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Issues and Opportunities rt
Financial Resources of Homebuyers and Renters

ASSOCIATES INC

Housing Affordability for Nashua Households, 2018

Source: HUD 2020, ACS 2018, RKG Associates

ACCESS TO QUALITY AFFORDABLE HOUSING IS CRITICAL. Affordable Affordable

In Nashua, about 35% of households earn less than 50% . Households
of the area median income (AMI). These households Area Median Income Threshold Income Monthly Home Purchase
often experience housing instability, may rely on housing % # Rent Price
assistance, and are typically spending more on housing
as a percentage of their overall income. 30% AMI (Extremely Low Income) $30,000 7,289 20% $750 $99,430
The Nashua Housing and Redevelopment Authority 0 0
owns and operates 662 units of subsidized public 50% AMI (Very Low Income) $49,950 5466 15% $1,249 $165,551
housing, with 409 units designated for elderly/non- 80% AMI (Low Income) $70,650 4817 13% $1,766 $234,158
elderly disabled residents with incomes at or below
50% AMI. The housing authority also has 853 tenant- 100% AMI (Moderate Income) $99,900 6422 18% $2,498 $331,103
based vouchers under their jurisdiction.

120% AMI (Moderate Income) $105,975 807 2% $2,649 $351,237
The current waitlist suggests a great need for affordable ;
housing with 3,755 families on the waitlist for housing. Above 120% AMI (Middle Income +) $105,976+ 11,473 32% $2,650+ $351,238+
With an annual turnover of about 68 units a year, it
would take 55 years to accommodate all families on the
current waitlist. This does not include any new families The NHRA also maintains a waitlist for Section 8 vouchers which current holds a waitlist of 4,642 families. Annual
moving to Nashua, or those whose incomes fall into a turnover of vouchers is estimated at 45 families per year and at that rate would take over 100 years to accommodate all
qualifying AMI bracket over time. the families on the waitlist today. Of families on the waitlist, 90% have incomes below 30% of AMI with 99% below 50% of

; . ; AMI which reflects the programs income limitations to serve a majority of households at or below 30% of AMI.
According to waitlist data provided by the NHRA, the

greatest housing need is for 1- and 2-bedroom units, According to the City’s 2020 Consolidated Plan, the NHRA is in the process of planning a major redevelopment of the
comprising 89% of the waitlist requests. 78% of families Bronstein Apartments utilizing a combination of low-income housing tax credits, bond financing, and HUD Section 18. The
on the waitlist have incomes below 50% of AMI and are plan is to demolish 48 units of public housing and replace them with 204 newly constructed units of mixed-income rental
unlikely to find housing that matches their income on — housing. Seventy of the units will be affordable to extremely-low and low-income households. This is a much-needed

the open market in Nashua. This often results in families project as the NHRA has noted the current housing portfolio needs remodeling and renovation and current HUD Capital
ord more for housing than they can reasonably Fund monies are not nearly enough to address all the modernization needs the housing authority has.

afford.

Nashua Housing Study - 39

Issues and Opportunities
Financial Resources of Homebuyers and Renters

ASSOCIATES INC

Supply and Demand for Affordable Homeownership Units, City of Nashua

Source: HUD 2020, ACS 2018

THERE ARE MORE POTENTIAL BUYERS IN HIGHER INCOME BRACKETS 10,000
THAN THERE ARE HOUSING UNITS THAT MATCH THEIR PRICE POINTS.
For households earning at or below 30% of AMI, there are 769 9,000 8,956

more households than there are housing units. Only 10% of owner-
occupied units are valued at less than $99,430. Many of these

lower priced units may need rehabilitation or interior upgrades to 8,000
make the units livable and marketable to todays homebuyers. The
neighborhoods these units are in may also need attention from the 6,997
City for clean up efforts, code enforcement, and infrastructure 7,000
investments.
Units priced between 50-80% of AMI account for 34% of all owner » 01000
units, yet only 24% of owner households have incomes that fall =
within this grouping. There is a net surplus of 1,759 units indicating > 5.000
. . . . . , ec 4, 4,661
higher income households are likely buying down in Nashua’s 3 , A403
market since overall vacancy for homeowner units is extremely 38 ‘
low. 4,000
3,405
Households earning more than 100% of AMI account for 66% of all
owner households, with the supply of units priced to meet the 3,000
demand accounting for 61% of the units. There is a deficit of 990 2245 2,939
units for households above 100% AMI. This indicates a potential 2,009 1882
market for new higher priced housing that could ease the 2,000
competition for moderate income units. 1,240
1,000 589 560
a
30% AMI 50% AMI 80% AMI 100% AMI 120% AMI Above 120% AMI

mw Owner Households Units Affordable at AMI

Nashua Housing Study - 40

Issues and Opportunities

Financial Resources of Homebuyers and Renters

THE MARKET FOR AFFORDABLE RENTAL UNITS IS TIGHT AT THE
LOW END OF THE INCOME SPECTURM.

For extremely low-income renter households, the supply of
affordable and available units is tight. There are 2,943 more
households than available affordably priced units. Nearly
14% of occupied rental units have rents below $750 a
month, illustrating the degree to which some Nashua
residents rely on affordable housing that matches their
incomes.

Units priced between 50-80% of AMI account for 70% of all
rental units, while only 33% of renter households have
incomes corresponding to this price bracket. This creates a
surplus of 6,111 units that are likely rented by households
with lower incomes who are likely spending more than they
should on housing costs.

Renter households earning more than 100% of AMI account
for 34% of all households, but the supply of units at this price
point accounts for only 16% of the rental stock. The gap
between demand and supply for households above 100%
AML 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. Higher income households have
more choices in the housing market and are likely renting
units at a lower price point than they could otherwise afford.

Nashua Housing Study - 41

7,000

6,000

5,000

>
oO
oO
oO

Housing Units

Ww
oO
oO
oO

2,000

1,000

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
2337 2278 2,408
218 19
=
30% AMI 50% AMI 80% AMI 100% AMI 120% AMI
mg Renter Households Units Affordable at AMI

ASSOCIATES INC

2,917

157

Above 120%
AMI

Issues and Opportunities

Financial Resources of Homebuyers and Renters

ASSOCIATES INC

HOUSEHOLDS IN NASHUA. Source: ACS 2013, 2018

The increase in older householders (those over 65 years of age) is not only 1,000

leading to changes in total population, but it is also changing the income 919
dynamics in Nashua. Between 2013 and 2018 there were 526 additional
households headed by a person over the age of 65 that was also earning
over $100,000 a year. There were 919 additional households headed by a
person between 44 and 64 earning over $100,000 a year.

Households

800

These households, particularly the 65 and older households, are a rapidly

growing share of new renter households in Nashua. Between 2013 and 2018

there were 419 additional renter households and 522 owner households 600

headed by a person age 65 and older. With many of these new households 526
bringing incomes in excess of $100,000, it means they can afford housing at

a higher price point than many other households in Nashua. 437
If these new senior households choose to rent or purchase housing at their #00

level of affordability (30% of annual household income), they could afford

rents of $2,500 a month or more and purchase prices of $331,000 or more.

Households headed by residents ages 45-64 have even higher incomes, with

nearly 700 additional households earning $200,000+ annually. 200

At the same time, there has been a decrease in households headed by a

person 25-64 and earning less than $50,000 a year. Rising housing prices

plus an influx of higher income households could be creating pressure to 0

leave Nashua if housing is not readily available at prices affordable to lower- 10
income households. This may also be hurting the local economy as

residents in prime working years have to live further away and possible find

jobs elsewhere in the region.
-200

Under 25 25-44 45-64 Over 65

Nashua Housing Study - 42

Issues and Opportunities

ISSUE & OPPORTUNITY AREA 3
DOWNTOWN NASHUA

RKG

Nashua Housing Study - 43

Issues and Opportunities

Downtown Nashua

DEFINING THE DOWNTOWN AREA.

To identify the statistics relative to
Downtown Nashua and the surrounding
neighborhoods, RKG chose 20 Census Block
Groups that generally cover the area within
one-mile of Main Street in Downtown.

ASSOCIATES INC

Downtown Census Block Groups source: US Census, RKG Associates

These Block Groups also hold the highest f . V\ gm

" Canalis
concentrations of renter households, lower

household incomes, lower sales prices, and Mine Falls SS a
a wider diversity of housing types. Pat SN qh
The Downtown area is a unique part of aN ee

Nashua in that it is both a focus of Qt

reinvestment and redevelopment, but also Qe

has a lot of naturally occurring affordable
housing due to the age and condition of
many of the structures. Downtown is also an
area that could help ease some of the
housing pressures by adding higher density
housing here thereby preserving the single-
family development pattern of other
neighborhoods.

Roussel
Field

Lajoie
Field —

As the City considers how to steer
investment in Downtown, it is important to
recognize the impacts certain changes could
have on the existing population and the
range of housing currently in this area. The
following pages describe the unique
characteristics of the housing stock and
population within Downtown.

Nashua Housing Study - 44

Issues and Opportunities

Downtown Nashua

DOWNTOWN CONTAINS A DIVERSITY OF
HOUSING TYPES.

Downtown Nashua, like many downtowns within
larger cities, contains a mix of housing types in
buildings ranging from single-family homes to
small infill buildings with 4-9 units to larger
scale multi-family and mixed-use buildings.

The housing choices in the neighborhoods are a
mix of one-, two-, and three-unit structures but
the closer to Main Street you get density of
housing increases. Along Main Street north of
the Nashua River in the area along Amherst
Street there are pockets of buildings containing
anywhere from four to twenty units. The
neighborhood between Hollis and Kinsley
Streets just west of Main Street also offers
several different building types from single
family units to buildings with four to nine units.

There are a handful of buildings in the area that
have fifty units or more, including developments
like Clocktower Place and Lofts 34 along the
Nashua River, Riverfront Landing along the
Merrimack River, and Gatewood Manor along
Will Street.

Nashua Housing Study - 45

ASSOCIATES INC

Residential Building Types Source: Nashua Assessor Database

Mine Falls
Park

OOS
Lajoie
Field

Units in Structure

1-Unit GERD 21 50Units GBB Housing auth.
2- Units GPP 51-100 Units QP Nursing Home
GD 3- units GRD 101+ units Other
4-9 Units GED Vixed-use
GED 10-20unis ) Manu. Homes

Issues and Opportunities

Downtown Nashua Percent Renter Households, 2018 | source: acs 2018 % Renter Households
0% - 23%

RENTER HOUSEHOLDS ARE MORE ~~ 24% - 49%

PREVALENT DOWNTOWN THAN ‘| (fi. % , GED 50% - 74%
f v ne GED 75% - 95%

ELSEWHERE IN THE CITY.

As was noted earlier, the Downtown area has
the highest concentrations of renter
households of anywhere in the city. All but
six Block Groups have over 67% renter
households. There are six block groups along
the spines of Hollis Street and Main Street
that have over 85% renter households.

It is not atypical for downtown areas to have
much higher percentages of renter
households, and Nashua is no exception. The
important point is to recognize that some of
these Block Groups have some of the lowest
incomes in the city and investment in the
Downtown area could result in rising housing
prices which could inadvertently impact the
affordability of the area for these residents.
A balanced approach of investing in both
market rate and affordable housing solutions
could help to mitigate some of the
challenges these households face today and
into the future.

Nashua Housing Study - 46 ASSOCIATES INC

Issues and Opportunities

Downtown Nashua Median Household Income, 2018 | source: acs 2018

ASSOCIATES INC

Median HH Income

GED S0 - $44,000

MEDIAN INCOME IN THE DOWNTOWN IS — — si be
LOW COMPARED 10 THE REST OF THE | re OSHS
CITY.

As noted on the previous page, median es ee
household income in the Downtown area is

very low compared to many other parts of the
city. Fourteen out of the twenty Downtown
area Block Groups have median incomes of
less than $44,000. This is nearly $30,000 less
than the city-wide median. Downtown Nashua
also includes the poorest Census Tract in New
Hampshire.

Across the United States, renters tend to be in
the highest risk category for cost burdening,
displacement, and eviction particularly in the
economic situation we are in today. In Nashua,
the Downtown area is a prime example where
lower-income renter households may be at risk
for several of these factors if the affordability
of the housing stock is not maintained or
expanded over time. This speaks to a
balanced approach of adding both affordable
housing and market rate housing in
Downtown.

Nashua Housing Study - 47

Issues and Opportunities

Downtown Nashua

THE HOUSING STOCK IN DOWNTOWN IS
OLDER THAN ELSEWHERE IN THE CITY.

The Downtown area has a much higher
concentration of older residential structures than
anywhere else in Nashua. Over 62% of all
residential structures in the Downtown area were
constructed prior to 1930, and 73% were
constructed prior to 1950. This means 3 out of
every 4 residential structures in this area is more
than 70 years old.

There are 4,300 residential structures in the
selected Downtown area. Only 300 of those
structures were built after 1979, which is the
standard cut-off year for the utilization of lead
paint which can be a major health hazard
especially to young children. While there is no
way of knowing what mitigation has or has not
taken place in these structures, the City should
prioritize rehabilitation funds to address issues
and educate property owners.

It is also likely that properties in the Downtown
area have undergone some modernization over
time. For example, the year built for Clocktower
Place is shown as Pre-1930 but that building, and
its units have undergone substantial renovation
as it was converted from an old mill to multi-
family residential.

Nashua Housing Study - 48

Zl

Year Built

Year Built of Residential Buildings Source: Nashua Assessor Database ae P'e1980
) 1931-1961

1962 - 1970
) 1971-1983
GHD 1984-2019

Mine Falls
Park

Sy

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