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Thursday, November 10, 2011

Who lives in Charlestown’s “affordable housing?”

900 lucky Charlestown properties may soon carry a new label
By Will Collette

Planning Commissar Ruth Platner and Town Council President Tom Gentz have a plan to change Rhode Island law to solve Charlestown’s affordable housing dilemma.

Under current law, Charlestown has very little affordable housing - only 53 units, when we should have at least 332. We have low and moderate income families and we have homes that have depreciated a lot in value. But we have very few units of housing that the average working family or retiree can afford to buy or rent.

But Platner and Gentz intend to fix that by figuring some way to get the General Assembly and Governor to scrap the existing state law and substitute a brand-new statute - let's call it the Platner-Gentz Affordable Housing Deconstruction Act (and see if it sticks) - that essentially eliminates the need for any city or town in the state to do anything about affordable housing. Problem solved and it will hardly cost a nickel.

Impossible, you say? Amazing? Before blowing off this latest scheme as another hare-brained CCA fantasy, let’s look back at history.



A two-fer: batter-covered fries and ketchup!
In 1981, the Reagan Administration wanted to cut $1 billion from the federal school lunch program, but they didn’t want it to look like they were robbing kids of nutrition.  Answer: re-classify ketchup and pickle relish as vegetables and you save $1 billion that would otherwise be wasted on giving the kids frozen, canned or fresh vegetables. 

After the famous Love Canal toxic waste dump made national news, the Reagan Administration also found itself jammed up by lots and lots of old toxic waste dumps that were going to cost billions to clean up. Solution: raise the danger threshold for classifying a toxic waste dump a hazard. 

Stringfellow toxic waste site in Riverside, CA
[Personal note: I was working in the national environmental movement when this was going on. One of my wittier colleagues, Dr. Peter Montague, called the redefining of what is hazardous “linguistic detoxification.” The rest of us called it “moving the goal posts.”]

In 2004, the Bush Administration, having absolutely no clue about history, decided to take their turn at saving money on government nutrition programs. They too decided to save money on kids' food programs by declaring a  new vegetable - batter-fried frozen French Fries (although after the Iraq invasion, they were called Freedom Fries because the French thought the Iraq War was stupid and said so publicly). 

In that time honored tradition of solving social problems by giving them new definitions, Platner and Gentz intend to bring Charlestown into full legal compliance through the proposed Platner-Gentz Affordable Housing Deconstruction Act which creates this new definition:

“Affordable housing” means any housing that is assessed by a local tax assessor pursuant to the provisions of 44-5-et seq. at or below the amount eligible for rental or a conventional mortgage for a household with an income that is at or below 80 percent of the area median income (“AMI”).  R.I. Housing shall cause to be published by regulation a table of affordable housing values based on household size by community on an annual calendar year basis. You can read the entire proposed Platner-Gentz law here.

Presto chango! The magic number for Charlestown is an assessed value of $216,273. "Any housing” means every single-family, two-family and multi-family house, every mobile home trailer (note to Gordon Foer – not recreational vehicles), every condo, every seasonal and vacation house, every farm and every unit within a mixed use building.

Having solved the affordable housing problem,
Gentz turns his hand to re-building affordable cars.
After all, how much can a used Porsche cost? 

Gentz has one that is assessed at ZERO.
Analyzing the list of all 4,941 Charlestown residential properties, my colleague Tom Ferrio was able to identify 903 that are assessed at less than $216,273.

Under existing RI law, we need at least 332 affordable housing units—especially rentals—but only have 53 at present that qualify.  But under the Platner-Gentz plan, the problem is solved by doing nothing more than changing some words and doing a re-count.

Ruth Platner can go back to her farm and plant cotton and soybeans. Tom Gentz can go back to restoring classic Porsches, but not until he hangs a “Mission Accomplished” banner on Town Hall.

But what’s going to happen to the 903 lucky Charlestown properties? Answer: nothing.

Will life be better for the people who live in those 903 properties? Nope.

Will life be any better for anyone else in Charlestown? Nope, except maybe for the millionaire property owners who support the CCA and really don’t want any more real affordable housing in Charlestown.

Let’s take a closer look at the 903 soon-to-be-dubbed affordable housing units in Charlestown. Of these, at least 230 are condos (170 at Castle Rock alone). At least 131 are mobile homes, a.k.a. trailers. At least 44 are seasonal, meaning not habitable year-round. Three are farms. Three are multi-family. One is four-family. Four are two-family. The rest are single-family homes.

One out of three of these homes are owned by non-residents who are either not from Charlestown, or who own the property as a beach or investment property.

Connecticut residents own 9% percent of the properties that would be re-classified as affordable housing. Massachusetts and New York residents own another 7%. People from 13 other states own 3.5% of Charlestown’s new affordable housing stock. 14% of Charlestown’s new affordable housing stock is owned as a second home or as an investment.

Here are four people you’d never think to lump together: Planning Commissar Ruth Platner, Platner's PC sidekick Linda Fabre, town curmudgeon Jim Mageau and Progressive Charlestown co-editor Linda Felaco. What do these four have in common? Under the Platner-Gentz Affordable Housing Deconstruction Act, the homes all four live in would be reclassified as “affordable.”

At no benefit to them. At no benefit to any working family in Charlestown. At no benefit to any of the sons and daughters of Charlestown residents who would like to start a family and continue living in Charlestown. At no benefit to any elderly person who would like to downsize to an affordable rental unit. At no benefit to any town employee, volunteer firefighter or friend or relative who would like to live in truly affordable housing in this town.

Since Ruth Platner, with a 13.5 acre piece of land and a 2436 square foot house and an assessment of only $203,100, would find her own home newly classified as “affordable,” you have to wonder: what’s her angle? 

I wonder too. Is this a case of Ruth saying, “I’ve got mine – the rest of you can stay the hell out” or something else? 

Some will say it's impolite to ask such questions or raise such issues. It's tantamount to declaring a "class war," some will say.

But the war has already begun. It started a long time ago.

And in recent years, it has intensified as the Charlestown Citizens Alliance has taken over town government.

Class war has been going full throttle ever since Ruth Platner took over the reins at the Planning Commission.

Except the war was being waged by Charlestown's elite against Charlestown working families. But as the saying goes, "they only call it class war when we fight back."

12 comments:

  1. Beth Richardson comments
    Well, I probably live in one of those $216k and under houses and I feel my house is a benefit to me. Even if all of these 900 or so properties were to presto-chango be changed to official state-ordained AH houses, very little would change. Any family wishing to live in one of these houses would have to wait for it to become available on the market. When it came time for me to sell my house I would be unhappy with the AH constraint on what price I could ask for my house, which I have worked so hard on over the years to improve.

    Did Tom Ferrio go to the AH Commission meeting yesterday and will he have a report of what happened? (It was held during the day so maybe he couldn't attend because he had to be at work also.)

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  2. It doesn't come up on the link, but how can a house as described in the article be assessed at 203K? Wouldn't the land alone be worth three times that?
    Justin

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  3. Justin, sorry about the link not working. The database requires a kind of "log in".

    I believe that property is a special case because the land is enrolled in the Rhode Island Farm, Forest, and Open Space program: http://www.dem.ri.gov/programs/bnatres/forest/pdf/citgui03.pdf
    Some portion is also likely to be wetlands ground.

    As such the 13+ acres are assessed at $119,200.

    The 2400+ square foot house is assessed at $82,700 and the three small outbuildings are assessed at $1,200.

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    Replies
    1. I have recently learned that my comment above is incorrect. It appears that the low taxable value is not because of Farm, Forest and Open Space enrollment but for other reasons. In the 11 months since this comment and other mentions were published we were not notified of the error. More details are provided in this article.

      I apologize for any discomfort this error has caused and assure readers that we correct factual errors rapidly once we are notified.

      Delete
  4. A word of explanation about how land values are assessed: They're based in part on the minimum lot size for however the property is zoned. There's a base value of $102,000 for the first "buildable" unit (i.e., 2 acres for R2A, 3 acres for R3A, etc.) and additional acres are valued at $4000 ea. So oddly enough, a 3-acre lot zoned R2A is actually valued higher than a 3-acre lot zoned R3A, because it's considered to have an "extra" acre.

    Ruth's property is R3A, so the first 3 acres are valued at $102,000, 5 of the additional acres are valued at $4000 each, and the remaining 5.49 acres have a conservation easement and are valued at only $1000 per acre.

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  5. A belated reply to Beth's comment of 6:25 am:
    under Mr. Gentz's proposal all of the 900 +/- properties would count toward our 330 +/- goal without any other constraints. You could sell at any price to anyone.

    Once the number of homes with values below the threshold are counted there is no further obligation because the method of counting assures that there will be many more than the goal. Under the new proposal there is no consideration of whether any Low or Moderate Income households even live in the town.

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  6. Beth Richardson comments
    Yes, I could sell at any price under Mr. Gentz's proposal. Under current AH regulations, I could not (if my house was presto-chango to become a state-ordained AH house).

    Linda, thank you for that explanation of how land is assessed. Is land down by the coast (water front and water view) assessed at $201k for a basic buildable lot?

    Will states that one out of three of the 900 or so "affordably priced" ($216k) houses in town are owned by people whose primary residence is not RI.
    That leaves 600 or so of these houses in Charlestown owned by local people, most probably people of moderate incomes. The millionaires bulldoze the small houses and rebuild.

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  7. Beth, to answer your question, yes, the unit price of $102,000 is the same all over town, but then certain premiums are added on for beachfront/pond front, etc., or are subtracted in the case of land that's not buildable. So if you look at the list of town-owned properties, you'll see in the land line valuation for the town beach, which is less than an acre, is valued at over a million dollars, whereas the town-owned drainage areas are valued less than the unit price.

    As for millionaires bulldozing small houses and rebuilding, that's precisely why Gentz's nuke affordable housing plan is so insidious. McMansions are not affordable.

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  8. Hi, Beth. Your house is $30K below the Platner-Gentz threshold. Under their proposal, it would be classified as affordable and counted.

    If this measure became state law, it would effectively end any affordable housing efforts in the state, since every city and town would do what Charlestown wants to do - count houses with deflated assessments as affordable.

    But nothing would change to make homes more affordable. There would still be the problem of selling. And the problem of buying. And the problem of financing.

    But we would no longer have a problem because we would define the problem out of existence.

    Wouldn't it be nice if we could solve all of life's problems that way?

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  9. Beth Richardson comments
    The State has dictated that 10% of housing in a town must be government subsidized and only available to people of low to moderate income, and deed-restricted to stay that way. (I am not certain that the State checks yearly to verify that one's income stays in the proper range. Can one lose one's home if one gets a raise?) We are coming out of a period where housing was greatly inflated, a housing bubble. Now prices are dropping. Charlestown already has 900 or so houses that are free-market-style assessed as "low to moderate income" affordable (in the common sense use of the word, not the state-dictated sense of the word). The citizens of Charlestown are mostly middle class people, some poorer some richer. Some of the lower end houses in proximity to the water may be bought by people of means, razed and rebuilt as larger, more elaborate houses. Generally this is not going to happen all over Charlestown. Mostly the middle and poorer housing will stay as is, or improved by their owners. I repeat, housing is dropping in price. There will be more houses in this middle range. It seems to me that the State has defined the problem into existence, rather than the other way around, as Will purports.

    For a while builders were building these large "Mac Mansions" but that trend is coming to an end. I bet there will be more smaller houses built now in Charlestown as there are being built in other parts of the country. The market has changed. Decreasing the regulatory burden on housing will help to bring down the costs.

    P.S. Note to blog editors: Please tell your spell checker that "Charlestown" is a legitimate word!

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  10. Beth, I share many of your concerns about the state affordable housing law. The law is a blunt tool with which to achieve complex social and political goals. I'm reluctant to toss out the proverbial baby with the bathwater, though.

    And unfortunately, Blogger's spellchecker is automatic and can't be directly edited, or at least not as far as I can tell. Guess we should've left the w out of the name like the one in South Carolina.

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  11. Re: spell checking. I'm not sure Blogger is doing that. It used to flag "Charlestown" for me. Then I right-clicked the underlined word and selected Add To Dictionary and now it likes Charlestown a lot.

    At the time I assumed it was my browser (Chrome) doing it. I verified that today because another option is to select language and that brings up the Chrome options page.

    But try my Add to Dictionary procedure to see if it works for you, with your browser.

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