Agenda - Council Work Session - 11/24/2009

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HOUSING NEEDS ANALYSIS While the methodology used to calculate demand for subsidized/affordable housing closely mir- rors the methodology used to calculate demand for market rate housing, we make several ad- justments to more precisely quantify demand among this market segment. The following points summarize these adjustments: . Income-Qualifications: Seniors who earn up to 60% of the Area Median Income would be qualified for income-restricted housing products. Based on Minnesota Housing Finance Agency data, current income-restrictions for the upper end ofthe range for affordable hous- ing (60% AMI) are $33,960 for a one-person households and $38,820 for a two-person household. It is important to note that individual affordable developments may have unique income-guidelines that are more precise than these income-restrictions due to subsidy type or other factors. We exclude homeowner households with incomes between $25,000 and $35,000, as these households would have additional equity that could be converted to monthly income follow- ing the sales of their single-family homes. ' TABLE HN-3 SUBSIDIZED/AFFORDABLE INDEPENDENT HOUSING DEMAND RAMSEY PRIMARYMARKET AREA 2009 & 2014 21109 2014 A eofHouseholder A e of Householder 55-64 65-74 75+ 55.64 65-74 75+ # of Households wlIncomes of<$15,000 124 149 275 139 200 . 263 # of Households wi Incomes Between $15K to $24,999 145 314 326 158 365 344 # of Households wi Incomes Between $25K to $34,999 248 292 168 401 544 329 Total Households wi Incomes of <$34,999 517 755 769 698 1,109 936 Less Households w/ Incomes of$25,000 to $34,999' 248 292 168 287 382 218 (times) Homeownership Rate x 92% 82% 49% x 92% 82% 49% (equals) Total Potential Market Base 289 516 687 434 796 829 (equals) Potential Market T ota! 1,491 2,060 (times) Pet. Seniors Needing/Desiring Sub/AffHousing x 20% x 20% (equals) Demand Potential for Ace/Sub Senior Housing 298 412 (plus) Additional Demand from Outside the PMA (30%) + 128 + 177 (equals) Total Demand Potential in the PMA 426 589 Subsidized Affordable Subsidized Affordable x 65% x 35% x 65% x 35% 277 = 149 383 206 228 73 228 73 49 76 155 133 40% x 45% x 40% '2014 calculations define ineom<?qualified households as all households with incomes less than $39,999. Homeowner households with incomes between $30,000 and $39,999 are excluded from the market potential for financiaUy.assisted housing. : Existing units are deducted at market equilibrium, or 95% occupancy. Source: Maxfield Research Inc. . Capture Rates: Households in a need-based situation (either requiring services or financial assistance) more readily move to housing alternatives than those in non-need based situa- MAXFIELD RESEARCH INC.