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NewBrook Partners has proposed to redevelop the former Barry Buick car dealership on Detroit Avenue into a 2.7-acre mixed-use project in western Lakewood. The $30 million development will includeDespite this population loss, there are significant gaps in the housing market, particularly in rental approximately 200 market rate and affordable up to 120% area median income apartment units and retail housing. According to five-year estimates (2015-2019) prepared by the U.S. Department of Housing and space and is expected to begin construction in 2023. Urban Development (HUD), Lakewood has a deficit of nearly 1,500 housing units for households earning less than 30% of the area median income and a deficit of over 4,700 housing units for households earning more than 80% of the area median income. Unfortunately, HUD does not provide another Programs Supporting Affordable Housing income category break beyond the 80% threshold to better understand this issue given the stated market trends. Anecdotally, this may indicate a housing shortage for moderate to middle income households (80- To assist in supporting the next century of housing and in response to the impacts of the Great Recession, 150%). the City launched Housing Forward in 2011 to better coordinate proactive code enforcement and reinvestment in the housing stock. The initial city-wide housing survey in 2011 has since been updated Supply of Rental Housing Units by Household Income (2015-2019 Estimates) ƷƩźĻƓƓźğƌƌǤ źƓ ЋЉЊЌͲ ЋЉЊЎͲ ЋЉЊБͲ ğƓķ ЋЉЋЊ͵ŷĻ ƭǒƩǝĻǤ źƭ ğ ķźƭĭźƦƌźƓĻķ ƭƷƩğƷĻŭǤ Ʒƚ Ņƚĭǒƭ ƷŷĻ /źƷǤ͸ƭ ğƷƷĻƓƷźƚƓ on the properties that have major code violations or needsmall improvements. In addition to educating property owners on best practices to improve their homes, the City is making significant efforts to connect homeowners to resources forimprovements through the Division of Community Development. Since 2015, over $1.7 million has been invested into 171 residential homes in the citythrough its homeowner rehabilitation programs. The City has partnered with private developers to construct and rehabilitate houses. The City has invested ƓĻğƩƌǤ υЊ͵Ћ ƒźƌƌźƚƓ źƓ Iha9 ŅǒƓķƭ ŅƩƚƒ ЋЉЊЎ ƷŷƩƚǒŭŷ ЋЉЋЋ Ʒƚ ƩĻƓƚǝğƷĻ ЋЎ ƦƩƚƦĻƩƷźĻƭ ğƭ ƦğƩƷ ƚŅ ƷŷĻ /źƷǤ͸ƭ Affordable Housing Strategy. Source: HUD Comprehensive Affordable Housing Strategy Current Supply and Demandof Affordable Housing There is a significant unmet demand for owner-occupied units for households earning more than 80% of the area median income. Again, HUD does not provide another income category break beyond the 80% The population of the citypeaked twice, once in the 1930s and again in the 1970s. Since that time, threshold to better understand this issue given the stated market trends. Similar to rental housing, this Lakewood has lost over 20,000 residents (approximately28% of the population)and currently has 50,104 may also indicate a housing shortage for moderate to middle income households (80-150%). residents based on the U.S. Census Bureau 2022 estimate. Population loss has been stabilizing over the last decadeand is projected to fully stabilize withcurrent housing redevelopment projects that will add Supplyof Owner-Occupied Housing Units by Household Income (2015-2019 Estimates) hundreds of units over the next several years. Population Change from 1970-2022 Source: HUD Comprehensive Affordable Housing Strategy As HUD releases future data estimates on this topic,it will be important to track the impact of recent market trends on the housing supply. Based on sale and rent price increases, there is an expectation that, where possible, the oversupplied housing in the 30-80% area median income range will shift to serve households earning more than 80% of the area median income. Additionally,the referenced housing redevelopment projects that will be constructed over the next several years primarily target the greater than 80% area median income household. Source: U.S. Census Bureau. 56 Althoughin Lakewood,less than 9% of owner-occupied unitshave a household income of 30% or less of Housing Cost Burden on Low to Extremely Low-IncomeHouseholds the area median income,over 76% of those households spend more than 50% of their annual income on housing costs.Additionally,over 32% of owner-occupied householdsearning more than 30%and not The median household income in2021 inLakewood is $57,588 versus $61,938 in the state of Ohio (U.S. more than 50% of the area median incomearespendingmore than 50% of their annual income on Census Bureau 2021 ACS 5-Year Estimates). Annually HUD determines household income limits for housing. Forthose households earning more than 50% and not more than 80% of the area median eligibility in their programs based on household size. The2022 limits in effect for the Cleveland-Elyria, income, they are challenged with more than 30% and not more than 50% of their annual income going to Ohio Metropolitan Statistical Area are in the table below. support home ownership. 2022 HUD Income Limits Housing Cost Burden as Percentage of Annual Income for Homeowners(2015-2019 Estimates) Cost burden Cost burden Cost burden > 30% to Total < 30%> 50% HUD Area Median Family Income<=50% Household Income <= 30% 1454 485 634 Household Income >30% to <=50% 190300 235 725 Household Income >50% to <=80% 400685 95 1,180 Household Income >80% to <=100% 115650 10 775 Source: HUD. Household Income >100%7,015 280 15 7,310 The cost burden of housing on a household istracked by HUD and provides valuable insight into the impact Source: HUD Comprehensive Affordable Housing Strategy of housing costs on a community.In Lakewood, rental households earning 30% or less of the area median income are disproportionately impacted by housing costs with 73.4% of households spending more than The following table summarizesthe housing cost burden in the Lakewood community. Renters are 50% of their annual income on housing costs. While still challenging, 60.2% of households earning more disproportionately impacted by housing costs as a percentage of annual income. than 30% but not more than 50% of the area median income are spending between 30% and not more than 50% of their annual income on housing costs. Housing Cost Burden by Household Tenure Type Housing Cost Burdenas Percentage of Annual Incomefor Renters (2015-2019 Estimates) Cost burden Cost burden Cost burden > 30% to Total < 30%> 50% HUD Area Median Family Income<=50% Household Income <= 30% 290410 1,930 2,630 Household Income >30% to <=50% 1,425570 370 2,365 Household Income >50% to <=80% 6402,725 55 3,420 Source: HUD Comprehensive Affordable Housing Strategy Household Income >80% to <=100% 901,510 - 1,600 Household Income >100%3,795 25 4 3,824 Source: HUD Comprehensive Affordable Housing Strategy 78