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THE HOMES OF MONTGOMERY COUNTY
PLANNING ISSUE
Housing is a basic need that is
not always easily afforded. As
housing prices have escalated
beyond inflation rates—even
with the nation’s economic
downturn in the recent past—
providing “homes within
reach” remains a challenge.
What’s New
•
The Commonwealth of Pennsylvania created a
, signed into law in
November 2010. This legislation created a fund that
enables the Pennsylvania Housing Finance Agency
(PHFA) to build or rehabilitate housing for low- to
moderate-income people, the elderly, and those with
disabilities. This has no annual appropriation, relying
instead on distributions from the National Housing
Trust Fund and private sector monies.
•
Many new affordable housing units have been built
over the last 10 years. For example,
in Lower Merion mixes market-rate units,
deed-restricted affordable units, and an affordable
senior housing development. Federation Housing, Inc.
recently completed and opened its first project outside
of Philadelphia, a new 3-story apartment complex for
low and moderate income seniors in Cheltenham’s
Elkins Park neighborhood. On the horizon are a 51-
unit multifamily rental development in Souderton for
low and moderate income families and a new 60-unit
senior development in Lansdale, which will be
adjacent to the North Penn YMCA and will have a
senior center on-site.
•
On a municipal level, some municipalities have been
taking steps to encourage affordable housing
construction. Lower Merion Township adopted its
Mixed-Use Special Transit (MUST) overlay zoning
district ordinance in 2006. This ordinance permits
mixed-use buildings within 1,500 feet of the Ardmore
regional rail train station as well as a density bonus for
moderate income housing construction.
Existing Housing Totals
Housing Characteristics
Housing Costs and
Affordability
Senior Housing
Group Homes and Special
Needs Housing
Jobs-Housing Balance
Future Housing Demand
Housing Costs and Affordability
Ensuring that homes are affordable—which generally is
defined as annual costs not exceeding 30% of a household’s
income—is not a legal requirement in Pennsylvania. Yet
this issue is crucial to residents who seek homes that meet
their needs without breaking the bank.
In 2013, the median price for a home in Montgomery
County was $267,000. The median price for a new unit
reached a high of $405,000 in 2006—and settled to just over
$375,000 in 2013. Many households would be hard pressed
to afford these prices. There are affordable housing options
in the county, including homes for rent or sale, homes built
with subsidies from various government programs, and
homes built by private developers. Many units have been
built with assistance from the county’s Affordable Housing
Trust Fund, which is funded through a variety of sources,
including HUD HOME grants and county recording fees for
deeds and mortgages.
The
(MCHA)
oversees a network of public housing across the county,
including 615 public housing units in four high-rise towers
(designed for elderly and disabled residents) and four
general occupancy communities. Almost all of the public
housing units are occupied, with an annual turnover rate of
44 units (7.2%) and a lengthy waitlist. There are about
2,500
(formerly Section 8) vouchers
available county-wide. Additionally, there are also a few
thousand privately owned units that are subsidized for low
income individuals.
High housing prices are not solely caused by market forces.
Regulatory obstacles, such as a shortage of land zoned for
higher density housing or large minimum lot sizes, affect the
supply of affordably-priced housing.
There are financial obstacles as well. A buyer may not have
the savings for a down payment and closing costs; a renter
may lack the money for a security deposit. An individual or
family may be in debt, which makes it difficult to qualify or
be able to afford a mortgage. A different type of financial
obstacle affects developers. Many developers prefer to build
expensive homes rather than more affordable homes because
profits are higher.
Many market-rate
developments have
affordable housing
prices that are aimed at
a broad section of
homebuyers, like these
new townhouses in
Royersford.
