Creating Colchester's Affordable Housing Plan
Improving housing options for all life stages and lifestyles while protecting existing community attributes.
Introduction
Connecticut is an expensive place to live and the lack of housing affordability in many communities often means that young people can’t afford to live in the towns where they grew up, older residents can’t afford to downsize within their community, and people employed in lower paying jobs can’t afford to live where they work.
Offering diverse housing, including affordable units, is an investment in the community. It can be a catalyst for talent retention, health, wellbeing and quality of life for all residents. Recognizing that there is no "one size fits all" approach, the Town of Colchester is developing an Affordable Housing Plan to identify ways to increase the diversity of housing types and the number of affordable housing units in a manner that supports community housing needs and aligns with community goals, while recognizing Colchester’s unique infrastructure, resource and ecological characteristics.
We encourage you to scroll through this webpage, learn more about Affordable Housing in Colchester, and provide input during this process. At the bottom of the page, there is a link to a brief survey where you can share your perspective on local housing strengths and areas of opportunity. Thank you for your interest and participation!
What is Affordable Housing?
Affordable housing is typically defined as housing that costs no more than 30% of a household’s income.
The State has adopted a statutory definition under which "affordable housing" is housing which, due to deed restriction or subsidy, will cost a low-income household no more than 30% of their income. A goal of State law is for 10% of housing units in every town to be "affordable" due to deed restrictions or subsidies. For this purpose, a low-income household is a household making less than 80% of State or Area Median Income (AMI), whichever is less. Under this definition, a family of four making less than $79,900 per year or an individual making less than $55,950 per year in Colchester could qualify for deed-restricted or subsidized housing. [U.S. Department of Housing and Urban Development (HUD) Income Limits 2021]
Housing can also be affordable due to prevailing market conditions. These "naturally-occurring" units are privately owned and operated, and would be affordable to low and moderate-income households based on the market-determined price rather than any subsidy or deed restriction. While these units are needed for a healthy and diverse housing market, low-income households have to compete with other households to live in these units, and market forces can cause price fluctuations. "Naturally-occurring" affordable housing is not recognized as "affordable" by State statute.
Who needs affordable housing in Colchester?
Access to affordable housing is a need in every Connecticut town. Based on median household income in the 2019 American Community Survey, in Colchester, 1,550 households (26%) are considered low-income when using the local AMI. These households include seniors, young adults, some municipal staff, and people who work in lower-wage jobs. In the same year, 70% of low-income households in Colchester spent greater than 30% of their income on housing and as a result might have difficulty affording other necessities such as food, transportation, and medical care.
Low-income households are not the only ones who spend more than 30% of their income on housing. 510 households (12%) that are not considered low income spend more than 30% of their income on housing. In total, 27% of all households in Colchester spend more than 30% of their income on housing. [2019 American Community Survey, 5-Year Estimates] These households may feel compelled to leave Colchester in the future for a community with more housing choice.
How much affordable housing does Colchester have?
Under the State definition described above (that requires a deed restriction or subsidy), as of 2020, 552 units, or 8.6% of Colchester’s total housing units were deemed affordable. [There are no available statistics indicating the number of naturally-occurring affordable units in Colchester.]
Colchester's real estate market has experienced a resurgence in recent months. Thus, while Colchester's naturally occurring affordable housing units may be currently affordable to low-income households, these units may not be affordable in the future if rents or home sale prices continue to increase. In addition, these units may not be occupied by low-income households. Low-income households have to compete with higher income households for the same units.
What does affordable housing look like?
A common myth around affordable housing is that it consists only of higher density apartments. This is not true. Affordable housing is just like any other type of housing and comes in many shapes and sizes ranging from single-family homes to duplexes and from townhomes to apartments. It can be privately owned or rented. It can house seniors, families with children, single individuals, or persons with disabilities. It can come in a range of architectural styles. Scroll down to view some examples of what affordable housing can look like.
Single-Family Homes
Many of the low-income households in Colchester are homeowners, underscoring the need for affordable owner-occupied housing options. Smaller single-family homes, commonly referred to as "starter homes" can be an important part of the Town's housing stock and provide options for families looking to move to Colchester for the first time as well as older residents looking to downsize.
The Connecticut Housing Finance Authority (CHFA) has several programs that encourage home ownership for low-income families, including financing and down payment assistance available to first time home buyers throughout the State who meet certain income requirements. One of the benefits of these programs is that it allows lower-income households to build equity.
Public Housing Developments
Publicly owned and operated affordable housing developments are arguably the most recognizable type of affordable housing. Many municipalities in Connecticut, including Colchester, have a Housing Authority that owns and operates housing for low-income residents, including those who are elderly and/or disabled. This housing can be provided at a range of densities or styles ranging from apartments, to duplexes, or even single-family homes.
Senior Housing
Colchester has a growing senior population. Senior households are more likely to struggle with housing costs due to their limited incomes. In addition, many seniors also have ambulatory difficulties that require special living arrangements. Senior housing can be owner-occupied or rented and can range from single-family homes to apartments. Age restriction is the only characteristic that sets this apart from other types of affordable housing.
Mixed-Income Housing Developments
Some affordable housing developments contain a mix of affordable and market-rate units. Mixed-income developments come in a range of densities and housing types, ranging from apartments, to townhomes, to single-family subdivisions. Most of these developments are privately owned and operated.
Accessory Dwelling Units (ADUs)
Accessory dwelling units, sometimes referred to as "in-law apartments," are small dwellings that are on the same property as a regular single-family home. These can be part of the main home, or built as a separate building in the backyard, depending on local regulations. Accessory dwelling units can provide affordable housing options for family members or non-family members.
Private Rental Housing
Many low-income families rent private units and receive housing assistance through the federal Tenant Based Rental Assistance program. Rental units that are at or below "fair market rent" may be eligible for this program. In Colchester, the fair market rent for a 2-bedroom apartment is $1,282 per month (U.S Department of Housing & Urban Development, FY 2021 FMR).
Eligible low-income households are required to pay 30% of their household income towards rent, while subsidies cover the remaining costs. Private rental housing can come in a range of styles including single-family homes, duplexes, triplexes, townhomes, and apartments.
Community Survey & Workshop
We'd love to hear from you - please complete our Affordable Housing Community Survey to help us shape the Affordable Housing Plan here:
Please join us for a Community Workshop to further discuss housing affordability, review survey results and participate in interactive activities on housing strategies on March 2nd, 2022 at Town Hall.
Needs Assessment
Coming Soon!
Potential Strategies
Coming Soon!
Project Documents
Coming Soon!
