officials explore ways to provide affordable housing

Many fear the prohibitive cost of living in Portsmouth will turn the city into a nest for the wealthy, driving out working families burdened with modest incomes.

But a proposal to provide bonus incentives for the development of affordable housing options is drawing mixed reactions, as evidenced by a recent public hearing during which about two dozen residents and businesspeople voiced their opinions.

“Portsmouth is a very desirable place. It has a lot of amenities,” said Bryan Wyatt, executive director of the Housing Parternship, prior to Monday’s hearing. “There are a lot of amenities for young people. There are lots of young people who would love to live here but they’re living 10, 20, 30 miles away.”

A family of four in the Portsmouth area earns a median annual income of about $72,000, Wyatt said. Such families cannot afford to pay more than about $250,000 on a home. But the city’s median home value is well over $300,000, putting houses, condominiums and duplexes well out of the reach of most working families.

“In the last five years the real estate appreciation has just gone through the roof,” Wyatt said. “No one getting started in their work … they could not own a home or even find a decent rental.”

As a result, younger people are typically looking for homes in surrounding communities like Dover, while older, wealthier people continue to funnel into the Port City. If the trend continues, Wyatt said, the results could be devastating for local businesses that rely on a younger clientele.

Many of the people moving into Portsmouth are older citizens who have recently sold homes in other communities and have plenty of money.

“They don’t live here year-round and they certainly don’t go out to bars or frequent local businesses. It changes things significantly,” Wyatt said. “There’s a real concern that all the vibrancy of the city could suffer.”

A proposed development ordinance before the City Council offers a density bonus that would enable developers to increase the number of units in a housing project by up to 50 percent, provided the sale of the extra units be reserved for buyers or renters who earn 120 percent of the area’s median income or less. For a family of four, this would mean a ceiling of about $86,000 for eligibility.

The parcels for such projects must include at least an acre of land and must fall within the city’s General Residence A and B districts. The object is to provide an incentive for private developers to offer affordable housing.

A proposed 39-unit project on a five-acre parcel on Bedford Way in Atlantic Heights would likely be the first to take advantage of the ordinance if it passes next month. But Wyatt said the project has raised concerns among abutters who might be affected by increased traffic flow and parking constraints.

Some residents echoed those concerns on Monday, Dec. 18, during a public hearing in City Hall. Other citizens and councilors feared the affordable housing units would not be built to the same quality level as market-priced units.

 “We’ve got to have assurances in there that we’re not building junk units,” said John Sullivan, of Sewall Road.
Attorney Doug MacDonald, who spoke on behalf of the Fusegni family of Kearsarge Way, said the ordinance needs greater structure and more clear definitions to establish who would be eligible to take advantage of affordable units.

“There’s way too much flexibility and loose ends in this document,” MacDonald said.

But other residents and businesspeople spoke in favor of the ordinance and stressed the need for additional housing to accommodate the city’s workforce. A number of representatives paraded to the podium to speak on behalf of businesses like Bank of America, Ocean National Bank, Northeast Credit Union and Portsmouth Regional Hospital. They said employees cannot afford to live nearby and often must seek jobs elsewhere.

Raymond Will, a Portsmouth resident and member of the Planning Board, said longtime Portsmouth residents should receive first dibs on new workforce housing units. He hopes the ordinance will help current residents remain in the city even if their financial circumstances change.

“We’re sitting in this room because we love this city. We shouldn’t have to leave because our lives change; it’s home,” Will said.

According to the Greater Seacoast Workforce Housing Coalition’s Web site, 1,500 new housing units will be needed across the Seacoast annually for the next five years in order to keep up with demand. Somewhere between 200 and 300 units will be needed in Portsmouth, while the remainder will be spread across about 30 other communities.

But Wyatt said the goal is achievable. The Housing Partnership will continue to conduct at least two development projects each year while pushing for necessary zoning changes and providing public education.

Creating more affordable housing is a priority listed in the city’s Master Plan. Planning Director Dave Holden said the ordinance is designed to serve as a template for future measures and could eventually be extended to other districts.
The City Council unanimously approved a second reading of the ordinance on Monday, sending it forward to the Jan. 8 meeting, during which members will vote on whether or not to adopt the ordinance. The Planning Board has already approved the ordinance.