3.2 Housing

A. Housing Summary

Housing is one of our most basic needs. The housing element provides information to help municipalities and the region provide safe, affordable and decent housing for all residents, while maintaining their small-town atmosphere and rural character.  

The Regional Planning Commission has undertaken several detailed housing studies in the past [8]. These reports examined affordability and estimated the region's future housing needs. This housing section will update the statistical information found in the most recent report, Present and Future Housing Needs in Addison County, Vermont, April 1989.   

Despite being compiled over ten years ago, the findings and recommendations of that report remain relevant. Once again the region is facing a problem providing affordable housing. The 1989 report states that housing affordability is not just a problem for low-income families; it is also a problem for the county's moderate-income families. This statement has again become true. 

Current Housing Stock

In 2000, there were approximately 15,000 housing units in the region - 13,000 of which were year-round units. The housing stock is primarily single-family and owner-occupied. In 2000, the overall vacancy rate dipped to 3.6 percent, well below the five-percent level that is considered necessary for the housing market to function normally.

Future Housing Need

The need for housing is driven both by increases in population and the decline in household size. The region's population continued to grow in the 1990s, but at a slower rate than in previous decades. Average household size continues to decrease. With a declining household size the number of housing units will need to increase at a higher rate than the population. ACRPC estimates the region will need nearly 7,500 more housing units by 2025.

Housing Costs and Affordability

In the late 1990s, housing prices began to rise substantially resulting in housing that is currently unaffordable to a many low- and moderate-income households. Rental prices have also increased in recent years.   

One common measure of affordability is that households should not spend more than 30 percent of their total income on housing costs. In 2001 family median income (FMI) in the region was $45,000. A household earning the FMI could afford to purchase a home valued at $125,550. Although actual purchasing power varies due to differences in property taxes and a household's ability to save for down payment and related expenses.  

The elderly and young families feel the greatest impacts from high housing costs. Many elderly are homeowners who have larger housing then they need and upkeep/utility costs that exceed their ability to pay. Young families are more likely to be renters and often have difficulty finding and affording adequately sized rental units.

Affordable Housing Guidelines

Addison County Regional Planning Commission prepared guidelines including policies and implementation measures, to aid municipalities and housing agencies in identifying and planning for affordable housing. These can be found on page 3-38.  

B. Housing Goals and Policies

The Addison County Regional Planning Commission establishes the following housing goals and policies through this plan.

Goal A: Support the provision of suitable, safe, energy-efficient, affordable housing that is in-keeping with the surrounding environment for all residents of the region.  

Policies:
1. Suitable housing:

a. Encourage municipalities to provide for a variety of housing types to meet the needs of the present and projected future population in local plans and zoning bylaws.
b. Encourage the provision of housing for those with special needs.

2. Safe housing:

a. Encourage municipalities to enforce the Vermont Department of Health minimum health and safety standards.
b. Encourage municipalities to adopt and enforce building and health codes, which could prevent the loss or degradation of existing housing.
c. Promote improvements in substandard rental housing.
d. Assist town health officers in identifying and improving failing, and substandard sewage disposal systems.

3. Energy-efficient housing:

a. Encourage innovative planning, design and construction of primary housing that minimizes cost, energy consumption and environmental impact of housing.
b. Promote residential development that complies with the state's Energy Code and the Star energy-efficiency standards.
c. Encourage municipalities to consider housing locations in terms of travel time and the energy requirements necessary to access employment, commercial and service centers when establishing town plans and bylaws.

4. Affordable housing:

a. Assist every municipality with contributing toward the region's affordable housing needs in an equitable manner.
b. Recognize affordable housing as a regional problem and whenever possible promote regional solutions.
c. Discourage the concentration of affordable housing within one neighborhood or community.
d. Support policies and programs that keep affordable housing units affordable for the long-term when there is public funding of the project.
e. Encourage the preservation and improvement of existing mobile home parks, subsidized units and other below-market rentals that provide affordable housing.
f. Discourage development that results in elimination of affordable housing units.
g. Encourage the development of new low-cost housing including mobile home parks, subsidized units and other below-market alternatives to meet the needs of area residents.
h. Encourage the cooperation and coordination of public and private entities in the planning, financing, development and management of affordable housing.
i. Support the use of subsidies, such as vouchers, to enable low-income households to more effectively participate in the housing market.
j. Encourage policies that promote growth in household income to make housing more affordable.
k. Encourage an increase in the availability of cost-effective transportation alternatives to make affordable housing more viable in outlying communities.

5. Housing in-keeping with the surroundings:

a. Encourage residential development that is compatible with existing architecture, community character and other land use concerns.
b. Encourage new residential development to follow the region's traditional development pattern of small villages and hamlets surrounded by agricultural or forested land.
c. Assist interested municipalities in developing design guidelines.
d. Assist interested municipalities in protecting existing historic homes.
e. Encourage the reutilization of the upper floors of downtown buildings for residential use.

6. Housing and conservation of natural resources:

a. Encourage municipalities to provide for planned residential development in their plans, zoning bylaws and subdivision regulations.
b. Assist interested municipalities with plans and bylaws that conserve natural resources by locating development in areas with the least valuable or sensitive environmental characteristics.

7. Housing and the costs to municipalities:

a. Promote policies that minimize the costs of new development on municipalities by discouraging development on Class 4 roads and in scattered, remote areas.
b. Promote policies that minimize the costs of new development on municipalities by discouraging development on environmentally sensitive sites, unless appropriate mitigating measures are taken.

Goal B: Public and private organizations should be assisted in providing housing services by:  

Policies:
1. Publicizing housing-related programs available at the federal, state and local levels.
2. Providing data as requested by state or federal agencies when allocations of federal subsidy funds are under consideration.
3. Working to increase the public and private awareness of regional housing problems, and the housing policies and programs that may be used to alleviate them.

Goal C: Maintain an up-to-date housing database for use by towns, citizens, regional commissions, other agencies and businesses in the region.

Policies:
1. Track the amount, characteristics, availability and affordability of housing in the region.
2. Maintain historic housing data for comparison to current trends.
3. Project future housing need.  

C. Housing Recommendations

The ACRPC should work with interested partners to develop a Housing Data Bank as a means to collect and disseminate housing-related information for the region. The Data Bank could track housing statistics like sales and permits, link to information on grants and educational opportunities, and provide current information on the availability of housing units, especially for low-income, elderly or special needs households.    

D. Housing Documentation and Analysis

The Regional Planning Commission has undertaken several detailed housing studies in the past, which examined the existing housing stock, discussed affordability and estimated the region's future housing needs. This housing section will update the statistical information found in the most recent report, Present and Future Housing Needs in Addison County, Vermont, April 1989. Despite being compiled over ten years ago, much of that report remains relevant to the region's current housing conditions. This section will review the major findings of that report, updating them where appropriate. It will also examine the report's recommendations, entitled Opportunities and Priorities for Action. In the ten years since the report was published some its recommendations have been implemented, while others have not.   

Affordable housing guidelines as required by 24 VSA § 4345a(7) follow this section. These guidelines provide information to help municipalities identify and plan for needed affordable housing.

Current Housing Stock

There are nearly 15,000 housing units in the Addison Region according to the 2000 Census. Of these, approximately 13,000 are year-round housing; the remaining 2,000 are seasonal units. The housing stock is primarily single-family, owner-occupied residences (See Table 3-11, page 3-28 and Table 3-12, page 3-30). The region's multi-family and rental housing is concentrated in the traditional centers of Bristol, Middlebury and Vergennes.    

A significant portion of the region's housing was built before 1939. The region experienced a building boom that began in the 1960s and continued through the 1980s, reaching its peak in the 1970s. The 1990s saw slower rates of construction and much of the excess capacity that was built in the previous decades was filled.  

In 2000, the overall vacancy rate dipped to 3.6 percent. The homeowner vacancy rate was just over one percent and the rental vacancy rate was around three percent [9]. A vacancy rate of five percent is considered necessary for the housing market to function normally. This suggests that the region will see more residential construction in the near future. 

Future Need for Housing

The Addison Region's population grew at an average annual rate of less than one percent during the 1990s. This is a significant slowdown in growth from the 1970s when the annual growth rate was nearly two percent (See Table 3-2, page 3-11). Despite the slowing of growth in the last decade, the region will most likely continue to add population in future years (For a more detailed discussion of future growth rates see pages 3-10 and 3-13).  

The average number of people occupying a housing unit has been steadily declining since 1940, the year of the first housing census. In the region, average household size was 3.4 in 1970; it had fallen to 2.56 by 2000 (See Table 3-9, page 3-19). This trend is expected to continue as the population ages and couples have fewer children. It is possible that average household size could drop below 2.0 people within the next 25 years - perhaps not for the region as a whole, but in municipalities currently below the regional average.  

Both increases in population and declines in household size will drive the future need for housing. While smaller household size seems to suggest that smaller housing units would be needed in the future, current building trends point towards increasing square-footage per person. The Census Bureau estimates that the average square footage of new homes has increased from around 1,500 in the 1970s to over 2,000 in the 1990s. This has occurred as the average household size has declined by about one person.   

Additionally, there will be an increased need for different types of elderly housing as the population ages. This shift in the population will alter the mix of housing that the region will need - smaller rental units, "mother-in-law" apartments, assisted living facilities and long-term care facilities.     

Presently, about 13,000 households reside in the Addison Region. By the year 2025, the total number of households in the county is expected to increase 40 percent to around 18,000. If a five percent vacancy rate is to be maintained, the county will need nearly 19,000 housing units by 2025. Nearly 6,000 new housing units will have to be created, including the replacement of destroyed units (See Table 3-14, page 3-33).

Current Cost of Housing

The late 1980s saw a sharp increase in residential sale prices, followed by generally flat prices during the early 1990s. Increases in sale prices began again in 1997, with a dramatic upswing in 1998 (See Table 3-13, page 3-23). Prices have remained high since, with the value of homes on more than six acres rising significantly again in 2000. While household incomes have been rising across the region, they have not kept pace with the increases in residential sale values. This has made homeownership unaffordable to a large percentage of low and moderate-income households trying to buy their first home.  

Rental prices have also risen in the past few years (See Table 3-21, page 3-46). However, as a percentage of income, the cost of rental housing is declining. Still the cost of larger rental units remains unaffordable for many low-income households and many people have trouble putting together enough money for a security deposit and the month or two of rent required upfront. There is currently a waiting list for subsidized units and the waiting period for getting a Section 8 voucher remains extremely long.

Housing Affordability

One common measure of affordability is that households should not spend more than 30 percent of their total income on housing costs [10]. Using this guideline, a family earning the county median household income, $45,000 per year in 2001, could afford to spend $1,125 a month on housing [11]. That amount would cover the payments on approximately a $125,550 mortgage plus the insurance and taxes [12]. Actual purchasing power varies across the county because of differences in property tax rates. In addition, the down payment and closing costs often lower the amount a buyer could afford to spend on a home. There are also differences in what first-time homebuyers can afford, as opposed to those who have equity in a previous house.  

In 2000 to afford the median priced home on a small lot, which was priced at $114,000, a household would have had to earn approximately $33,000 a year. To afford the median house on more than six acres, which sold in 2000 for $181,000, a household would have needed to earn approximately $52,600 annually (For more information on housing sales see Table 3-13 on page 3-32) [13].  

High housing costs have more adverse effects on the elderly population and young families with children than on the population in general. Approximately 80 percent of the region's households over age 65 own their homes. For many elderly, their fixed incomes can make paying for upkeep, utilities and taxes difficult. The elderly often live in homes that are much larger than needed and expensive to heat and maintain.Property taxes have risen sharply in recent years and this has been identified as one of the causes for rising housing costs in the region. Additionally, more than 1,100 people over age 65 in the region live alone.  

Young people with children often have lower incomes and need housing units with multiple bedrooms to accommodate their growing families. Some families live in housing that is overcrowded. About half the region's households under age 35 are renting. There is a limited supply of rental housing in the region and larger units are often difficult to find and expensive.

Opportunities and Priorities for Action

Shelter is a basic human need and housing that is affordable to low- and moderate-income families provides a public benefit. Currently, the market is not providing enough housing to meet demand - especially for low- and moderate-income households. Meeting the region's needs for affordable housing will take a coordinated public and private effort, along with public investments. Opportunities, like those listed below, could be implemented to improve the housing situation in the region.

a. Hold the Line

Preservation of housing units that are presently affordable should be a top priority. Three types of currently affordable housing that could be lost are:  

• "At Risk" Housing - federal and state subsidized housing developments that may convert to market rate sales or rents because the owners decline further subsidy or the contact period terminates.
• Mobile Home Parks - privately owned mobile home parks may be closed or downsized resulting in the displacement of low- and moderate-income tenants. This is especially critical given the regulatory difficulty of building new parks and maintaining existing parks.
• Private Rental Housing - increasing property values create incentives to increase rents, convert housing to office or commercial space or sell rental property to affluent homebuyers.


b. Community Land Trust

Currently, the Addison Region has two active community land trusts - the Middlebury Area Land Trust and the Addison County Community Trust. The Middlebury Area Land Trust is primarily focused on land conservation, while the Community Trust works both on affordable housing and farmland conservation.  

Addison County Community Trust (ACCT) provides opportunities for affordable homeownership. ACCT owns six mobile home parks in the region where residents own their own homes and the trust owns the land. ACCT also offers the Homeland program that allows residents to own a home and lease land from the trust. In the region, ACCT manages 265 mobile home lots and 25 homeland lots.

c. Housing Information and Data

A centralized source of updated information and data on housing would benefit residents, planners, builders and finance organizations. An Addison Region Housing Data Bank could keep track of the type and amount of the existing housing stock, housing approved for construction, sale and rental prices, number and location of sales, and more. It could serve as a central depository for information pertaining to affordable housing like funding programs and model by-laws. This information would assistance those preparing grant or loan applications or writing local ordinances. Reports based on up-to-date monitoring of housing trends could be prepared quickly.

d. Public Education and Involvement

An effective program to protect and increase the region's supply of affordable housing will require widespread public understanding and support. Providing safe, decent and affordable housing is everyone's problem and deserves everyone's involvement. Providing better information about low-interest loans, subsidized housing, and homeowner and renter rebates would help.

e. Emergency Housing

The Addison County Community Action Group (ACCAG) maintains an emergency shelter in Vergennes that provides temporary housing for the county's homeless. This facility has seen a dramatic increase in usage during the past several years. Another facility in the southern part of the county would be desirable in the future. Any housing strategy should consider ways to support the existing shelter and expand its services to better meet the needs of the region's residents.

f. Single Room Occupancy (SRO)

Single room occupancies are recognized as a valuable housing resource to meet the needs of individuals who are able to live independently of emergency housing, but do not have the income to rent a self-sufficient apartment. SROs may have independent kitchen and bathroom facilities, but often share those with others. Currently, there are less than 15 such units in the region. A network of SROs could meet the long-term needs of some people and help others get back on their feet.

g. Accessory Apartments

Accessory apartments refer to independent units that share, at most, an entrance, a yard and parking with the primary unit. They are often referred to as "mother-in-law" apartments. Accessory apartments are one way of responding to the need for small apartments by taking advantage of the surplus space in many of the region's larger houses. Such conversions could also help elderly residents with larger houses afford the upkeep and taxes on their property, as well as help them continue to live independently in their home for a longer period.  

Accessory apartments raise issues about adequate parking, sewage disposal, public safety and aesthetics. Proper regulation of conversions to accessory apartments is possible. Communities should consider where they would be acceptable and adopt appropriate ordinances. The Regional Planning Commission should prepare model ordinances.

h. Transitional Housing

More transitional housing is needed in the county to provide shelter for people, particularly young families, trying to be self-sufficient but lacking the money and skills to do so. Transitional housing is needed to assist and teach many young area residents how to become responsible parents, renters or homeowners. In order to help some residents, training as well as housing must be provided. Co-operative ownerships may be able to satisfy some of the needs for transitional housing.

i. Co-operative Ownerships

A housing co-operative, or mutual housing, is a hybrid between renting and owning. The co-operative owns the building and land; the tenants buy shares in the co-op. This creates an ownership option for very low-income people receiving rental subsidies, since they are able to join co-ops and apply that assistance to paying off the co-operative's mortgage.  

Housing co-operatives can help meet the need for transitional housing by allowing young families to rent initially, while receiving "training" on how to manage a home. Once ready, they can buy a share in the co-operative by making a modest down payment, perhaps equal to several months rent. After that, the monthly payments go toward paying off their share of the co-op's mortgage.   Co-operatives enable shareholders to gain a stake in the community, invest in themselves and stabilize their monthly housing costs. When shareholders are ready to buy their first home, the co-operative will reimburse them for a percentage of their investment. A limited equity formula can be used to recapture some of the costs of creating the co-operative.

j. Limited Equity Ownership

Limited equity ownership creates opportunities for people to pay an affordable purchase price for subsidized housing in exchange for limits on the profit they can make on its resale. Limited equity agreements enable people to own a home and ensure that it will remain affordable to future buyers whose equity would also be limited.  

Limited equity agreements require an upfront subsidy in land or money from a public or non-profit organization. The value of that subsidy would be passed on to the homebuyer in order to make the home affordable. A minimal lease payment could be levied to cover the carrying costs (interest) of the subsidy.

k. Manufactured Housing

Mobile homes are one of the region's largest sources of affordable housing. Existing mobile home parks should be preserved. Planners should identify opportunities for new or expanded mobile home parks and prepare model design standards for them. A process for establishing co-operative ownership of new and existing parks could be established and facilitated.

l. Changes in Zoning and Subdivision Regulations

Many zoning and subdivision regulations present barriers to providing affordable housing - some of which are entirely unintended and unrecognized. Regulations in many of the region's communities do not provide incentives, such as inclusionary zoning, density bonuses or clustered developments. Large lot zoning is one of the biggest regulatory barriers to providing affordable housing in rural communities.  

The Regional Planning Commission will assist interested municipalities with developing ordinances for accessory apartments, zero-lot line developments, parking requirements, cluster subdivisions and density bonuses. If asked, the commission would review municipality's existing ordinances to help identify opportunities to improve their housing policies.

m. Infrastructure

Improving opportunities for affordable housing through public investments in water, sewer and roads should be considered as part of the local planning process. In allocating current surplus capacity consider the need for affordable housing in the community and how such an allocation would affect meeting that need.

n. Public Transportation

An adequate public transportation system helps make affordable housing more viable in rural areas. A region-wide public transport system would enable workers to commute to their jobs without having to pay the costs of owning and operating a car. The additional debt load of financing a car prevents many households from being eligible for a home mortgage or even being able to afford to rent. Currently, a breakdown in transportation can lead to the loss of a job and potentially to the loss of shelter. In addition, a public transportation system would enable elderly residents living in rural areas to go to town to shop, receive healthcare and other services.

o. Public Land or Buildings for Public Housing

The high cost of land is one of the principal reasons housing is unaffordable to many of the region's households. Many towns in the region own land that could be utilized for perpetually affordable housing. If the land costs were subsidized, private developers could make a reasonable profit building needed affordable houses. ACCT's homeland residences work on this model.  

Additionally, the municipality or a land trust could retain ownership of the land and lease it to the buyers of the housing. In return for the opportunity to purchase an affordable house, buyers would agree to limit their equity in the house should they decide to sell. In this way the housing would remain affordable to future residents.

p. A Housing Swap

Housing swap programs enable elderly residents to swap their existing houses for new housing that is desirable, well-suited to their lifestyle and needs and guaranteed to be affordable to them for as long as they live. The houses they "trade in" are rehabilitated and sold to qualifying low- to moderate-income residents under a limited equity agreement to keep the housing perpetually affordable. Some form of reverse annuity agreement can also be part of this swap. The result would be better housing for the elderly, fewer large houses to construct and more housing which would be perpetually affordable.

q. Reverse Annuity Agreements

Reverse annuity agreements help the elderly maintain their existing housing or swap the value of their home for new housing. Any investments made against the value of their existing home could, upon their death, go toward the purchase of the home for perpetually affordable housing.

r. Local Incentives

Local incentives, such as density bonuses or property tax rebates, encourage landowners to provide perpetually affordable housing. Density bonuses enable landowners to build more housing than present zoning allows in exchange for the construction of a percentage of affordable housing. ACRPC could develop model ordinances outlining such incentives and make them available to interested municipalities.

s. Community Loan Fund

Develop and promote a special investment fund to finance affordable housing projects in the region.

t. School Housing Projects

Every year vocational education classes from area high schools construct houses as part of their curriculum. The houses are sold for market rates and the profits are used to finance the land and materials for the next house. If the schools were willing to help, student labor could be used to rehabilitate and construct perpetually affordable housing that they might someday occupy.  

E. Affordable Housing Guidelines

Addison County Regional Planning Commission has prepared the following guidelines, including policies and implementation measures, to aid municipalities and housing agencies in planning for affordable housing for low-income households. Sources used were the 1989 Present and Future Housing Needs in Addison County and current Census data.

Income Levels

Some indication of income levels by town is found in Table 3-19, page 3-44. That table is derived from Census data and provides a rough estimate of the number of households in each income category. The U.S. Department of Housing and Urban Development (HUD) defines low-income households as those earning 50 to 80 percent of median income. Very-low income households are those earning 30 to 50 percent (See Table 3-15, page 3-41). Income limits are set annually for the county for households ranging in size from one to eight people.   

The HUD 2001 family median income (FMI) for a family of four in Addison County is $45,000. This income would allow a monthly housing allowance (using the 30% of income HUD guideline) of $1,125. However, a large percent of the region's households earn below the median income. In 1990, 40 percent of the region's households were classified as low-income [16] (See Table 3-19, page 3-44).

Homeownership for Low-Income Households

For many of the region's rural towns, mobile homes are considered the primary type of affordable housing. In 2000, the median sale price for a mobile home with land was approximately $40,000. A low-income household should have a median income sufficient to purchase such a home, provided that they could save the several thousand dollars needed for the down payment and closing costs. However, for low-income households other necessary expenses - such as daycare, healthcare and transportation - represent burdens so large it can prevent them from both saving enough to cover those costs and from spending 30 percent of their income on housing.

Very low-income households will most likely not be able to afford to purchase a mobile home with land. While such households may be able to purchase a mobile home without land on paper, the payments on the home along with rent of a lot in a mobile home park may be unaffordable for many.

For those families who can begin to own a home through purchase of a mobile/modular home, when placed on land from family holdings, municipalities need to be sure that lot size requirements do not make the situation unaffordable or marginally affordable because of land costs or property taxes.

Rental Opportunities for Low-Income Households

The Vermont State Housing Authority maintains a directory of affordable rental units [17]. According to that listing, the Addison Region has approximately 600 affordable rental units of which around 130 are designated elderly housing. There are 230 units in mobile home parks, while another 330 are one- and two-bedroom apartments.

The affordable units are found mainly in the more densely populated communities. Forty percent are in Middlebury, 30 percent are in Vergennes and the remaining 30 percent are evenly divided between Bristol and Starksboro. Additionally, there are about 140 Housing Choice Vouchers available for use throughout the region [18].

Affordability by Municipality

All of the region's municipalities have households who cannot afford safe, decent housing without assistance. Table 3-20 on page 3-45 details what percent of each municipality's households cannot afford median priced housing of a variety of types. Municipalities should carefully monitor the type, quality and cost of their housing in relation to the characteristics and income of their residents and consider methods of improving these factors when appropriate.  

Several municipalities provide a larger share of the region's affordable housing. Bristol and Starksboro contribute a significant portion of the area's mobile homes, while Middlebury and Vergennes provide most of the region's affordable rental housing. All municipalities should continue to contribute towards meeting the region's affordable housing needs.   

Special Concerns

a. Substandard Housing

Housing for Addison Region households identified as very low-income will in most cases be rentals or mobile homes (see Table 3-15, page 3-41). Units affordable to this population are often substandard. Municipalities should first try to identify this segment of their population and work with area housing agencies to be sure that they are adequately housed.  

Enforcing health and safety regulations on rental housing will compel improvements. Federal and state rehabilitation funds can be used to keep the units affordable. Municipalities should work with the Addison County Community Land Trust, Addison County Community Action Group and the Champlain Valley Office of Economic Opportunity to provide innovative housing programs that work to provide safe, affordable housing.

b.  Mobile Home Parks

Mobile homes parks provide shelter to many of the region's lowest income households. The difficulty of building new parks under current regulations makes the preservation of existing parks extremely important. On the local level, enforcing health and building codes will keep the parks safe places to live and prevent parks from becoming rundown.

c. Larger Rental Housing

There is a special need for larger rental units for families with children. Currently, there is a shortage of such units available. Additionally, these units are often too expensive for low- and even moderate-income renters. There are only 35 three-bedroom units listed in the Affordable Housing Directory for the entire region and none larger.  

Looking at Table 3-21 on page 3-46, the fair market rent (FMR) for a three-bedroom apartment in 2001 is $834 per month. This is over 22 percent of the median income, $45,000. While larger apartments may be affordable for those earning the median income or higher, most renters earn less than median income. For those households earning less than $33,000, that three-bedroom apartment is unaffordable [19]. Additionally for low-income renters the burden of other basic expenses like childcare and healthcare may reduce the amount of income they have available to spend on housing.

Endnotes

[8] Housing in Addison County completed in November, 1977 and Present and Future Housing Needs in Addison County completed in March of 1989.
[9] The overall vacancy rate includes all units classified as unoccupied by the Census Bureau except for seasonal homes. The homeowner vacancy rate includes only those unoccupied units listed as "for sale only." The rental vacancy rate includes those unoccupied units listed as "for rent or sale."
[10] For renters housing costs include rent and utilities. For homeowners housing costs include mortgage payments, insurance and property taxes.
[11] $45,000/12 = $3,750 of monthly income. 30% of $3,750 = $1,125.
[12] Assumes a 7% interest rate on a 30-year fixed-rate mortgage and 2% of the property's value in property taxes and ½% in insurance annually.
[13] Assumes a 7% interest rate on a 30-year fixed-rate mortgage with a 20% down payment and 2% of the property's value in property taxes and ½% in insurance annually.
[14] Adjusted figures were converted based on the Consumer Price Index and are expressed in constant 1999 dollars.
[15] Projected number of households is based on ACRPC's low population estimate (includes only those people living in households, not those living in group quarters) and assumes a continued rate of decline in household size. The housing unit need was calculated by taking the projected number of households and adding 5% for the minimum desirable vacancy rate.
[16] Low-income households are defined as those with incomes less than 80% of the regional median.
[17] The Directory of Affordable Housing is a listing of housing projects that are assisted by the VT State Housing Authority, the VT Housing Finance Agency, the VT Housing and Conservation Board, the VT Department of Housing and Community Affairs, and the U.S. Department of Agriculture - Rural Development. The directory lists projects by location and indicates the numbers of units by size and type. It is updated periodically and available at the ACRPC office for review.
[18] The housing choice voucher program is a U.S. Department of Housing and Urban Development (HUD) program for assisting very low-income households to afford housing in the private market. Participating households are free to choose any housing that meets the requirements of the program and where the owner agrees to rent under the program. They are not limited to units located in subsidized housing projects. A housing subsidy is paid to the landlord directly and the household then pays the difference between the actual rent and the amount subsidized by the program. Under certain circumstances, a household may use its voucher to purchase a modest home.
[19] Affordable housing is defined as not exceeding 30% of household income.
[20] The figures for 1997 through 1999 represent the family median income (FMI) figures calculated by the VT Department of Taxes. The figures for 1985 through 1996 represent the median adjusted gross income (AGI) calculated by the VT Department of Taxes multiplied by a percentage to estimate FMI. The numbers for the Addison Region are the FMI as calculated by the U.S. Department of Housing and Urban Development.
[21] The figures for 1997 through 1999 represent the family median income (FMI) figures calculated by the VT Department of Taxes. The figures for 1985 through 1996 represent the median adjusted gross income (AGI) calculated by the VT Department of Taxes multiplied by a percentage to estimate FMI. The numbers for the Addison Region are the FMI as calculated by the U.S. Department of Housing and Urban Development.
[22] This table is intended to provide an estimate of the number of households falling into HUD's low-income categories. In 1990 HUD family median income was $30,700. Households falling into the 30% of FMI category were those listed in the 1990 Census as having earned under $10,000 in 1989. Those that earned between $10,000 and $15,000 were in the 50% category. Those earning between $15,000 and $25,000 were part of the 80% category and those between $25,000 and $30,000 were counted as 100%.
[23] For 1990 the Fair Market Rent for a 2-bedroom apartment was $486/month, using the 30% formula a household would have needed to earn around $10,000 to afford that apartment. The R1, R2, MHU and MHL the median sale prices are listed in Table 3·13. The 30% formula was calculated assuming a 30-year fixed-rate mortgage at 9%, 10% down payment, 2% of the property's value in property taxes and ½% in insurance annually.
[24] Fair market rent includes rent and utilities. The dollar amounts are shown both adjusted and unadjusted for inflation. The adjusted figures are in 1999 constant dollars and where converted using the Consumer Price Index.