rDRAFT HOUSING POLICIES

November 21, 2011

State Goal for Housing: Encourage and promote affordable, decent housing opportunities for all Maine citizens

Local Goal for Housing: Ensure an adequate supply of affordable, safe and decent housing for all ages and income levels in the community.

Summary: Based on the 2010 Census, there are 1,922 housing units in Fort Kent in all categories including single and multi-family, owner and rental occupied and seasonal/recreational. The vacancy rate is 9.1% leaving 175 units in all categories available for occupancy. The median household income is $47,900. A single person household earning under $30,350 is considered “low income”. A two person household income of $34,700 is low income. Housing affordability is based on 30% of the household income. If a rent level or mortgage payment exceeds the 30% threshold, affordability is questionable. Fair Market Rent FMR for a one bedroom unit in Fort Kent is calculated at $525 per month. This is affordable to both low and very low income, 2-person households but not affordable to single-person, VLI households. Actual rent averages in Town needs to also be determined to get an accurate picture of any rental affordability issue. In 2011 Fort Kent will add 4 new senior housing units.

For the past 5 years, there has been an average of 15 new, residential units added to the Town’s housing stock each year. Of these, roughly 9 units are mobile or manufactured homes. This implies a level of affordability in new residential construction that exceeds 10% of all units sited or built within a ten year period. Income averages across age groups must be compared with the cost of these units to help verify affordability. Two mobile home parks, Stadig and Freeman have been eliminated since the last Comprehensive Plan was approved. There presently are three parks, with one new park established within the past 10 years.

Fort Kent has made strides in eliminating vacant, deteriorated housing through the acquisition/demolition of homes in the floodplain and under the law pertaining to dangerous buildings. Owners of abandoned homes were contacted by code enforcement within the past five years and encouraged to demolish homes. The cost of demolition is more expensive than ever and may range from $15,000 - $25,000. Some problems persist. It has been well over 20 years since Fort Kent has operated a publically funded, single or multi-family residential rehabilitation program. The number of occupied, substandard homes has not been determined. There are presently 175 vacant housing units in Fort Kent that are a resource for meeting affordability and labor needs of the community.

POLICIES

1. Monitor new residential development and sale of single family homes for indications that affordability is at risk.

Strategies

a. PB/CEO annual review of residential building permits to understand the percentage breakdown of mobile and manufactured homes being placed.

b. PDO prepares annual summary of home sale prices and comparison with incomes by age group.

c. Encourage developers of multi-family units to dedicate a minimum of one and up to 10% of units as affordable by providing a 5 year tax deferral on affordable units.

d. Create a Housing Tax Incentive Financing District when affordability monitoring indicates the need.

e. Amend the local zoning ordinance to require mobile home parks be served by public sewer.

2. Encourage the maintenance, sale and occupancy of vacant housing units.

Strategies

a. PDO to continue business support efforts to retain and create jobs.

b. Apply for a CDBG-Planning Grant to complete a local housing assessment that identifies unsafe homes for possible demolition and targets others for rehabilitation investment.

c. Apply for CDBG-Housing Assistance funds as indicated by the housing assessment.

d. Develop a local housing assistance program to benefit low/moderate income homeowners.

3. Eliminate all abandoned/dangerous residential structures from community.

Strategies

a. Use the local housing assessment to create a target list of owners.

b. Have code enforcement rate the risk of each structure to public safety.

c. Send annual notices to property owners when properties violate dangerous building law. Take legal action when justified by risk level