WIP: Brown County Affordable Home Strategy- Notes

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DRAFT – Last Updated  Dec 8,  2024

Regional and County Study: The 2024 Indiana Uplands Housing Update provides updated data to help identify workforce housing needs and strategies for advancing housing opportunities in each of the region’s 11 counties. This housing strategy is specifically tailored to the needs and future aspirations of the Indiana Uplands region.

For more information on the original 2019 Housing Study, visit: https://regionalopportunityinc.org/housing/

Dec 3, 2024. Local Habitat chapter envisions more homes, public partnerships in 2025
By Staff Reports -December 3, 2024

Dec 3, 2024. Letter: Prioritizing family-oriented housing availability (as opposed to apartments) Jeremiah Reichmann

Nov 22, 2024.  Housing and Another new tech park coming to Ellettsville _ news – Indiana Public Media

Nov 5, 2024. Building dreams, filling county’s affordable housing gap (Brown County Democrat)

Sept 12, 2024. IndyStar. Included for contrast with an urban area that includes a Report.

    • Carmel has lots of large, pricey homes. A task force outlined a need for modest options.
    • Housing Task Force Report
    • Carmeltopia: A small city (Carmel) shows a way forward for local Republican politics. (and economic development). 

    • Henry Mestetsky, Executive Director of the Carmel Redevelopment Commission, explains how Carmel has used Tax Increment Financing (TIF) to spur large development projects and grow a vibrant, walkable downtown. This 4-part series weaves together architecture, urban planning, local tax policy and awesome before-and-after pictures everyone can enjoy.

      • A model that local developers may think can be downsized for one or more areas in Brown County?

Aug 14, 2024, Brown County Democrat. Housing Sales. “The average home sales price dropped from $420,102 in July of 2023 to $384,160 last month.

In America, “We the People” is the top management team responsible for working together towards “a more perfect union” and community.  To accomplish this aim, we need a method. Proven methods and tools introduced through the Brown County Leader Network. (BCLN). BCLN – Overview of the concept

This post is shared on my campaign website :

    • Housing and School Enrollments. On primary election day on May 7, I visited all the voting locations and had the opportunity to talk with many of the referendum proponents. 
    • One of the takeaways was that the referendum would help sustain needed staffing and programs but would not address the decline in enrollments that may eventually lead to consolidations and less staff.
    • In addition to retaining and attracting students who live in the county but choose other options, increasing enrollment would also involve attracting more families with school-age children to move to Brown County.
    • In addition to housing, the referendum and discussions on social media identified opportunities to address questions, concerns, and issues raised by the non-supporters. Addressing these issues through a collaborative assessment and decision-making process could lead to a shared vision and additional community support for the future of county schools.

Context:  A Collaborative Decision-Making Process. This post contains an “outline” of a collaborative process to help define the problem and develop solutions. The “process” is flexible and adaptable. 

Affordable Housing. The U.S. Department of Housing and Urban Development defines “affordable housing” as housing where the occupant pays 30% or less of the gross income on total housing, including utilities.    This definition would apply at all price ranges. A $20 million dollar home would be affordable to some.

Affordable Housing—Redefined? The need for “affordable housing” in Brown County is generally referred to in the context of the need for rental units and housing (starter homes?) for more young families with school-age children. The expected rent/cost is at the less expensive end of the market. The tourism industry also desires housing options for its workforce.  

References: “Affordable Housing” Study and Working Groups

BC Home Sales Trend

The “Burning Platform” (aka – crisis)

    • Enrollments. Declining school enrollments can lead to consolidations within the county and with surrounding counties. Some residents may welcome this change with the expected lower property taxes, and many will not.
      • What are the State’s criteria for consolidating schools?
    • Culture. Schools are a vital part of community life. 
    • Median Home Values. High land and home values make homes unaffordable for people with lower to moderate incomes. Brown County Habitat for Humanity works to serve this market.
    • Successful School Referendum (2024): Higher teacher salaries will help retain and attract staff. The referendum does not address the long-term trend of declining enrollments that can lead to fewer staff and schools.
      • The referendum strategy was effective and well-financed, but it was also divisive. Many issues and concerns brought up by both sides cannot be resolved on social media. These issues could be addressed, and they may lead to a better understanding of the challenges and opportunities. The “So what?” It’s more difficult for a divided community to support necessary changes that may increase enrollment and avoid school consolidations.
      • The options?  Support community forums in applying a collaborative assessment and decision-making process that can lead to support for a common vision shared by the community. 

Concept:  Support a comprehensive vision and strategy that may attract more families with school-age children to Brown County.  Strategy supported by the County Comprehensive Plan that provides guidance for zoning.

    • Brown County property owners may be interested in selling land to young families to build homes in the 250K (?) range and lower.
    • Property Owners (before selling) reserve the right to review and approve the house design. 
    • The sale of land can be contingent on a contract to build a home and complete construction.
    • Other. A community commitment and vision for attracting young families to the county may inspire a variety of options and strategies.

Income Level.  What is there range of the income levels for the target market?

Options:

    • Community. Brown County property owners choose to sell land for housing to young families with children,
    • Brown County Habitat for Humanity – determines eligibility and offers grants and low/no-interest loans to families.
    • Regional Opportunity Initiative (ROI) – READI Grants. Grants Include funding from the state, county, private developers, and non-profits. State Stellar Grants also expected to be available in 2026.
    • Private Lenders  – continue to determine eligibility for those not needing financial support from Habitat for Humanity
    • Infrastructure. Given the county’s plans to expand sewer service, developers may have their own plans for leveraging the county’s investment in infrastructure to build more homes. 
    • Private Developers. New homes are being built but at the higher end of the market.  
    • “Land Bank.” Justin Schwenk – Democrat  Candidate for Commissioner for District 3, is advocating for this option:
      • Facebook Post – Brown County Chatter: “My name is Justin Schwenk. I am running for County Commissioner for District 3. I was raised in this community. I have been a Social Studies teacher for 20 years, 8 of which was here in BC. I was also the President of the BC Redevelopment Commission. While there I developed a plan to create attainably priced homes (sub-200k) that would attract young family aged residents through a first time homebuyer program all while respecting our nature environment and minimizing/eliminating the developmental footprint of the county. (ie: I’m not making developments or apartments). We are doing this through redevelopment of vacant and abandoned properties. (Anyone have a vacant, dilapidated house near them?). We even had 1 million in funding earmarked from the state. We had the ordinance drawn up and it was rejected by the commissioners at the time. I would love to discuss it more if anyone is interested in learning more. If I am elected, attainably priced housing and creating demographic sustainability will be among my most important priorities

Context:

    • Political. Any housing strategy that requires county funding (including matching grants) will require the votes of the commissioners and council.  (See Outline – Collaborate Decision-Making Process)
    • Available Land. Brown County is the most heavily forested county in the state. Over 50% of the land is owned by the federal and state governments and non-profits. Land can also be placed into classified forest status, which reduces property taxes and development opportunities.  Although these facts reduce the property tax base, the terrain, country, culture, and recreational opportunities are why residents choose to stay or move here. 
    • Bedroom/Retirement Community. Ball State economists identified Brown County as a “Bedroom Community.” Residents choose to live here, and most generate their income outside the county. Many local businesses support this community. The county is also a Naturally Occurring Retirement Community (NORC).
    • County Tax Policy. The county opted to rely on a high income tax rate (15th in the state) and low property tax rate (among the lowest in the state). This policy (low supply, high demand) contributed to higher prices for land and homes, including the demand for second homes, tourist rentals, and commercial businesses catering to the tourism industry.
      • Yearly assessments of residential property indicate increasing property values and the property tax base.
    • Demographics. Brown County has one of the oldest demographics in the state. 
    • Tourism. The county supports the hospitality (tourism) industry. Approximately 3 million tourists a year visit Brown County with the fall season the historical peak
      • The tourism industry generates 12.1 million in taxable wages.  All county taxpayers generate $550 million in federal adjusted taxable income (AGI). State AGI would be less because of state deductions from income. Brown County’s Economic Engine? 

Funding. The county is funded primarily by income and property taxes. Property assessments and incomes have been continually increasing. 

        • Adjusted Gross Income (AGI) County Residents 

agi federal 2011-2021

    •  
    • Schools and Enrollment.
      • Existing. Several hundred students are enrolled in education options other than Brown County Public Schools. These options include homeschooling and public and private schools outside the county. 
      •  New. Attracting new residents with school-age children interested in attending Brown County Public Schools.  Families do not necessarily move to Brown County for jobs and schools.  With broadband and work-from-home opportunities, people can choose to live and work almost anywhere. 
  • Home Designs. Designs that fit within the context and architectural traditions of Brown County.

Costs (Ref: Housing Study Update 2024 – Brown County)

    • Moderate Market – 200-250K. “Due to the cost of land, materials, and labor, the production of housing priced below $250,000 will be challenging to impossible.”
    • Market: 250-350K.
    • High market: over 350K.

Size and Options:

    • Single-family homes -1200 sq ft, 3 bedrooms, 2 baths (average Habitat for Humanity home). Note Habitat organizations throughout the county offer a variety of options and designs.
    • Duplexes/Townhomes
    • Rental Units
    • Other

Construction:

    • Volunteers – Habitat for Humanity
    • Modular Builder (s) – Habitati or individual buyers can contract for services. 
    • Traditional home builders. 

Target Market – young adults, families with school-age children

Financing

    • Grants for those qualifying via Habitat for Humanity
    • Private – for those who do not need a grant but who could afford a home at the  250K (?) less range

Available Land and Zoning

    • Brown County property owners may be interested in selling land to young families.
    • Property Owners could reserve the right to review and approve the house design?

Brown County Zoning – Size of Lots by Zone

UPDATED Brown County Ordinance 10-20-2020

Zoning lot size

The County Redevelopment Commission (RDC) can facilitate land owners through the bureaucracy for supporting the needed increase in family homes.

    • Minor Subdivision – 2 lots  – 1.5 acre minimum – Minor Subdivision Pkt no calendar
    • Major Subdivision – 3 or more lots – 1 acre minimum – Checklist for MAJOR SUBDIVISION-Primary
    • PRIMARY RESIDENCE DISTRICTS (Rl) are established to include areas that can be served by water or sewage utility systems, principally along State Highways and at present urban centers.
    • SECONDARY RESIDENCE DISTRICTS (R2) are established to include areas that have been subject to urbanization on a scattered pattern, principally along County Highways.
    • GENERAL BUSINESS DISTRICTS (GB)
    • LAKE RESIDENCE DISTRICTS (LR) are established to include areas that adjoin extensive bodies of water in the county and are suitable for seasonal or permanent residences.
    • ACCOMMODATION BUSINESS DISTRICTS (AB) are established to include areas that are close to LR Districts and appropriate to the limited shopping and service needs of those districts.
    • FOREST RESERVE DISTRICTS (FR) are established to include land that is for the most part rough terrain and where there is extensive public ownership of forest lands.
    • ADU – ADU Ordinance Language

NOTES

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