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THE HOMES OF MONTGOMERY COUNTY
PLANNING ISSUE
Housing is a basic need that is
not always easily afforded. As
housing prices have escalated
beyond inflation rates—even
with the nation’s economic
downturn in the recent past—
providing “homes within
reach” remains a challenge.
What’s New
•
The Commonwealth of Pennsylvania created a
statewide housing trust fund, signed into law in
November 2010. This legislation created a fund that
enables the Pennsylvania Housing Finance Agency
(PHFA) to build or rehabilitate housing for low- to
moderate-income people, the elderly, and those with
disabilities. This has no annual appropriation, relying
instead on distributions from the National Housing
Trust Fund and private sector monies.
•
Many new affordable housing units have been built
over the last 10 years. For example, Ardmore
Crossing in Lower Merion mixes market-rate units,
deed-restricted affordable units, and an affordable
senior housing development. Federation Housing, Inc.
recently completed and opened its first project outside
of Philadelphia, a new 3-story apartment complex for
low and moderate income seniors in Cheltenham’s
Elkins Park neighborhood. On the horizon are a 51-
unit multifamily rental development in Souderton for
low and moderate income families and a new 60-unit
senior development in Lansdale, which will be
adjacent to the North Penn YMCA and will have a
senior center on-site.
•
On a municipal level, some municipalities have been
taking steps to encourage affordable housing
construction. Lower Merion Township adopted its
Mixed-Use Special Transit (MUST) overlay zoning
district ordinance in 2006. This ordinance permits
mixed-use buildings within 1,500 feet of the Ardmore
regional rail train station as well as a density bonus for
moderate income housing construction.
Existing Housing Totals
Housing Characteristics
Housing Costs and
Affordability
Senior Housing
Group Homes and Special
Needs Housing
Jobs-Housing Balance
Future Housing Demand
Housing Costs and Affordability
Ensuring that homes are affordable—which generally is
defined as annual costs not exceeding 30% of a household’s
income—is not a legal requirement in Pennsylvania. Yet
this issue is crucial to residents who seek homes that meet
their needs without breaking the bank.
In 2012, the median housing price for a home in
Montgomery County was $255,000. The median price for a
new unit reached a high of $405,000 in 2006—and settled to
just over $330,000 in 2012. Many households would be
hard pressed to afford these prices. There are affordable
housing options in the county, including homes for rent or
sale, homes built with subsidies from various government
programs, and homes built by private developers. Many
units have been built with assistance from the county’s
Affordable Housing Trust Fund, which is funded through a
variety of sources, including HUD HOME grants and county
recording fees for deeds and mortgages.
The Montgomery County Housing Authority (MCHA)
oversees a network of public housing across the county,
including 615 public housing units in four high-rise towers
(reserved for elderly and disabled residents) and four family
communities. Almost all of the public housing units are
occupied, with an annual turnover rate of 44 units (7.2%)
and a lengthy waitlist. There are an additional 3,465
privately owned units that are subsidized for low income
individuals and a total 2,814 Housing Choice (formerly
Section 8) vouchers available county-wide.
High housing prices are not solely caused by market forces.
Regulatory obstacles, such as a shortage of land zoned for
higher density housing or large minimum lot sizes, affect the
supply of affordably-priced housing.
There are financial obstacles as well. A buyer may not have
the savings for a down payment and closing costs; a renter
may lack the money for a security deposit. An individual or
family may be in debt, which makes it difficult to qualify or
be able to afford a mortgage. A different type of financial
obstacle affects developers. Many developers prefer to build
expensive homes rather than more affordable homes because
profits are higher.
Many market-rate
developments have
affordable housing
prices that are aimed at
a broad section of
homebuyers, like these
new townhouses in
Royersford.
