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Special Board of Aldermen 04-08-2021 Page 6

Chairman Dowd
Are there any questions on what was presented by the Aldermen? Alderman Wilshire?
President Wilshire

Thank you. Through you, Mr. Chair, to Director Marchant. In your Memo to the Board in January, you
talked about a termination fee. Is that something, if it is not extended could go into that fund.

Director Marchant

Yes that’s a great question. So just to give a little bit more context, the agreement with Clock Tower goes
through 2027. At the end of that time there is a $1.3 million dollar payment due to the fund with an
extension clause. The key about the extension clause is that we may extend it to make sure that we are
preserving the 29 units of affordable housing that exist through this grant agreement. So that payment
could go to this fund or the City could renegotiate it that only a portion of the payment goes to the City and
the rest goes to supporting those 29 units staying affordable going forward. But certainly, that is up for
discussion.

President Wilshire

Thank you.

Alderman Dowd

Any other questions from the Aldermen? Alderman Klee?

Alderman Klee

Thank you, Mr. Chairman. It’s not so much a question it is just kind of a comment. | can tell you from the
State’s perspective as well as from the City’s perspective how incredibly important it is to have this
affordable housing in general. But to be able to set up a Trust Fund, and | agree with what was said about a
baby growing and so on, and | think we need to start somewhere. It’s too small at the beginning to really
make a big difference, is that correct Director Marchant?

Director Marchant

It is not intended to be used immediately; it is intended to be used as an investment for the future.
Alderman Klee

So the key here is to get it started and get it moved and make it available so if there are grants and so on,
is that what the whole goal is, as you said “other revenue sources”. | just want to clarify that, so you are
talking about things like that nature?

Director Marchant

The goal is to find additional revenue sources that can sustain this fund and grow this fund over time so it
can be used most appropriately going forward.

Alderman Klee

Thank you Mr. Chairman and thank you Director Marchant, | appreciate it.

Special Board of Aldermen 04-08-2021 Page 7
Alderman Dowd
Any other Aldermen with a question? Seeing none, I'll go right into the Public Hearing.

PUBLIC HEARING

R-21-118 ESTABLISHING A HOUSING EXPENDABLE TRUST FUND FUNDED BY APPROPRIATIONS
AND MAKING A SUPPLEMENTAL APPROPRIATION OF $30,000 INTO THE EXPENDABLE
TRUST FUND

TESTIMONY IN FAVOR

Aron Dibacco Yes, can you hear me?
Chairman Dowd

Thank you.

Ms. Dibacco | am Aron Dibacco, | work with GSOP supporting the Nashua Area Chapter. | want to thank the
Mayor for acknowledging that this has been ongoing conversation and sometimes quite vigorous. This is a
really important issue; we are excited to see the City moving in this direction and we look forward to adding
conversations about how to get the financial support that the fund needs to meet the need that Director
Marchant so clearly just talked about. Thank you.

Chairman Dowd

Alright, thank you very much. Anyone else speaking in favor? Mr. Keating, you’re on mute. Name and
address for the record.

Bob Keating The name is Bob Keating, | am from 5 Colburn Woods. | want to echo the remarks of Aron
Dibacco | am very pleased about this initial step. So | thank the Mayor and the vast majority of the Aldermen
who have endorsed this; | appreciate the efforts from Director Marchant for this. | think this is a very exciting
first step here and following the remarks of another advocate that Director Marchant has referenced, | think that
often we say that the Devil is in the Details and | want to go to the baby. | think that we’ve made the initial
endorsement here in terms of a baby shower and we are looking to fund for the child’s future and | think the
number of possibilities from this in terms of developers being a very potential area to look at is an exciting
possibility on this. So | just think this is a very good start and that it does reflect, which | have always felt that
there was a very, very strong endorsement by this Board and the Mayor to say that we do want to move this in
terms of the people who are most stressed by the cost of housing. Those are the people in the 30 and 50% and
below in terms of the area median income. So thank you for the steps. | look forward to mechanisms which
would allow continuing dialogue from the community into being able to shape this Trust Fund. So thanks again
for this step.

Chairman Dowd

Thank you. Would the Clerk please note that we have been joined by Alderman Schmidt and Alderman
O’Brien. OK is there anyone else who would like to speak in favor? Reverend Woodward, you are on mute.

Reverend Woodward | live at 36 Hampton Drive here in Nashua. | have been connected with an organization
called Family Promise for probably close to 20 years who now are in the City of Nashua at the Church out on
East Hollis Street. There’s a wonderful thing that they do is to teach people how to manage money and
prepare themselves for the challenge of finding housing when they have lost their housing and have to live ina
facility that provides an adequate, basic life program for them while they make that transition. And | think this
fund would also be helpful to other agencies that provide housing resources to individuals in the community.
And that’s my words for you.

Special Board of Aldermen 04-08-2021 Page 8

Chairman Dowd

Thank you very much. Is there anyone else that would like to speak in favor of this Resolution? Seeing no one
else, Testimony in Opposition to R-21-1187

TESTIMONY IN OPPOSITION - None

TESTIMONY IN FAVOR - None

TESTIMONY IN OPPOSITION - None

Chairman Dowd closed the public hearing on R-21-118 at 7:27 p.m.
ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN THAT THE APRIL 8, 2021, SPECIAL MEETING OF THE BOARD OF
ALDERMEN BE ADJOURNED BY ROLL CALL

A viva voce roll call was taken to adjourn the Board of Aldermen meeting which resulted as follows:
Yea: Alderman O’Brien, Alderman Klee, Alderwoman Kelly, Alderman Dowd,

Alderman Caron, Alderman Clemons, Alderman Tencza,

Alderwoman Lu, Alderman Jette, Alderman Schmidt,

Alderman Cleaver, Alderman Wilshire
Nay: 0
MOTION CARRIED

The meeting was declared adjourned at 7:29 p.m.

Attest: Susan K. Lovering, City Clerk

HOUSING TRUST FUND R-21-118

Sarah Marchant, AICP
Community Development Division Director

Community Development Department

Aati Nashua

Income

Median Household Income
Source: ACS 2018

Median HH Income
GED S0 - $44,000
GED 344.001 - $71,000
GED $71,001 - $96,500

GERD $96,501 - $157,000

ASSOCIATES INC

Median Household Income by Race/Ethnicity
Source: ACS 2018

$100,000
$92,004 2018 Income
$90,000
$81,552
$80,000
$70,000
$60,000
$50,000
$40,000 $34,511 $33,275
$30,000
$20,000
$10,000

$0
White Alone Black or African Asian Hispanic or Latino
American

MEDIAN HOUSEHOLD INCOME OF WHITE
HOUSEHOLDS IS 2.4 TIMES HIGHER THAN BLACK,
HISPANIC AND LATINO HOUSEHOLDS.

Accommodating Future Growth

2030 Projections if 2018 Household

Composition Held Constant
Source: EMSI, ACS 2013, 2018, RKG Associates

HH Size

1-person
2-person
3-person
4-person
5-or-more person
Total

HHs

1,446
1,648
723
604
348
4,769

% of Total

30.3%
34.6%
15.2%
12.7%
7.3%
100%

2030 Projections if Trends Continued
Based on Changes from 2013-2018

Source: EMSI, ACS 2013, 2018, RKG Associates

HH Size HHs
1-person 1,710
2-person 3,148
3-person -329
4-person 199

5-or-more person 42
Total 4,769

% of Total

35.9%
66.0%
-6.9%
4.2%
0.9%
100%

If current breakdown of owner and renter households continues, City will need a mix of

ownership and rental housing

If recent trends continue, City will need to focus more on the creation of rental housing
and smaller units

Given low vacancy rates in both owner and renter markets, there is room for growth in

both segments

City must also consider a percentage of new employees will want to live in Nashua as

well

ASSOCIATES INC

Household Composition

Change in
Households
2013-2018

Source: ACS 2013,
2018

Households by
Size and Tenure
2013-2018

Source: ACS 2013, 2018

Households by
Age of Householder
2013-2018

Source: ACS 2013, 2018

HOUSEHOLDS ARE INCREASING AT A FASTER RATE
THAN THE POPULATION.

HOUSEHOLD GROWTH OUTPACING POPULATION
GROWTH.

¢ Nashua added just under 1,500 new households over the five-

year period

* Householders living alone accounted for 37% of that growth

Growth driven by 1- and 2-person households.
* One- and two-person renter households increased by 12% and 22%,

respectively

Older Residents are dominating Nashua’s households.
*« Households headed by a resident 65 years or older are driving much of the population and

household change in Nashua

¢ The largest increases were in married-couple households and householders living alone

ASSOCIATES INC

Financial Resources of Homebuyers and Renters

THE MARKET FOR AFFORDABLE
RENTAL UNITS IS TIGHT AT THE LOW

END OF THE INCOME SPECTURM.
For households at or below 30% of AMI,

there are 2,943 more households than
available affordably priced units

¢ The gap between demand and supply for
households above 100% AMI is 3,168
units

¢ The lack of higher priced rental units in
Nashua puts downward pressure on the
supply of housing priced for lower income
households

Housing Units

7,000

6,000

5,000

Pp
°
°o
°o

Y
°
°
°o

2,000

1,000

ASSOCIATES INC

Affordable Rental Supply and Demand, City of Nashua

Source: HUD 2020, ACS 2018, RKG Associates

6,276
5,280 5,334
3,221
3,017
2,517
1337 2,278 408
218 157
19
=
30% AMI 50% AMI 80% AMI 100% AMI 120% AMI Above 120%
AMI

mw Renter Households Units Affordable at AMI

Housing Stock Residential Type by Units in Structure AAG
Source: City of Nashua

SINGLE-FAMILY HOUSING
UTILIZES A LARGE PERCENTAGE
OF NASHUA'S LAND.

Residential Land Area to
Unit Count Comparison

ff fg \
Units in Structure

Source: City of Nashua Assessor Database,
RKG Associates _
-Unl
% of % of 2- Units
Structure Type Land Area_ Res. Units a aera
4-Unit 63% 50% .

4-9 Units
2-Unit 3% 10% GED 10 -20Units
3-Unit 1% 3% GED 21-50 Units
4-9 Unit 1% 8% 51 - 100 Units
10-20 Unit 0.2% 2% GD 101+ Units
21-50 Unit 0.5% 3% oe Mrecle

Manu. Homes
51-100 Unit 1% 2%

GD Housing Auth.
1 o, o,
100+ Unit 4% 18% GED Nursing Home
Mixed-Use 0.03% 0.5% Other
Manufactured Housing 4% 0.04%
Housing Authority 0.5% 1%
Nursing Home 1% 2%

Other 22% 1%

Rents

RENTS ARE RAPIDLY
INCREASING
IN NASHUA.

¢ Median Gross Rent increased
19% from 2013-2018

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2018:
Median Gross Rent

$1,287 per Month

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

ASSOCIATES INC

Change in Gross Rent 2013-2018

Source: ACS 2013 and 2018

Less than$500 $500-999 $1,000 - $1,499$1,500 - $1,999 $2,000 or
Greater

@2013 2018

Over the last five years, rents in the $1,500 to $1,999
range increased by 136%

There was also a 33% increase in rental units
charging greater than $2,000 per month