Monday, May 4, 2009

Workforce Housing: Is Less Really More?


As noted below, most of the huge Near North project would not be the "supportive" housing that Ann Arborites associate with Avalon Housing. Instead, 24 units would be "workforce" housing targetted at people with low-paid jobs downtown.

According to the developers' website, the "workforce" units would rent for “$450-$650 per month, plus utilities.” That's less than the $750 figure they initially cited in neighborhood meetings, so I wonder if they can achieve it--but if they can, it would be an attractive price for the proposed large one-bedroom units. I'm sure Avalon could find enough single, childless individuals to fill them. (Keeping them filled would be another matter—a couple working full time would break the income ceiling and have to leave—and there would be no room at all for families.) [Update: a pro forma budget the developers submitted to the city assumes an income per unit of $774/month.]

It's important to note, however, Near North is not being sold as a way to upgrade workforce housing—it’s being sold as a way to increase it. And to build those 24 one-bedroom units, the developers plan to demolish or convert to non-residential use eight houses with a total of 26 bedrooms. The bottom line: a net loss of two bedrooms. The new units would also be cost much more than existing rental housing on this block.

Reading the Planning packet for the April 21 meeting, I was surprised that the developers had presented no evidence that the proposed new units would make it cheaper to live in the neighborhood. In fact, they never even revealed what they charge their own tenants in the eight houses they presently own on this site.

After doing my own quick survey, I think I know why they didn’t: it turns out that this block already has a lot of affordable housing—and it costs less than Near North’s claimed $450/650 per bedroom.

My unscientific sample consisted of emailing people I know to ask them to tell me tell me their rents. I got responses covering four units on Main Street with a total of 14 bedrooms. Those bedrooms rent for an average of $337/ month - 50 to 100 percent less than NeNo’s “affordable” units!

Near North would hurt its neighbors, intimidate the many people who pass its site daily on foot or bicycle, and trash 50 years of planning for the near-downtown neighborhood. To offset this destruction, it claims the "benefit" of creating workforce housing.

Yet it would actually provide less workforce housing than exists on that site right now - at a much higher price.

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