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Norwalk: Affordable Housing


by turfgrrl


August 15th, 2007 · 68 Comments

I suppose that I shouldn’t find it surprising that last night’s Common Council meeting debate on off-site affordable housing meandered over concepts that had basically nothing to do with the nitty gritty of affordable housing. A helpful guide.

Affordable Housing (definition 1): Housing that is, you know, affordable. Meaning that people pay a reasonable sum for a mortgage payment or rent. Nothing that is ever newly built meets this criteria unless its….

Affordable Housing (definition 2): From a zoning perspective (workforce housing), housing that meets the states requirement of being counted as affordable housing by either a) being deed restricted to be sold at below market rates to someone who fills out lots of paperwork that shows that they can purchase a unit which will never appreciate much because it can only be sold to someone else who fills out lots of paperwork etc. Or b) a rental unit that income qualifies its renters so that they make a % less than 100% of the median average income for whatever size family unit they are.

Norwalk, like every town in Connecticut, has to meet a goal of having at least 10% of its housing stock as being affordable (definition 2) otherwise Developers can build condos in any zone because local zoning is subverted to the “greater good” of building affordable units. The number of affordable (definition 2) is calculated every 10 years. Everyone makes guesses in the interim as new projects get built.

With these handy definitions now in place, we examine the Council’s “debate” about affordable housing. Matt “Mad Max” Breslow reports:

The council voted 8-4 to approve Tarragon Development Corp.’s “workforce housing” plan for its project at the former Norwalk Co. site in South Norwalk after a lengthy discussion and two failed attempts to send the proposal back to the council’s Planning Committee.

A few council members said they do not like the Stratford-based developer using existing homes instead of building new ones to help satisfy a city workforce housing requirement to make 10 percent of the project’s residential units affordable.

Under the plan the council approved last night, Tarragon will provide 17 below-market-rate units, but 13 will be off-site. The 13 units will be pre-existing homes not now counted among the city’s official affordable housing stock. Tarragon will arrange deed restrictions requiring the units to remain affordable.

Council member William Krummel expressed concern that the 13 units will not be readily available to people meeting state affordable housing income requirements because they already are occupied by residents having leases.

“They’re not empty. They’re occupied,” said Krummel.

Yegads Krummel, don’t you do any math? Converting existing housing stock to affordable (definition 2) gets you more bang for the buck as it does not increase the total number of housing stock. Building new affordable (definition 2) units also raises the total units so unless you build more than 10% you are breaking even.

Other arguments swirled around the concept of off-site versus on-site. This is where politics reared its simplistic head, where certain people, chiefly Bruce Morris, who campaigned on doing something about affordable housing, inserted himself in the process by demanding that all affordable (definition 2) units be in South Norwalk. Of course, sticking all affordable units in South Norwalk doesn’t make much sense when the progressive idea about housing is for all affordable and market rate housing to be available throughout Norwalk. Perhaps Morris could better spend his time doing something about the dumb criteria used by the state in determining what counts as affordable housing in the first place, and create legislation on rewarding cities like Norwalk who actually have a zoning regulation that requires affordable housing to be built unlike the majority of towns in Connecticut.

Building affordable housing in Norwalk is really only about meeting the requirements of definition 2. Math skills are more important than political skills here since this is just a numbers game. For a political solution to affordable housing, people have to realize that the political solution to lowering housing prices is also an economic one. its the law of supply and demand. Keep building more and more units, and eventually you will have more units than people who want them and so prices will fall. There’s quite a few problems with building an unending supply of housing though, starting with you run out land and infrastructure pretty quickly and culminating with traffic.

source Advocate, Despite objections, plan for Norwalk Co. housing wins OK, by Matt Breslow, August 15 2007

Tags: In the News · Norwalk

68 Responses so far “Norwalk: Affordable Housing”


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  • 1 nwlknative // Aug 15, 2007 at 11:32 am

    Bruce Morris has “affordable” and “low income” housing confused. We do need affordable housing all over Norwalk - not just in South Norwalk. He just doesn’t get it.

  • 2 Anonymous // Aug 15, 2007 at 11:36 am

    “confused” is a kind way of putting it.

  • 3 morris must go // Aug 15, 2007 at 1:43 pm

    The real problem is Robert Burgess and his politics by hand outs. Joe Mann has his hands full running NEON despite the meddling of Burgess.

  • 4 curious // Aug 15, 2007 at 2:34 pm

    If someone bits a house tha qualifies for affordable housing, are they restricted in selling price if they move?

  • 5 Anonymous // Aug 15, 2007 at 2:53 pm

    Morris isn’t going anywhere. He has the support of King Corda

  • 6 Mr Greenpeace // Aug 15, 2007 at 3:20 pm

    not trying to be funny #1 or disrespectful but Bruce must of got lost and found the South Norwalk Homeless shelter and thought it was a hotel.

    He does need to know affordable, low income, and no home at all before he thinks about much more ,,I heard some of the homeless came from other area,s of town but because there is only one shelter and no other housing like you suggest in any part of the city available everyone goes to Merritt street in South Norwalk.

  • 7 Andrea Light // Aug 15, 2007 at 3:33 pm

    curious, if a Norwalker qualifies to buy a house that is “deed restricted affordable”, then yes, when the buyer goes to sell, the sales price the buyer can ask will be restricted. It will be restricted to an amount considered affordable to people earning 60% or 80% of the CT Median Annual Income as outlined in our Workforce Housing regulation.

  • 8 curious // Aug 15, 2007 at 3:47 pm

    What happens if the purchasing the home area a sizeable increase in their income. Will they be forced to sell or can they maintain ownership of the home?

  • 9 Anonymous // Aug 15, 2007 at 3:56 pm

    The units that are off site will be bought and renovated, they will be rental units not homeownership, therefore the people living there will be allowed to stay if they meet the income requirements, if not when there is lease is up, they will have to seek a new place. However it appears that from info available that most of the people living there now will be within the guidelines.

  • 10 Andrea Light // Aug 15, 2007 at 4:42 pm

    curious, with deed restricted home ownership units, if the owners realize a dramatic increase in income they won’t be forced to move based on income, only limited in the amount of appreciation they can enjoy when and if they decide to sell (see above). With rental units, as #9 states, the tenant will need to requalify at every lease renewal. If a tenant comes to earn too much, then yes, the tenant will need to move.

  • 11 curious // Aug 15, 2007 at 4:49 pm

    So if I were to employ my son, and pay him less than 65,000 in his first year, he would be eligible to purchase one of these affordable housing units.

  • 12 Anonymous // Aug 15, 2007 at 5:33 pm

    Is that you, Fred?

  • 13 Anonymous // Aug 15, 2007 at 5:34 pm

    Once asgain we talking rentals not purchased. On the furture projects that ultimately will have purchase options yes your scenario is possible, and if people want to try to figure out way to beat the system it could happen. but hopefully that will be an exception, Also please remember in the rental units the developers will be paying taxes like anyone else. and most of these units will be one bedroom, and the several hundred being built in the future developemnts will be primarily one bedroom, some two of course but that means the in all likelyhood that most will have singles or couples with no kids. Therefor no major impact on the school system.

  • 14 Anonymous // Aug 15, 2007 at 5:36 pm

    Affordable housing has sringent guidlines that must be met by those purchasing them. If they meet the criteria they will then be eligible. This is the norm in any city. The problem here is that affordable housing needs to be spread throughout the city and not cordoned off to one area. Those building new developments that are expected to have a certain pwrcentage of affordable housing should be expected to have them on sight. However, in this case, the facade is part of the development and therefore cannot house the agreed upon number of units because of its structure and were given a clause that they would be able to house some of them offsite with the permission of the council. If the council were to dismiss their request, the builder would then be able to by rights take down the facade without ever having to go before the council or any other board to allow for the full amount of units. In keeping with the historic preservation of Sono it was thought to be a good move. One would hope that in the future all aspects of a building plan are taken into consideration before the permits are issued. delaying the vote would have delayed the start of the project which is expected to start rather soon and the council was assured that before the development is finished, all offsite housing units will be aquired and secured and refurbished. Sitting in the meeting I can tell you that every question was asked by the council and critisms of the plan were numerous before any vote was taken. It seemed as if there was some underlying political tension in the room which got pretty nerve wracking at times. It seems those involved in the negotiations should not have been present at all since this was a council decision and not that of Burgess and Morris. I would suggest next time something of this magnatude is being decided upon that there be a public hearing and the residents be allowed to weigh in on these things rather than a chosen few behind closed doors making decisions that are not theirs to make.

  • 15 Charles the Hammeer // Aug 15, 2007 at 6:35 pm

    Math has never been a strong suit suit for socialists. Their grasp of numbers is usually limited to “Five-Year Plans” or marching hapless millions into exile or oblivion.

    As for the State of Connecticut or the Norwalk City Council managing to subdue market forces by whatever arcane means they devise, it just boils down to a government price ceiling. Can anyone recall effective governmental price controls, either floor or ceiling? They may as well try to repeal the law of gravity.

    Because there are more buyers of either rental or single family properties than there are units to be had in this region, the price remains high. No regulation is going to change that fact. Forcing production of units specified by the state at a specified price must warm the hearts of the central planners. Perhaps we might also have a commissar of shoes to insure that there are “affordable” flip-flops, pumps, and cross trainers.

    When will the economic reality of market forces finally dawn on these housing “commissars”? The cost of land, labor, materials and other associated expenses of the construction trades have far more bearing on the “affordability” of housing than any statute. Further, let us not forget that rising home prices represent the value growth of what are often the most signiicant assets for many families…a good thing!

    The notion that the government should be engaged in dictating what a real estate commodity should cost, attempting to control who may buy, who may sell, and the subsequent pricing of that unit er,…well, forever…is foolish. History is littered with the bones of command economists and central planners. We would do better to hold with Free Markets for a Free People.

  • 16 Anonymous // Aug 15, 2007 at 8:30 pm

    I guess farm subsidies are waste of taxpayer money, then.

  • 17 Anonymous // Aug 15, 2007 at 8:31 pm

    Let’s not forget corporate welfare, either.

  • 18 Anonymous // Aug 15, 2007 at 8:32 pm

    Oil company tax breaks?

  • 19 Anonymous // Aug 15, 2007 at 8:32 pm

    And Social Security.

  • 20 nwlknative // Aug 15, 2007 at 9:45 pm

    I thought affordable housing was for workforce families. What is the reasoning behind one bedroom apartments. It is the young families in town that need affordable places to live - not singles or couples who are both out working. I am not saying the young couples are not struggling, but it is the families that are having such a hard time making ends meet in this area. Instead of apartments, we should be building developments with small homes - two to three bedrooms - that families can purchase as starter homes or rent. Years ago, there were homes built near Kendall School that were supposed to be deed restricted for affordable housing. What ever happened to those - did the time run out?

    Westport has a beautiful area of small, affordable homes with nice yards and quiet streets. These are rental homes, based on need and income and I believe Westport residents are considered first for occupancy.

    One of my biggest concerns with the affordable units is who is going to keep a watch on these to make sure they stay affordable? What is to prevent the developer from selling the building and the new owner jacking up the rents? Who is going to police these units?

  • 21 anon again // Aug 15, 2007 at 10:00 pm

    Excellent points, anon 20.

  • 22 anon again // Aug 15, 2007 at 10:00 pm

    Sorry, that should have been addressed to nwlk native

  • 23 Truthfull Taxpayer // Aug 15, 2007 at 10:35 pm

    If the planners and the city representatives keep allowing all of these Condominium Developments to be built all over town, then doesn’t this drive up the number of affordable units needed to make the 10% state regulation?

    If someone has to make up the taxes on these tax breaks for the developers who buy and renovate and rent these houses, wouldn’t that be us-the taxpayers?

    #20 I agree with you. I always thought that the affordable housing units were for cops, fireman, and other workers who couldn’t afford to live here. Why now are they saying that these will be apartments for 1 person? Why woul the city Council let themselves be talked into apartments instead of condos like the developers always talked about?

    I always thought that the affordable housing would be condos that people could buy giving the people who bought them the American dream-to live in Norwalk where they grew up or where they work.

    This deal sounds more to me like the developers are building section 8 off-site apartment units. And, at what cost to the rest of us? This is very different from all of the newspaper articles about “affordable housing”. It smells very bad!

  • 24 ANonymous // Aug 15, 2007 at 10:40 pm

    Are low income units and housing complexes included in the 10 percent?

  • 25 nwlknative // Aug 15, 2007 at 11:00 pm

    #23 - It smells very bad to me also. Sounds like the developers aren’t even building new units - but refurbishing ones they already own or qualifying ones they already own that are already rented to people who would qualify for affordable housing. Either way, I am sure these off site units are not in the most desirable places and not even close to having the amenities the new construction will have. But we must save the facade!! The developer is holding us hostage for the sake of saving the facade. It is about time the city got tough on these developers and said you will save the facade, you will have so many affordable units on site and if you don’t adhere to our policy, you will not get permits to build and there will be hefty fines.

  • 26 Truthfull Taxpayer // Aug 15, 2007 at 11:10 pm

    #25 Norwalk Native - I agree with you. Why are the city representatives being bulldozed by these developers? The city needs to get tough on these developers instead of kissing their a$$e$. If the developers don’t like it, there are other developers. What are these politicians getting out of the deal? Why are they so quick to abandon the public interest?

  • 27 ANonymous // Aug 16, 2007 at 6:13 am

    Why would zoning make them have more than 10 percent of their new construction affordable? If they build 20 units, only 2 should have to be affordable housing.

  • 28 Charles the Hammer // Aug 16, 2007 at 8:45 am

    s 16,17,18,:
    I assume by their time proximity that these reactions likely come from the same source. Firstly, you are right about the corrosive effect of farm subsidies. Paying farmers NOT to grow crops in order to create a price floor is a terrible practice and has created an entire false infrastructure. For example, the sugar subsidy costs American consumers millions in inflated costs every year. Governmental interference for ethanol production is driving up grain costs for production of meat and cereal products.

    When you make vague reference to “corporate welfare” and “oil company profits”, you demonstrate a common misconception about business taxes as fiscal policy. A company selling an inelastic, fungible commodity like oil does not absorb the incidence of corporate tax. It becomes a business expense passed on to consumers. And so it is with governmental restrictions on housing prices.

    Developers, forced to comply with “affordable” housing regulations will simply pass on the costs they incur by billing more in another area. The will market will find a thousand ways to circumvent the regulatory impediments, like water goes around a rock in a stream. Buyers seeking eligiblity will ask special favors and considerations from officials tasked with regulatory oversight, a recipe for insider corruption. The commodity of exchange is simply transformed from currency to political patronage. Socialism does not work.

  • 29 Anonymous // Aug 16, 2007 at 9:21 am

    I guess that means you’ll also be forgoing your Social Security benefits as well?

  • 30 ENrwlker // Aug 16, 2007 at 10:10 am

    #29 — We’ll ALL be foregoing our Social Security benefits eventually, since the system is a fraudulent government ponzi scheme that will run out of money long before today’s younger workers get a chance to merely break even with it.

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