Supporting Affordable Housing Mitigation: Teton County WY and Pitkin County CO

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Supporting Affordable Housing Mitigation Teton
County WY and Pitkin County CO
Craig Richardson Principal, Clarion Associates
Chapel Hill, N. C. [phone] crichardson_at_clar
ionassociates.com
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Introduction

• There is housing affordability problem in many
  destination resorts
• One tool used to address problem is housing
  mitigation
• Construction of affordable housing
• Dedication of land
• Mitigation fee
• Challenging legal and policy issues
• Advance legitimate governmental interests
• The application of Nollan/Dolan
• The application of rational basis/reasonableness
  review
• Takings claims
• Affordable housing goal
• Location of affordable housing
• Key issue involves development of strong nexus
  relationships in support study
• Focus of presentation elements of the Affordable
  Housing Support Study developed in Teton County
  WY and Pitkin County CO

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Affordable Housing Support StudyAn Overview

• Problem Description
• Nollan
• Advancing legitimate government interest
• Inventory of Affordable Housing
• Need for Affordable Housing (Existing and Future)
• Nollan
• Dolan
• Reasonableness
• Developments Demand for Affordable Housing
• Dollan
• Reasonableness
• Mitigation Residential and Nonresidential
• Dollan
• Reasonableness)

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Problem Description

• Real Number Growth in Employment
• Wages Stagnant or Very Modest Growth
• Increase in Price of Housing
• Median housing price/household income
• Real estate sales data
• Decrease in Availability of Housing at Affordable
  Prices
• Demonstrate through relationship between median
  housing price/household income
• Better description from real estate sales data

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Problem Description
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Problem Description

• Result location substitution
• Employees relocate from community
• Commute to work
• Examples
• Pitkin County, CO (1985 73 work force local
  1990 59 1998 46 2004 44)
• Teton County, WY (similar general trend between
  1990 and 2000, even though not as accentuated)

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Problem Description
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Inventory of Affordable Housing

• Inventory
• Units provided by public sector
• Built
• Committed to be built
• Units provided by private sector
• Built
• Committed to be built
• Accessory units, caretaker units, others
• Allocate between existing and future needs
• Determine shortfall and actual future needs

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Need for Affordable Housing

• Establish realistic affordable housing goal.
• Consider
• Not all employees live in community
• Need to stabilize work force
• Maintain community character
• Fiscal realities
• Base needs analysis on affordable housing goal
• Existing Needs
• Measure in units
• Employees living outside community beyond goal
• Employees in unit
• Future Needs

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Need for Affordable Housing
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Developments Demand for Affordable Housing

• Residential
• Methods gone through several iterations of
  development
• Operation and maintenance employees
• Construction employees
• Nonresidential
• More straightforward
• Based on employees of different types of uses

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Residential Demand Operation and Maintenance
Employees

• Operation and Maintenance Employees
• Who property management, yard maintenance,
  housekeepers, kitchen help/chefs, personal
  trainers, etc)
• Objective determining operation/maintenance
  employees by residential unit (FTEs)
• Data being gathered primarily through surveys
• The Housing Collaborative, Residential Job
  Generation Study (Teton County, Pitkin, San
  Miguel County, Gunnison County, Breckenridge)
• Preston, Post-Construction Residential Sector
  Employment Generation (Pitkin County)

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Residential Demand Operation and Maintenance
Employees

• Operation and Maintenance Employees (cont.)
• Survey home owners and/or property management
  firms, unit owners, HOAs
• Unit size
• Usage
• Workers employed and hours spent working
• Dollars paid to property management firms, HOAs,
  portion that goes to operation/maintenance, and
  average wage
• Survey results indicate interesting relationships
  
• Exponential relationship between employees and
  unit size (generally)
• Much greater demand from second home owners
• A little less than half the units hire workers
  directly
• About one-third of the units use property
  management firms
• Statistical analysis used to establish
  relationship between residential units and FTEs
  important

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Residential Demand Operation and Maintenance
Employees
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Residential Demand Construction Employees

• Residential Construction Employees
• Construction involves two hard costs labor and
  materials
• Derive data from state and census data
• Relevant data
• Employees constructing residential units by year,
  for a number of years
• Residential square footage built per year
• Results in
• Number of employees it takes to build a square
  foot of a residential unit
• Convert this to life of construction employee (40
  year life)
• In Pitkin County
• One employee builds an average of 1.849 sf of
  space per year
• Takes an average of 0.541 employee years to
  construct 1,000 sf
• Need to provide 0.008 of an affordable unit fro
  1,000 sf of space

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Residential Demand

• Combine results of operation/maintenance and
  construction employees
• Result is FTEs for residential units
• Know how many employees are required to service
  residential unit
• Recent resort experience indicates unit size/FTE
  relationship is exponential due to
  operation/maintenance employees

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Residential Demand
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Residential Demand
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Nonresidential Demand

• Support analysis generally straightforward
• Local data on employees/size of businesses
• National standards
• Types of uses
• Lodging/Tourist accommodation
• Retail
• Restaurant
• Office
• Light industrial

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Mitigation

• Construction of Affordable Units
• Conversion of Market Units
• Dedication of Land
• Payment of Fee/Subsidy

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Mitigation Residential

• Fee/Subsidy
• Formula
• Number of Employees ( 0.00368 Unit
  Size/40 ) Size 1.3211 0.00000681)
• Fee Total Employees (from Table 17) 20,504
  (60 goal)
• Times (multiply)
• Unit Size Size of residential unit in square
  feet
• Subsidy of 37,203 is based on discussion with
  Housing Office (20,504 with 60 goal)

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Mitigation Residential
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Mitigation Nonresidential

• Formula for Commercial Development
• Number of Employees Unit Size Employee
  Generation
• Fee Number of Employees 20,504 (60 goal)
• Times (multiply)
• Unit Size Size of commercial development in
  square feet
• Employee Generation Employee Generation Rate
  from Table 20 Employee Generation for
  Commercial Development.

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Mitigation Nonresidential