The council held the second of three workshops with consultants Tom Dworetsky and Dan Stevens of Camoin Associates on Monday, June 27, 2022, to review Task 2 of the Housing Diversity Study.  Drawing from the data collected in Volume 1: Housing Data Package, the consultants’ second task involved creating potential affordable housing goals in Cape Elizabeth.

Providing a basic reference point for goal framing, Volume 2: Housing Creation Goals shows that the number of cost-burdened households during the 2010-2020 period has declined both in town and county-wide for both owners and renters.  This reflects a national trend and is in response to rising incomes post-recession; historically low mortgage rates; and stricter credit requirements.  Dworetsky pointed out that the key exception to this trend are lower-income renters.  The rate of cost-burdened renters in Cumberland County has increased, while it has decreased in town.  Down five percentage points, 65% of cost-burdened households in Cape Elizabeth fall within the lower-income range of $50 thousand or less.  The study equates the decrease not with changes in town policy, but with a narrowing opportunity for lower to moderate-income residents to buy or rent within the Cape Elizabeth housing market.  

Volume 2 also includes key metrics on housing stock from the 2010-2020 time period for goal framing.  Relative to the county, Cape Elizabeth has under-built: the town represents 2.7% of the county’s housing stock and has contributed only 1% of the county’s new units.  Rental units in town represent 10% of all occupied units, while the county-wide average is 30%.  The town has 38 income-restricted affordable units: 16 created through mandatory requirement and 22 affordable senior rentals at Colonial Village.  Only two affordable units have been created in the past decade.  With Cape Elizabeth representing approximately 3% of the county’s households, the equivalent share of projected county growth over the next ten years equals 375 new housing units.

In terms of providing actual goals for the town to consider, Dworetsky outlined three possible housing goals with varying ambition-levels for the next ten years:

1. Status Quo: 5 new affordable units (10.3% rentals)
2. Moderate:  200 new affordable units (14.3% rentals).
3. Ambitious: 450 new affordable units (17.1% rentals).

The numbers are derived considering the following benchmarks:

• Given that the town currently represents 2.9% of county households, what share of future county household growth will the town capture over the next ten years; maintain, decrease, or increase the share?
• What share of the overall housing stock are considered to be affordable units?  A common goal in many communities is 10%; Massachusetts and Connecticut have statutes that require 10%.  Currently, Maine does not have legislation.  Affordable housing stock in Cape Elizabeth is 0.9%.
• Increase the rental housing stock; currently at 10.4%.

Goals are then chosen based on specific objectives and population sectors.  The six potential objectives and population groups as outlined in the study include:

1. Reduce the incidence of cost-burdened households in the community by providing affordable living options for these existing residents.
2. Provide smaller, low-maintenance housing options that allow seniors to downsize and remain in town, making their current housing units available to other households.
3. Offer attainable housing options for Cape Elizabeth workers (both private and public sector) who currently commute into town from elsewhere.
4. Provide attainable housing options for adult children living with their parents who wish to remain in the community.
5. Boost age diversity by increasing the share of 25 to 44-year old households, age groups currently underrepresented in town.
6. Increase income diversity and expand the local workforce by offering affordable housing options to workforce households, residents of the broader region with moderate incomes.

Dworetsky explained that in considering which goals and objectives the town may choose to target, “It’s anticipated that there is enough need across the six groups where the ‘ambitious goal’ could be achieved over the next ten years if policies were put in place to do that.”  Depending on which target groups are prioritized, objectives can be mixed where there is an overlap in needs.  However, Dworetsky added, “In order to really make a meaningful impact you are probably going to need at least 100 permanently affordable units.”

Stevens added that Task 3 will look at strategy options for achieving goals, “Strategies will include thinking through what are the types of housing for each of these groups that would be most attractive, recognizing that it is not going to be one housing type for all age populations —including renters versus owners.”  In thinking about strategies in the affordable housing realm, “We will think pretty broadly of what the options may be; it is not a cookie-cutter approach. We will be thinking through what makes the most sense for Cape Elizabeth in this context,” Stevens added. Additionally, knowing which of the six groups the town wants to focus on will allow them to better strategize, “The more specific you can be, the more specific we will be," Stevens said.

Following the presentation, members of the council and public had the opportunity to request more information and highlight potential objectives.  The subjects that rose to the top included seniors aging in place; evaluating senior tax credits to reduce cost-burdened households; identifying potential sites that could support housing; site plan review for multi-family and required ordinance changes; and regional strategies.  Dworetsky and Stevens will include these details as they work to complete Task 3, due August 1.  The council will hold a third Housing Diversity Study workshop with Camoin Associates to discuss Task 3 on August 22.