Lack of Affordable Housing Creates Struggle for Many Families in Norwalk

NORWALK, Conn. — Norwalk, along with most of Fairfield County, lacks affordable housing. Many factors contribute to high housing costs and the fact that most affordable housing is in the form of apartments despite the rapid construction of luxury units.

Norwalk’s Open Doors understands the effects of high housing costs. They cater to people in the 40% Area Median Income, and Senior Director of Programs Tiffany Porter-Jamison said that Fairfield County’s rates compared to the rest of the state can be scary for the families that stay at Open Doors. The rest of the state of Connecticut is getting by on half of what is needed in Fairfield County, and rents are skyrocketing, and people can’t afford it.

Porter-Jamison said, “We look at the growing cost in Fairfield County itself. The cost of living and housing itself, it’s really leading people into homelessness.”

Currently, Open Doors is working on developing five three-bedroom townhouses at 24 Berkley Street that are deeply affordable.

Director of Homeless and Housing Supports Jason McCants then brought up before entering the interview that he was notified that two undocumented clients were slated for rapid rehousing. With funding cuts, the clients are no longer going to be able to take advantage of that housing opportunity because of this new administration coming in. With the funding streams being cut and frozen, it does impact the work that they do and it’s keeping people in shelters longer.

Porter-Jamison said, “I’ll say this, with the new administration and all of these changes, the funding streams are being targeted.”

Despite attending statewide housing meetings, Open Doors staff say that Fairfield County is often assumed to be wealthy and stable. Porter-Jamison emphasized that this is far from the truth. There’s also a lack of clear models for preventing homelessness. She explained that it’s easily confused with evictions, but stopping an eviction is not the same as preventing homelessness.

Open Doors collaborates with the Norwalk Housing Authority and participates in local zoning meetings. She said, for example, “We’re very proactive in those areas, but we still feel like we’re defeated. When they’re building up these big luxury buildings, sometimes they’ll say the unit is set aside. Okay, we look at the rent rates; they still need a subsidy to be able to afford that rate level. So I’ll say that’s one of the biggest things. It’s just the cost.”

They then brought up the building by the South Norwalk train station and questioned who it would benefit. Based on trends, they’re building along railroad routes to typically attract corporate people or those who earn around $500,000 a year and work in New York City because a single-person household making $100,000 can’t sustain itself in Norwalk.

A big issue is that developers are more focused on the revenue they can get from high-end developments. She explained that for apartment complexes, owners wouldn’t have to pay taxes for a couple of years if they provide affordable housing opportunities, but they want the money immediately. Developers will opt out of setting aside ten percent of their units to make more money faster. Porter-Jamison says, “They missed the mark. Because if you have affordable housing, I want to say it’s profitable to the city.

Associate Professor in Residence in the Department of Economics at UConn Waterbury, Dr. Steven Lanza, explained that although renters do not pay property taxes directly, landlords do build property taxes into the cost of rent. The more affordable housing has a lower market value than more expensive housing; therefore, he said, “Increasing the share of affordable housing could actually lower municipal revenue because tax bills are based on the market values of the properties that are assessed.”

There are many reasons that contribute to the lower amount of affordable housing in Norwalk and its surrounding area. Lanza said a big reason why housing is more expensive in Fairfield County is because of the area. Places in Connecticut where the average income level is low, home values are typically less than $300,000, but where income is above $250,000, housing exceeds $600,000.

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Lanza said, “Part of the reason is that higher income earners can bid up the price of a limited stock of housing. Another factor is that housing is a so-called normal good, something that people desire more of as their incomes increase. So wealthier individuals tend to demand larger homes which will naturally cost more than smaller homes.”

Norwalk’s proximity to New York City drives up real estate values. He provided an example of an identical home costing more in Fairfield County than in Windham County. Factors like the quality of amenities in the community, good schools, lower crime rates, and recreational opportunities also increase property values since they attract residents.

He further explained that Connecticut, like many states in the Northeast, has a reputation for restrictive zoning practices that can limit the housing supply and drive up prices. Housing costs will increase in towns with large minimum lot sizes instead of small minimum lot sizes. He elaborated, “Similarly, NIMBY-ism (Not In My Backyard) is probably more entrenched in the Northeast than in the South or Midwest. Groups or individuals opposed to development can often delay or derail housing projects that might otherwise help make housing more affordable.”

Homeownership is higher in areas with more job opportunities and age groups raising families. Lanza said Connecticut’s generally slow-growing economy and older population may cause lower homeownership.

Norwalk Housing Authority (NHA) Executive Director Adam Bovilsky explained the agency’s efforts in helping Norwalk residents find affordable housing. The agency has a homeownership program that allows families with Section 8 vouchers to use their vouchers in the NHA rather than in the private rental market. The NHA pays 30% of their income towards rent and utilities, and the federal government accepts the rest of the tab.

This would apply to a mortgage as well. Bovilsky said, “If they qualify and receive a loan from a bank to qualify for the program and receive a loan from the bank, then the Housing Authority will allow them to use their voucher to pay 30% of their income towards their mortgage and utilities and then we pick up the tab for the rest.”

He added that the program is hard for families to qualify for and can be challenging unless the family is disabled in the 15-year program, whereas a voucher is for life.

Currently, all of the NHA waitlists for federal public housing and most waitlists for families and seniors are closed except for Oak Grove, which will be an affordable development that is not federal public housing, and the income levels are higher than what’s expected for public housing.

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Bovilsky concluded that very wealthy suburban communities around Norwalk bring up rental prices and said, “There’s just a lot greater need for housing in Norwalk than we currently have a supply.”

Full article at: https://www.nancyonnorwalk.com/lack-of-affordable-housing-creates-struggle-for-many-families-in-norwalk/