W.H.A.T.W.H.A.T.Workforce Action Housing Workforce Action Housing

TeamTeamPlanning District 16Planning District 16

January 2007January 2007

Workforce Housing Action Workforce Housing Action TeamTeam

► WhoWho- - W.H.A.T.W.H.A.T.

► WhatWhat- - Strives to develop affordable Strives to develop affordable housing for housing for regional workforceregional workforce

► WhenWhen- - OngoingOngoing

► WhereWhere- - RegionallyRegionally

► HowHow- - By forging partnerships between By forging partnerships between local local government, regional civic government, regional civic organizations organizations and regional builders and regional builders and developersand developers

FFree ree LLance - ance - SStar 1/10/2007tar 1/10/2007

►3,610 Homes for Sale3,610 Homes for Sale

Average Sales Price: $426,236Average Sales Price: $426,236

►524 Rental Properties524 Rental Properties

Average Rental Price: $1,599Average Rental Price: $1,599

Current Home Price Ranges for Free Lance - Star distribution area

Median Home Prices- Median Home Prices- 01/06-09/0601/06-09/06

►VirginiaVirginia► VAAlexandriaVAAlexandria $805,000$805,000► VAViennaVAVienna $754,372$754,372► VALeesburgVALeesburg $598,750$598,750► VAWoodbridgeVAWoodbridge $506,712$506,712► VAVirginiaBeachVAVirginiaBeach $355,949$355,949► VARichmondVARichmond $346,850$346,850► VAWinchesterVAWinchester $346,250$346,250► VARoanoke/BlacksburgVARoanoke/Blacksburg $275,210$275,210► VALynchburgVALynchburg $262,325$262,325

Live Where you WorkLive Where you Work

►Our hard working county employees, Our hard working county employees, teachers, and young professionals teachers, and young professionals can’t afford to live in the communities can’t afford to live in the communities they serve. Planning District 16 risks they serve. Planning District 16 risks losing essential services, economic losing essential services, economic vitality and great neighbors. vitality and great neighbors.

SpotsylvaniSpotsylvaniaa

City of Fred.City of Fred. King King GeorgeGeorge

CarolineCaroline OrangeOrange

FirefighterFirefighter $35,51$35,5177

$37,36$37,3699

** $25,81$25,8155

$33,42$33,4244

EMT IEMT I $35,51$35,5177

$37,36$37,3699

** $25,81$25,8155

$33,42$33,4244

Police Police OfficerOfficer

$37,29$37,2933

$37,36$37,3699

** $32,17$32,1700

$31,83$31,8322

TeacherTeacher $35,00$35,0000

** $35,25$35,2500

$34,50$34,5000

$35,97$35,9788

Pre School Pre School TeacherTeacher

$19,00$19,0000

** $15,00$15,0000

$15,00$15,0000

**

RNRN $41,00$41,0000

** $43,00$43,0000

$41,00$41,0000

$36,00$36,0000

LPNLPN $21,00$21,0000

** $22,00$22,0000

** $19,00$19,0000

* Info not available for survey 12/06 - Stafford County did not return * Info not available for survey 12/06 - Stafford County did not return datadata

Entry Level/ First Year Pay Scales – PD 16

Local EmployersLocal Employers

►GEICO Internships/ Entry level GEICO Internships/ Entry level positionspositions

Claims Service Claims Service Rep (CSR)Rep (CSR)

$25,000-$28,000$25,000-$28,000

Inbound SalesInbound Sales $30,000-$35,000$30,000-$35,000

*AS OF 1/9/07*AS OF 1/9/07 HOTJOBS.COM *HOTJOBS.COM *

More than 3,500 people work for GEICO in Stafford County, in a spacious office building completed in

1994 and the National Print Mail Facility completed in 1998.

Local EmployersLocal Employers

IntuitIntuitInternships/Entry levelInternships/Entry level

Customer Customer ServiceService

$22,000-$28,000$22,000-$28,000

Intuit Sales Intuit Sales InternIntern

$28,000-$30,000$28,000-$30,000

Intuit Inc (software- Quicken, Turbo Tax)110 Juliad Ct. Fredericksburg, VA, Currently employs

Over 240 employees in their call center

Various Local Employers/ Free Various Local Employers/ Free Lance Star 1/14/07 – Full Time Lance Star 1/14/07 – Full Time

Entry LevelEntry LevelEmployerEmployer PositionPosition SalarySalary

PW CountyPW County Grounds Maint.Grounds Maint. $30,431$30,431

Germanna Germanna Community Coll.Community Coll.

Education Education Support Support SpecialistSpecialist $23,000-$34,000$23,000-$34,000

Clean Machine Clean Machine Car WashCar Wash Asst. ManagerAsst. Manager $25,000$25,000

Stafford CountyStafford CountyDeputy Court Deputy Court ClerkClerk $23,264$23,264

University of University of Mary Wash.Mary Wash.

Library Intern Library Intern Asst. Asst. $27,577$27,577

Mortgage PaymentsMortgage Payments

► FNMA & Freddie Mac have set the qualifying standards at 28/36% for debt to income calculations. This means no more than 28% of

your gross monthly income should be going towards your total mortgage payment.(PITI)

Gross income 28% of monthly 36% of monthly

$20,000 $467 $600

$30,000 $700 $900

$40,000 $933 $1,200

$50,000 $1,167 $1,500

County Employee – ExampleCounty Employee – ExampleCity of Fredericksburg –Firefighter/EMT/Police City of Fredericksburg –Firefighter/EMT/Police

OfficerOfficer

► As an entry level employee of the city, As an entry level employee of the city, this applicant’s first year income would this applicant’s first year income would be be $37,369.00$37,369.00. .

►Gross monthly income = Gross monthly income = $3114.08$3114.08

►28% of gross monthly income = 28% of gross monthly income = $871.95$871.95 for PITI (principal, interest, for PITI (principal, interest, taxes & insurance)taxes & insurance)

PITI ExamplePITI Example► Based off the previous employee - 30 yr fixed rate loan at Based off the previous employee - 30 yr fixed rate loan at

6%6%

P*I P*I $ 731.45$ 731.45 Taxes Taxes $ 100.00$ 100.00 InsuranceInsurance $ 40.00$ 40.00 PITIPITI $ 871.45$ 871.45

This employee would qualify for a maximum mortgage of

$122,000.00$122,000.00.

Housing FactsHousing Facts

► This employee could not purchase any This employee could not purchase any home within PD 16.home within PD 16.

►This employee would have trouble This employee would have trouble finding a home to rent within PD 16finding a home to rent within PD 16

Average Home Price- $426,236.00Median Rental Price- $1599/month

Commuting FactsCommuting FactsSome area workers are now forced to live

outside our Planning District- forced to commute from Tappahannock & Westmoreland & outlying areas.

• strains our road systems• response time for emergency personnel • high employee turnover• costs to recruit & retrain new employees

"We basically recruit teachers from eight to 10 states who we want to retain "We basically recruit teachers from eight to 10 states who we want to retain because of the investment we place in them as new teachersbecause of the investment we place in them as new teachers," Sara Branner – ," Sara Branner –

the spokesperson for Spotsylvania Schools said. the spokesperson for Spotsylvania Schools said. "Teachers who want to make "Teachers who want to make Spotsylvania their place of long-term employment really do desire, Spotsylvania their place of long-term employment really do desire,

we found out, to invest in housing rather than renting."we found out, to invest in housing rather than renting."

Fannie Mae- Workforce Fannie Mae- Workforce HousingHousing

► Who Needs Affordable Housing?Who Needs Affordable Housing?

► Let us consider how public policies and discussions characterize Let us consider how public policies and discussions characterize housing needs. First we had "public housing"—operated by the housing needs. First we had "public housing"—operated by the government, with some infamous and costly failures—a term government, with some infamous and costly failures—a term that now carries a lot of negative baggage. Currently, the that now carries a lot of negative baggage. Currently, the emphasis is on "affordable housing," which is supposed to emphasis is on "affordable housing," which is supposed to mean privately provided housing affordable to the masses—but mean privately provided housing affordable to the masses—but this concept seems to have gotten stuck with the subsidized this concept seems to have gotten stuck with the subsidized housing tar baby. Inevitably, subsidized housing will continue to housing tar baby. Inevitably, subsidized housing will continue to be needed for the lowest-income populations—but in fact, much be needed for the lowest-income populations—but in fact, much of the housing constructed today is not affordable to most of the housing constructed today is not affordable to most middle-income households. middle-income households. Often overlooked are the housing Often overlooked are the housing needs of productive individuals or families whose life-cycle needs of productive individuals or families whose life-cycle situation or income, or both, limit their housing options in the situation or income, or both, limit their housing options in the current marketplace. The term "workforce housing" is gaining current marketplace. The term "workforce housing" is gaining popularity in reference to school teachers, public safety popularity in reference to school teachers, public safety professionals, medical technicians, and the like. It does not, professionals, medical technicians, and the like. It does not, however, include the fastest-growing group: retired households however, include the fastest-growing group: retired households on fixed incomes, who can be labeled collectively as on fixed incomes, who can be labeled collectively as "pensioners." Thus, focusing attention on "workforce and "pensioners." Thus, focusing attention on "workforce and pensioner" housing needs may be the most effective pensioner" housing needs may be the most effective communications approach to get the public to say "Yes, in my communications approach to get the public to say "Yes, in my backyard" to affordable housing.backyard" to affordable housing.

Workforce Housing CrisisWorkforce Housing Crisis

► ““When a police officer cannot live in the When a police officer cannot live in the community he protects, when a teacher community he protects, when a teacher must travel an hour each way to school or must travel an hour each way to school or when a firefighter has to rent and never own when a firefighter has to rent and never own a home, there’s a problem. These are also a home, there’s a problem. These are also the signs of a workforce housing crisisthe signs of a workforce housing crisis.”.”

by Frank Spadea- Franciscus Homesby Frank Spadea- Franciscus Homes

Virginia passed an Affordable Dwelling Unit law in the late 1990’s giving Virginia passed an Affordable Dwelling Unit law in the late 1990’s giving Local governments the power to enact workforce housing programsLocal governments the power to enact workforce housing programsAnd yet to date-few counties in Virginia have enacted this programAnd yet to date-few counties in Virginia have enacted this program

Fairfax County Virginia- Fairfax County Virginia- Affordable Dwelling Unit ProgramAffordable Dwelling Unit Program

► In 1990, Fairfax County, Virginia, adopted its mandatory inclusionary zoning law called the Affordable Dwelling Unit (ADU) Ordinance. It requires that 12.5% of for-sale units must be affordable for families under 70 percent of Area Median Income; 6.25% of rentals in garden apartments must also been affordable. (High-rise apartments are exempt from inclusionary requirements.)

► Moreover, like Montgomery County, builders must sell one-third of the ADUs to the Fairfax County Redevelopment and Housing Authority in order for benefits to reach families below 50 percent of AMI. Both re-sale prices and rents are controlled for thirty years. To date, private, for-profit homebuilders have delivered over 2,500 ADUs.

““The House Next Door” MD/VA The House Next Door” MD/VA StudyStudy

► This study reviewed every real estate This study reviewed every real estate transaction in fourteen counties in MD & transaction in fourteen counties in MD & VA from 1992 through 1996. Overall, VA from 1992 through 1996. Overall, they found that there they found that there were no significant were no significant differences in price trendsdifferences in price trends between the between the non subsidized units and the market as a non subsidized units and the market as a whole- whether measured by zip codes or whole- whether measured by zip codes or county wide. Further, they found that county wide. Further, they found that even homes located immediately even homes located immediately adjacent to a subsidized unit were adjacent to a subsidized unit were unaffected.unaffected.

Study can be found at www.inhousing.org/housenex.htm

WHAT interviewed planning WHAT interviewed planning administrators in PD 16administrators in PD 16

► THERE IS LITTLE RECOGNITION OF AN THERE IS LITTLE RECOGNITION OF AN AFFORDABLE HOUSING ISSUE IN THE AFFORDABLE HOUSING ISSUE IN THE AREAAREA

► THERE ARE NO RESTRICTIONS OR THERE ARE NO RESTRICTIONS OR REQUIREMENTS FOR AFFORDABLE REQUIREMENTS FOR AFFORDABLE HOUSINGHOUSING

► THERE IS LITTLE SUPPORT FOR THERE IS LITTLE SUPPORT FOR ADDRESSING AFFORDABLE HOUSINGADDRESSING AFFORDABLE HOUSING

Where do you come in?Where do you come in?

RealtorsRealtors- Time and Resources- Time and Resources

StatisticsStatistics1.1. Number of people who can’t afford housingNumber of people who can’t afford housing2.2. How far out into other counties are you now How far out into other counties are you now

taking clients to qualify for homestaking clients to qualify for homes3.3. How do you perceive the slow down/ high prices How do you perceive the slow down/ high prices

knocking out section of home buyers/ Homes knocking out section of home buyers/ Homes prices climbing faster than salaries/ etc.prices climbing faster than salaries/ etc.

4.4. Has the number of employees transferring into Has the number of employees transferring into the PD 16 area slowed down- ( 2-3 years of the PD 16 area slowed down- ( 2-3 years of statistics). Number of rentals versus home buyers.statistics). Number of rentals versus home buyers.

Where do you come in?Where do you come in?

► GWRC - Time and ResourcesGWRC - Time and Resources

Commitment from GWRC to take this Commitment from GWRC to take this forum and put it at top of their forum and put it at top of their agenda for 2007. Workforce Housing agenda for 2007. Workforce Housing needs to be addressed now. needs to be addressed now.

Where do you come in?Where do you come in?

Chamber of Commerce-Chamber of Commerce- Time and Resources Time and Resources

CommitmentCommitment

1.1. Develop a Workforce Housing Column in newsletterDevelop a Workforce Housing Column in newsletter

2.2. Develop a Housing Forum CommitteeDevelop a Housing Forum Committee

3.3. Host a Housing Day ForumHost a Housing Day Forum

4.4. Provide statistics on local area employeesProvide statistics on local area employees1.1. Do any area employers offer home purchase benefitsDo any area employers offer home purchase benefits

2.2. Do any area employers offer relocation pkgs to new Do any area employers offer relocation pkgs to new employeesemployees

Where do you come in?Where do you come in?

Fredericksburg Regional Alliance-Fredericksburg Regional Alliance- Time and Time and ResourcesResources

Statistics/ CommitmentStatistics/ Commitment

1.1. Economic Development-Number of employers Economic Development-Number of employers moving into area but hesitant due to high home moving into area but hesitant due to high home pricesprices

2.2. To develop a regional committee to get behind a To develop a regional committee to get behind a Challenge GrantChallenge Grant

Challenge GrantChallenge Grant

► Model a Challenge Grant after Fairfax Model a Challenge Grant after Fairfax Counties program. Counties program. “Live Where You “Live Where You Work” ChallengeWork” Challenge GrantGrant

In 1995 the Fairfax County Board of Supervisors In 1995 the Fairfax County Board of Supervisors allocated $1,000,000.00 to the Housing Trust allocated $1,000,000.00 to the Housing Trust Fund as a Challenge Grant, with $500,000.00 Fund as a Challenge Grant, with $500,000.00 earmarked for employee homeownership for earmarked for employee homeownership for moderate income county & school employees moderate income county & school employees seeking to purchase their first homes. To date seeking to purchase their first homes. To date 2626 2 2ndnd trust loans have been made to employees trust loans have been made to employees under this program.under this program.

Action Steps WE all need to Action Steps WE all need to TakeTake

► Address ConcernsAddress Concerns Most people- including decision makers- Most people- including decision makers-

have limited information on contemporary have limited information on contemporary affordable housing.affordable housing.

Educate early and oftenEducate early and often Accurate information is importantAccurate information is important Humanize the object of concern- put a Humanize the object of concern- put a

human face on the proposed developmenthuman face on the proposed development

Article from Freelance Star 10/26/06 Tricord Article from Freelance Star 10/26/06 Tricord Helps Teachers/ County Employees Purchase Helps Teachers/ County Employees Purchase

HomesHomes► By KELLY HANNONBy KELLY HANNON (Excerpts from this article) (Excerpts from this article)

► Tricord Homes will sell 42 three-bedroom Tricord Homes will sell 42 three-bedroom townhouses at reduced cost to school teachers and townhouses at reduced cost to school teachers and local government employees. These homes will sell local government employees. These homes will sell for $205,900.00for $205,900.00

► Teachers and government workers in Orange and Teachers and government workers in Orange and Spotsylvania County may benefit the most, given Spotsylvania County may benefit the most, given the subdivision's location.. the subdivision's location..

► The 2005 median home value in Spotsylvania The 2005 median home value in Spotsylvania was $293,100was $293,100. .

Tricord has already stepped up to the plate to help local employees purchase homes

Thank you for your Thank you for your participationparticipation