The Summary Slides from the March 7, 2024, Meeting are Wrong!
Once again, the City is confusing terms in order to cover up its goal to favor its buddies and help the City Council score political points. What a surprise!
Look at what the City has put out to the new Housing Committee on the definition of “Affordable Housing”:
Where to start?
Let’s start with the title: What’s Affordable – Definition
First of all, “affordable housing” means that the all-in costs of owning a home or renting an apartment cannot exceed 30% of the household’s gross annual income.
Obviously, what is unaffordable to some can be easily affordable to others so it can become potentially political. But affordable housing is not workforce housing.
Check out the bullet points on the above slide under To Rent:
According to the NH Municipal Association, workforce housing for rental units refers to 60% of average median income (AMI) for a 3-person household, NOT 80% of a 2-person household.
Two errors there.
So, here’s the 2023 RENT calculation for a true “workforce” housing unit in Portsmouth.
Using 60% of AMI for the Portsmouth/Rochester area equals $66,450 divided by 12 months per year = $66,540 times 30% = $1,664 per month, not $2,050 as shown by the City.
Let’s check out the bullet points under To Buy.
If the workforce housing is to be bought, the second template is used. But here again, the City is misleading.
The RSA refers to housing that is affordable for a household with an income of no more than 100% of the AMI for a 4-person household.
A four-person family might include two adults and two children with both adults earning income.
Here’s the 2023 BUY calculation for a true “workforce” housing unit in Portsmouth.
Using the 100% of AMI for the Portsmouth/Rochester area equals $118,312 divided by 12 months per year = $9,859 times 30% = $2,958/month, not $2,500 as shown by the City.
Workforce housing obviously must be priced below the area’s median home price of $735,000.
Finally, it turns out that today, many “workforce housing” units may in fact be offered at market rates, not at a subsidized rate to meet the definition of “workforce housing.”
If developers, such as the Portsmouth Housing Authority (PHA), operate so-called “workforce housing” facilities, they should be required to publish the rents being charged the rental occupants in those facilities.
For example, how many of the Ruth Griffin Place unit rates are truly “workforce housing” rates as had been sold to the Planning Board and the City when the facility was built? And what are the rents being charged today?
Is the PHA really holding up its side of the bargain it initially proposed when the facility was first approved? Are any units being offered currently at market rates?
Jus’ wondering.
And maybe we know why the Governor fired the Housing Navigator!
Source Featured Image: Cityoftheopendoor.com
