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Conditions
Typically, the older housing stock in Longmont is substandard, but suitable for rehabilitation. The areas identified as having poorer housing stock are in the older neighborhood areas on the east side of town and those areas where there is a higher number of rental units in the northeast area of town. Of the 2,770 units in the five neighborhoods prioritized for rehabilitation assistance, 926 or about 33% of the units are in need of major or minor repairs. There are few vacant lots for infill development in the city and the area has a very low vacancy rate (<3%). Many of the extremely low and low income renter and owner households live in deteriorated housing.
Housing Needs
A lack of multi-family lower cost housing has created housing problems for extremely low and low income households in Longmont. This shortage of multi-family inexpensive housing is the primary reason that families double up and seek emergency and transitional housing. (Chart of Increase in Housing Costs Compared to Income)
Longmont has projected the outlook for the housing needs of extremely low (below 30% of the area median income), very low (between 31% and 50% of median) and low income families (between 51% and 80% of median) through 2009. It is based on population growth in past years. By 2004, 431 large families, 801 elderly households and 1,863 small families will have housing needs or problems.
A significant number of extremely low income households need some form of subsidized housing. Usually they need assistance to rent housing, but others (mostly elderly) need help to repair and maintain housing they own.
Most very low income households do not need Section 8 rental assistance, but rather standard rental housing in sufficient supply. In Longmont, the rental housing stock has not grown enough to meet the need.
Low and moderate income households are likely to want to own their home. Their choices are strongly affected by market conditions including interest rates and housing demand. Mortgage rates recently have been favorable, but first time homebuyers may have difficulty with down payments and closing costs.
Hispanic households with extremely low and very low incomes have a disproportionately higher need for large family rental housing. The Hispanic need for three and four bedroom units is about double that of the general population.
Housing Market Conditions
Pressure on Longmont’s housing market has come from new residents moving into the City. Longmont has enjoyed relatively modest housing costs until the last five years or so. The migration to Longmont of people escaping high housing costs elsewhere and an overall stronger local economy have raised Longmont’s housing demand. Rising housing costs in Longmont are expected to continue for the remainder of this year and into the foreseeable future. Affordable housing opportunities will become increasingly more difficult for low and moderate income families to locate.
In 1990 there were 910 vacant units in Longmont, nearly 5% of the total housing market. The present housing inventory lack housing that serves special populations such as the disabled, extremely low income, elderly, large families and the homeless.
Low interest rates and fewer homes on the market have made it a seller’s market in Longmont. The city estimates the current residential vacancy at 2.3 percent. The housing trends reflect a tight market, one where it is increasingly difficult to find suitable housing. There are fewer rental classified ads in the Longmont newspaper than in past years and most complexes have waiting lists.
There appears to be an ongoing interest by developers in building multi-family projects. The major barrier to affordability is adequate financing for project development. Greater rental housing choice is needed at the level affordable to those families/individuals below 50% of median.
Affordable Housing Needs
Longmont’s present housing stock is not meeting the needs of low and moderate income households. Improvements to market conditions requires the preservation of the older housing stock as a strategy to maintain affordable low and moderate income housing.
The Five-year Consolidated Plan reported that over 3100 households living in Longmont are cost burdened by paying more than 30 percent of their income for housing. About 3% of these are severely cost burdened and paying more than 50 percent of their income for housing. While monthly rental rates are less than ownership rates, 18.7% of all renters are cost burdened as compared to 9.7% of all homeowners. Nearly 40% of the very low income households (those making less than $20,000) are cost burdened by their housing payment. Single parents spend the highest proportion of their income on housing which may be one reason why single parents constitute 28% of the waiting lists maintained by housing agencies and service providers.
The average cost of a single family home in 1990 was $96,038. By 1998, that average sales price had risen to $171,600. The average annual rate of change has been 7.7%. In the multi-family market, the price of a home in 1990 was $60,224. By 1998, that figure had risen to $139,000, an 11.2% annual rate of change.
Median rent for a two bedroom unit in 1992 was $390. In 1998 that rent was just under $680 per month. The average rental rates in recently approved projects are as high as $950 for a two bedroom unit, with approved, but not yet constructed, units anticipated to rent for as high as $1,030 per month.
Homeless Needs
There are four shelters in Longmont and one in Boulder that accepts Longmont residents, but demand for these facilities by homeless individuals far exceeds the present capacity. These shelters can house up to 300 persons for emergency shelter and another 330 persons for transitional housing each year. Longmont has no permanent housing available for low and moderate income families to transition into, other than regular market-rate housing.
Through the OUR Center in Longmont, homeless people can receive one-time financial assistance for rent and utilities and can use the State Homeless Prevention Funds for multiple months of assistance. On average, 235 households receive this service. Other programs offered by the OUR Center include hot meals, telephone service, food bank, clothing bank, intake and assessment services, landlord-tenant mediation, budget counseling, and financial assistance for relocation, food, clothing and hot meals Over 5,200 persons receive these services annually.
Public and Assisted Housing Needs
The Longmont Housing Authority (LHA) is the primary provider of assisted housing in the City of Longmont. It administers primarily a Section 8 rental assistance program, but more recently has been acquiring housing units. The LHA administers around 500 existing Section 8 certificates and vouchers totaling over $3 million. In 1993, the LHA was granted funding from the U.S. Department of Housing and Urban Development (HUD) to purchase six housing units for large-family rental occupancy. In 1994, the LHA created a nonprofit entity called the Longmont Housing Development Corporation (LHDC) which has purchased 2 multi-family properties for a total of 18 elderly and disabled rental units.
The Boulder County Housing Authority (BCHA) operates 36 rental units in central Longmont. All but one of the units are two bedroom units. BCHA also operates a 32 unit farmworker housing project.
Neither Housing Authority has rehabilitation needs for its units beyond normal maintenance and scheduled replacement items.
Barriers to Affordable Housing
Longmont does not have public policies, rules or regulations that might constitute barriers to affordable housing. There are not any unusual tax policies, land-use controls, zoning ordinances, growth limits, building codes, or fees and charges that affect the provision of affordable housing. In fact, many of the above are waived or concessions/trade-offs can be made if affordable housing is being built.
On the other hand, developers say that one of the major barriers to affordable housing is government development regulations and their cost. Many developers believe that if development regulation cost and process time were decreased, building affordable housing would not be a problem. The City is in the process of a comprehensive rewrite to the development regulations to try to make the system less complicated and more easily understandable.
Fair Housing
Longmont will affirmatively further fair housing. In 1994, it conducted an analysis to identify impediments to fair housing choice within the City and has implemented several recommendations that were made as a part of that analysis. For example, the City has implemented regulatory reform strategies to further fair housing by implementing an inclusionary zoning program requiring that all newly annexed developments make at least 10% of the housing units affordable for families at or below 80% of the area median income. The intention of this policy is to make affordable and diverse housing opportunities available throughout the City. The City’s Office of Community Relations and the Longmont Housing Authority along with the CDBG Office, work together to promote fair housing and equal opportunity programs and to provide guidance and referrals for tenants, landlords, realtors, etc. with fair housing concerns, questions and complaints.
Lead Based Paint
Older housing is likely to contain lead based paint, which is a health hazard, especially for young children. Longmont has about 4,900 housing units built before 1978 that may contain lead based paint. Of these about 160 contain children below the age of 6 who live in poverty. From January, 1994 through December, 1997, the City had no recorded incidence of lead based paint poisoning according to the State Department of Public Health and Environment. The City will use is housing rehab programs to reduce any possible lead based paint materials observed by the rehab inspector by testing and abating the hazard when needed.
Community Development Needs
The major planning document of the City is the Comprehensive Plan, which sets up a vision for the future. It includes the Municipal Service Area within which the City is providing or intends to annex and provide urban services over time; and the Longmont Planning Area, which is planned in advance of development.
Longmont’s long-term community development objective is to provide a suitable living environment through economic expansion, and new job creation opportunities in the City by delivering timely and efficient services. Short and mid-term community development objectives include improving infrastructure, city image, neighborhood security, and recreational opportunities.
Coordination
During the Consolidated Planning process, City staff met with each public and assisted housing provider in the City. In addition, there are nine primary housing providers that assist the City in carrying out its housing strategies. The City of Longmont, the City of Boulder, and these agencies are now coordinating housing activities at the county/regional level.
If you have any questions regarding this information, please contact Kathy Fedler, CDBG Coordinator at (303) 651-8736, or via e-mail at kathy.fedler@ci.longmont.co.us.