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Issues and Opportunities Assessed Building Value
Downtown Nashua ie GED $2,500-$142,100

GQ $142,:001 - $161,800

DOWNTOWN AREA NEIGHBORHOODS HAVE | Ge GOey _-seEEE s161.01 S180
POCKETS OF BUILDINGS WITH LOW / Se i 4 re a ll = ey at GD $183,001 - $215,000
ASSESSED VALUES. th, oi ORE em ove sso

The assessed value of a building can be a good
indicator for understanding the quality of the
structure and whether upgrades to the interior or
exterior have taken place. According to the City’s
Assessor Database, 73% of all residential
structures in the Downtown area have building
value of less than $200,000. Across the city, 57%
of residential structures have a building value of
less than $200,000.

The lower assessed values in the Downtown area
are likely attributable to the older structures
discussed on the previous page and that a large
majority of the properties are investor-owned
rentals. Households in the Downtown area also
have lower incomes which can make it more
challenging to invest in a home or property to
make necessary upgrades. The City should
prioritize housing rehab funds to help owners
and/or landlords with property maintenance and
upkeep.

Nashua Housing Study - 49 on ASSOCIATES INC

Issues and Opportunities

MLS Sales 2010-2019
Downtown Nashua

GED $22,000-$150,590

$150,591 - $202,400

NEARLY ALL SALES IN THE DOWNTOWN
AREA ARE BELOW THE CITY'S MEDIAN.

Nashua’s city-wide median sale price for an
owner-occupied unit was $321,198. In 2019,
80% of sales in the Downtown area were less
than the city-wide median. Over the last 10
years, 93% of sales were less than that city-
wide median.

$202,401 - $243,732

$243,733 - $285,498

GOD over $285,498

The combination of an older housing stock,
smaller units, units that have not been
upgraded to meet the desires of today's buyer,
and a consumer population that requires lower
priced housing are all contributing to the lower
sales prices in this area. Over the last nine
years, single-family homes sold in the
Downtown area have sold for an average of
$218,000 while multi-family structures sold for
an average of $242,000. The fact that multi-
family structures are not selling for
considerably higher values than single-family
may speak to the condition and age of those
properties and how they have been maintained
over time. This also matches up with the
findings of the assessed value of buildings
map on the previous page.

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Nashua Housing Study - 50 " ASSOCIATES INC

Issues and Opportunities

Downtown Nashua

ESTIMATING REHABILITATION NEEDS CITYWIDE.

The City of Nashua offers an annual Home Improvement Program (HIP) and a Rental
Rehab Program funded through the City’s Community Development Block Group
(CDBG) funds. The City makes loans under these programs to improve older inner-
city neighborhoods and preserve the supply of housing. Loans are available to
owner-occupants of 1-4-unit buildings and investors who own buildings of 1-8 units
who also meet the income restrictions of being at or below 80% of AMI (or their
tenants must meet these requirements).

The loan is offered at 0% interest and the principal is repaid when the property is
sold or transferred. Investors must contribute 10% of the total contract costs for
rental rehab. Funding for the loan program is available on a first come, first served
basis until the money is committed. Over the last four years of the program, the City
was able to fund between 4 and 13 loans with total CBDG funds between $46,855
and $121,297 per year.

Funds can be used for a wide range of housing rehabilitation projects such as:
* Roof repair
¢ Plumbing/Bathrooms
* Kitchen repairs
* Doors
* Windows
* Electric
* Lead abatement
¢ Heating
* Accessibility improvements
¢ Exterior improvements

Nashua Housing Study - 51

Nashua Housing Improvement Program
Summary 2017-2019

Source: City of Nashua, RKG Associates

Program No. of CDBG
Year Units Allocations
2016 13 $110,958
2017 4 $46,855
2018 7 $111,388
2019 10 $121,297
Total 34 $219,692

Nashua Housing Improvement Program
Funding by Year Built of Structure

Source: City of Nashua, RKG Associates

No.of CDBG Avg Funds

Year Built Units Allocations Per Unit
Pre-1930 18 $207,264 $11,514
1930 - 1960 7 $107,718 $15,388
1961 - 1979 6 $49,266 $8,211
1980 - Present 3 $26,250 $8,750
Total 34 $390,498 $11,485

RKG

ASSOCIATES INC

Issues and Opportunities

Downtown Nashua

ESTIMATING REHABILIATION NEEDS CITYWIDE.

Identify All Residential Parcels Using City
As part of this Housing Study, the City asked RKG Associates to Assessment Use Codes
develop an order of magnitude estimate of rehabilitation needs for
housing across the city. This estimate would help the City understand / .
the potential rehabilitation needs and how programs and funding Isolate Residential Structures with Unit
could potentially be adjusted or augmented to meet future needs. Counts Between 1- and 4-Units
\ /

Process for Identifying Rehab Needs

To address this question, RKG created a multi-step approach which is
outlined in the graphic to the right. Using the City’s current HIP funding (- | dential d »
criteria and applying some factors of our own to relate age of structure Isolate Residential Structures Constructe

and value to potential need, RKG developed a potential estimate of | Before 1979 to Account for Lead Abatement )
rehab funding citywide. To better understand how assessed value
could be used as an indicator for rehab needs, RKG calculated the (-
average assessed value for all qualifying properties (12,755) and used lsolate Residential Structures with a Total
a cut off of two standard deviations from the average. Any qualifying Assessed Value Two Standard Deviations
property with a total assessed value below $159,196 was identifying | Below the Average for the City J
as a candidate property. This exercise left us with 125 properties city-
wide. r ~\
Apply an Average Rehab Cost to All Identified

If we assume each qualifying property may require an average of Structures Meeting Above Criteria to
$10,000 in rehab funding, that create a potential funding need of $1.25 | Understand Total Potential Rehab Needs J
million. If we used one standard deviation from the average and a J
threshold of $214,754 that would qualify 1,200 properties creating a
potential funding need of $12 million. The total funding need could be Average Value $270,311
higher or lower depending on the needs of individual properties across
the city. RKG did not have the information to determine whether Standard Dev. $55,558
current owners would meet the 80% of AMI threshold nor if the 2 STDs from Avg $111,115
properties were currently owner-occupied.

Est. Value for Needing Rehab $159,196

RKG

Nashua Housing Study - 52 ASSOCIATES INC

14. CONFIRMATION OF MAYOR'S APPOINTMENTS
UNFINISHED BUSINESS — RESOLUTIONS

R-16-002
Endorsers: Alderman Richard A. Dowd
Alderman Benjamin M. Clemons
Alderwoman Mary Ann Melizzi-Golja

Alderman Tom Lopez
APPROVING THE COST ITEMS OF A COLLECTIVE BARGAINING AGREEMENT BETWEEN

THE NASHUA BOARD OF EDUCATION AND THE NASHUA TEACHERS’ UNION, LOCAL 1044,
AFT, AFL-CIO, UNIT B PARA-EDUCATORS FROM JULY 1, 2015 THROUGH JUNE 30, 2017
AND AUTHORIZING RELATED TRANSFERS

e Budget Review Committee Recommends: Final Passage

R-16-003
Endorsers: Alderman Richard A. Dowd
Alderman Benjamin M. Clemons
Alderwoman Mary Ann Melizzi-Golja
Alderman Tom Lopez
APPROVING THE COST ITEMS OF A COLLECTIVE BARGAINING AGREEMENT BETWEEN
THE NASHUA BOARD OF EDUCATION AND THE NASHUA TEACHERS’ UNION, LOCAL 1044,
AFT, AFL-CIO, UNIT D, FOOD SERVICE WORKERS FROM SEPTEMBER 1, 2015 THROUGH

AUGUST 31, 2018
e Budget Review Committee Recommends: Final Passage

R-16-004
Endorsers: Mayor Jim Donchess
Alderman Richard A. Dowd
Alderwoman Mary Ann Melizzi-Golja
Alderman June M. Caron
Alderman-at-Large Michael B. O’Brien, Sr.
RELATIVE TO THE APPROPRIATION OF $9,282 FROM ACCOUNT #107-51 “CITY CLERK —
SALARIES & WAGES” INTO NEW ACCOUNT #107-71 “CITY CLERK — EQUIPMENT” FOR
THE PURCHASE OF A COLOR LASER PRINTER
e Budget Review Committee Recommends: Final Passage as Amended

R-16-005

Endorsers: Mayor Jim Donchess

Alderman-at-Large Lori Wilshire

Alderwoman Mary Ann Melizzi-Golja

Alderman June M. Caron

Alderman Benjamin M. Clemons

Alderman-at-Large Michael B. O’Brien, Sr.

Alderman Tom Lopez
RELATIVE TO THE ACCEPTANCE AND APPROPRIATION OF $25,000 FROM THE STATE
OF NEW HAMPSHIRE, DEPARTMENT OF SAFETY “STATE HOMELAND SECURITY GRANT
PROGRAM” INTO EMERGENCY MANAGEMENT GRANT ACTIVITY “2015 HOMELAND
SECURITY GRANT PROGRAM”
e Human Affairs Committee Recommends: Final Passage

Issues and Opportunities

Downtown Nashua

Rehab Parcel Map

HOUSING REHAB DOLLARS COULD BE
FOCUSED ON THE DOWNTOWN AREA.

GOED Rehab Potential

|
(
!
I
I
l
!
1
Under the assumption that 125 properties | & = i \
across the city would qualify for funding, RKG | Uf | “ef aekagt 2S ¥ Ce | a te A a= tie a ee
mapped the location of those properties and oo \T \
found that 106 (85%) fell within the Block {
Groups of the Downtown area. This is not i
surprising given the age of structures in the Vesey A Q — SS! . \
Downtown area and the corresponding ) | Park Aa | gu YM = oy bee hee __P Temple St \> 1 4

™ ~~ ~Canalist te

assessed values.

If the City were to focus rehab efforts on the
Downtown, it could help with property
stabilization and increase the safety and quality
of housing for residents. If we assume $10,000
in rehab funding per Downtown structure (106
in total), a $1.06M investment could go a long
way to helping improve Downtown housing.
Given the propensity of properties to be renter-
occupied, the HIP funding qualifications may
need to be adjusted to apply to investor-owned
properties as well.

The City’s continued efforts around lead
abatement can also be part of the rehabilitation
of older units as it is typical for older units to
contain lead paint that requires abatement.
Several of the City's target Census Tracts for
lead abatement align with the Downtown area.

ASSOCIATES INC

Nashua Housing Study - 53

Recommendations

RECOMMENDATIONS

RKG

Nashua Housing Study - 54 ASSOCIATES INC

ORGANIZATION OF RECOMMENDATIONS

The demographic and market conditions and the issue and opportunity area analyses pointed to several gaps in Nashua’s housing market,
delivery system, and financial resources. To address the housing demand gaps, affordability concerns, and stretched resources, this housing
plan presents recommendations that when used in combination will help address identified gaps. These recommendations include regulatory,
financing, programmatic, and partnership tools to encourage new investment in housing across Nashua. Recommendations have been
organized into four categories, each of which address a specific issue, outcome, or approach. For each recommendation there is an associated
time frame, an indicator for which key issue(s) it addresses, and a description of the recommendation and in some cases a real-world example

of how it has been implemented in other places.

PLANNING FOR SUCCESS

Utilize Master Plan, Land Use Policy, and Zoning to Address Housing
Choice, Affordability, and Location

¢ Continue to Integrate Accessory Dwelling Units

¢ Leverage Public Land for Housing

¢ Educate the Public on the Need for and Benefits of Housing

ALIGNING POLICIES AND HOUSING OUTCOMES

* Create an Affordable Housing Trust
¢ Update Inclusionary Zoning Regulations
¢ Phase in Rental Registry and Inspection Process

INVEST IN NEW AND EXPANDED HOUSING PROGRAMS

¢ Expand Rental and Owner Rehab Programs
¢ Reintroduce First Time Homebuyer Program

Nashua Housing Study - 55

EXPANDING PARNTERSHIPS

Leveraging Capital from Housing Partners
¢ Continue the Partnership with the Housing Authority
¢ Right of First Refusal Policy

¢ Working with Employers to Identify Opportunities to Partner on

Employer Assisted Housing

RKG

ASSOCIATES INC

MATRIX KEY:

This matrix shows the
recommendations organized by
topic area and the issues each
recommendation addresses.
The colored circles associated
with each issue or opportunity
area are are used throughout
the recommendations section
to identify which areas are being
addressed.

Nashua Housing Study - 56

ISSUE or OPPORTUNITY AREA

RECOMMENDATIONS SURCES OF
© ACCOMMODATING RESOURCES OF DOWNTOWN
FUTURE GROWTH HOMEOWNERS NASHUA
AND RENTERS
PLANNING FOR SUCCESS
Utilize Master Plan, Land Use Policy, and Zoning to Address Housing X X X
Choice, Affordability, and Location
Continue to Integrate Accessory Dwelling Units X X
Leverage Public Land for Housing X xX
Educate the Public on the Need for and Benefits of Housing X
ALIGNING POLICIES AND HOUSING OUTCOMES
Create an Affordable Housing Trust X X
Update Inclusionary Zoning Regulations X X X
Phase in Rental Registry and Inspection Process X
INVEST IN NEW AND EXPANDED HOUSING PROGRAMS
Expand Rental and Owner Rehab Programs X X
Reintroduce First Time Homebuyer Program X X X
EXPANDING PARNTERSHIPS
Leveraging Capital from Housing Partners X X X
Continue the Partnership with the Housing Authority X X
Right of First Refusal Policy X
Working with Employers to Identify Opportunities to Partner on Employer X X X
Assisted Housing

Recommendations

RECOMMENDATIONS
LEVERAGING GROWTH TO EXPAND HOUSING CHOICE

RKG

Nashua Housing Study - 57