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Board of Aldermen
February 23, 2016 Page 19

NEW BUSINESS — ORDINANCES

O-16-004
Endorser: Alderman Benjamin Clemons
Alderman-at-Large Michael B. O’Brien
Alderman Thomas Lopez
Alderman Richard A. Dowd
Alderman-at-Large Brian S. McCarthy
EXTENDING HOURS OF SALE OF ALCOHOLIC BEVERAGES BY ON-PREMISES LICENSEES
Given its first reading; assigned to the PERSONNEL/ADMINISTRATIVE AFFAIRS COMMITTEE by President
McCarthy

O-16-005
Endorser: Alderman David Schoneman
REMOVING THREE PARKING SPACES ON LOWELL STREET FROM THE PERMITTED OVERNIGHT
ON-STREET PARKING PROGRAM

Given its first reading; assigned to the COMMITTEE ON INFRASTRUCTURE by President McCarthy

PERIOD FOR GENERAL PUBLIC COMMENT - None

REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN

Alderman Moriarty

The difference between budgets, salary contracts and the number of employees, it’s actually sort of ironic and
somewhat counterproductive the way we want to do things. If you want to fight crime you feel like you want to
have a lot of police, you do want to have a lot of police if you want to fight crime. VWhen you have a contract
that you pass to have a high pay increase the contract isn’t to grow the number of policemen, what that
contract does is it makes each individual employee more expensive. You can argue whether or not you have a
limited amount of funds in a budget or not but let’s just assume that there is a limited amount of dollars to
spend on a budget, if you believe that there is a limited amount of dollars to spend then the number of
employees that you are able to hire actually goes up if the cost of each employee does not go up. Basically
you can either have more employees or more expensive employees but you can’t have more, more expensive
employees at the same time, the math doesn’t up. When you think you want to fight crime what you really
want is more police not more expensive police. The irony of passing a contract that creates more expensive
police; what you may find downstream maybe this year or the next year is that staff actually gets either
reduced or doesn’t grow so you actually have a harder time fighting crime. Think about that, that’s it.

Alderman LeBrun

In the absence of the Mayor, | would like to thank the Mayor for the breakfast at Nashua North on Friday. It
was very informative and there were many city officials there as well as state representatives.

Alderman Schoneman

| want to remind folks if they are interested that the City of Nashua is conducting an Emergency Preparedness
Training session on two consecutive Saturdays this coming Saturday, February 27" and the following on
March 5" from 8:30 a.m. to 4:30 p.m. and will be held in Ward 3 at the Gate City Church. It’s free and you can
find out information on the city website or the church’s website which is gatecitychurch.org.

Demographics & Housing Market Conditions

Income
Change in Household Income by Tenure 2013-2018
Source: ACS 2013, 2018

140%
120%
100%
80%

60%

40%

20% i
0% = — a —
-20% |

-40%
Less than $25,000 - $50,000 - $75,000 - $100,000 - $150,000 +
$25,000 $49,999 $74,999 $99,999 $149,999
m@ Owner Households Renter Households

NASHUA IS SEEING AN INCREASE IN INCOMES AMONG RENTER HOUSEHOLDS.

Nashua renter households have become increasingly wealthier with the highest
percentage growth taking place in households earning more than $150,000 per year.
Owner households on average have not experienced the same amount of growth in
incomes as renter households. The reason for this is because there are already four
times more owner households than renter households earning over $100,000 a year.
Across the United States, renter households tend to earn less than owner households.

Nashua Housing Study - 13

Median Household Income ASSOCIATES INC
Source: ACS 2018

(— "Median HH Income
GED $0 - $44,000
GED 344,001 - $71,000
GED 871,001 - $96,500

L GED $96,501 - $757,000

The lowest median household incomes in Nashua are
concentrated in the block groups in and around the
Downtown area. This also correlates to where the oldest
housing stock is located and where most renters are living
in Nashua.

Demographics & Housing Market Conditions

Employment and Wages

Top Ten Largest Employment Sectors 2019

Source: EMSI 2020

Industry Sector 2020 Jobs 2020 Avg. Earning
Health Care and Social Assistance 12,207 $73,141
Manufacturing 10,572 $128,334
Retail Trade 9,772 $41,579
Government 5,104 $76,530
Accommodation and Food Services 4,577 $25,100
Professional, Scientific, and Technical 3,759 $121,513
Services
Administrative and Support and Waste
Management and Remediation Services ole $59,651
Other Services (except Public
Administration) 2,719 $35,978
Educational Services 2,301 $60,866
Construction 1,986 $71,689

Top Ten Employment Growth Sectors
Source: EMS! 2020-2029

Industry Sector 2029 Jobs 2020 Avg. Earning

Health Care and Social Assistance +1,671 $73,141
Educational Services +411 $60,866
Accommodation and Food Services +213 $25,100
Administrative and Support and Waste

Management and Remediation Services +179 $59,651
Other Services (except Public

Administration) #120 oe
Arts, Entertainment, and Recreation +46 $24,732
Construction +15 $71,689
Unclassified Industry +10 $56,502
Agriculture, Forestry, Fishing and Hunting +6 $29,927
Government +6 $76,530

Nashua Housing Study - 14

ASSOCIATES INC

What Can Different Jobs/Earnings Afford in Nashua?

Source: EMSI 2020, HUD, RKG Associates

Earnings Chart

$135,000
Manufacturing
$425,000 Home = >——
§3,208 Rent $120,000
Prof/Tech/Science
$105,000 $403,000 Home
Government $3,037 Rent
$253,000 Home
$1,913 Rent $90,000 Healthcare
$242,000 Home
Construction $1,829 Rent
$238,000 Home = = ->——
$1,792 Rent Educational Services
$60,000 $201,000 Home
Admin Support Serv, $1,522 Rent
$198,000 Home
$1,491 Rent $45,000 Retail
$138,000 Home
$1,039 Rent
$30,000
Other Services
$119,000 Home
Accommodation/ $15,000 $900 Rent
Food Services r..~CO~S
$83,000 Home
$628 Rent

LOWEST PAYING JOBS IN NASHUA CANNOT AFFORD RENT OR HOME PURCHASE AT NASHUA’S MEDIAN PRICES.

With a median gross rent of $1,287/month and a median home value of $278,400, 31% of
employees in Nashua’s top ten largest employment sectors can’t afford units at those
prices. These industry sectors are also projected to add employees through the year 2029.

Demographics & Housing Market Conditions

Housing Stock

NASHUA’S HOUSING STOCK IS CHANGING TO ACCOMMODATE GROWTH.

NASHUA IS ADDING HOUSING UNITS TO ACCOMMODATE ITS GROWING POPULATION.

Between 2013 and 2018, Nashua added an estimated 1,600 new housing
units to its overall stock. Much of that growth occurred in multi-family
structures with 20 - 80 units around the Downtown and Route 3 south
areas. At the same time, the City saw a loss of units in structures with 2-4
units which created a net increase of units closer to 990, or 3%, since 2013.

Nashua Housing Study - 15

ASSOCIATES INC

Units in Structure 2013 & 2018

Source: ACS 2013, 2018

20+
10-1 9 Unit

52%

2018

52%

2013

NASHUA’S HOUSING STOCK IS PREDOMINATELY SINGLE-FAMILY UNITS.

In 2018, 52% of Nashua’s housing stock was comprised of single-family
housing units. The City added just over 330 1-unit detached and
attached homes in the last five years. The City also added 1,335 units in
multi-family buildings of 5 or more units, with growth concentrated in
buildings of 5-9 units and 20+ units in size. This includes 115 new units
of affordable housing.

Demographics & Housing Market Conditions

Housing Stock

SINGLE-FAMILY HOUSING UTILIZES A LARGE PERCENTAGE

OF NASHUA’S LAND.

Single-family housing comprises 50%
of Nashua’s housing stock but
comprises 63% of the city’s residential
land acreage. Single- and two-family
structures together comprise 66% of
the city’s residential land acreage.
Conversely, residential units in
buildings with 50 or more units
comprise 20% of the city’s housing
stock but only utilize 5% of the city’s
residential land acreage. Since much
of the larger-scale multi-family
housing developments have been
constructed on larger parcels at the
edges of Nashua (see red parcels on
map), land consumption of similar
projects in the Downtown area would
likely have an even higher ratio of land
area to units.

If the City is looking to create more
housing opportunities to accommodate
future population and employment
growth, multi-family and mixed-use
development utilizes less land area per
unit than any other housing typology.

Nashua Housing Study - 16

Residential Land Area to

Unit Count Comparison
Source: City of Nashua Assessor Database,

RKG Associates

Structure % of % of
Type Land Area ___ Res. Units
1-Unit 63% 50%
2-Unit 3% 10%
3-Unit 1% 3%
4-9 Unit 1% 8%
10-20 Unit 0.2% 2%
21-50 Unit 0.5% 3%
51-100 Unit 1% 2%
100+ Unit 4% 18%
Mixed-Use 0.03% 0.5%
Nousing A% 0.04%
pow ose
Nursing Home 1% 2%
Other 22% 1%

Residential Type by Units in Structure

Source: City of Nashua

Units in Structure

1-Unit
2- Units
™® 3-Units

4-9 Units
GERD 10-20 Units
GD 21 -50units

51 - 100 Units
GD 101+ Units
GD Mixed-Use

Manu. Homes
GD Housing Auth.
GED Nursing Home

Other

ASSOCIATES INC

Demographics & Housing Market Conditions

Housing Stock

SIXTY PERCENT OF NASHUA’S HOUSING WAS BUILT BEFORE 1970.

Nashua, like most New England

cities, began its development history . . . .
around water and transportation in Residential Units by Year Built

what is today Downtown Nashua Source: City of Nashua Assessor Database, RKG Associates
with many structures dating to the

Year Built of Structure source: City of Nashua ASSOCIATES INC

downtown section of Nashua

contains the largest diversity of Pre-1930 9,505 28%

housing types from single-family, 1931 - 1961 4,584 13% Vem bak
smaller multi-family infill buildings, to

large 50+ unit multi-family buildings. 1962 — 1970 6,518 19% ae 9121950
ne Nashville Historic District is 1971 - 1983 6,222 18% 1931 - 1961
ocated just north of Downtown, sone 4058
beginning in the early 1800's and 1984 - 2019 7,189 21%

expanding considerably in the 1840's Je: Tees
and 50’s as housing was needed to GED 1984-2019

support the growing textile mills.

Residential growth in Nashua occurred in waves radiating out in rings from the downtown
core. As development expanded outward, the development pattern became more suburban
with single-family home subdivisions on larger lots compared to the historic core.
Development after 1970 is most representative of this pattern with larger neighborhoods and
subdivisions planned and built leapfrogging Route 3 to the west.

Since 2010, 70% of all housing units added in Nashua were part of a multi-family apartment
development bringing in close to 1,000 new units in the last ten years. These new projects
have been locating around Downtown and in the southern part of the city along Route 3 in
buildings ranging from 20 units to 88 units in size. As much of Nashua’s land area is already
utilized; the focus on downtown, the TOD overlay districts, and strategic infill is not surprising.

Nashua Housing Study - 17

Demographics & Housing Market Conditions

Housing Tenure

ASSOCIATES INC

Housing Tenure 2018 Change in Households by Tenure and Size 2013 - 2018
Source: ACS 2018, 2010 Census Source: ACS 2013, 2018
4% Owner- oe
e 60%
O Occupied
40%
22%
20% 12% 9
Oo, Renter “% We ox
e 0% = 7 = =
0 Occupied “4% LJ 4% 4%
-20% -13%
-40%

THE SHARE OF OWNERSHIP HOUSING IN NASHUA HAS BEEN DECLINING,
BUT VERY SLOWLY. -60%

As more ental housing hasbeen bul or oxership units screen, SRG, RGR, RRER, Someige
converted to rental, the overall percentage of owner-

occupied housing has declined. Since 2013, the percentage m Owner Household Renter Household

of housing in Nashua that is renter-occupied increased by

12%. SINGLE PERSON AND 2-AND 3-PERSON HOUSEHOLDS ARE DRIVING CHANGES.

The number of 1- and 2-person renter households increased by 12% and 22%, respectively over the
last five years. On average, owner households are declining especially 3-person households which
have declined by 13%.

Nashua Housing Study - 18

Demographics & Housing Market Conditions

Percent of Renter Households source: acs 2018 1M
Housing Stock

BLOCK GROUPS WITH HIGHER PERCENTAGES OF
RENTERS ALSO HAVE LOWER MEDIAN INCOMES.

Block groups in Nashua where renter households comprise 75%
or more of all households have an average median income of
$31,400 which is less than half the City’s median of $73,000.
Several block groups have median incomes of just over $20,000
which is below the federal poverty line of $26,200.

% Renter Households
0% - 23%
. . . . . oa 24% - 49%
As housing prices, including rent rates, continue to climb in
Nashua; many renter households in these block groups will have
a more difficult time finding housing that is affordable and
attainable. These block groups also have some of the higher
concentrations of residents of color in Nashua.

D 50% - 74%

GD 75% - 95%

we

Households earning between $20,000 and $34,000 a year can
afford rent prices in the range of $500-$875 a month. With a
median rent of $1,287, much of Nashua’s housing stock is out of
reach for these households without a significant boost in income
or subsidy for the unit.

Nashua Housing Study - 19

Demographics & Housing Market Conditions

Vacancy

ASSOCIATES INC

HOUSING VACANCY IN NASHUA IS EXTREMLY LOW. Vacant Housing Units by Category 2013 & 2018

In 2018, 3.1% of Nashua’s housing stock was Source: ACS 2013, 2018
classified as vacant. This was down from 4.2%
five years ago. Nashua’s vacancy rate (number
of units actively listed for rent or sale) was 1.1% 1,075
in 2018. A healthy vacancy rate for a community

is typically between 3% and 5%. 1,000

1,200

The inventory of vacant units that are for sale or
for rent is very low. In 2018, there were only 138
units listed as vacant for sale and 300 vacant
for rent. This is out of a total housing stock of
38,000 units. As population and employment
continue to increase in Nashua, the pressure on
the housing market will continue to grow and
likely keep vacancy levels low unless more
product is introduced. A400

800 757

733

600

Units

476
439

Approximately 45% of all vacant units are
classified as “vacant other” which refers to
units that are not available for rent or sale and
are off the market for different reasons. These
include undergoing substantial rehab,
uninhabitable units, foreclosure, among others. 0
Having 45% of vacant units classified as other Vacant Available Vacant Unavailable Vacant Other
vacant is not uncommon.

200

m2013 =2018

Nashua Housing Study - 20

Demographics & Housing Market Conditions

Home Values & Sales “
Ownership Units by Structure Type
Source: ACS 2018
90%
Ownership Units by Age of Structure m % of Units
Source: ACS 2018 80% 77%
. fe) 70%
Age Units % of Total
. ° 60%
Built 2000 or later 1,893 10%
Built Between 1980 and 1999 6,189 31% 50%
Built Between 1960 and 1979 7,108 36% 20%
Built 1959 or earlier 4,553 23%
30%
MOST OWNERSHIP UNITS WERE CONSTRUCTED BETWEEN 1960 AND 1999. 20%
In Nashua, 67% of all owner-occupied units were constructed
between 1960 and 1999. Nearly three-quarters of all owner- 10% 7%
occupied units are less than 60 years old. By New England 4% 2% 1% A% 19 A%
standards, Nashua’s housing stock is relatively new. One of the 0% |_| im = __ im __ mm
challenges is to address the housing constructed early, which 1-Unit 1-Unit 2-Unit | 39Units 10-19Units 20-49 Units 50orMore Mobile
tends to be concentrated in and around Downtown Nashua. One Detached Attached Units | Home Units
advantage in Nashua is that a focused effort on housing rehab
within neighborhoods with older housing could help preserve that
housing stock longer term, particularly where that housing stock OWNERSHIP UNITS ARE CONCENTRATED IN SMALLER STRUCTURES.
is supporting naturally occurring affordable units. Not surprisingly, a large majority (84%) of owner-occupied units are found in single unit

structures whether attached or detached. Taking both one- and two-unit structures
together that numbers jumps to 88% of all ownership units. Very few units are in structures
larger than ten units, which might indicate a larger condominium development. Nashua has
approximately 767 owner-occupied mobile home units, although that number has been
shrinking over time. This is another housing option that can provide an affordable housing
option for small households.

Nashua Housing Study - 21