Groshart presented an update on the solutions to better low-income housing and additional senior housing. With renovations to nine buildings at the Sunset Apartments put on the backburner due to lack of funds, he said the housing authority was considering a Housing Choice Voucher Home Ownership Program in which the RCHA assists families in buying homes from landlords through monthly payments.
In addition, Groshart said the housing board at Crestwood Inn is working with county commissioners to possibly acquire the old hospital. Last December during an inspection of the building, inspectors found traces of asbestos. It would cost $250,000 to remove the hazardous material. He added, “We would like to add on at least another 18 units. Ideally that would be great.”
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One option, Anderson said, is land trusts. These are agreements in which a trustee agrees to hold ownership of a piece of real property for the benefit of the beneficiary.
“In our climate of needing to somehow subsidize housing, these land trusts are probably one of the most exciting things that we’re working on right now, and I think really have some potential,” he said.
Another option the Housing Action Group looked into, Anderson said, is to construct manufactured homes and mobile home parks, but that might be a stretch. “So we’ve primarily been looking at trying to enhance or make available some of the existing parks such as the Wagon Wheel trailer park.”
Anderson added, “What we’ve found is there’s a gap between what it costs to build something and what the market will bear to pay for that and what people are able to pay for rent.” The rent structure in Sidney is not high enough of a return on investment for a developer.
Perhaps the most feasible option discussed to increase housing is to create a developer’s package. This package would give interested companies detailed information from the possible locations of the site to the plumbing location, so that they can begin construction as soon as possible. “We thought that might be something we can come up with that can be a very realistic way to encourage some developers,” Anderson said.
During the discussion session, Wade VanEvery, executive director of the Sidney Area Chamber of Commerce and Agriculture, said he believed it would benefit the county to have a package ready to go for potential businesses. “We feel like if we had a package available it would really make the chances of getting a doable hotel, for example, much more of a reality,” he said, adding that laying the ground work sends a strong message that the residents are ready.
Leslie Messer, executive director of the Richland Economic Development, said RED has lost potential businesses because there wasn’t any planned package put together. The most recent loss, she said, was the Holiday Inn Express, which was in Sidney for three days ready to negotiate. Because there wasn’t a package, the perception was that the community wasn’t prepared. “We didn’t have anything in place like what you’re talking about,” Messer told Anderson, “and that would remedy that situation where we’re not prepared.”
Still, the economic climate for attracting developers has become more difficult compared to a year ago.
“The question whether to get governments to subsidize may be more necessary than ever to actually see more habitual places being built,” Anderson said.
reporter@sidneyherald.com
Comments
Too Funny wrote on Feb 13, 2009 5:57 AM:
The population of Sidney dropped by 1.5% from 2000 - 2007. How do you expect the population to increase when people have no where to live. Sidney's economy is based on agriculture not oil. A very small part of Sidney's history has been involved with oil. Only a few are actually benefiting from this so called boom. The rest of us have to take it up the you know what. You said something about getting real... please do. "
get real wrote on Feb 12, 2009 9:50 PM:
The way I see it wrote on Feb 11, 2009 5:39 AM:
Nice wrote on Feb 10, 2009 7:47 PM:
Sidney got along just fine before all of this oil extraction in Richland County and Sidney will get along just fine when the oil goes away and it will go away. You can count on that. "
Kim wrote on Feb 8, 2009 5:41 AM:
Charley Buehner wrote on Feb 6, 2009 12:15 AM:
Without enough employees to run the businesses we've already got, it's futile to hope to entice any further industry into moving here. Without housing, no more potential employees will come here. And with the credit and economy where it stands, new construction of any kind is going to be a tough sell. I'm not saying that trailer parks are the "best" things here, but definately the best option on the table, and if it can get people here to jump start some businesses here, well there's a good chance some of these new residents will be able to use this as an affordable stepping stone to ultimately move into something bigger and more permanent. Granted, we won't be able to keep them all, but we'll at least be able to maintain the growth that is so needed.
The biggest differences between a pre-fab subdivision and trailer park is that the trailer leaves the axles on, and the prefabs become immediately permanent. You can find used trailers on a budget. Prefabs must almost exclusively be brought in as new units. For new units, credit and financing options between any manufactured housing, I believe, will remain consistant, but if we're trying to lure families here in a depression, I think anything we can do to keep the costs down should be considerred, and having the option to move in pre-owned mobile homes is certainly a cost-saving alternative. You won't find pre-owned prefabs ready to come here on a budget.
I moved here 12 years ago as an uncertainty, and have been renting ever since. I decided 6 years ago to take steps towards a permanent home here, and have been playing the 'stepping stone' game since then. Ultimately I'll have something nice. But immediately, I intend to just have something that's ~mine~. That's what's within my means, and I know all too well I'm not alone in that boat.
The big things we need to pay attention to, is affordable, and available - neither of which we currently can offer anyone. Maybe someone will have a spark of a better idea, but until then, I'm sold on this one. Regardless of what options we may agree or disagree on, it's gotta be better than the head-in-the-sand approach that has been implemented thus far. "
R U Kidding me wrote on Feb 5, 2009 8:39 PM:
Charley Buehner wrote on Feb 5, 2009 4:29 PM:
And so the trailer park now sits empty. What exactly is the depreciation value of dirt, anyway? Which is going to be a harder hit to swallow, an empty lot sitting empty? Or a huge apartment complex sitting empty? Between the bloated pricing and skiddish investors with vivid memories of the 80s, there's virtually no chance of seeing any more apartments being put up. It'll take far too long to recover the investment without charging truly offensive rates.
I agree, Sidney desperately needs a housing solution, and it needed to be in place five years ago to prevent the trouble we're in today. You say trailer parks aren't the answer? What solution do you have in mind? Unless you're suggesting renting out your spare bedroom, I haven't seen any more cost effective solutions to rival mobile homes. If we fill up another mobile home park during the remainder of the boom, well, what's wrong with that? That's many more families paying taxes, supporting our businesses, and carrying the potential to step up into a better home in 5 or 10 years. And if we see another bust? And the trailers leave? Well... where's the problem there? We still have a perfectly usable piece of property that can still be used for whatever the landowner desires. You can't say the same about vacant apartments or abandoned houses left to rot. "
R U Kidding me wrote on Feb 4, 2009 9:00 PM:
huh wrote on Feb 4, 2009 7:56 PM:
beth wrote on Feb 4, 2009 5:28 PM:
editor wrote on Feb 4, 2009 12:05 PM:
Keepin it real wrote on Feb 4, 2009 11:55 AM:
wrote on Feb 4, 2009 11:30 AM:
Sidney wrote on Feb 4, 2009 9:12 AM:
best wishes wrote on Feb 3, 2009 9:14 PM:
WeNeedToStepUp wrote on Feb 3, 2009 6:57 PM:
Scott wrote on Feb 3, 2009 4:04 PM:
How can you be certain that when the "bust" happens, that you or I will still have a job?
When the bust happens there will be less need for employees at the food places and at clothing stores.
Also if business is slower the boss might just say we need to take a pay cut to keep the doors open. "
wrote on Feb 3, 2009 8:18 AM:
wrote on Feb 3, 2009 7:17 AM:
Michelle wrote on Feb 3, 2009 6:37 AM:
about to be homeless wrote on Feb 3, 2009 5:51 AM:
I concur wrote on Feb 2, 2009 3:53 PM:
not surprised wrote on Feb 2, 2009 11:16 AM:
What wrote on Feb 2, 2009 9:57 AM:
Charley Buehner wrote on Feb 2, 2009 3:03 AM:
This housing issue has come up in the past, two years ago a survey claimed that the majority of people surveyed didn't want multifamily housing built, and they did not want mobile homes, only single family homes or duplexes. I suspect these are the same people who want to make sure their property value doesn't go down. They want to make sure their $75K house can appraise at $125K, although they only want to be taxed on the $60K they actually paid for it. I suspect most who took part in this survey already have nice homes, and/or are directly involved in the construction industry.
In today's national economy, who can actually afford to ~build~ a new home? And with Sidney's economy, who can even afford to buy an existing one? Yes, with rent skyrocketing as it is (mine just jumped as well) home ownership has a very strong appeal. But with the prices today? According to city-data.com, the average home value has ~risen~ by $40K between 2000 and 2007. I suspect that trend is still climbing, and is artificially inflated from the oil activity and housing shortage. Will this figure drop back down if and when we go bust again? My guess is yes. Which means, if you buy a $150K house today, you'll sign a 20 year note for somewhere near a grand a month. 10 years from now, if we see another bust, and all the values plummet back down, you're suddenly in a $60K home. But you're still paying for a $150K home. Refinance? I don't think so. Sell? Good luck. All you can do is pray your job is strong enough to allow you to continue that payment!
Right now, this area is one of few nationwide that has a surplus of jobs. How are we going to get anyone to move here and fill them? They need a place to live. They need an ~affordable~ place to live, especially since most of the people we'll get here are already strangled by financial hardship. They are not going to be buying a new site-built home. With the property value I just mentioned, they'll not likely be buying a regular house either - they're taking a huge gamble to move across the country in the first place. The obvious immediate solution is more apartments, but as Leif suggested here, it would be very difficult to get a decent return on investment for anyone putting up an apartment complex today. I seem to recall many of the current complexes sitting half-filled when I moved here, and that was long after the last bust. My understanding was that they were overfilling during the last boom (just like today)
So what options are out there? Manufactured or pre-fab homes are generally more affordable because they keep their construction costs in check - many are built completely indoors on an assembly line, buying all their building supplies by the trainload at the lowest cost possible, and with no chance of weather delays or damage to the construction process. Couple this with specific financing for this type of home, and it becomes a financially viable alternative. This home can then be placed on a foundation, and become "real" property, as mentioned in the article.
The problem there, is now the buyer still has to buy the land and all of the installation costs (foundation, water, sewer, gas, electricity, etc) and this can again become cost prohibitive for a financially stricken family trying to move here.
Enter the "true" mobile home. Same thing as above, but the frame and axles stay under it. Rent a lot in a trailer park, move in, decorate as desired. If things don't work out and the new family has to move somewhere else for whatever reason, they won't have to worry about selling their home and the associated losses involved. They pack up the home and take it with them. They won't leave behind large abandoned apartment complexes. This is a very saleable option for someone trying to move here. This may well be a viable option for those paying rent currently here, as well, and bring more apartment options for new families that can't get into a trailer right away.
There are two things standing in the way of this becoming possible, however. One, it's my understanding that all of the local mobile home lots are already filled, or locked out. And Two, City Hall does not want mobile homes, perhaps because of the stereotype associated with them, perhaps because the tax structure won't put as much money into their pockets, I do not know. Maybe because some look like mine did when it first showed up (because that's what some of us can afford) and they don't want someone across town dropping their own property values somehow. They need to ask themselves which is more important - having a booming city with some homes that aren't perfect, or to have a ghost town filled with beautiful vacant mansions. They need to get over their fear of mobile homes. Besides, there are many site-built homes in this town that make even the worst of the trailers look ~good~!
So - we get past those two points somehow - then what? How do we get to a next step? It was commented in another forum/blog I believe, that the cost and time of developing a mobile home subdivision is fairly daunting. It was elsewhere suggested that maybe some form of government subsidized assistance could be utilized.
My thoughts? As I understand (although my information may be inaccurate?) the county owns the land behind The Depot and doesn't know what to do with it. This would be a point where county and community would need to come together for mutual benefit. Draft plans that can be completed in stages, one or two "rows" at a time, and start with maybe 10 or 15 units, with the ability to move in some new families quickly, while continuing to develop the next segment. Use oil dollars to fund the development, so a lot rent can be charged that is in line with other alternatives, instead of immediate ROI. Perhaps "quality" stipulations could be put in place, such that any homes on the front lot must be less than "x" years old, or meet certain asthetic qualification, or possibly rent amount and location based on certain qualities of the home, something that would provide opportunity and financial incentive to improve the appearance and quality of the homes there.
This is something that could begin TODAY. Providing my information is correct, the land is there and available. Survey the site, draft a map, trench in water, gas, and sewer for fifteen units, lay down gravel streets, and string in power poles and two or three light poles, then start taking applications. Richland Economic Development and the Chamber of Commerce should be able to offer assistance, possibly in administration, certainly in letting local businesses know there are more housing options available to their prospective new-hires.
An aggressive jump on this could have new families living here probably as early as August or September. How long would it take to build an apartment complex? How long would it take to build a new house and get a new family financed and moved in, providing they could afford it? How long would it take to knock down some of those "Help Wanted" signs across town? Isn't that worth the "horrors" of knowing there are homes that have tires under them?
--Charley "
fedup wrote on Feb 1, 2009 3:06 PM:
W A N A J O I N ? ? "
wrote on Feb 1, 2009 1:50 PM:
If you read the articles that spawned the blogs, you will realize that the majority do care, and are working to move our community forward. Lets not loose track of that! "
wrote on Feb 1, 2009 12:28 PM:
Fairveiw wrote on Jan 31, 2009 6:41 PM:
Really wrote on Jan 31, 2009 5:30 PM:
wrote on Jan 31, 2009 3:06 PM:
So can someone explain to us what exactly RED does if they don't even have a plan in place to attract new businesses? "
wrote on Jan 31, 2009 7:45 AM:
Accountability wrote on Jan 30, 2009 8:46 PM:
Home sweet home wrote on Jan 30, 2009 8:12 PM:
home is where the heart is wrote on Jan 30, 2009 8:11 AM:
Needless to say , I am an advacate
for manufactured housing. That is a good way for Sidney to address it's housing issue. "
Disappointed wrote on Jan 29, 2009 11:00 AM:
Its gotta get better wrote on Jan 29, 2009 5:47 AM:
Don Steppler wrote on Jan 28, 2009 10:31 AM:
rodeo wrote on Jan 27, 2009 9:18 PM:
Hmmmm wrote on Jan 27, 2009 6:07 PM: