Bonham Housing Action Plan Final Presentation to the City Council of - - PowerPoint PPT Presentation
Bonham Housing Action Plan Final Presentation to the City Council of Bonham Texas March 11, 2019 1 Daniel Oney Denison High School Austin College University of Texas Dallas Senior Economist Virginia General Assembly
Final Presentation to the City Council of Bonham Texas
March 11, 2019
1
2
trends)
policy)
3
4
8.0% 3.7% 2.8%
Manufacturing Retail Professional Services
Job Growth (5-Year Annual Average Rate)
3.3% Unemployment Rate Economic Development Announcements:
5
750 Net New Households in the Next Decade 1,500 new 18-44 year old’s by 2028 8,100 City Residents 34,400 in the Bonham Micropolitan Statistical Area
6
11.0% 21.3% 26.0% Total Manufacturing Professional Services
Wage Growth Since 2015 Average Household Income $56,400
Annual Average $37,800 $52,700 $43,400
7
New $30M High School will give students the latest facilities and
$18M restoration will return the Fannin County Courthouse to its 19th Century beauty New strategic planning framework for downtown, infrastructure, parks, workforce and housing
8
Lower Bois D'arc Creek Reservoir bringing stable water supply and economic impact
Bonham has a 400 unit home gap because of population growth and underinvestment since the Great Recession. Much of the gap resulted from strong competition for investment in the DFW market. But Bonham’s market is becoming more competitive. 400 Missing Homes!
9
65 % Since 2015
10
Townhouse Duplex Single-Family
11
12
13
14
No excuses for developers to look elsewhere
headed
demand and price points
potential bottle necks
15
Initiative or Question Major Element Annexation Review ETJ and long-term needs Zoning Review and update code Development Review and update code Resources Evaluate staffing and infrastructure Services Confirm service capacity
process, plan review and building inspections.)
city services.
so new development pays its own way.
16
Housing Unit Goal = 150 New Units Pros Cons
product to meet. emerging market trends
number of units.
mix of single-family types.
working with a single developer.
construction.
building inspection capacity.
upgrading zoning and development codes to have maximum community benefit.
in blocks around the square.
in-law suites”.
Texas towns “should” look like.
17
Housing Unit Goal = 70 New Units Pros Cons
singles, young couples, families with children, empty nesters.
streets and utilities.
buildings.
retail, restaurants.
to walk and bicycle.
vehicle miles traveled.
change.
sidewalks, street lights, drainage and landscape
about density
developers.
$100s of dollars each.
Bonham.
18
Housing Unit Goal = 300 Renovated Units Pros Cons
relatively little cost.
no cash out of pocket.
services.
and labor work.
homeowners with no developer experience.
relatively small projects.
program.
19
Program Recommendations and Outline:
commitment.
$10,000 per ward plus $20,000 available after a ward used up its $10,000 allocation.
Keep the regulations simple:
1. Single-family homeowner eligibility. 2. Current on City taxes and fees. 3. Minimum required investment - 10 to 20 percent of the appraised value of the home or $8,000 and $15,000 per home. 4. Estimated investment approved before eligible work is completed. 5. A standard development agreement (contract). 6. Improvements completed quickly and subject to building inspection verifications (photos, invoices and receipts.) 7. Paid in a lump sum after post-renovation appraisal.
Example calculation:
value.
this raises the value of the home by $5,000.
generates an additional $34.32 in City property taxes.
homeowner will be $343.20. This represents a 4.3% savings on the roof
developments – neighborhood effect.
housing – time savings, labor costs.
Mobile home has temporary foundation.
controlled factor setting.
20
Housing Unit Goal = 50 New Units Pros Cons
manually-built homes
savings
changes required.
skilled trades for on-site work.
Bonham as a prefabricated home demonstration hub.
consumers (prefabricated & mobile homes play different potential roles.)
costs, savings may not be as much as expected.
require relatively large number of units.
employment
development.
parking.
21
Housing Unit Goal = 140 New Units Pros Cons
amenities for new or prospective households.
and-leave lifestyle.
quickly – size variety.
spending power.
transition.
for other rental owners (owner benefit.)
than building single- family subdivisions.
development time – up to two years.
much higher than prevailing Bonham rents (renter cost.)
22
23
Townhouse 1 Townhouse 2 Duplex Single Family 1 Single Family 2 Single Family 3 Single Family 4 Bedrooms 2 3 3 2 3 3 3 Baths 1 2 2 1 2 2 2 Total Square Feet 1,343 1,525 1,583 1,152 1,510 2,013 2,237 Price Per Sq.Ft. $98 $105 $110 $98 $110 $115 $125 Construction Price $131,614 $160,125 $174,130 $112,896 $166,100 $231,495 $279,625
24
Townhouse 1 Townhouse 2 Duplex Single Family 1 Single Family 2 Single Family 3 Single Family 4 Bedrooms 2 3 3 2 3 3 3 Baths 1 2 2 1 2 2 2 Total Square Feet 1,343 1,525 1,583 1,152 1,510 2,013 2,237 Price Per Sq.Ft. $105 $115 $125 $105 $125 $135 $140 Construction Price $141,015 $175,375 $197,875 $120,960 $188,750 $271,755 $313,180
25
Mortgage Rate Townhouse 1 Townhouse 2 Duplex Single Family 1 Single Family 2 Single Family 3 Single Family 4 Total Units 4.0% 9 9 8 8 13 15 8 70 4.5% 8 9 8 8 12 14 7 66 5.0% 8 8 8 7 11 13 7 62 5.5% 7 8 7 6 11 12 6 57 6.0% 7 7 6 6 10 11 6 53 Demand totals assume a mix of product is provided. Individual product demand will be higher if some product types are not delivered. For example, if no duplex homes are built, some of that demand will shift to Townhouse 2 and Single Family 2 which are comparable products.
26