Regional Plan of Conservation and Development, 2006-2015

South Western Regional Planning AgencyNorwalk and Stamford. This strong growth continuedinto the new millennium, with Greenwich experiencingthe greatest increase in its median sales price (66percent) from 2000 to 2004, which was nearly asmuch it increased during the previous 10 years.Weston experienced the smallest increase in itsmedian sales price since 2000, at 20 percent, whilethe increase in the other six municipalities variedbetween 45 and 55 percent.Contract rent - which is the amount agreed uponin a tenant’s lease agreement, excluding utilities -increased by about 30 percent between 1990 and2000. The greatest increases were in Darien andGreenwich, where rents rose 70 percent. Rental ratesin New Canaan, Weston, Westport and Wilton rosebetween 50 and 60 percent. In Stamford, the rate ofincrease was 39 percent, while Norwalk had thesmallest increase in contract rent, which rose by 24percent during the decade. The average contract rentfor the Region increased by 31 percent during the1990s. (U.S. Census Bureau, Census of Populationand Housing, 1990 and 2000.)The U.S. Department of Housing and UrbanDevelopment (HUD) uses the Median Family Income(“MFI,” which in 2005 was $111,600) of the Stamford-Norwalk Primary Metropolitan Statistical Area (PMSA)when allocating funding for housing projects to stateand local agencies. The boundaries of the Stamford-Norwalk PMSA are coterminous with those of theRegion. An “affordable” unit is defined by HUD ascosting no more than 30 percent of a family’s incomefor gross housing costs, including utilities. Forexample, a family making $50,000 can afford a unitcosting $15,000 annually, or $1,250 per month. Fortyfive(45) percent of the rental housing stock in theRegion is affordable to those earning less than 50percent of the Region’s MFI. Using Greenwich as anexample, about 36 percent of the town’s rental unitsare affordable to those earning less than 50 percent ofthe MFI. Conversely, only 87 of the 15,864 owneroccupiedhousing units are affordable to familiesearning 50 percent of the MFI. While families earningless than the MFI may be able to afford to rent inGreenwich, they would almost certainly not be able toown a home there.Housing in the Region’s two cities (Norwalk andStamford) tends to be more affordable for familiesearning less than the MFI. Roughly 42 and 58 percentof rental units in Stamford and Norwalk, respectively,are affordable to families earning less than 50 percentof the MFI. In 2000, only nine percent of single familyhomes in those cities were affordable to the samefamilies, making it difficult, if not impossible, for familiesearning less than $47,114 to purchase a home.Clearly, most housing in the Region is notaffordable to those who earn less than the MFI. InFairfield County as a whole, roughly half of the rentalunits are affordable to those earning less than 50percent of the MFI. County-wid0e, the affordability ofowner-occupied units tracks closer to Stamford andNorwalk, with 8 percent of the units affordable to thoseearning less than 50 percent of the county medianfamily income. Housing is only slightly more affordablestatewide, with 56 percent of rental units and 12percent of owner-occupied units affordable to familiesearning less than 50 percent of the state median familyincome. Because these figures are based on the statemedian family income, such housing would be moreaffordable to those working in the Region, but wouldrequire a longer commute. While many are able to finda home to rent, fewer are able to purchase a home.This is often the result of families spending more oftheir incomes on higher rents, making it more difficultfor them to save for a down-payment on a home.Of course, the market does meet the demands ofmany people seeking housing in the Region. Asdescribed in Chapter 3, salaries earned by residents ofthe Region are the highest in Connecticut and arecompetitive with top salaries nationally. The Region’smean income is impacted by the extremely highsalaries earned by a relatively small number ofresidents, many of whom work in New York City. Theregional housing market has increasingly catered tothe desires of those with higher incomes rather thanfocusing on the starter or “first trade-up” markets,where developers’ profits would be significantly lower.As a result, many people employed in the Region findit necessary to live elsewhere and endure relativelylong commutes.Non-Market-Rate HousingAs discussed earlier, HUD defines affordable housingas that for which an occupant pays no more than 30percent of their income for gross housing costs. HUDdistributes funding based on income brackets, whichinclude “very-low-income” families (where family incomedoes not exceed 50 percent of the MFI) and “lowincome”families, where family income does not exceed80 percent of the MFI. Income is adjusted for family sizewhen determining subsidies and the amount a family canafford to pay for housing costs. Assuring an adequatesupply of affordable housing will require a greater numberof units to be subsidized through local, state and federalprograms, and through expanded private lendingprograms for qualifying low and very low-income families.There are typically different types of services offered toeach by the various housing agencies.32