OTTAWA HOUSINGNEXT

An initiative 0f

Working Together to Ensure Everyone Has a Place to Call Home

Mailing Address:PO Box 1349

Holland, MI 49422-1349

Satellite Office:700 Fulton St., Suite B

Grand Haven, MI 49417616-842-7130 tel616-842-7034 fax

Main Office:115 Clover St., Suite 300

Holland, MI 49423616-396-7811 tel616-396-5140 fax

MissionOttawa Housing Next will create and implement a cross sector, long-term and regional strategy that influences leverage points in the system to ensure affordable, accessible and safe housing is available to all.

Thank you to the Design Team Members for their effort in taking the first steps in this community initiative.

Steve Bulthuis Macatawa Area Coordinating CouncilAlicia Carrasco Meijer, INCPatrick Cisler LNA/OCHSCCJane Clark Michigan West Coast Chamber of CommerceLiz DeLaLuz Greater Ottawa County United WayJoel Dye City of HollandTom Edmiston Great Lakes Capital FundJoy Gaasch Grand Haven Chamber of CommerceLinda Jacobs Good Samaritan MinistriesHolly Johnson Grand Haven Area Community FoundationPat Lonergan Fifth Third BankPat McGinnis City of Grand HavenCharisse Mitchell Center for Women in TransitionPatrick Moran Greater Ottawa County United WayBill Raymond MIWorks/Community Action AgencyLyn Raymond Greater Ottawa County United WayKendra Spanjer Department of Human Services, Ottawa CountyAl Vanderberg County of OttawaJack Vandermuelen Home Builders AssociationKurt Wassink GentexMark Wilson Huntington Bank

Current RealityPrOBLeM

Ottawa Housing Next

Default Future

Preferred Future

Our Current Reality is that Ottawa County offers a high quality of life in many regards, and several of

our local chambers, foundations, United Way and economic developmental organizations make it their

mission to create a desirable place to live, work and play. This achievement can be seen by the various

accolades and honors given to Ottawa County in recent years, including:

“Ottawa County is the most philanthropic county in the state.” – Chronicle of Philanthropy Study, August 2012

“Ottawa County is the healthiest county in the state.” – 2014 County Health Rankings

While Ottawa County is a desirable place to live, the reality is that this quality of life only extends to those

fortunate individuals who are able to achieve financial independence for themselves and their families.

roughly half of our residents struggle daily to make ends meet due to an increasing lack of affordable

housing in the community.

Our community’s Default Future, if housing unaffordability goes unaddressed, will be one in which our

local businesses are unable to find and keep workers, children are unable to learn and develop properly,

and individuals find themselves in unhealthy and unsafe situations.

For this reason, a cross-sector collaboration called Ottawa Housing Next has begun and seeks to alter the

direction of our community by creating the Preferred Future, one in which all residents are able to enjoy

the high quality of life that Ottawa County has to offer. The following pages will outline key data points in

our current reality—the primary reasons we are facing this crisis—and what will happen if nothing is done.

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Executive Summary

Factory WorkersSue and Tom both work at a local factory earning $10 an hour. They rent a two-bedroom apartment for themselves and their two children. Included in their monthly expenses is child care for the youngest. Sue and Tom struggle to make ends meet every month because their income does not meet their expenses. With virtually no discretionary income, they have to decide whether to pay rent or buy food, to pay car insurance or day care—all of which are imperative to living independently. Their children are doing well in the local school system and they want to stay in the area.

Community Stories

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While it is well recognized that Michigan has faced daunting economic times with the decline of the auto industry and the Great recession, the official poverty level of 16 percent obscures the true magnitude of the financial instability in the state. The official formula that calculates the United States poverty rate was developed in 1965, has not been updated since 1974, and is not adjusted to reflect the cost of living difference across the United States. A lack of accurate measurements and language to frame a discussion has made it difficult for states—including Michigan—to identify the extent of the economic challenges so many of their residents face.

Meet ALICE (ALICE – A Study of Financial Hardship, September 2014).

ALICe has many faces, and no one has been hit harder by the most recent recession than ALICe. ALICE is an acronym for Asset-Limited, Income-Constrained, Employed —those among us who are working, often at more than one job, yet still falling behind. No matter how hard these Michiganders try, they can’t get ahead, and as you will learn in the pages of this report, we all ultimately pay a price for that.

Ottawa County is a wonderful place to live but not for EVERYONE.

College GraduateJohn attended college outside of Ottawa County earning a teaching certificate. His intention all along was to return home to the Holland area to live and work. He was able to find a good job teaching high school but spent months searching for an affordable one-bedroom apartment, and was unsuccessful. He’ll have to find an apartment outside of Ottawa County and commute to his job. He is also considering finding a job in another region.

“Holland is a Top 5 Place to Retire” – Money Magazine, September 2006

“Holland–Grand Haven are in the Top 5 Safest Cities in the US” – Farmer’s Insurance Survey, October 2013

“Holland–Grand Haven is rated #1 Healthiest City in America” –24/7 Wall St, April 2014

Retired Seniorelsie is a 70-year-old widow who has lived in Ottawa County her whole life. She has a large support system of friends and family and intends to stay in the area for the rest of her life. When her husband died, her income was severely curtailed. She struggles to make her monthly mortgage payment and meet her other expenses, which include medical bills and prescriptions. Affordable, accessible housing for seniors is very limited in Ottawa County and she worries about where she will live if she has to sell her house.

Single MomTamara is a single mom working at a Grand Haven retail store, making minimum wage—$8.15 an hour. She was hired to work full time but her hours have been very erratic recently. When Tamara was first hired she looked for housing near her job and her child’s school. Unable to find affordable housing in Grand Haven, she found an apartment a 30-minute drive away. She now spends a large percentage of her income on transportation and is barely able to make ends meet. She is concerned about the reliability of her car and often has to take it to the mechanic or seek out someone who can fix it. The inconsistency of her work schedule makes it very difficult to budget.

Disabled Adult

Ashleigh is a young adult with physical disabilities. She has been living with her mother, who provides her daily care. Ashleigh is able to work part-time as a teacher’s aide but would really like to live independently. Her mother is aging and is concerned about how her daughter will fare when she is unable to care for her. Ashleigh has been looking for an affordable, accessible unit for over a year and has been unable to find out one. She is quite involved in the community and had sought help in finding housing but there are very few wheelchair accessible units available.

No. While poverty does contribute to the housing situation, current housing conditions in the area are a major contributor to poverty.

“Isn’t this just an issue of poverty?”

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C O M M O N M I S C O N C e P T I O N S

“The jobs paying low wages aren’t meant for individuals supporting their families.”

This is not the intention, but the reality is those jobs are being filled by individuals trying to support their families.

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What causes the prevalence of ALICE households?

The cost of basic household expenses in Ottawa County is more than many jobs can support.

The annual ALICE Household Survival Budget (shown below) for the average Ottawa County family of four is $53,062, and for a single adult is $18,269. The annual ALICe Household Stability Budget, at $96,386 for a family of four and $21,971 for a single adult, enables not just survival, but self-sufficiency. These numbers are significantly higher and sometimes almost double the ALICE Household Survival Budget. Compare any of the figures to the U.S. poverty designation of $23,050 for a family and $11,170 for a single adult and you’ll see how inadequate it is as a measure of economic viability. (ALICe)

Source: U.S. Department of Housing and Urban Development (HUD), U.S. Department of Agriculture (USDA), Bureau of Labor Statistics (BLS), Internal Revenue Service (IRS) and State Treasury, and ChildCare Aware, 2012; American Community Survey. 1 year estimate.

According to the 2012 Greater Ottawa County United Way’s Community Assessment, 49.8 percent of surveyed households struggle paying for housing needs every single month.

HOUSEHOLD SURVIVAL BUDGET, OTTAWA COUNTY

SINGLE ADULT FAMILY (INFANT AND PRE-K)

Housing $581 $709

Child care $– $1,173

Food $196 $592

Transportation $341 $681

Health care $130 $518

Miscellaneous $138 $402

Taxes $137 $346

Monthly total $1,522 $4,422

ANNUAL TOTAL $18,269 $53,062

Hourly wage $9.13 $26.53

Poverty rate $11,170 $23,050

(required for survival)

C O M M O N M I S C O N C e P T I O N S

}

2013 HUD Fair Market Rent Amounts for Holland/Grand Haven MSA and the corresponding hourly wage needed to afford these rents

Cost of Renting vs. Earnings in the Area

Unit Size 1 BR 2BR 3BR 4BRFair Market Rent $664 $787 $1,087 $1,161

Wage Needed $12.78 $15.15 $20.92 $22.34

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Income levels have remained relatively flat. Housing costs from 2000-2012 have continued to rise according to the American Community Survey.

Median Monthly MOrTGAGe Increased19.5%Median Monthly reNT Increased22.5%

Median INCOMe Increased3.77%

Housing Data by County, Michigan, 2012rental and owner gaps—the number of additional rental and owner units needed that are affordable to households with income below the ALICe threshold so that all of these households would pay less than 35 percent of income on housing. (ALICe)

County Total HHs

HHs below ALICE

Threshold

Percent HH below AT – Race/Ethnicity

Percent HH below AT –

AgeALICE Threshold

Asian Black Hispanic White SeniorsALICE

Threshold – HH under 65 years

ALICE Threshold – HH 65 years and

over

Ottawa County 95,048 32,861 27% 47% 52% 33% 26% $45,000 $25,000

County Owner Occupied Units Renter Occupied Units Source

Owner Occupied

Percent Owned by HHs Below

ALICE Threshold

Extreme Housing Burden: Percent Owners Pay more than 35% of Income

Renter Occupied

Percent Rented by HHs Below

ALICE Threshold

Extreme Housing Burden: Percent Renters Pay more than 35% of Income

Gap in Rental Stock Affordable for All HHs

Below ALICE Threshold

American Community

Survey

Ottawa County 74,384 30% 15% 20,664 74% 41% 8,191 1 year

estimate

Economic conditions worsened for ALICE households from 2007 to 2012.

Michigan’s housing stock does not match current needs. Across the state, there are not enough affordable rental units; there are almost twice as many renters with income below the ALICe threshold as there are rental units they can afford. At the same time, while there are housing units where ALICe households can afford mortgages, these households do not have the down payment or do not qualify for mortgages. (ALICe)

3,165Number of MI Works Job Postings in past year (April 2014):

$7.50–$14.00 (low income)

Estimated that 90% of these jobs offer wages between

A reality we face is that we have low incomejobs in this community…and they are critical to the success of our local businesses andtherefore our overall economy.

ALICE Threshold and ALICE Households by Race/Ethnicity and Age, Michign, 2012

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Impact on ALICE Impact on Community

What are the consequences of ALICE households?

Future burden on education system and other social services, less productive worker

Further burden on education system and other social services

Less productive worker/student, future burden on health care system

even less productive, future burden on social services

Poor health, obesity

Poor daily functioningless healthy

not enough

Food

Inconvenience, health and safety risks, increased maintenance and utility costs

Longer commute, costs increase, less time for other activities

Disruption to job, family, education, etc.

Safety and learning risks, health risks, limited future, employment opportunity

One parent cannot work, forgoing immediate income and future promotions

Stressed worker, absenteeism

More traffic on road, workers late to job

Costs for homeless shelters, foster care system, health care

Childcareand

Educationsubstandard housing

none

Housing:substandard housing

distance to job

homelessness

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Tired or stressed worker, higher taxes to fill the gap

Less productive society, higher taxes to fill the gap

Longer work hours, pressure on other family members to work (drop out of school), no savings

Cost of looking for work and finding social services

low wages

no wages

Income

Mental stress, crises, risk taking, use costly alternative financial systems to bridge gaps

Crises spiral quickly, leading to homelessness, hunger, illness

Unreliable transportation, risk accidents, increased maintenance costs

risk of fine, accident liability, license revoked

Less time for other activities, more costly

Limited employment opportunities and access to health care/child care

More workers facing crises, unstable workforce, community disruption

Costs for homeless shelters, foster care system, emergency health care

Worker late/absent from job

Higher insurance premiums, unsafe vehicles on the road

More traffic on road, workers late to job, burden on social services

reduced economic productivity, higher taxes for special transportation, greater burden on emergency vehicles

Savingsminimal savings

no savings

Transportationold carno insurance/registrationlong commuteno car

Forego preventative health care, more out-of-pocket expenses

Forego preventative health care, use emergency room for non-emergency care

Health and Health care

underinsured

no insurance

Workers report to job sick, spread illness, less productive, absenteeism

Higher premiums for all, more expensive

Impact on ALICE Impact on Community

How many households are struggling in Ottawa County?

“When in stable housing, you have the confidence to go out and better your life.

You can put your stuff down and not worry about it. You learn to handle life better

and stay focused.” –A past participant of the Community Housing Partnership through Good Samaritan Ministries and Community Action House

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269,099Population in Ottawa County

95,048Number of Households in Ottawa County Ottawa County

Gini Coefficient

0.41 0.46State Average

Zero = income equalityOne = income ineqaulity

The table below shows the number and percentage of households below the ALICe threshold by municipalities. These families struggle to afford housing in our community. The average percentage of families below this threshold is 35% but below the range goes from 20% through 47%.

Above ALICE ALICE + Poverty = 35% Struggling Households

62,187 households 23,859 households 9,002 9%%65% 26

Ottawa County, 2012

Town Total HH % ALICE & Poverty Town Total HH % ALICE

& Poverty

Zeeland City 2,175 47% Olive Township 1,486 31%

Grand Haven City 4,913 45% Zeeland Charter Township 3,373 31%

Allendale Charter Twonship 5,796 43% Robinson Township 2,002 29%

Holland City 8,620 43% Blendon Township 1,905 28%

Ferrysburg City 1,423 38% Port Sheldon Township 1,710 27%

Crockery Township 1,644 37% Grand Haven Charter Township 5,559 26%

Spring Lake Township 5,957 37% Wright Township 1,079 26%

Holland Charter Township 12,565 34% Georgetown Charter Township 17,012 25%

Polkton Charter Township 862 34% Jamestown Charter Township 2,251 23%

Coopersville City 1,612 33% Park Township 6,414 23%

Chester Township 762 31% Tallmadge Charter Township 2,678 20%

Hudsonville City 2,591 31% (ALICE)

How often have you moved in the last 12 months?

Fifty-three percent of respondents moved at least once. Twenty-five percent of those have moved two or more times.

“I lived with family in the shelter and then with a friend. Now I’m in my own apartment but I am a single mother so it is very difficult.”“I haven’t been able to afford shelter since eviction in the summer.”

“I moved because I was evicted from my apartment last year; now I’m living with family.”

Do you own or rent the place where you live?

While the majority of respondents were renting, 34 percent of respondents live with family/friends, or in an emergency shelter or transitional housing. Twelve people (16 percent) reported living on the street.

What obstacles have you faced in finding housing?

Two-thirds of respondents indicated they faced at least one obstacle in finding housing. Nearly 75 percent of those cited—“lack of affordable housing”—as the most common obstacle.

“I have no understanding of how to find safe and affordable housing for myself and my children.”

“I don’t look at all any more.”

In order to create an effective strategy for addressing the lack of affordable housing, Ottawa Housing Next conducted a survey of Ottawa County residents to get input from the community about the availability of safe and affordable housing. Because it was important to hear from people actually facing housing crisis, the survey was distributed among social service providers throughout the county who serve populations in need. Below is a summary of the data gathered.

What are the households saying in Ottawa County?

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Common Agenda

Shared Measurement

Systems

MutuallyReinforcingActivities

Continuous Communication

Achieving Our Preferred Future in Ottawa County

The Five Conditions of Collective Impact Success

The Design Team for Ottawa Housing Next has chosen to use the Collective Impact model following these five conditions:

Backbone Support

Organizations

Community Leverage Points(Areas where change can happen.)

Housing Stock

Housing Cost

Income Public Policy

SupportiveServices

Strategies Strategies Strategies Strategies Strategies

“Never doubt that a small group of thoughtful, committed citizens can change the world.Indeed it’s the only thing that ever has.” —Margaret Mead