Coordination with City infrastructure projects Neighborhood Revitalization Strategy Area HOUSING STUDY IMPLEMENTATION Housing Design Book HOUSING STUDY IMPLEMENTATION Live-Work Promote opportunities for Live-Work Units HOUSING STUDY IMPLEMENTATION Duplex / Triplex Infill Project Questions? Next Steps: •Implementation Priorities •Funding