03-21-18 Residential Neighborhoods

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CITY OF SOUTH BEND I OFFICE OF THE CLERK because that is the future of the City. Now, what we looked at was not just market-rate housing units or just affordable housing units, we looked across the spectrum. In order to understand and break-down the incomes, we used the HUD definitions of the different levels of income at thirty, fifty and eighty percent(30%, 50%, 80%) of the AMI. The AMI here in South Bend,which stands for the Area Median Income for a family of four(4)is$61,500. Then,HUD comes up with income levels that correspond to those percentages. As you can see (referencing the presentation), a one (1)person household at thirty percent(30%)of the AMI is making just under$13,000 a year. That same household, if they are making eighty percent (80%) of the AMI is at about $34,000 a year. That range, between thirty percent(30%) and eighty (80%) of the AMI is what we are calling the affordable workforce housing percentages. Above eighty percent (80%) AMI is what we are calling market-rate, which are households that can afford market-rate new or existing dwelling units. It goes up as the number of people in the household increases so that when you are at a five (5)person household at eighty percent (80%) AMI,the income is just over$52,700 a year. She went on, The way our methodology works is we first try to understand where the potential market is for new and existing housing in the City is currently living. We used a lot of data sources to get that information. We didn't just make it up. The American Community Survey conducted by the Census Bureau every one (1), three (3) and five (5) years does a very detailed analysis of every City and location in the United States. One (1)of the datasets they include is the mobility of the resident population. So, we can get down to the block-group of what the mobility really is. That means how many households, families or people are moving within that given area. We first looked at the mobility rate in the City of South Bend. That gave us the average number of households that would move, in a given year, over the next five (5) years. Then we also found from the American Community Survey the listing of how many people are moving from the balance of St. Joseph County into the City. We then applied that percentage to the households in St. Joseph County and came up with that number. The regional draw area surrounding the County comes from the Internal Revenue Service. As we know if you move in a given year, you have to report it on your tax return and the IRS assembles all that data and is available for free online. That is where we get the number of households that would be moving into the City of South Bend from the region and the rest of the County. She continued, So when you look at those numbers and add them up together, what we get is approximately 7,500 households, on average,per year, over the next five (5) years, moving to the City or within the City. That is your annual market potential. That is everybody. There is no exclusion of income. So the next thing we want to look at is who they are. We need to know where they are in their life stage and what their financial capabilities are.About forty-four percent(44%) of these folks are the younger singles and couples, or, Millenials. A lot of Millenials are now choosing to live in cities rather than suburbs and we are finding that all across the country, regardless of region. Traditional and non-traditional families represent the next largest segment at thirty-six percent(36%). Finally, empty-nesters and retirees represent about twenty percent(20%) of the annual potential market. This is partially due to the fact that young people tend to move more frequently than older people. That has been a fact of our lives for quite some time now. So when we look at their housing preferences, about half of them would be in the market for rental units. About seven percent (7%) would prefer to purchase a condominium. About eleven percent (11%) would prefer to purchase a row-house or townhouse. And thirty-one percent (31%) would prefer to purchase a single-family detached house. Those are broad categories and what I want to emphasize is we weren't looking at a big builder coming in to take down three (3) blocks of a EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson BVIdI South Bend,Indiana 466011p574.235.9221If574.235.9173 TM574.235.55671www.southbendin.gov 3