The Experiences Of Obtaining Affordable Housing In Warren County, Ohio
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Session:Partnerships in Housing (March 13, 4:00pm)
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The Experiences Of Obtaining Affordable Housing In Warren County, Ohio
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Session:Partnerships in Housing (March 13, 4:00pm) |
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Abstract: This paper will introduce the trials of a growing county in southwest Ohio struggling with the problem of rising housing costs and salaries that are increasing at a slower rate. The Warren County Housing Advisory Committee discovered that the problem of affordable housing cannot be separated from transportation, employment and other related issues. The challenge of creating additional affordable housing cannot be accomplished alone. The Warren County Regional Planning Commission has worked to create partnerships with several lending institutions, businesses, the United Way and other governmental agencies to attempt to have a more balanced housing stock in Warren County.
IntroductionGood Afternoon, I was asked to speak to you today on the experiences of a starting an affordable housing program in Warren County, Ohio. Background informationWarren County is located in southwestern, Ohio between Cincinnati to the south and Dayton to the north. There are two major interstates traversing the county (I-71 and I-75). It is a semi-rural county that is rapidly becoming suburbanized through urban sprawl. What was once a sleepy rural county has become a bustling center of activity with an estimated population of 159,000. The county seat is Lebanon; most well known for it’s historic, quaint atmosphere and home of the Golden Lamb Inn (where several presidents and Charles Dickens spent the night). It has many antique shops and has been chosen as the site for at least 2 films (Milk Money & Harper Valley PTA). There are three other major cities and 11 villages in County. The rate of growth has been tremendous. In 1980 the population was 99,276. In 1990 the population was 113,927 In 2000 the estimated population was 159,000 This is an increase of 14.8% between 1980 and 1990 and a (39.5%) increase between 1990 and 2000. Both Cincinnati and Dayton have lost population and we are seeing the influx of some of this population entering the county. This "urban sprawl" phenomenon has affected us in many ways not the least of which is transportation, employment and housing. HistoryThe Warren County Housing Coalition worked with the Warren County United Way for several years. As a result, the United Way sponsored the Housing Summit in May, 1996. The Warren County Commissioners then made a commitment to work with the Warren County United Way via the Warren County Regional Planning Commission. Consequently, a public/private partnership called the Warren County Housing Advisory Committee (H.A.C.) was then formed which includes representatives of various government agencies including our metropolitan housing authority, Grants Administration, and Community Services. Private sector participation includes lending institutions (two banks), realtors, businesses and others. The main focus of the committee is to look at single family home-ownership. The Purpose Statement of the H.A.C. reads as follows: "The primary goal of the Committee is to assist in providing balanced housing opportunities that will make continuing economic development possible in Warren County. The Committee will recommend housing plans, procedures and policies to the Regional Planning Commission and other planning entities, which will help achieve the goal and provide guidance for ongoing decision making. The Committee will also encourage initiatives and assist entrepreneurs in cooperation." We have invited out of town experts to educate us regarding the housing situation and how to address the issue. Investigating The SituationThe Housing Advisory Committee spent the first year researching information regarding the housing situation in Warren County. Warren County has grown tremendously as mentioned earlier. One of the subcommittees was set up to look at demographic information relating to the County. We investigated income levels of the County by townships , poverty rates, age and general population levels. The committee also investigated housing values both from the U.S. Census and from our local auditors office. The average value of a single family residence is estimated to be 131,563 (1999 estimate) This is an increase of 10.85% per the 1997 estimated average of 118,683. These estimates were arrived at by using real estate market prices and the county auditors valuation. The main fact that came out of the investigation was the fact that housing values are clearly increasing at a greater pace (5.5%) than salaries are increasing (3%). At the current rate the gap between housing costs and salaries in the County will continue to grow. The political situation in Warren County is essentially one of skepticism of "affordable" housing - particularly rental section 8 housing and other multi-family rental units. The Warren County Commissioners have mixed views at best, and three (3) municipalities, Mason in the southwest, Springboro in the central north part of the County and Lebanon have not been supportive of affordable housing, particularly the multi-family rental units. Hence, it was determined that the term "affordable" should be avoided. Instead, we have been using the term "balanced". The committee was formed with several representatives of the business community. The main challenge, however, has been to involve the business community in a substantial way. In the beginning, the business community was expressing the concern that they were unable to find enough employees to work because potential applicants were not able to afford to live in Warren County. However, when it came to trying to bring the business community "to the table" so to speak, they were unwilling to participate. This has been the most disappointing part of the project. At the end of the first year, we decided to do a comprehensive housing plan. The Regional Planning Commission along with a committee of several other H.A.C. members was responsible for putting together this plan. The committee was divided, in a sense, as to whether we should hire a consultant to help us with the plan. Ideally, it would have been the best but financial considerations played a major factor in the decision. In the end, it was determined that we would not hire a consultant. The plan was a good start, but personally, I feel that it lacks a lot of teeth to support the case for affordable housing. The plan was "politically correct", so to speak. We included constraints, costs and problems as well as some basic goals. A copy of our comprehensive housing plan is available for those who are interested. ActionThere has been a lot of positive steps taken with regard to the Housing Advisory Committee. First, much was done in the way of education and public awareness. We met with business and political leaders in a variety of settings. We also implemented a Housing Newsletter that was distributed to various places in the County. Articles were placed in the paper after our Housing Advisory Committee meetings by a paid "free-lance" reporter through the United Way. Articles were then forwarded to the Cincinnati and Dayton papers. In 2000, The Housing Advisory Committee held the first annual Warren County Balanced Housing and Civic Beautification Awards. Four (4) awards were given for two categories (Outstanding Award and Special Recognition) to both non-profits (Habitat For Humanity and New Housing Opportunities) and a governmental agency. The awards helps boost moral in the community with regard to achievements for affordable housing and also helps sends the message to the community that "affordable housing" does not necessarily have a negative impact on the community if the housing is done properly. The program was very successful and we are planning to hold another awards program this year. Second, The comprehensive housing plan was adopted in October, 1998. Several of the goals and objectives were implemented. Some of the implemented goals and objectives were mentioned previously such as continuation of public awareness and education of the housing situation in Warren County. Another goal includes, "Support the creation of a volunteer citizens panel to encourage and reward the maintenance and/or improve improvement of the existing, affordable housing stock, landscaping, etc. (i.e. a "County Beautiful Committee". Other objectives include "support density incentives where appropriate, with the purpose of providing smaller, generally more affordable lots. Also, "Encourage mixed use development projects with flexible zoning (i.e. Planned Unit Developments with mixed income housing.)" is another goal. The goals and objectives were kept achievable and simple. Most importantly, The Warren County Balanced Housing Corporation was formed. This is a non-profit organization that was set up by Warren County Community Services (provides housing for the elderly, services for children, etc.) and members of Otterbein Service Corp. Otterbein provides housing for elderly as well as a retirement community just outside of Lebanon. These people understood the limitations of what a subcommittee of a Regional Planning Commission could do as far as development and were anxious to get something started with regards to housing development. To date, the Warren County Balanced Housing Corp. (WCBHC) has bought one structure previously owned by the Warren County Community Services for $60,000 and spent $14,525 to rehab the structure. The structure was resold for $81,000. The total profit of the project was close to $3,500. ( after recording fees, property insurance, closing costs, etc.) A second structure, also purchased from Warren County Community Services (for $62,800), is in the process of being rehabbed. The anticipated cost of this rehab project is approximately $14,000 with a 10% contingency. To date, this structure has not sold. The WCBHC has worked with Fifth/Third Bank and NVR Mortgage to qualify applicants. The Warren County Balanced Housing Corporation is also in the process of searching for land that could be purchased or donated where we could build approximately 8 to 10 units of affordable housing on the site. The sites that have been investigated to date have not proved economically beneficial. The site is either in the flood plain, or utilities are not available or topography is not conducive for such development. We are looking at a site that would have the zoning in place as well as public utilities. It is essential that we find a site with existing utilities since the cost for tap in fees and construction of new utility facilities in Warren County is expensive. Partnerships/Funding SourcesTo date, the WCBHC has been partnering with the Warren County Community Services in being able to obtain residences to rehab. It has been more challenging to find additional land or residences in the County that are suitable for our purposes. Ideally, we would like to find some donated land available for our needs. We have a part time director (who is also a real estate agent) who has been helpful in this regard. Warren County Community Services is a not considered a government agency. They are a separate 501 C3 non-profit agency. They have proved to be very valuable partner with the Balanced Housing Corporation. They have provided office space, basic equipment. However, the WCBHC is a separate non-profit with his own board of directors. The United Way has been the most active in giving to both the Housing Advisory Committee and the Warren County Balanced Housing Corp. For the Housing Advisory Committee, they have provided funding for the printing of the newsletter, salary for the newsletter reporter and various in kind support such as meeting locations an providing refreshments for public meetings. For the Balanced Housing Corporation, they have provided operational costs and money for construction of new units through a United Way Venture Grant. Recently, the United Way has made the WCBHC an annual recipient of their annual fundraising drive. In the past year, the United Way has pulled away funding from the Housing Advisory Committee and has contributed solely to the WCBHC. The Warren County Regional Planning Commission has contributed staff time and related office support for the Housing Advisory Committee. In addition, Lebanon Citizens Bank, Fifth Third Bank and Minuteman Press has contributed staff time and efforts particularly with regard to the housing awards mentioned earlier. Warren County would be considered a "fiscally conservative" county. The County is not eager to spend tax payers money for such items as affordable housing. Therefore, partnering with the private sector has become essential. The Warren County Balanced Housing Corporation has also received funding from Federated Department Stores (FDS). FDS has contributed for two years in a row. They are looking to make certain contributions to non-profits depending on what the needs of the community are. Warren County Rehab, Inc. has established a $50,000 revolving loan fund for the Warren County Balanced Housing Corporation (WCBHC) for the rehab of the structures. There is a limit of $15,000 per structure. The loan is repaid after the unit has been sold at no interest. WCBHC utilized $12,685 of this loan toward the rehabbing of the first structure that was rehabbed. (Additional payments for the second structure is forthcoming.) Warren County Rehab, Inc. is a government agency under the auspices of the Warren County Commissioners. Through the Warren County Grants Administration, The WCBHC will be receiving funds through the state HOME program thorough a CHIS/CHIP (Community Housing Improvement Strategy & Plan) grant. These monies would be used for the construction of new housing units. The CHIS/CHIP grant is being applied for in year 2001 and 2003. As mentioned above, Warren County Community Services and Warren County Rehab, Inc. and the United Way are the largest partners with the Warren County Balanced Housing Corporation and the Housing Advisory Committee. Together these organizations have been successful in making progress in working towards the advancement of affordable housing. One evidence of this is through the findings of the Warren County Needs Assessment. In 1994, the Needs Assessment showed that "Affordable Housing" ranked 7th as one of the key issues in Warren County. In 2000, "Affordable Housing" ranked number 2 as a key issue. This ranking is based on surveys of public officials and citizens in the County. Hopefully, there has been more awareness of the issue with both of these sectors. Future GoalsThe biggest goal is to continue partnering with other businesses, lending institutions and other relative organizations. Most efforts will be placed on working with businesses. It is anticipated that the partnership with Warren County Community Services will continue and new partnerships such as with Metropolitan Housing will be formed. One potential partnership may have started with non-profit organization, EDRE.I, in Dayton. A speaker from EDRE.I attended a Housing Advisory Committee meeting this past January. The Director of the Balanced Housing Corporation is pursuing ways in which we can learn from this organization. EDRE.I has done some creative partnering with the Dayton Metropolitan Housing Authority and local lending institutions. The Warren County WCBHC will continue to work towards constructing and rehabbing sites for additional low to moderate income housing units. We will also continue to pursue new partnerships with both the public and private sector, particularly as the cost of land and utilities continues to increase. Thank you very much for interest. I will be available for any questions.
Author and Copyright InformationCopyright 2001 by Author Yana has been a planner with the Warren County Regional Planning Commission near Cincinnati, Ohio for fifteen years. For the last four years, she has also served as Director of the Housing Advisory Committee for Warren County, a subcommittee of the Regional Planning Commission. She was instrumental in initiating the Warren Housing Balanced Housing Corporation (WCBHC) and currently serves on the board of the WCBHC. Yana has a Masters degree from the University of Cincinnati and a Bachelors degree from Miami University (Oxford, Ohio) in Sociology. Yana can be reached at by e—mail at keckyj@co.warren.oh.us or by phone at (513) 695-1224. |