Housing Affordability Crisis Impacts Marshall CountyHousing Affordability Crisis Impacts Marshall County A housing affordability crisis is affecting communities across the United States, including Marshall County. National Challenges * Limited housing inventory and construction * High mortgage interest rates * Tightening of mortgage credit availability Local Findings * Marshall County faces a shortage of 1,300 homes. * Rising rents have led to an increasing number of renters spending an excessive portion of their income on housing. * An aging population, first-time homebuyer barriers, and a growing younger population are contributing to the need for rental housing. Stellar Designation and Housing Initiatives * Marshall County’s Stellar designation has supported several housing projects, including Riverside Commons and LaPaz. * These projects have received rental housing tax credits from the Indiana Housing and Community Development Authority (IHCDA). * Marshall County leaders attended the 2023 IHCDA Housing Institute to address critical housing needs in Plymouth. Proposed Project * A proposed project on Berkley Street in Plymouth aims to provide 36 affordable rental units. * The project would bring $13 million in outside investment and create new jobs. * The location is near amenities such as a grocery store, childcare, and recreational areas. Community Impact * Affordable housing is crucial for individuals and families who struggle financially. * It addresses barriers to economic growth, especially in the service sector. * The proposed project aligns with ALICE (Asset Limited, Income Limited, Working Households) reports and supports single parents and senior households. Next Steps * The Plymouth Planning Commission will consider the project’s zoning request on July 9. * The Plymouth City Council will review the Planning Commission’s recommendation on July 22.
A housing affordability crisis is impacting communities across the United States. There are not enough homes for sale or under construction, which keeps prices high. The average mortgage interest rate has more than doubled, further deteriorating affordability. And according to Alex Horowitz, director of Pew’s Housing Policy Initiative, the availability of mortgage credit tightened dramatically during the Great Recession and has never recovered. This means that fewer people are eligible for housing.
The lack of housing has also led to record numbers of renters spending an outsized share of their income on housing, according to a Harvard University analysis. Affordable housing is generally defined as housing where the resident pays no more than 30% of gross income for housing costs, including utilities. Rents have risen rapidly, by about 30% since 2017 in the US, with average rents now around $1,400 per month. An increasing share of Americans say the availability of affordable housing is a major problem in their local community.
Preliminary results from a Marshall County Housing Gap Analysis show a shortage of 1,300 homes. The local research is conducted by Michael Fortunato of Creative Insight Community Development and is funded by an Indiana Health Department grant to United Way of Marshall County. Fortunato’s report shows that a significant number of people over 50 are aging and are therefore holding on to the housing supply. Although first-time homebuyers are typically between 30 and 50 years old, current barriers to homeownership are putting greater pressure on this age group’s need for rental housing. And finally, Marshall County is unique in that a greater number of people age 30 and younger are choosing to stay local. That’s great news for the workforce, but also contributes to a greater need for rental housing. Fortunato goes on to say that Marshall County’s greatest asset is that community leaders are working together to be proactive on these issues.
The Marshall County Stellar designation in 2019 brought several housing projects to Marshall County, including Riverside Commons in Plymouth and LaPaz. These projects and a similar project in Culver called The Paddocks received rental housing tax credits (RHTC) from the Indiana Housing and Community Development Authority (IHCDA). The sale of the tax credits reduces project costs, allowing for lower rents. Rents for tenants are determined by the IHCDA based on household income as a percentage of the median income in Marshall County.
Thanks to the Stellar designation and with support from the Indiana Health Department, Marshall County leaders were invited to the 2023 IHCDA Housing Institute to address critical housing needs in Plymouth. Only five communities in Indiana received the invitation for intensive training to help community partners navigate the complex process of developing affordable housing and reducing the time it takes to obtain financing. Members of the local team include representatives from Bowen Center, Bradley Company, City of Plymouth, Easterday Construction, Garden Court, SRKM Architecture and United Way of Marshall County.
Over the past 18 months, the team has examined thirteen properties to best match the criteria of the IHCDA program. In July, the Plymouth Planning Commission and City Council will consider repurposing a property on Berkley Street. The project would bring approximately $11 million in outside, private investment and $2.5 million in state funds, for a total of more than $13 million to Plymouth for 36 rental units in 4 buildings. No money is being requested from the city of Plymouth for the development of this project. This property remains on the tax roll and sales tax will be paid on the construction of this project. The current Plymouth ratio of rental property tax credit units per 100 rental units is 8.4; well below the state average of 13.2.
The proposed site is an amenity-rich location near a grocery store, pharmacy, faith-based childcare and school facilities, including the Marshall County Career Innovation Center, and parks and recreation areas.
“United Way’s ALICE reports show that 12% of our Marshall County residents live in poverty, but another 29% live paycheck to paycheck. Affordable housing and child care are major challenges for many residents, including a high percentage of single parents and senior households,” said Linda Yoder, United Way Executive Director. ALICE is defined as Asset Limited, Income Limited, Working Households. She noted that a single mother with four children and an income of $15 per hour or $31,200 per year would qualify for a 40% unit, meaning she would pay a maximum of $902 per month for a unit with three bedrooms, including utilities.
Mayor Robert Listenberger stated that the lack of affordable housing is a barrier to economic growth. “Our community needs housing for people in the service sector. We need housing for hospital staff and first-year teachers. This project is another step in solving the housing problems that need to be addressed.”
The Plymouth Planning Commission will consider the zoning request on Tuesday, July 9 at 7 p.m. Plymouth City Council will review the Planning Commission’s recommendation on Monday, July 22 at 6:30 p.m.
