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Special Board of Aldermen 04-08-2021 Page 4

Chairman Dowd

Yes.

Mayor Donchess

OK, so | will turn it over to Director Marchant to provide any additional information.
Chairman Dowd

Director Marchant.

Sarah Marchant, Director of Community Development

Thank you so much. If it is OK with you, I’d like to share my screen. | have just a couple slides to put up.
Chairman Dowd

Sure.

Director Marchant

Thank you. Tonight we are here to talk about the Housing Trust Fund as the Mayor has suggested. He
outlined the purposes of the fund. The Housing Trust Fund, this idea came about through the Housing
Study that Economic Development and Community Development partnered on last fall. It really highlighted
the incredible need for doing more to support housing and affordable housing in the City. So | was just
going to run through a couple of those stats because it has been awhile since we talked about. But by all
means, the full information is in the Housing Study which is available on the website if you want more
information.

First and foremost, the median household incomes of and I’m not sure why this isn’t full screen, | apologize.
Median household incomes in Nashua vary greatly depending on race and ethnicity. If you are White and
Asian household, median income that’s almost 2 % times higher than that of our Black, Hispanic, and
Latino populations. A really important thing about future growth and between now and 2030, we are
expected to need approximately 4,700 new housing units; that is the very conservative number. Who
needs those housing units? And the key thing is if we look at the left side of the screen, this would be
keeping todays or the 2018 household composition steady. You can see that 1 and 2 person households
make up over almost 65% of all households in the City. That was not the case 10 years, 20 years ago, 30
years ago where there was much higher percentage of larger 3, 4, 5 plus person households.

Based on our growth in the last 5 years or the ’13 to ’18 period and it has certainly even been exacerbated
more so in ’19 and ’20. The vast majority of our households have been 1 and 2 person sized households
and of these 4,700 housing units, we expect over 70% of those to be needed for 1 and 2 person
households. So it is incredibly important that we look at the what and what we are encouraging and what
we need to have built in the City. 1 and 2 person households don’t need very large single family homes
which was what we were building through most of the 2000’s.

Again, of the new households that we have added recently, the households are growing faster than
population and that’s, again, because they are 1 and 2 person households. Single households accounted
for almost 37% of all households in the new household growth in the five years viewed in this study. In
addition, | think it’s important to note that our older residents are a huge portion of that 1 and 2 family
households, but there are also married couple households. Nashua is unique compared to the rest of the
State in that yes, we certainly have a growing population of older households and older householders, but
we also have a very large population of 24 to 35 year old’s which are our young professionals and our first

Special Board of Aldermen 04-08-2021 Page 5

time homebuyers. We need these people to fulfill all of the amazing jobs that are open in the City and we
need housing options. Those two different age groups are competing for the exact same product; they
don’t want giant houses, they want smaller houses with accessibility, great locations. So that is making that
market incredibly tight.

Affordable rental units are desperately needed as well. The households making 30% of the area median
income, there’s only about half as many units as there are people who need those units. So you can see
here the darker blue shows the number of renter households and the lighter blue shows the number of
rental units affordable to those households and there’s a giant mismatch. What is unique to Nashua also is
the other end of the spectrum that we have a very large amount of people in the highest or the more
wealthy area median income over 120% that are renters and enjoy being renters. We have very little
product for them, which in turn squeezes our middle units, because they take up units that they can very,
very reasonably afford and it squeezes out and helps to rise increased rents on those who have more
trouble affording them.

Single family housing is still the dominant type in Nashua. You can see that over 60% of our land area is
dedicated to single family housing, all the yellow on the map. And it is also over 50% of all of the housing
unit type in Nashua. The red parcels which there aren’t that many of are 100 unit plus and those are
making up a greater percentage of our units but it is still a very small land area. And those are done in
areas with great infrastructure to support them, water, sewer, roads, accessibility and connections. As we
all know and the Mayor just talked about, rent is rising substantially; 20% on average over the 13 to 18
time period and it has gone up even more substantially through these last years of COVID. And, in
addition, housing sales and the cost of buying a home has gone up and very, very quickly; even more so in
the past couple of years. So these increases in pricing are well over 20% and if any of you have tried to
buy a house or sell a house recently knows, you are talking about days if you are lucky, you turn a house
around. So if you don’t know about one coming on the market, it is very, very difficult to get a house.

The last point | wanted to touch on is that Downtown Nashua is very different than the rest of Nashua and
we need to think about that when talking about affordable housing and how we are going to make this work
going forward. Renter households are much more prevalent Downtown than anywhere else in the City.
The darkest color on this map, here is Main Street here, here’s our beautiful Downtown Riverfront, is 75 to
95% renter which is not the case throughout the rest of the City. And so that’s important because we can
add density of housing there and this is where we have infrastructure, we have services to support. But we
also have the highest amounts of lower incomes in the Downtown and making sure that we are not
concentrating poverty going forward, that we are spreading affordable housing throughout the City and we
are balancing out our neighborhoods for the best outcomes for all of Nashuans, is a key part of why we
want to move forward with the Housing Trust Fund.

So starting the Trust Fund and the Legislation that is before you, includes the $30,000.00 initial deposit
from Nashua Housing Associates and an older agreement with Clock Tower based on federal grants that
they initially got as the Mayor just reviewed. And continuing the $10,000.00 a year annual payment until the
agreement ends in the future. The program initially will be managed by the Urban Programs Department.
And for the next steps as this is as woman very eloquently put it at the Imagine Nashua Meeting earlier this
week, this $30,000.00 is creating a tiny, little baby of a trust fund but to do what we need it to do, it has to
grow. So it is a very exciting starting point, but we know we have to be looking ahead from here. So next
steps would be to focus on identifying and developing additional revenue sources as outlined in the
Housing Study which may include inclusionary zoning policies, ways that development fees are paid into
the fund or partnerships; public/private partnerships in different ways.

A strong assessment to understanding to create a more detailed structure and administration for the
Housing Trust Fund over the next couple of years as additional dollars are going into the fund and we start
to see the long-term management of these properties that will be keeping affordable; it’s going to need to
be a longer term assessment on staffing and management and how all that works. But as we have just a
little baby right now, this is more than a sufficient structure to get started. So | am more than happy to
answer any questions and | will bring this down.

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

Body - 16-gauge steel. flanged to give double thickness of metal at back vertical corners 18-gauge backs.
NOTE: Lyon strongly recommends that exposed side end sheets be of solid matenal.

Goor Frame - Shall be 16-gauge formed steel channels. Vertical members shall have an additional flange
to form continuous door strike. Corners shall be lapped and welded Into a rigid assembly, Bottom cross
members shall have tang at each end that fits Uwough slot in rear flange of upright frame member to
Prevent twisting out of alignment. Top and bottom cross members shall provide support for front edge of
locker tap and locker bottom

Optionat Door - Optional door is supplied only upon request. One-piece, 14-gauge stee! with double
both vertical edges formed into channel-shaped formation; top and battom shall be flanged at 90 degree
angie.

Quiet Loching Device - Locking device shalt engage frame at three points. Channel shaped lacking
device with full langth reinforcing nbs shall be a quiet design utilizing nylon guide inserts to reduce metal
to metal contact. The locking device shall include a latch finger that engages the 12-gauge daor jamb
Lock bar shall be enclosed on three sides and operate within the channel formation of the daor. Locking
device shall be prelocking so mechanism can be locked in open position - door locking automatically
wher closed. An optionat single point latch shall be available security. Doors also to be provided with lock
hole filler to permit use of Ouilt in lock.

Hinges - Shall be not less that 2° high. .050" steel, § knuckle, full-loop forming double thickness on each
leaf, Hinges to be set in slots in frame and projection-welded to frame - securely attached to door. H nge
pin to be spun over at ends. Single tier lockers 72” and 60” high to have three hinges, 48" high to have
two hinges, and multple-tier to have two hinges - all on right-hand side of door

Hat Shatves = Lockers shail have one 16-gauge hat sheif approximately 12" below top Flanged on sides
and back-channel formation on [rant flange - attached at no less than two points through each side
flange.

Caat Hoaks - Lockers shail have one 5/8” diameter coat rod and four single prong wall hooks. All hooks
to be zinc-plated or subjected to a comparable rust-retardant treatment and attached with two nuts and
bdolts or revels.

Number Piates - Optional aluminum number plates with etched figures at least 3/8" high. Can be
aitached to door ar security box

Finish - Steet parts shall be thoroughly cleaned, given a bonding and rust inhibitve phosphate treatment,
and a powder coal finish. Complate locker must be finished in same color

NOTE: Contact Lyon for finish compatibility with any chemicals

Anchoring - To prevent tipping or injury, Lyon strongly recommends that lockers be floor and/o: wall
anchored

al Bulk Lock-Up - Optionat bulk lock-up is designed to allow for bulk storag SKS
Pa compartment lid acts as 2 seating srea as well. Butk lock-ugase@™ in height, (ull depth of

+ Bin front assembly
+ Lid assembly made of 12-gaug Bend connected to 14-gauge continuous hinge with 0.410"

Security box shifiqknock down, is 12" In height, 12" in vadth, and spans the depth of the igaer opening
ygls af the following components

* 18-gauge right hand hinged door fori
punching ta allow for duilt-in locks.

* Top frame member made of i6-gauge stey ie member acts a3 a frame closure for upper
portion of box between the door ange exterior loa

* Security box sits on the stand hs
security box through thgalo side members. Collegiate shelf act
Box is located on jgatight side of the locker unit

a bottom for the security box

ai
DELUKE
COLLEGIATE

& COLLEGIATE
LOCKERS

SPECIFICATION SUMMARY

+ Stainless sleet recessed handle
Knocked Down

* T4-gauge sheet metal or
16-gauge sheet metal or ro door

* 16-gauge frame

* 16-gauge sheet metal sides

+ All metal locking systems

» Stamlegs steel recessed handie

* Powder cost finish

*Specily Al-Welded or Knock Down at,

time of order

bleh uwol Rivets
Assen Le. Pec Avvenbem
MATERIAL

Prime high grade Class 1 mild
annealed, cold-rolted steel free
from surface imperfections.
A.STM.-Al008 Galvannealed
steel available for high humidity
almospheres. ASTM -A653. Bolts
to be zinc plated or subjected to
other cust-retardant treatment

CSI Formatted Specifications
are available at
www. lyotworkepace.com/architacts

Note. There are certain sizes and/or
types of lockers that are available in
minimum quantity production runs only
Contact your Lyon factory representative
for complete details.

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