Tag Archives: Vermont

Stuck in the middle

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Couple with daughter together in front yard
 

Middle-class financial struggles have occupied the public discourse for some time, but wouldn’t you know, we’re starting to hear more about housing unaffordability as a stresser for this beleaguered population segment.

The annual “State of the Nation’s Housing” report from Harvard took note this summer:

While long a condition of low-income households, cost burdens are spreading rapidly among moderate-income households. The cost-burdened share of renters with incomes in the $30,000–45,000 range rose 7 percentage points between 2003 and 2013, to 45 percent. The increase for renters earn­ing $45,000–75,000 was almost as large at 6 percentage points, affecting one in five of these households. On average, in the ten highest-cost metros—including Boston, Los Angeles, New York, and San Francisco—three-quarters of renters earning $30,000–45,000 and just under half of those earning $45,000–75,000 had disproportionately high housing costs.”

Granted, much of the news about middle-class housing unaffordability is coming out of the big cities – places where “middle income” is construed to reach far above Vermont standards. For example, Cambridge, Mass., is taking steps to reserve a share of “affordable” housing in a new Kendall Square building for families with incomes in the low six figures! San Francisco is also considering measures that would expand affordable housing eligibility and help out renters in the $100,000 to $140,000 bracket. And Portland, Ore., where the “housing emergency” is apparently wide-ranging, is looking at a form of inclusionary zoning that make apartments available to people making 100 120 percent of the median income (Up to $96,875 for a family of four).

Perhaps it’s a testament to the severity of the housing crisis around the country, and/or to the fragility of the middle-income stratum, that the terms “middle class” and “subsidy” are suddenly being spoken in the same breath.

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Here’s the thing: To qualify for most subsidized housing, applicants can’t earn more than 80 percent of the local median income. Where does that leave people who draw an average salary, or perhaps a little more? Perhaps in a place where they can’t readily afford housing but can’t get any help, either. How many such people there are in Vermont is unclear; plenty, no doubt.

(Note: Middle-income earners are not beneficiaries of Burlington’s inclusionary zoning ordinance, which aims to provide affordable rentals for people earning up to 65 percent of the median; and for sale, up to 75 percent.)

For an illustrative display of how housing costs compare to standard incomes, the National Housing Conference’s interactive “Paycheck to Paycheck” shows bar graphs for each of the nation’s metro areas – and just one in Vermont, Burlington/South Burlington. One graph compares salaries to the pay needed to afford a median-priced home; another does the same thing for 1- and 2-BR apartments at HUD’s “fair market rent.”

Below are the charts for 10 occupations that might be considered to be middle class. As you can see, eight of the 10 would be hard pressed to afford purchase of an average home in Burlington:

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They do a little better in the rental market, but still, six of 10 can’t comfortably afford a two-bedroom apartment in Burlington:

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Vermont dreaming … in California

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Vermont fantasies can take many forms, but one has to wonder: Where are the Vermont brand police when you need them? Not in California.

Consider “The Vermont,” a luxury, high-rise apartment complex in L.A.’s Koreatown that promises “sky-high decadence.” Here’s the web page’s come-on (“bask in paradise seven stories up”):

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Hmm, doesn’t look much like Vermont (come on, we have only a handful of buildings higher than six stories in the entire state!) , so where might the name have come from? Perhaps from Vermont Avenue, which runs alongside and is one of L.A.’s longest thoroughfares.

Why that street is named for Vermont is another question. A quick Google search didn’t provide an answer, but it did turn up this 1874 photo of an area where Vermont Avenue was later platted:

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That’s more like it.

Now, you may consider all of this off-topic for a housing blog, but bear with us…

 

 

 

There’s another curious Vermont vestige in L.A. that’s more than a century old, called Vermont Square. It’s a section of south Los Angeles (Vermont Avenue runs through it) that’s among the city’s most densely populated areas.

Vermont_Square,_Los_Angeles,_California

 

 

 

 

 

“Vermont Square” apparently was a developer’s name for what, in the early 20th century, was a huge subdivision — “the largest ever put on the market in Los Angeles,” according to this 1909 newspaper ad, “comprising fifty-two city blocks – a town in itself.”

vermontsquaread1909

That doesn’t seem particularly Vermont, either.

Back on Vermont Avenue, we learn that one of its southern segments is known as “death alley,” with one of the highest homicide rates in the city.

That’s certainly not very Vermont, so we’ll retreat to “The Vermont,” on the corner of Vermont Avenue and Wiltshire Boulevard. What are apartment rates?

A corner two-bedroom-two-bathroom suite, about 1,000 square feet, “starts” at $2,890.

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Finally, an unmistakable Vermont quality! Unaffordability!

 

NJ’s lessons for VT

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The Times’ Sunday editorial was a ringing endorsement of affirmatively furthering fair housing as put into practice in Mount Laurel, N.J. Mount Laurel, of course, was the epicenter of a fair housing lawsuit that resulted in state supreme court rulings in 1975 and 1983 known as the Mount Laurel Doctrine.

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Essentially, the doctrine held that every town must make room for people of all incomes and can’t legitimately exclude low or moderate income people through restricting planning and zoning policies. The Fair Share Housing Center, a primary litigant in the case that led to the Ethel Lawrence Homes in Mount Laurel that’s lauded by the editorial, calls it “one of the most significant civil rights cases in the United States since Brown v. Board of Education (1954).”

That statement might sound self-serving, but it has some credence, given that other states all over the country – including Vermont – have at least paid lip service to this principle. (For a quick summary of the Doctrine and how it resonates in Vermont, check out our previous blog post on this.

One thing that was missing from the editorial was any invocation of the incisive language in the New Jersey justices’ rulings. Like this, from Mount Laurel I:

“By way of summary, what we have said comes down to this. As a developing municipality, Mount Laurel must, by its land use regulations, make realistically possible the opportunity for an appropriate variety and choice of housing for all categories of people who may desire to live there, of course including those of low and moderate income. It must permit multi-family housing, without bedroom or similar restrictions, as well as small dwellings on very small lots, low cost housing of other types and, in general, high density zoning, without artificial and unjustifiable minimum requirements as to lot size, building size and the like, to meet the full panoply of these needs. Certainly when a municipality zones for industry and commerce for local tax benefit purposes, it without question must zone to permit adequate housing within the means of the employees involved in such uses…” (emphasis added)

Those guidelines are as apt today as when that opinion was written, in 1975 – 40 years ago!

Another thing missing from the editorial was anything more than a passing reference to complexities and controversies that attended efforts to implement the doctrine in municipalities across the state. It’s a long and tangled story, and while it’s true as the Times intones that “some local officials are working diligently to turn back the clock…” and that “Gov. Chris Christie and his allies in some of the state’s wealthy towns would like nothing more than to kill this remedy…” there is an added complication in many communities, and this one has resonance in Vermont, too.

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Some of the challenges New Jersey’ Sussex County faces in providing more affordable housing, according to this New Jersey Herald account, may sound familiar here:

“ ….a shortfall of utilities — sewer, water, electric — to accommodate more housing and population; and a lack of practical public transportation in the area that limits the ability for low- and moderate-income people to get to decent-paying jobs.

“But the most glaring problem is that with the population declining and the economy volatile, the county is not an ideal place for developers to invest.”

 

We’re full, so go somewhere else

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density1When someone says that a town or a city is “built out,” what does that mean? It often means simply that the speaker doesn’t want any more people moving in – even though it might be possible to design more space, in keeping with local standards, that would accommodate more people.

The common claim that a city has run out of room reflects not a physical reality, but rather, an exclusionary prejudice, as Emily Badger suggests in a thought-provoking piece in the Washington Post. She points to widely varying population densities of major “First World” cities (Seattle, 3,000 people per square mile; New York, 4,500; Paris, 9,500; London, 14,600). How can anyone in San Francisco, even with its topographical challenges, argue that that city is “built out” at a mere 5,400 people per square mile? In fact, according a Berkeley economist, the city could accommodate 30-40 percent more people without losing its character.

Building higher and shrinking parking lots can seem reasonable as planning options, but there are limits. In Burlington (2,730 people per square mile), for example, any building higher than about 12 stories would likely be seen as excessive, and no one is ready to enforce a dramatic reduction in vehicles plying the city’s roads. There is such a thing as overcrowding, too (HUD’s so-called Keating memo calls for a limit of two people per bedroom), but of course most American communities are nowhere near their limit.

The most densely populated municipality in Vermont is undoubtedly Winooski , about 4,800 people per square mile.

winooski

And Winooski, when you meander through it, doesn’t come across as particularly dense – much of its 1.5 square miles is occupied by single-family lots, after all. It could get denser and still be less so than LA (6,000 people per square mile) or Madrid (12,100) – never mind Mexico City (25,100) or Jakarta (24,500).

Nationally, exclusionary land-use practices have had the effect of holding down housing supply and pushing up housing prices. Consider California, where housing prices began to soar above those in the rest of the country starting around 1970. One reason California diverged, according to an legislative analysis that came out earlier this year, is housing construction has been limited – by community resistance, environmental policies and other factors – in coastal urban areas. That has driven up prices there and inland as well.

The legislative analyst called for policy changes that would lead to significantly more housing along the coast. Here again, the suggested remedy for unaffordability was a familiar one: increase the housing supply. But does anyone believe that can be left simply to market forces?

Moreover, merely eliminating exclusionary policies and increasing density, while favoring more affordability, aren’t necessarily sufficient to promote inclusiveness, or integration. The pro-density strategy has to be combined with affirmatively fair housing, as Jamaal Green argues in this Shelterforce article.

 

Taller & brighter

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Once upon a time, believe it or not, planners of public housing in the United States believed high rises were a good thing. In the early ‘40s, we learn from J.A. Stoloff’s history of public housing, the thought high-rises “could provide a healthy, unique living environment that would contrast favorably with surrounding slum areas.”

Well, as we all know, high-rises for families didn’t work too well in the big metro areas. Two notorious examples in Chicago were Cabrini Green …

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and Robert Taylor Homes…

 

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drab, unsightly, unlivable in many ways, they unfortunately tainted the popular conception of public housing. No public-housing high-rises were built after the early ‘70s, and by the ‘90s many of these buildings were being torn down.

As it turned out, though, some public-housing high-rises did work pretty well – for elderly residents. One such example, built in 1971, is the tallest building in Vermont – 11-story Decker Towers in Burlington, operated by the Burlington Housing Authority for elderly and disabled residents:

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Granted, construction of ANY public housing is passe in this country, sadly, but before you stop thinking about high-rises, look at some examples in Singapore, where public-housing high-rises are home to a majority of the population. These shots are by Peter Steinhauer, a photographer:

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These photos make two things really clear: (1) High rises don’t have to be drab and dreary…sing3

 

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… and (2) no one should have any trouble finding the street address of these places.

 

 

 

The bright colors bring to mind some of the buildings in Burlington’s Old North End, many of them owned or developed by Stu McGowan …

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Now that we’ve drawn your attention back to Vermont, let’s consider building height on a Vermont scale as we also consider how to add to the state’s affordable housing stock. High rises are out of the question, of course, especially in our small towns. But what about adding a third story to buildings in town centers, here and there, for family apartments? Is that such an outrageous idea? This three-story building in the photo below doesn’t look a bit out of place.

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Variations on a sordid theme

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“Forty families on one lot, using one water faucet. Living in barren one room huts, they were deprived of the glory of sunshine in the daytime, and were so poor they could not even at night use the electricity that is to be generated by our great river…

“I found one family that might almost be called typical. Living within one dreary room, where no single window let in the beneficent sunlight, and where not even the smallest vagrant breeze brought them relief in the hot summer – here they slept, here they cooked and ate, here they washed themselves in a leaky tin tub after carrying the water for 100 yards. Here they brought up their children ill-nourished and amid sordid surroundings…”

The speaker was Congressman Lyndon B. Johnson, in his home district of Austin, describing the “slum tarnish” he observed during a Christmas Day walk through town. He made his remarks in a radio address to his constituents (this was well before LBJ himself got into the radio business), hoping to win their support for something new in town: public housing. The address became known as his “Tarnish” speech.

Here’s a photo (albeit not from Texas) that seems to capture what he was talking about:

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Thirty years before he orchestrated the passage of the Fair Housing Act as president, Johnson – whose ambition as a young congressman is captured by this 1937 photo of him shortly after his election, with FDR in Galveston – prevailed in that housing campaign.

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The first public housing in the country built under the 1937 housing act was in Austin. It was segregated, like most public housing that sprang up around the country over the next few decades, but less sordid than what they replaced. LBJ used that word – sordid – to good effect at HUD’s inauguration, when he declared: “Our cities and our new urban age must not be symbols of a sordid society.”

“Sordid” might be an apt description for some blocks of big-city, high-rise public housing, thoroughly segregated, underfunded and bereft of hope, if not sunlight. High rises came into planners’ favor in the ‘40s, but a couple of decades later they were not. For a tidy history of public housing, click here.

Some argue that public housing outside the big inner cities has worked quite well, and perhaps that can be said for places like Vermont, which apparently got into public housing fairly late in the game. (Burlington’s housing authority dates from 1961, and the state’s, from 1968.) If a history of Vermont’s public housing hasn’t been written, it’s a thesis topic in waiting.

So much for artists’ affordable housing

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When Burlington’s mayor announced that he would not support housing in the South End’s Enterprise Zone, he won cheers from artists who feared gentrification. While the mayor’s isn’t necessarily the last word in “Plan BTV South End,” the product of extensive public input (or so the city proudly insists), it does stack the odds against any kind of housing in the zone.

Too bad. One of the more intriguing prospects raised in the draft plan was to create work/live spaces – aka, affordable housing – for artists. Could that be done deftly in some of those South End warehouses without gussying up the surrounding neighborhood and driving up rents for everyone else? Maybe, maybe not, but it seems a shame not to consider this. A blanket ban on housing seems to foreclose the possibility.

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Well, it’s a possibility that’s being embraced elsewhere, all around the country – in little towns and big cities, both. “Colorado’s affordable artist housing efforts catching on quickly,” read a headline in Saturday’s Denver Post. Artspace, out of Minneapolis, has been developing work/live artists’ lofts for more than 20 years – but apparently none yet in New England.

If Burlington’s artists aren’t interested, perhaps their counterparts in other warehouse-rich Vermont towns might be. Bellows Falls, Springfield, Rutland, Brattleboro, among many others? Here’s the view in Colorado, according to the Post article:

“The hope is that some rural projects will have the added advantage of preserving historic structures in need of attention. That makes Trinidad, with its excess of significant, and underused, buildings, a good candidate for the pilot program…”

Check out what’s been done in Fergus Falls, Minn. (pop. 13,300)…

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or  Hastings, Minn. (22,400).

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If you’re looking for an example of a dreary warehouse transformed, look at Council Bluffs, Iowa …

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or even Memphis – which is fashioning an arts district around its project.

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Now, it may be that some of projects, the affordable housing notwithstanding, have contributed to surrounding gentrification. But if so, did it have to be that way? Municipal planners take note.

 

 

Fascinating notes from all over

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A Monday potpourri that panders to our friends with short attention spans:

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  • Starbucks, which offers tuition-assistance to its U.S. employees, offers rental assistance to its workers in the U.K. After a year’s employment, they can get a no-interest loan for a rental deposit.

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  • The U.K., never short of fresh approaches to chronic social problems, offers this one for the housing affordability shortage: oldsters downsizing to free up their unused extra space for youngsters. Worthy of debate, no?
  • Vermont’s recurrent lament that it’s getting too old and can’t hang on to its youth prompts the question: Where are the youth going? Well, here’s one answer, in the form of a list of cities where Millennials are buying homes in large numbers. They’re mostly out west (Des Moines! Grand Rapids!), the same territory where young Vermonters fled during the 1830s. Back then, the people they left behind wrung their hands about that exodus, too.

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  • Maybe some of the fleeing youth are heading to Dubai, but if they are, they’re encountering – ta-dah! –– an affordable housing shortage, complete with 30-mile commutes from the suburbs.

 

Something to cheer in Woodstock

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The opening of Safford Commons in Woodstock earlier this week has been widely and deservedly celebrated. This 28-unit development was about a decade in the making – a decade marked by legal battles and neighborhood opposition. You can get some of that history from a Valley News story on the ground breaking a year ago, and a you can get an thumbnail idea of where things stand now from accounts on Vermont Digger and on VPR, source of this photo:

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Let’s throw a little context around this. Woodstock is an employment center, with more than 2,100 jobs in more than 270 establishments last year, according to the Vermont Department of Labor. By that measure alone, Woodstock would seem to be a prime candidate for workforce housing – that is, housing that working people can afford to live in.

Woodstock is also a relatively wealthy town, with an estimated median income of about $99,600, compared to Vermont’s average of $68,100, according to Vermont Housing Data. A smaller share of its total housing units are rented (23.5 percent) than Vermont’s average (25.9 percent), and those residents who do rent in Woodstock tend to be slightly better off than their average Vermont counterparts. Just 29 percent of Woodstock’s renters are housing-cost “burdened” (that is, they pay 30 percent of their income on housing), compared to Vermont’s average of 52 percent; and just 14 percent are “severely burdened” (they pay 50 percent or more), compared to Vermont’s average of 26 percent.

All of which suggests that many of the lower-wage employees who work in Woodstock don’t live there and have to commute from some place else.

Until Safford Commons opened, however, Woodstock had only two subsidized housing complexes (Melishwood I & II), with a total of 26 units (11 of them for elderly residents). The addition of a third affordable rental complex in Woodstock is not only welcome, it’s overdue. Here’s hoping it won’t be the last.

 

New population bulge: renters

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Renters — and the cost burdens associated with renting — are on the rise across the country. Two recent studies say so, so we might as well cite them here. One, by Enterprise Community Partners and Harvard’s Joint Center for Housing Studies, projects that renter households will increase by 4.2 million over the next 10 years. Another, by the Urban Institute, puts that number at 6 million. And the share of rental households that’s “severely cost-burdened” – that is, paying 50 percent of income or more for housing – will go up 11 to 25 percent under various economic scenarios, says the former study.

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Meanwhile, says the Urban Institute, the home ownership rate will go down for all but the oldest population segment. The explanations of these and other stark housing projects are familiar – among them, that college-debt-burdened Millennials aren’t moving into the house-buying market the way their age group did a generation or two ago.

Here we inject the good news/bad news for Vermont.

The home ownership rate here is above the national average and has not mirrored the national drop over the last few years.

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Rental cost-burden rates here are, however, about at the national average: 26 percent of Vermont’s renters are “severely cost burdened,” according to Vermont Housing Data.

If the renter population swells in Vermont, how likely is it that the number of affordable housing units keeps pace? Not very, without some form of government intervention. Here’s what the Enterprise/Harvard study says about that:

“The need for affordable housing is already overwhelming the capacity of federal, state and local governments to supply assistance. At last measure, 11.2 million extremely low-income households competed for 7.3 million units affordable to them – a 3.9 million unit shortfall. And with 7.7 million unassisted very low-income renters with worst case housing needs in 2013 as defined by U.S. Department of Housing and Urban Development (HUD), only just over a quarter (26 percent) of eligible very low-income households received rental assistance.”

Now, some might argue that if private developers are simply turned loose to produce a flood of new housing, affordability will take care of itself.

That’s not likely, either. Check out the state of affairs in Portland, Ore.,  a place that has experienced both a building boom and an unaffordability boom, and where the mayor just declared a “state of emergency for housing and homelessness.”