Median Income Housing Report for Saratoga Springs City, Utah

median income of Saratoga Springs, Utah in 2012. In the beginning, the affordable housing reports began as an email list which was shared by a group of people in search of affordable housing and colleagues within the affordable housing industry. Both groups would share articles on affordable housing in the specific area they were looking to move to as well as its job listings. As more people began to show interest in this list and ask for it specifically, people decided to create a platform in which people could easily sign up to receive updates and also for companies to easily post their jobs and are receive applications from qualified candidates.

2015 University of Utah - professional project Scott Browning MEDIAN INCOME HOUSING REPORT FOR SARATOGA SPRINGS CITY, UTAH Median household income is an indicator of how well a municipality is being manage. The members of the jurisdictions will act critically if there is a sense of a rise in the cost of living, a slump of their current social standing, and a rise and if their income is noticed as lagging behind. TABLE OF CONTENTS 1. 2. 3. 4. 5. 6. 7. Introduction………………………………………………………………………………………………..………….… 2-3 Affordable Housing……………………………………………………………………………………………………..3-4 Subsidized Housing……………………………………………………………………………………………………..4-6 Workforce Housing……………………………………………………………………………………………………..6-7 Why Does a Community Need a Comprehensive Plan? ……………………………………………...7-8 Elements included in an affordable housing report8-10 Median vs, Mean……………………………………………………………………………………………………...1011 8. Median Household Income………………………………………………………………………………………..1112 9. Qualifying Regulations for Housing Assistance………………………………………………………….1214 10. Making stronger communities………………………………………………………………………………………..14 11. Is There a Specific Location for Affordable Housing?.....................................................1516 12. Keep looking forward………………………………………………………………………………………………..1617 13. Items Focused on in Saratoga Springs' Median Income/Affordable Housing Report….1718 14. Items included in Saratoga Springs' affordable housing report………………………………….1819 15. Actual Report for Saratoga Springs……………………………………………………………………………2029 16. Report Findings…………………………………………………………………………………………………………3031 17. Where Might the Discussion Proceed?...............................................................................32 18. Conclusion……………………………………………………………………………………………………………………..3 2 19. Works Cited……………………………………………………………………………………………………………………33 1 2 Median Income (Affordable) Housing Report INTRODUCTION In the beginning, the affordable housing reports began as an email list which was shared by a group of people in search of affordable housing and colleagues within the affordable housing industry. Both groups would share articles on affordable housing in the specific area they were looking to move to as well as its job listings. As more people began to show interest in this list and ask for it specifically, people decided to create a platform in which people could easily sign up to receive updates and also for companies to easily post their jobs and are receive applications from qualified candidates. Affordable housing is housing that has been considered affordable to those with a median household income which is rated by country, State (province), region or municipality by a recognized Housing Affordability Index. Specific guidelines have been set by the federal government to be followed. However, there is not a specific definition set forth by the government for "affordable housing". In the mid-1930s, our nation experienced what was called, "the Great Depression". Because housing was one of the largest problems we were facing as a nation, President Eisenhower in 1933 implemented the, "The New Deal". The new deal focused on relief for the unemployed and worked on the financial recovery of the economy at a national level - housing and employment were its main focus. The goal of the new deal of 1933, was to prevent a 3 repeat of the Great Depression (the act was also known as the 3R's). The new deal had several parts of the act that would come later. In 1954, President Eisenhower and his administration ratified what is called, "The Housing Act of 1954". When the act was passed, the national goal stated that every American family be able to afford a "decent" home in suitable environments. The act, basically, stated that the nation needed to help provide public housing with federal funds, or aid, and it gave preferential treatment to the families that were being relocated because of slum eratification and for the revitalization of city centers. Later in the century, in 1965, the US Department of Housing and Urban Development (H.U.D. Homes) was created. This program helps administer other programs in which to provide housing and community development assistance. A few of H.U.D. homes' goals have been to accelerate economic growth, expand opportunity, create jobs, and improve the competitiveness of the American economy. H.U.D. homes finds it very important to build the proper infrastructure for the homes to be accessible; everything from roads, bridges, broadband networks (currently), drinking water, and new sewer systems. H.U.D. homes finds it crucial that the nation is able to keep up with the future demands of housing and the future growth of cities. Affordable Housing Affordable housing is housing which has been deemed affordable within a specific income range. However, there is no single definition for affordable housing. What is considered "affordable" in one area may be considered "unattainable" for the same family in a different area. For example, if a home in one community costs $250,000, the same home may cost nearly one-half as much in a different part of the country. 4 General guidelines have been set (by the government and its related businesses, and loan institutions) to assess and determine the affordability of homes. For example, the federal government considers housing "affordable" if a family spends 30% or less of its annual income on its housing costs and utilities. Using this guideline, a family which earns $30,000.00 per year could afford to pay off approximately $9000.00 annually ($750.00 per month) on their housing. In the private sector, known also as lending institutions, lenders underwriting home purchases usually require a family do spend up to a specific percentage of their income (such as 25%) for mortgage payments, taxes, and insurances. While this might be the case, these "guidelines" will not tell the entire story. Families which make $150,000.00 per year may be able to afford 30% of its income for housing and have money left over for other necessities and wants. However, a family making $30,000.00 per year may not be able to afford its necessities after that family spends 30% of its earnings on housing. A family's capacity to meet its other expenses will depend on other factors such as the ages of the children and possibly the number of occupants within their household. To help assist with this deficit, the government has provided a couple of programs for individuals - subsidize housing and work force housing. Subsidized Housing Because most housing (affordable or not) has been provided to the marketplace by private firms and individuals, such as developers or home builders, the individuals with lower salaries are at a disadvantage when it comes to renting or buying "market rate homes". Subsidized housing is housing that is made available at a "below market" rate through subsidies provided by the government. Unlike other government support programs, such as food stamps 5 or Medicaid, housing subsidies are not an entitlement and generally are not in short supply. There are many communities which have long waiting lists for housing assistance. In order to live in a home funded by a federal housing subsidy, the applicant, similar to affordable housing, needs to qualify due to income amounts. The qualifying amount that the government measures against for housing assistance is the area's median income (AMI). To qualify for the largest federal assistance programs, specifically housing vouchers and public housing, the federal law limits the eligibility to households with incomes that are 80% or lower of AMI. Sometimes, there other federal rental assistance programs that are willing to aid families with incomes that are at or below 60% of the AMI; 50% if the individual is elderly or disabled. Direct federal subsidies for homeownership are generally limited to families with incomes at or below 80% of the AMI - although reduced cost mortgage programs are offered to families with a somewhat higher income. Because there is a limited supply of affordable housing and a high eligible amount of families for the assistive programs, two other factors apply in selecting families for admission to federally subsidized housing. The first is called income targeting. This is a rule that enables a specified number of new admissions to families with incomes below 30% of the AMI. This particular rule is intended to ensure that families with the most severe housing needs are in a good position for the scarce rental subsidies. The second factor is a local admissions criteria which allows public agencies and private homeowners of the assistive housing programs to admit families based on other criterion - such as, homelessness, being elderly, and/or selection by a lottery. 6 It is important to know that when state or federal programs are using federal funds, recipients are subject to the associated federal rules. However, if recipients are only using state or local funds for housing, these people are not subject to federal rules. Housing challenges have grown amongst the moderate income families. Because of this, a number of states and municipalities have decided to use entirely state and/or federal funding to meet the needs of these families. The states and municipalities are also using policies that they have implemented on their own basis, such as zoning policies, tax rebates and abatements, and the use of publicly owned land. This all adds together to meet the needs of the families below the AMI. Workforce Housing As a person once stated, "housing is where the jobs go home to sleep at night." Work force housing is aimed at the special services offered to a community (such as firefighters, policemen, and nurses) and have very little affordable housing located near where these people serve. They are given the choice to either pay an exorbitant amount of money or face a long commute from where the affordable housing is located. In such areas of employment, employers may have a high turnover rate because the individual does not make enough money to afford the homes near to where they work or the hard-working individual gets tired of the long commutes to work. Workforce housing is also an issue of equity. Individuals who serve in the essential jobs the city, often cannot afford to live within the community that they serve. The lack of affordable work force housing is felt beyond these individuals and their families. High housing 7 costs force families to move further away from their place of work in order to afford a house. Cities are sprawling already. In order to find the affordable housing, an individual has to move further from the city core. This tends to increase traffic (which leads to congestion), more air pollution, and more road maintenance costs that negatively affect the quality of life for all the residents in the community. The families in need of work force housing do not typically fall into a specific income category. Employees within other industries (such as food services and retail sales) are likely to be in the lower income ranges. Certain jobs that are temporary (such as educators) may fall into the middle income brackets but still find it very hard to afford a home/residence in the place they work. Due to the displacement factors and shortages of affordable housing within municipalities, most often it is helpful to have a community comprehensive plan. This can help the issues associated with lower AMIs. Why Does a Community Need a Comprehensive Plan? As with many other public policy areas, the current set of housing policies put into place and set forth into action within any community or municipality typically mirrors a number of policy decisions and negotiations which have been made for areas' over the course of many years. Some policies have been recently developed, while there were some that had been developed far in the past. Because all housing markets will change over time, some of the policies (which stem from a median income housing report on the municipality) are not currently up to date. There are many housing programs set into place to specifically help with 8 the challenge of housing. Occasionally revising the community's or municipality's overall methods to meeting its housing needs can help ensure that policies are up to date as part of an effective strategy. Comprehensive housing strategies, which a moderate income housing report is part of, are also important for communities and municipalities because it can expand the scope of agencies and actions they take in working together with their community to solve housing problems. All of the solutions associated with a community's housing challenges will likely require the actions of multiple agencies including (but are not limited to): long-range and shortrange planning departments, housing agencies, tax agencies, and building departments. Answers could also come from the involvement of private and nonprofit divisions of housing. Comprehensive housing strategies can bring most of, if not all, these individual agencies together, coordinate cooperation between them, and help find a solution to the issues. Comprehensive housing strategies typically include current numbers and the goals for a community or municipality to strive for. The numbers can typically help them community or the municipality to keep track of progress toward a solution or provide a trigger for reconsidering certain elements of the strategy in progress is lacking. Elements included in an affordable housing report In the state of Utah, a housing strategy submitted will be in a form that the Secretary of the state determines to be appropriate for the amount of assistance that specific jurisdiction may be provided and shall: 9 (1) describe the jurisdiction's population projections, estimated housing needs projected, and the jurisdiction's need for assistance for very low-income, low-income, and moderate-income families, specifying such needs for different types persons living within or expected to reside in the jurisdiction that the Secretary of the state determines to be appropriate; (2) Discuss a brief inventory of facilities and services that meet such needs within the jurisdiction; (3) Describe the significant characteristics of the jurisdiction's housing market, indicating how those characteristics will influence the use of funds made available for rental assistance, production of new units, rehabilitation of old units, or acquisition of existing units; (4) Explain whether the cost of housing or the incentives to develop, maintain, or improve affordable housing in the jurisdiction are affected by public policies, particularly by policies of the jurisdiction, including tax policies affecting land and other property, land use controls, zoning ordinances, building codes, fees and charges, growth limits, and policies that affect the return on residential investment, and describe the jurisdiction's strategy to eliminate negative effects, if any, of these specific policies; (6) Expound on the official structure through which the municipality will carry out its housing strategy, assessing the strengths and weaknesses in the particular system and describing what the jurisdiction will do to overcome those weaknesses; (7) Describe the resources of cooperation and coordination among the State and the municipality, or any portion of the local government, in the development and implementation of their housing strategies; 10 (8) Briefly explain the jurisdiction's activities to encourage public housing residents to become more involved in management and participate in homeownership; (9) Include a brief summary of how the city will apply suitably to further fair housing; (10) Briefly describe the surrounding communities and possibly give details included in their fair housing analysis; (11) Include a comparison of the municipality in the county as a whole for household incomes. Median vs. the Mean It's easy to get median and mean confused, partially because both of the words begin with the letter "m". Both are also ways of describing a number which is found somewhere in the middle of a data set. The mean is the middle number (average), but may be closer to the minimum than it is to the maximum (or vice versa). Since the mean is a calculation which uses every number in the set, it reflects the value of each number. The median, however, is not the "average" of all the numbers in the data set, the midpoint of all of the numbers within the particular data set. Hence, one high or low number may affect the mean. Of the two words, "median" is the only number which is concerned with having exactly half of the numbers in the particular date is set below it and exactly half of the numbers in the date is set above it. It is important to note that the median is a good way to represent the middle of a distribution set has an odd trend line or "an outlier" (Matthwords.com). The mean is often known as the "average" of all given numbers in a data set. In this case, there are 5 numbers in a data set, a person would add the numbers together and divide by 5 in order to 11 achieve the mean. It is important to notice that there is a major difference in the geometry signs of the word "mean" from their regular "average" mean. Median Household Income Median income is the amount that separates a community's income distribution into two separate yet equal parts; half being above those so-called "median income", and half having an income below that found amount. In using the median income of a jurisdiction or municipality, rather than the mean income, the median will result in a more accurate "snapshot" of the income of the middle class being; the median income cannot be influenced by specific deviations in either direction. Generally, median income is already expressed to individuals for a specific place. "Place" can be a country, state, county, jurisdiction, or city (also known as the municipality). If median income is not expressed for an area, there is a general way of finding it. If an individual is curious in finding the median income for a specific place in the United States, the first place to look would be US Census Bureau website. If an individual were to go to the website, and then go to American fact Finder (a sub-category of the US Census Bureau) a list of "topics" will appear on the left-hand side of the screen. Each tab will have several subtopics along with the main categories shown. Under the "people" category, it will show incomes for the last year of a specific place. The very first income bracket is always $10,000 and less. Then shown will be several categories that are $4,499 up to $49,999 in deviations (for instance, one bracket is $10,000-$14,999 or another bracket may show $150,000-$199,999). 12 If an individual is trying to figure out the median income of an area by himself/herself, it is a tedious process. Here is the process: 1. Find the total number of households in the specific place desired 2. divide the total number of households by 2 and add 0.5 to the result 3. find the number of homes and their income bracket after dividing by 2 and adding 0.5 4. subtract your number of households that you have found from the households in that bracket 5. after subtracting the two, you will divide your remaining number by the total number of homes in the category and, subsequently, a percentage will be discovered 6. the percentage multiplied by the spread of the bracket and adding that spread to the base number of the income category will determine where the median income for that jurisdiction is found. Once again, this is an extremely tedious process and should be expressed for any place in the United States by going to take U.S. Census Bureau and typing in your geography desired. Qualifying Regulations for Housing Assistance Just because you can't afford your dream home doesn't mean you qualify for assistance from the government. There are many factors which contribute to whether or not a person qualifies for low income housing and assistance from the government - of which a portion of it is a person's median income and is set by the local government. The particular set amount will vary from place to place because of the economics in that geography involved. 13 Income is a major factor taken into account for government assistance. Furthermore, the size of your household is also taken into account. The government doesn't require you to be unemployed or have a full-time job in order to receive assistance. Also, you don't have to be receiving any other type of assistance, such as temporary assistance for needy families (TANF), cash benefits from the government, food stamps, or any other type of assistance in order to qualify. However, having a legal immigration status or being a US citizen is often a requirement. In order to receive assistance, a person may be required to provide the list of the past places they and their family have lived previously. There is there is for the government to understand how you have lived in the past. If you have a pocked past of not paying landlords and/or destroying previous places of residence, the government will take that information into account and it could hinder your chances of obtaining assistance. Depending on an individual's income, the rent can be completely free due to government assistance. Also, most governmental programs require an individual to be searching actively for employment and possibly place a limit on how long you can stay in the low income housing. Another factor that the government will take into account in giving assistance to somebody is age. It is shown that being "elderly" improves your chances of obtaining assistance housing. However, some people feel that the term "elderly" is used to describe someone who is feeble and unable to care for himself - this is most likely not the case. Having certain disabilities may also increase the chances of obtaining assistance. 14 Although there are different factors that play a role in possibly obtaining governmental assistance for your house, the main factor is your income. As stated before, the amount of income an individual can make before receiving any assistance for housing will vary from city to city. Therefore, it can help immensely to research the municipality's requirements before trying to obtain any kind of assistance for housing. Making stronger communities All individuals desire to lead common lifestyles. Some individuals may not have the resources at hand that others do, but all of the individuals can still maintain somewhere activities and have similar amenities available. Just because a specific neighborhood does not have a high median income per household, does not mean that the people of the area do not deserve to lead a similar lifestyle as a wealthier neighborhood. All neighborhoods should include services and amenities that help strengthen local community residents such as child care, medical clinics, employment training and facilities, as well as open spaces. When there are strong resources available, individuals will thrive or be forced to move from the area and try to find the sense of community. Things such as a high quality, long term jobs can create opportunities for the individuals and businesses in the area. Reinvesting resources into the community, community programs, initiatives, and developments will also fulfill the needs of the neighborhood and help create a better sense of community. The city is affordable housing developments and policies needs to show a comprehensive development strategy that works with neighborhoods and its residents. These policies should 15 all be handed down to the next leaders of the community to help affordable housing developments to meet a larger set of community needs and help set new goals. Is There a Specific Location for Affordable Housing? For the established cities and redevelopment of certain areas, there is a strong chance that the affordable housing is found in, both, neighborhoods throughout the municipality and buildings which are located in a nonspecific geography. However, the answer is no for the growing, newer communities, such as Saratoga Springs, Utah - housing is not located in a specific geography. However, the location may depend upon a specific percentage of a person's gross income. Housing, as long as it is within a specific budget, can be located throughout the city, state, or nation. This means it can be an apartment complex with multiple apartments each having up to several bedrooms and different price points each or it can be a house that is within a specific purchase amount of their household income. Different styles of residences and their price points are located throughout the city can qualify as "affordable housing". Housing choice is a natural response to a very complex set of economic, social, and psychological impulses. In the United States, most institutions use a 30% of the gross income affordability as the housing cost guideline. When the housing costs exceed 30 to 35% of the household income, the housing is considered to be unaffordable for the household. Canada, for example, switched to a 25% rule from a 20% rule in the 1950s. In the 1980s this was replaced by a 30% rule (Wikipedia - affordable housing). In discussing a person's "psychological impulses", basically, this is referring to an individual who believes they can afford to spend more on their housing needs (others may not 16 have a similar choice). When "social" impulses are referred to, staying in a specific neighborhood of the city may be a requirement that has been placed by themself. Keep looking forward Leaders of every community have a great opportunity to reshape the future of affordable housing. One of the key things that he or she can do is better align than a affordable housing programs with policies is in order to reflect the needs of the residents of the community and the community itself. Different neighborhoods have different needs. There are some communities that urgently need several different community services or amenity options - such as retail stores - along with affordable housing. Other communities may have larger families and therefore have been a more affordable housing for a large family. There also may be a need for affordable housing for married or single senior citizens. Due to the extremely low supply of properties, neighborhoods are becoming more costly to reside within and it forces affordable housing to stay unaffordable for future generations as well as the current residents; working families. Many affordable housing units are being built, but it is not enough to simply produce units. Affordable housing needs to be as unique as the people and communities reside in them - the "one size fits all" mentality needs to be ignored for the future. Times are changing, selected communities need. We need to see affordable housing that is comprehensive and a realistic approach for the future. 17 So, what if goals were set to meet the needs of the future? What if the goals that were set for building the kind of housing and neighborhoods that communities will need to succeed in the future? Being able to quantify the number of units that have been produced is quite easy. However, to quantify the real affordability of a place is much more difficult - often times this is more qualitative than quantitative. A community can succeed through its new housing strategies because it has set a goal and closely monitored its progress toward the set goal. For the future needs of the community or municipality, goals need to be set, and the city or community news to find a way to measure the success and possible returns of that community - measuring quality of life and quantity of affordable housing, not just "how many units" have been built. Items Focused on in Saratoga Springs' Median Income/Affordable Housing Report Saratoga Springs is a city that was incorporated, or in legal terms self-governing, in 1992. Since incorporation, the population in each census decennial year has grown by at least 225%. The city has projections out to 2060 and is on a very explosive, exponential, growth. In the very beginning of the growth cycle, Saratoga Springs had very inexpensive land to build on - and a plethora of it. Subdivisions in the year 2000 had just barely began to be formed and Saratoga Springs was and is a place, seen by many individuals, for many opportunities. However, the "opportunity" came to a quick close in approximately 2008 due to the housing recession. By 2012, people began flocking to the western side of Utah Lake for housing again - Saratoga Springs in particular. 18 After the year 2008, growth and construction started to slow for Saratoga Springs. The "housing bubble" had burst and the inventory of homes in the city began to increase steadily. Developments were sitting with lots that were not sold, houses that were only partially finished, etc. However, in the later part of 2010, the housing market started to move slowly forward. The growth was slower than 2005, but it was on an incline from a stagnant market. The population, construction, and housing sales for the city began to grow at a rapid pace again by the year 2012. The younger generations, and lower income earners who had a large family, were seeing the opportunities and affordability offered by Saratoga Springs. The moderate income housing report for Saratoga Springs will show the current population and its expected growth up until the year 2060. It will also discuss the median income of the municipality and the county. It will then show the quantity and the availability of homes - affordability of homes and possibly developed lots. Furthermore, the report will discuss the average age of the individuals, the average household size, and the future strategies to promote affordable housing for the municipality. Items included in Saratoga Springs' affordable housing report Because this is a moderate income housing report for the City of Saratoga Springs, it will help determine the cities affordability based on a few different criterion. The first, is how the population will impact the city as well as its expected growth. The population information has been acquired through the US Census Bureau. It shows the age brackets and the quantity of individuals found within each age bracket for the city. Additionally, it shows the income (in a 19 percentage form of the total population) for each age bracket. It will also provide projections of the population into the future as far as 45 years - to the year 2060. Furthermore, the report will discuss, not only the median age and income of the municipality, but the median income of the county and its median ages, the median age of the state, and the median age of the United States. This report will not discuss the County, state, or United States in depth - these are only for comparative reasons. This report will only focus on Saratoga Springs and its affordability. To aid in understanding the affordability of the city, the average household size is also included. If the finances are split amongst 4 people living in a home, it will cost the individual less to sustain the family in Saratoga Springs. However, if an individual is trying to support a family of 6, this will also need to be accounted for. Thus, the average household size will be expressed. Additionally, the report briefly explains the age of the housing units and discusses the average cost of the home and the current supply within the city. It also discusses the future plans for the city to create a larger quantity of affordable housing for individuals. 20 City of Saratoga Springs Moderate Income Housing Review Prepared by: The Saratoga Springs City Planning Department December, 2014 21 INTRODUCTION AND BACKGROUND Saratoga Springs City maintains a wide variety of housing. This ranges from affordable apartments, condominiums, and a wide variety of single-family homes. In 1996, the Utah State Legislature adopted statutes requiring that each municipality have a moderate income housing element as part of their general plan. This particular statutes is found in Section 109a-403 of the Utah Code. A portion of the state code requires the Moderate Income Housing component for each municipality to include - but is not limited to: 1) An estimate of the need for the development of additional moderate income housing within the City; and 2) A plan to provide a realistic opportunity to meet estimated needs for additional moderate income housing if long-term projections for land use and development occur. The Utah State Code also requires municipalities to uphold fair and reasonable opportunities for its inhabitants in a variety of homes - which includes moderate income housing. It states: 1) To meet the needs of people desiring to live there; and 2) To allow persons with moderate incomes to benefit from and fully participate in all aspects of neighborhood and community life. The city of Saratoga Springs is making an effort to provide legislation is intended to provide its residents safe, attractive, and affordable housing. The purpose of this moderate income housing report is to discuss the median income of individuals/households, products that are available - such as apartments, condominiums, town homes, single-family homes, etc. this report will also discuss any specific or special needs of families or individuals. Special needs housing, such as housing for the disabled and elderly, will also be discussed and also lifecycle housing - entry level of housing to senior housing. 22 Affordable Housing Requirements Moderate income housing, has been seen by the state of Utah, as a statewide problem in all of the municipalities. The state of Utah has defined it in section 10-9a-40 (21) as: "...housing occupied or reserved for occupancy by households with a gross household income equal to or less than 80% of the median gross income of the county in which the city is located." The applicable median income for Saratoga Springs for a household of 4 is approximately $72,000.00. Moderateincome housing, then, will apply to a household of 4 with an annual income of $57,600.00. The intent of the statute is to ensure that people with moderate incomes who desire to live within a particular city can do so. Cities should offer a reasonable opportunity for those of moderate income to obtain housing within the community. With such an opportunity, these individuals are allowed to benefit from and to fully participate in all aspects of neighborhood and community life during all stages of their lives. In this analysis, reasonable opportunity is assessed using three criteria: in comparison to surrounding communities; in comparison to Utah County as a whole; and through an analysis of current demand in the City. Summary of Findings The analysis of Saratoga Springs' information demonstrates that there currently exists a reasonable opportunity for individuals of moderate income to obtain affordable, quality housing and that the city currently meets all statutory requirements. Opportunity for affordable housing comes mostly in the form of rental units located throughout the City. As the City further develops, more multi-family housing will be built and more opportunities for renting will exist. The 2010 census estimates that 14.8% of the homes in Saratoga Springs are renter occupied and the average household size is 4.14 persons. Another indicator that affordable housing is reasonably available is that approximately 13.5 percent of the housing stock is multi-family units. Roughly estimated, the percentage of units affordable to moderate income households (80 percent of area median income) is 4.5%; and roughly 1.6% of housing units in the city are affordable to those making 50% of the area median income. Data The information that is analyzed these based on both demographic data and current market conditions. The majority of the information used in this analysis comes from public sources, such as the census - American fact Finder. The population figures were updated using Census Bureau information, 23 Governor's office of Planning and Budget information, 2012 Baseline Projections. All financial information was obtained by the United States Census Bureau and building permit application information was provided by the city of Saratoga Springs. All of the information provided for property values and tax rate information was provided by the Utah County assessor's office. As noted above, this report addresses the requirements of Section 10-9a-403 of the Utah Code regarding the need for communities to provide moderate-income housing. The report first analyzes the demographics and income levels for the area, and determines what level of housing costs would be affordable to Saratoga Springs residents at various income levels. It then discusses the existing supply of housing in the city, and analyzes the cost of and demand for various housing types. Existing Housing and Demographic Conditions Saratoga Springs Population by Year, 2000 - 2013 22,749 25,000 20,000 15,000 10,000 5,000 0 16,516 18,299 21,137 9,540 13,039 17,781 14,788 3,219 6,386 11,241 7,946 4,822 1,571 160000 140000 120000 100000 80000 60000 40000 20000 0 Population Projections through 2060 134,000 107,900 78,987 58,496 33,514 17,781 1,571 2000 2010 2020 2030 2040 2050 Sources: American fact Finder (U.S. Census Bureau) and the Governor's office of planning and budget Population According to the 2010 census, Saratoga Springs city had a population of 17,781 people. According to the Governor's Office of Planning and Budget (in the 2012 baseline projections) and the United States Census bureau, the projected population for 2020 is 33,514 people. It is projected that Saratoga Springs will have exponential growth over the next 40 years (see population table above). Based on their projected population, by the year 2060, the estimated population will be 134,000 persons (source: Gov.'s Office of Planning and Budget, 2012). The population table above expresses all and potential growth in Saratoga Springs city for the years 2000 to 2060 graphically and also contains a line showing the growth rate of the city. 24 2060 Age The median age in the Saratoga Springs was 22.6 when the 2010 Census was taken. By comparison, the median age of the United States was 37.2 years old. In the state of Utah, the median age was 29.2 years old, and Utah County has a median age of 24.6. The census shows that Saratoga Springs median age is relatively low primarily because of the relatively large amount of families with young children. According to the Census Bureau, there are a total of 9,493 individuals under the age of 18. Of that total number, there are an estimated 74.2% individuals which are under the age of 11. Income In 2010, the median household income in Saratoga Springs was $69,500.00. The census L es s than $10,000 0.6% $10,000 to $14,999 1.1% $15,000 to $24,999 4.0% $25,000 to $34,999 5.9% estimated the median household income in $35,000 to $49,999 13.8% $50,000 to $74,999 31.3% Saratoga Springs for the year of 2012 was $75,000 to $99,999 23.6% $100,000 to $149,999 14.4% $72,733.00 (U.S. Census Bureau. 2012 $150,000 to $199,999 2.4% $200,000 or more 2.8% American community survey). The income U.S. Census Bureau. 2010 American community survey table on the right shows the distribution for Saratoga Springs in 2010. The table shows that a large portion of the median income between $35,000.00 and $99,999.00. The table also expresses 19.6% of the inhabitants of Saratoga Springs make over $100,000.00 per year. However, it also shows that 11.6% of the households are earning up to $34,999.00 per year. All income related information has been provided by the Census Bureau through American fact Finder. Household Income (at 80% of median according to state law Section 10-9a-403) Average median income ($58,186.40) < 30% 30% - 50% 51% - 80% 81% - 100% >100% Annual Income Maximum Sales Price Maximum Monthly Rent Total ownership units in range (Estimated) Total Rental units in price range 0 $17,455.92 $98,243.75 $436.40 24 $29,093.20 $135,317.20 $1,212.22 702 0 $46,549.12 $217,519.25 $1,603.37 3403 180 $58,186.40 $270,976.0 $1,818.33 1276 60 $58,186.40+ $270,976.00+ $1,818.33+ 491 n/a Affordability Analysis 25 Section 10-9a-403 of Utah Code sets a benchmark for the establishment of a plan for moderate-income housing. It defines moderate income housing as "housing occupied or reserved for occupancy by households with a gross household income equal to or less than 80% of the median gross income for households of the same size in the county in which the city is located." It is important to keep in mind that Section 10-9a-403 does not define the total scope of housing planning efforts needed by Saratoga Springs. A community should address the needs of all of its residents. This report also provides information about these residents, what housing stock is available to them, and what their future needs will be. (Note: Income level estimates used do not account for household size since the Census does not track income by household size. Therefore, when estimating the current make-up of the community, the numbers do not account for household size that will be used. Household size will affect the income level applicable under the 80 percent of median household income requirement of Section 10-9a-403 of Utah Code.) Housing Analysis of Affordability Targets for Rental and Ownership Options Based on the established figure of $72,733.00 to define moderate incomes, housing options available are assessed and used for later analysis. Typically, total monthly housing costs should not exceed 30 percent of monthly income. With this basic guideline, the maximum monthly housing cost outlay is $1,818.33 including utility payments. Based on the average monthly housing cost of $1818.33, the monthly utility cost at 30% is approximately $545.50; thus, the maximum monthly housing payment for a moderate-income household of 4.1 is $2,363.83. Supply of Housing in Saratoga Springs The supply of residential housing in Saratoga Springs is described by value, structural characteristics, occupancy, and age of housing stock. The price range is within reach of those households earning 80 percent of AMI (which is calculated at $58,186.40 and the maximum home purchase value of $270,976.00). Housing Units and Occupancy Within Saratoga Springs' current boundaries there are a total of 4685 housing units. The number of building permits within table #1 below, given by the Saratoga Springs building department, updates the 2010 U.S. Census total by adding 1322 units which were constructed between 2011 and 2013. Some of 26 these new units have been condominiums; however, judging from market values reported by the Utah County Assessor's Office, some of these condos are out of reach of moderate-income households. The data demonstrates that in Saratoga Springs, 89.98% of all housing units are single-family units (detached and attached) and 10.02% consists of multi-family units. Age of Housing Units Most of the housing in Saratoga Springs was developed in the 1990s and after. Table #1 reflects the nature of housing in the City based on the number of building permits issued since 2002. A small portion of Saratoga Springs' housing was constructed prior to the 1990s. Recent Trends in Construction: (Single-Family and Condominium Construction) According to data provided by the Saratoga Springs Building Department, the years following incorporation saw a dramatic rise in the number of units built. This is due to different land use development policies adopted by the City relative to the County. A few relatively large condominium projects have been built recently, with more in the planning process; however, as the amount of developable land decreases, so will the building activity for all types of housing. Table 1 demonstrates the number of building permits that have been issued between 2002-2013; the majority of permits issued fall within the "single-family" category. Single-Family Housing Does current supply meet the guidelines for affordability under Section 10-9a-403 of Utah Code? Yes; Saratoga Springs does meet the statutory requirements for affordable housing. The following section provides an analysis of the costs of housing in Saratoga Springs. Single-Family Housing Market Saratoga Springs has experienced a burst of single family residential housing construction in the last 11 years. Since 2002, the number of housing units in the City has grown very rapidly (from fewer than 250 in 2000 to more than 4600 currently). There seems to be a plentiful supply of single family residential property available, and the projections into the future according to the City's General Plan indicate that this supply will continue to grow well into the future. Multi-Family Housing The 2010 Census shows that the median rent in Saratoga Springs is comparable to the neighboring communities. It is important to note that the rents in Saratoga Springs reflect both multi-family and 27 single-family units and are, thus, higher than one might expect for just multi-family units. Even though the median rent in Saratoga Springs is relatively high, there are still numerous apartments available to those with moderate and low incomes. A 4.1 person household making 80 percent of AMI would be able to afford a three-bedroom home or a townhouse in the Saratoga Springs area. As has been shown, the affordable monthly payment for 80 percent AMI four-person households is $1,818.33. A 4.1 person household making 50 percent of AMI could also afford market rents in Saratoga Springs, although its monthly housing budget of $909.16 would currently allow the household to rent a two-bedroom unit. There appears to be a fair amount of rental housing available in Saratoga Springs for low- and moderate-income households. Housing Plan: Meeting the Current Requirements of Section 10-9a-403 of Utah Code The above analysis demonstrates that the City is meeting the requirements of Section 10-9a-403 of Utah Code; that is, there is reasonable opportunity for moderate income households to obtain quality housing in the City. Considering its relative young age and the rapid expansion of the housing market, Saratoga Springs is in a very favorable position in terms of the amount of affordable housing available. The available affordable housing comes mostly in the form of apartments located in the City. Over the last few years, the amount of multi-family structures in the City has kept reasonable pace with the rate of construction of single-family homes. The City is, therefore, in a comfortable position with regard to affordable apartments, of which there is a growing number. Condominiums sold in Saratoga Springs that are affordable to those with moderate incomes are from several different complexes. These factors suggest that a need may exist for smaller, more affordable town homes and condominiums. While there are town homes and condominiums available for purchase, there may be some need for additional apartments available for rent, especially as the population ages and more seniors elect to move to housing requiring less maintenance. Independent living facilities are another important source of housing. If the City wishes to further improve opportunities for seniors and those of moderate income, the focus for future planning should be on making entry-level, owner-occupied housing more available and on providing for a variety of housing types and prices for senior citizens. 28 Table #1 Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Building permits Type Commercial General Housing Data (source: U.S. Census Bureau 2010) Number 5 Single-family 349 Multi family Commercial 24 16 Single-family 410 Multi family 24 Commercial 27 Single-family 386 Multi family Commercial Single-family 62 21 604 Multi family Commercial 88 10 Single-family 571 Multi family Commercial 124 19 Single-family 393 Multi family Commercial 178 17 Single-family 89 Multi family Commercial 132 8 Single-family 116 Multi family Commercial 70 19 Single-family 172 Multi family Commercial 60 10 Single-family 201 Multi family Commercial 307 14 Single-family 300 29 General Characteristics Values Total Housing Units Occupied Housing Units Vacant Housing Units Owner-Occupied Housing Units Renter-Occupied Housing Units Total Households Average Household Size 4,387 4,089 298 3,736 651 4,387 4.14 2013 Multi family Commercial 76 12 Single-family 319 Multi family 119 Source: Saratoga Springs Building Department Source: U. S. Census Bureau 30 Report Findings In completing the city of Saratoga Springs' moderate income housing report, there have been several interesting findings. One thing that is very important and shown is that the state of Utah has written such language into law which has also required all of the municipalities within the state to have a moderate income housing report. Unfortunately, not every municipality has the report. It seems that several of the municipalities are growing at a fast rate that are shorthanded planners to write the report. It is nice to see that the city of Saratoga Springs has been incorporated and is growing at an exponential rate. The median age (22.6 years old) suggests that it is an affordable area for young and large families. Although there does not seem to be enough housing inventory for individuals and families, the city has recognized this shortcoming and is currently trying to remedy this situation. 31 The young median age (22.6) and the high median income of $72,733.00, in 2012, as caught me and several people of guard. Personally, it is hard to imagine a 22-year-old individual making over $72,000 per year. This height median income per year coupled with these young median age of the city definitely suggests that large families, with young children, are driven to the city of Saratoga Springs because of its affordability and the location being proximal to other major areas in comparison to the well-established cities, such as Orem, in the area. By reviewing the charts shown in the report, it is shown that many families the beginning, between $10,000 and $150,000. However, is extremely important to understand that almost 55% of the income is earned within the 2 brackets between $50,000 - $74,999 and $75,000 - $99,999 per year. This definitely supports the median income finding, of $72,733, for the city. The U.S. Census Bureau estimates that there were 9,493 people in Saratoga Springs under the age of 18 in 2013. This is number is almost ½ (42%) of the total estimated population of 2013 - 22,749 people. The census information also shows that out that 9,493 people under the age of the teen, 73.2% of those individuals are under the age of the 11. Once again, with a family household average size of 4.1 individuals, and 42% of the population are people under the age of 18, these numbers highly suggest that there are many individuals and young families that are moving to Saratoga Springs for economic reasons. In submitting this report to the planning director of Saratoga Springs, it has been validated that the city is falling short for availability of moderately priced homes - not only to its citizens, but that government also. Something that was surprising to me when the report was submitted to the planning director of Saratoga Springs, was that she asked not to include certain information until a further date. 32 There was a request from a state agency for the city to fill out a form (UHAFT) showing the inventory and availability of moderately priced homes within the municipality boundaries. The planning director sent in an email asking for an extension of time for the new report. I, in the professional world, was not aware that this was possible to do. Where Might the Discussion Proceed? We all understand that affordable housing will make a community and a city healthier and more welcoming. The city has plenty of new developments to improve its current condition dealing with affordable housing. However, a successful building is frequently more than just affordable housing units - it is a community asset which brings a return to the neighborhood and city as a whole. Affordable housing is a strength to any city and its comprehensive plan. In order to make it stronger, there is more than just a need for affordable housing; there is the need of amenities to strengthen bonds among the community and create a destination for families. For instance, a city may implement the building of several affordable housing units, parks, community gardens, restaurants, and maybe even some child care. Recommendations such as this may be good for a city such as Saratoga Springs. However, an already established city, such as New York City, may have a harder time reclaiming the ground because it has already been established by the residents. 33 Conclusion There are many economically depressed neighborhoods and individuals across the nation. Fortunately, the federal, state, and local governments are willing to assist the individuals who need assistance. Governments believe that there is a need to make the housing attractive yet affordable. It is shown in many places, including published articles, that by adding amenities to an area increases and areas socioeconomic standings. The already built environment can only provide so much sense of place for an area; there also needs to be some sort of social benefit in order to retain the residents. WORKS CITED 1. Housing policy.org (2015). Online Guide to State and Local Housing Policy. Retrieved January 25, 2015 from http://www.housingpolicy.org/getting_started/what.html 2. Lipman, J. 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