Final Dubois County housing strategies

HOUSING STRATEGY
Dubois County
photo credit: Ross Chapin - Pocket Neighborhoods
J U N E 2 0 1 5

TABLE OF CONTENTS
page 4 | REGIONAL COMPETITION
population growth
commuting patterns
commuting populations
new housing construction
housing growth
share of housing
employment growth
share of manufacturing
manufacturing salary
page 8 | LOCAL HOUSING MARKET
local housing supply
recent sales trends
new construction
state-wide market
page 12 | LOCAL DEMAND
employment
employee salaries
employee housing desires
rental affordability
ownership affordability
affordable supply
community as an attractor
employment projections
growth locations
page 18 | HOUSING STRATEGY
*conclusions
employee factor
housing factor
employee projections
key assumptions
community preferences
urban neighborhoods
*Jasper strategy
*Huntingburg strategy
*Ferdinand strategy
pocket neighborhoods
“rural by design”
page 28 | ACTION PLAN
*pilot project
project timeline
partner roles
sources & uses budget
page 32 | TOOLS & RESOURCES
organizational framework
tools & resources overview
IHCDA programs
employer assisted housing
*tools & resources
*housing tools in action
community/employer loan
conventional loan
neighborhood loan
* indicates key portions of the document

| Dubois County Housing Strategy
Dubois County continues to be a leader in the
region reporting some of the higher growth totals
in employment and housing, but competition
from surrounding counties is increasing. While
the County has shown signs of recovery, that
recovery lags behind in several key categories
compared to other “strong” counties. This has
created a more competitive environment that
makes resident and employee attraction and
retention much harder.
The current economic and demographic dynamic
of the Region shows a mobile employment base
that continues to take advantage of regional job
growth and low unemployment. Employees are
now able to make housing decisions independent
of employment and now base decisions even
more on quality of life and housing choices.
Dubois County remains the employment center of
the Region, but increased competition within the
Region has affected the County’s ability to retain
and attract new residents who now have more
choices than ever for jobs and housing.
REGIONAL COMPETITION
understanding
DUBOIS
CO.
DAVIESS
CO.
PERRY
CO.
PIKE
CO.
WARRICK
CO.
change* change change change change
Population Growth
Annual Growth Rate 0.43% 0.91% 0.43% -0.21% 0.57%
Net Gain +728 +1,150 +334 -107 +1,357
Commuting Growth
Annual Growth Rate 2.80% 12.7% 6.40% 8.30% 0.60%
Net Gain +302 +538 +151 +130 +44
Housing Growth
Annual Growth Rate 0.66% 0.79% 0.36% -0.07% 0.79%
Net Gain +438 +375 +144 -20 +640
Employment Growth
Annual Growth Rate 01.31% 1.78% 3.20% 3.05% 1.68%
Net Gain +949 +460 +416 +214 +625
* indicates growth / loss between 2010-2013, except commuting data 2010-2011
indicates change between “pre-recession” and “post-recession” change

POPULATION GR OW TH.
2 0 0 0 P O P U L AT I O N 2 0 1 4 P O P U L AT I O N
D u b o i s
C o .
D a v i e s s
C o .
P e r r y
C o .
P i k e
C o .
W a r r i c k
C o .
60,000
7 . 4 %
1 0 . 0 %
4 . 1 %
- 0 . 8 %
1 6 . 5 %
Population growth in Dubois County slowed
coming out of the recent recession (0.43% annual
rate), while several counties saw increased
population growth during this same time period
- including Daviess (0.91%) and Perry (0.47%
up from 0.28%) Counties. Dubois County was
one of three other counties that saw population
growth rates slow after the recession. While
Dubois County remains one of the more populous
counties in the region, the rate of growth in
Daviess, Perry and Warrick indicate that this may
not be the case long-term.
D u b o i s
C o .
D a v i e s s
C o .
P e r r y
C o .
P i k e
C o .
W a r r i c k
C o .
10,000
- 7 . 2 %
4 7 . 2 %
3 5 . 9 %
2 1 . 9 %
1 0 . 3 %
12,000
Because of the concentration of available jobs
in Dubois County, the number of people who
commute into the County for work has remained
the highest in the Region, however the County has
suffered from a gradual decline - on average 0.80%
annually. This is in comparison to rising commuter
populations in the surrounding counties who have
seen the population grow anywhere from 1.14%
to over 5% annually. The commuter workforce in
Dubois County now accounts for only one-fifth of
the total workforce compared to one-quarter in
the early part of the last decade.2 0 0 2 C O M M U T E R S 2 0 1 1 C O M M U T E R S
The majority of commuters into Dubois County
come from Pike, Spencer and Perry Counties
- approximately 4,000 out of the 11,000 total
commuters. However, because of the job
concentration and low unemployment rate,
employees commute from across the Southern
Indiana Region extending into Kentucky and Illinois.
CO MMUT ING PAT T ERN S.
COMMUTING POPULATION.

NE W HOUSING CONST RUC T ION.
Overall the Region showed improved construction
numbers for the first time since dropping during
the recession. In 2013 Dubois County accounted
for 12% of the regional units added, down from
19% in the previous decade. Daviess and Perry
showed strong improvements in new construction
- gaining larger shares of the regional growth. A
majority of new construction within the Region
is single-family, with Warrick County building the
majority of multi-family units (approximately 150
units) and Dubois County adding about 90 two-
family units in 2013.
D u b o i s
C o .
D a v i e s s
C o .
P e r r y
C o .
P i k e
C o .
W a r r i c k
C o .
3,000
5,000
2 0 0 0 - 2 0 1 3 N E W U N I T S
2 0 0 0 - 2 0 1 3 N E W S I N G L E FA M I LY U N I T S
D U B O I S C O .
D A V I E S S C O .
P I K E C O .
W A R R I C K C O .
P E R R Y C O .
O T H E R C O U N T I E S
SHARE OF HOUSIN G.
Other than Warrick County, Dubois County
contains the largest share of housing and even
with slowed growth in new construction has
maintained their share (18%) of housing over
the last decade or more. As new construction
continues in counties like Daviess and Warrick,
Dubois County may begin to lose that share if no
action is taken to remedy the issue.
Dubois
Co.
D a v i e s s C o .
P e r r y
C o .
Pike
C
o.
WarrickCo.
O t h e r C o u n t i e s
2 0 0 0 H O U S I N G U N I T S 2 0 1 4 H O U S I N G U N I T S
Over the last decade and a half, Dubois and
Warrick County have been leading the way
in housing growth. The recent recession has
changed growth patterns and now Daviess and
Warrick County are growing at a nearly 1% annual
rate (Daviess pre-recession rate was 0.48%),
compared to Dubois County at 0.68% (previously
1.21% annually). Dubois County continues to
grow its housing stock - with an approximate net
gain of 461 units between 2010 and 2014.D u b o i s
C o .
D a v i e s s
C o .
P e r r y
C o .
P i k e
C o .
W a r r i c k
C o .
20,000
1 5 . 0 %
8 . 1 %
4 . 8 %
1 . 9 %
2 1 . 5 %25,000
HOUSING GR OW TH.

EMPLOYMENT GR OW TH.
2 0 0 1 J O B T O TA L 2 0 1 3 J O B T O TA L
30%
D u b o i s
C o .
D a v i e s s
C o .
P e r r y
C o .
P i k e
C o .
W a r r i c k
C o .
40%
- 6 . 8 %
9 . 8 %
1 0 . 6 %
7 . 8 %
1 4 . 4 %
Dubois County remains the economic stronghold
of the Region, but has slowly been losing its
employment edge. Since 2001, Dubois County
has lost nearly 7% of their employment. While
the County has suffered a net loss in employment
over the last decade and a half, post-recession
growth has allowed them to remain strong within
the larger Region. Since 2010, Dubois County has
added nearly 1,000 jobs - more than any other
county in the Region, but they have not reached
pre-recession levels.
SHARE OF MAN UFAC T URING.
Dubois County’s slowed employment growth has
allowed other counties to grow their share of
the Region’s employment - but the County has
been able to retain their share of manufacturing
employment within the larger Region,
approximately 30%. Perry County is showing
signs of manufacturing growth - growing their job
numbers by 32% between 2001 and 2013. Perry
County now accounts for 10% of the Region’s
manufacturing jobs, up from just 6% in 2001.
20132001
2 0 1 3 A V G . S A L A R Y
D u b o i s
C o .
D a v i e s s
C o .
P e r r y
C o .
P i k e
C o .
W a r r i c k
C o .
$50,000
$70,000 MA NUFAC TURING SA LA RY.
The average annual pay for Dubois County
($41,078) is below the regional average ($45,957)
and well below some of the counties (Perry, Pike
and Warrick) that are competing with Dubois
County for employees. This adds to the difficulty
of attracting and retaining production-level
employees at Dubois County businesses.
D U B O I S C O . D A V I E S S C O .
P I K E C O . W A R R I C K C O .
P E R R Y C O .
O T H E R C O U N T I E S
DuboisCo.
DaviessCo.
PerryCo.
PikeCo.
WarrickCo.
OtherCo.
DuboisCo.
DaviessCo.
PerryCo.
PikeCo.
WarrickCo.
OtherCo.

The housing supply in Dubois County is
dominated by single-family homes built over the
last 30-40 years. Predominately these homes are
owner-occupied and valued between $100,000 to
$250,000. The availability of alternative housing
options is limited and more affordable options
are often older and of lesser quality than most
households would desire.
The recent recession affected housing markets
across the entire US and Dubois County certainly
felt its affects. The local housing market is in
a recovery mode, increasing sales activity and
home values over the last few years. The vast
majority of those transactions have occurred in
Jasper; additionally most new construction has
taken place in Jasper as well. New construction
has continued to increase coming out of the
recession, however the rate at which new homes
are built has significantly declined. Higher
priced homes are recovering much quicker, with
construction of new more “affordable” units still
struggling to take hold in the current market
dynamic.
LOCAL HOUSING MARKET
defining the
S F = S I N G L E - F A M I L Y D E T A C H E D
DUBOIS
CO.
CITY OF
JASPER
CITY OF
HUNTINGBURG
TOWN OF
FERDINAND
owner-occ owner-occ owner-occ owner-occ
Household (HH) Profile
Age of HH 45-54 45-54 35-54 25-54
Family / Non-Family HH 77%/23% 73%/27% 76%/24% 73%/27%
Average HH Size 2.67 2.53 2.75 2.75
Median HH Income $62,274 $59,510 $62,500 $60,547
Year HH Moved to Unit 1995 1998 1996 1995
Housing Profile
Product Type SF SF SF SF
Number of Bedrooms 3 3 3 3
% One-Bedroom 21% 24% 20% 25%
% Two-Bedrooms 39% 40% 38% 40%
Median Year Built 1977 1974 1959 1968
Vacancy Rate 1.9% 2.8% 6.3% 2.1%
source: United States Census and DCI analysis - data represents averages and most common occurances
indicates comparison to Dubois County stat

source: United States Census and DCI analysis - data represents averages and most common occurances
DUBOIS
CO.
CITY OF
JASPER
CITY OF
HUNTINGBURG
TOWN OF
FERDINAND
rental-occ rental-occ rental-occ rental-occ
Household (HH) Profile
Age of HH 25-34 25-34 25-34 60+
Family / Non-Family HH 54%/46% 46%/54% 62%/38% 33%/68%
Average HH Size 2.32 2.12 2.83 1.61
Median HH Income $31,914 $34,531 $24,792 $31,500
Year HH Moved to Unit 2008 2010 2007 2005
Housing Profile
Product Type SF SF/D SF/MF SF/D
Number of Bedrooms 2 2 2.5 1.5
% One-Bedroom 41% 47% 33% 66%
% Two-Bedrooms 25% 21% 16% 18%
Median Year Built 1980 1987 1970 1970
Vacancy Rate 10.5% 12.7% 14.2% 0%
S F = S I N G L E - F A M I L Y D E T A C H E D D = S I N G L E - F A M I L Y A T T A C H E D / D U P L E X M F = S M A L L M U L T I - F A M I L Y
LOC A L HOUSING SUPPLY.
Within Dubois County there are approximately
18,000 housing units - 44% of those units are
located outside of the three major municipalities.
Jasper contains the largest share of housing and
with an annual growth rate of 1.06% it will likely
remain that way. This might be attributed to the
fact that Huntingburg is home to just 14% of the
County’s units and has a much slower growth
rate - 0.26% annually. Additionally, over the last
decade Ferdinand’s housing supply has grown by
0.95% annually, but with only 4% of the County’s
housing that does not translate to a signficant
number of new units.
2 0 1 3 H O U S I N G U N I T S
D u b o i s
C o .
C i t y o f
J a s p e r
C i t y o f
Huntingburg
To w n o f
F e r d i n a n d
2,000
6,000
10,000
2 0 1 3 S I N G L E - FA M I LY U N I T S

Dubois County, like most of the US, saw home
values dramatically decline beginning in late 2007
and bottoming out in 2009. Since then, values
have improved with 2013 -2014 sales indicating
a recovering market. The submarkets (Jasper,
Huntingburg and Ferdinand) follow similar sales
trends with the exception of Huntingburg - where
homes values faired slightly better during the
recession, but have fluctuated greatly since then.
Year to year, sales trends reflect a healthy market
with a very similar number of sales each year.
R E C E N T S A L E S T R E N D S .
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$124,000
$128,000
R E C E S S I O N Y E A R S A V E R A G E S A L E S P R I C E
DUBOIS
CO.
CITY OF
JASPER
CITY OF
HUNTINGBURG
TOWN OF
FERDINAND
Total Number of Sales 366 249 56 16
Median Sales Price $126,750 $139,000 $76,000 $144,500
Average # of Bedrooms 3.1 3.2 2.9 3.1
Average Square Footage 1,723 1,763 1,616 1,704
Days on Mareket 107 106 119 69
* source: Multiple Listing Service (MLS) recent sales data transactions provided by local REALTOR
2 0 1 2 2 0 1 3 2 0 1 4
C L O S E D S A L E S P E R Y E A R
100,000
75,000
source: Monthly Indicators provided by the Indiana Association of REALTORS - December 2014
2 0 1 2 2 0 1 3 2 0 1 4
A V E R A G E L I S T P R I C E
A V E R A G E S A L E S P R I C E

Indiana has experienced a significant
improvement in the residential real estate
market since the 2008/09 recession. However,
the number of sales in 2014 fell short of 2013
by -1.6%. Median sales prices did increase
over 2014 to end the year at $126,000 a 5.2%
increase from December of 2013. Year after
year, the percentage of the original list price
received continues to improve. With a good
outlook for job growth projected in 2015,
the real estate market in Indiana should see
overall improvements.
STATE-WIDE MARKET
learn more
The construction cost per unit in Dubois County
has continued to climb post-recession, only
slightly dropping during the height of the crisis
in 2008. The average construction cost in 2013
was $293,305, compared to just under $140,000 in
2000 and $186,587 going into the recession. While
the recession had little effect on the average
construction cost, the number of units built
greatly decreased across the entire County. One
factor may be reduced construction of lower cost
homes, likely tied to a changing housing market
and effects of the recent recession.
N E W CO N S T R U C T I O N .
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$200,000
$250,000
R E C E S S I O N Y E A R S A V E R A G E C O N S T R U C T I O N C O S T
* source: US Census - CenStats Building Permits, numbers represent average number of building permits per year
DUBOIS
CO.
CITY OF
JASPER
CITY OF
HUNTINGBURG
TOWN OF
FERDINAND
change change change change
Annual Construction Rate
Pre-Recession (2000-2010)* 135 63 16 5
Post-Recession (2010-2013)* 34 28 2 4
2 0 1 2 2 0 1 3 2 0 1 4
M E D I A N S A L E S P R I C E P E R Y E A R
$125,000
+ 3 . 4 % + 3 . 3 %

The job market saw a drop in total employment
during the recession, but quickly picked back
up, but has yet to reach pre-recession highs.
Unemployment, like employment, is improving as
Dubois County transitions through its economic
recovery. Through conversations with employers,
many are struggling with employee recruitment
and retention - citing recruitment as their number
one challenge. Low unemployment rates and
growth in the surrounding counties continues
to affect the efforts of Dubois County’s largest
employers.
Even with the challenges they face, many of the
major employers are projecting growth over
the next 3 to 5 years - with some estimates as
high as 1,500 new jobs over the next 5 years. The
majority of those jobs will likely be production-
type jobs with an average starting wage of $12.20
per hour, somewhat below the regional average.
Regional competition adds to the difficulty of
attracting and retaining quality employees,
who often take advantage of the area’s high
concentration of jobs, varying wages between
employers, thereby creating a cycle of employee
trading and low tenure which all adds to the cost
of doing business.
The projected growth is likely to attract low- to
middle-income residents seeking affordable
housing options near centers of employment.
The availability of these homes is not the issue -
58% of the County’s homes are “affordable” - but
product type, age, quality and location become
increasingly important factors when looking at
attracting a workforce to Dubois County.
LOCAL DEMAND
examining
ALL
RESPONDENTS
PRODUCTION
RESPONDENTS
average* average
Demographic Profile
% Male / Female 50% / 50% 53% / 47%
Average Age (in years) 35 - 44 45 - 54
% High School Only / College Degree 30% / 46% 60% / 13%
% Mgmt. / Professional / Production 22% / 36% / 31% n / a
Time in Current Job (in years) 5 - 10 1 - 2
Household (HH) Income $45,000 - $65,000 $25,000 - $45,000
One-Way Commute (in minutes) 10 - 20 10 - 20
* information derived from DCI survey of top Dubois County employers (February 23 - March 3, 2015)
indicates comparison to “All Respondents”

P r o f e s s i o n a l
P r o d u c t i o n
EMPLOYEE SAL ARIES.
Regionally, Dubois County’s average
manufacturing wage ($41,078) is below the
regional average ($45,957) and significantly
below several of the County’s peers - Perry County
($51,338) and Warrick County ($65,681). The
hourly wages provided by several large area
employers indicate that an average entry level
production worker would earn approximately
$25,000 a year (based on 40 hour work week) and
a senior level employee would earn $36,000 - both
well under the County’s average. Professional
staff earn slightly more and are likely some of the
reason for the higher County salary average.
E M P LOY M E N T.
A majority of the top employers’ workforce is
made up of production level employees - 85%
on average. Accounting for 64% of the County’s
jobs, over 14,000 workers are employed at the 16
companies who participated - 12,000 of which
are production level employees. Jasper contains
the largest concentration of jobs - 67%, whereas
Huntingburg (19%) and Ferdinand (12%) have
smaller, yet still significant job clusters.
P R O D U C T I O N E M P L O Y E E S P R O F E S S I O N A L E M P L O Y E E S
A V E R A G E H O U R L Y R A T E
E n t r y L e v e l
P r o d u c t i o n
E n t r y L e v e l
P r o f e s s i o n a l
S e n i o r L e v e l
P r o d u c t i o n
$14.00
$18.00
J a s p e r
H u n t i n g b u r g
F e r d i n a n d
M U N I C I P A L I T Y B O U N D A R I E S
M A J O R E M P L O Y M E N T L O C A T I O N

* information derived from DCI survey of top Dubois County employers (February 23 - March 3, 2015)
EM PLOYEE HOUSIN G D ESIRES.
Overall, housing desires by the employees who
completed the survey were reasonable and closely
matched their existing housing choices. People
were more likely to choose a single-family detached
unit and rural setting. Only 34% of the respondents
indicated they were likely to move in the future - of
those that did, only 38% had plans to move in the
next 5 years. When making future housing decisions,
cost was given the most weight followed by proximity
to work - this presents some opportunity to direct
those employees to modestly priced homes near
existing job clusters. The chart to the right shows
the breakdown of responses to the question “If your
average commute is longer than 20 minutes, what
was the primary reason for your housing choice?”
Overwhelmingly the choice was proximity to family
and friends, followed by high housing cost and lack
of options near their current job.
ALL
RESPONDENTS
PRODUCTION
RESPONDENTS
ALL
RESPONDENTS
existing existing desired*
Housing Profile
% Rural Setting 43% 51% 64%
% Suburban Setting 20% 14% 12%
% City Setting 37% 34% 24%
% Own 81% 71% 87%
% Rent 19% 29% 13%
Housing Tenure (in years) 5-10 5-10 n / a
% Single-Family Detached / Attached 87% / 8% 81% / 11% 89% / 16%
% Multi-Family 5% 8% 4%
# Bedrooms 3 3 3
Monthly Housing Cost $501 - $750 $250 - $500 $501 - $750
Estimated Home Value $125,000 - $150,000 $100,000 - $125,000 $100,000 - $150,000
% Home Value < $150,000 52% 82% 51%
P R O X I M I T Y T O F A M I L Y / F R I E N D S
H O U S I N G C O S T T O O H I G H N E A R J O B
P R O X I M I T Y T O S P O U S E S J O B
R E C E N T L Y C H A N G E D J O B S
N O D E S I R A B L E O P T I O N S N E A R J O B
P R O X I M I T Y T O C H I L D ’ S S C H O O L
P r o
x i m
i t y
t o
Fa m
i l y
/
Fr i e n
d
s
HousingCost
TooHigh
N
o
D
e s i r a b l e
H
o u s i n g
O
p t i o n s
N
e a r
M
y
J o b
P r o x i m i t y To
S p o u s e ’s J o b
R e c e n t l y
C h a n g e d
J o b s
Proxim
ity
To
Child’s
School

R E N TA L A F F O R D A B I L I T Y.
< $ 2 5 0
$ 2 5 1 - $ 4 9 9
$ 7 5 0 - $ 9 9 9
$ 1 , 0 0 0 - $ 1 , 4 9 9
$ 5 0 0 - $ 7 4 9
Average
Rent
Based on the entry level production salary
(estimated at $25,000 annually) an affordable rent
range for a single earner household - one that
does not exceed 30% of total income - would be
$425 - $625. Approximately 60% of the existing
rental supply in Dubois County falls within or
below that range indicating there is a supply
of “affordable” units. However, the location,
availability and quality of that unit is unknown
and may affect a renters decision to rent that unit
over one outside the County.
O W N E R S H I P A F F O R D A B I L I T Y.
The average entry-level production worker could
afford a $150,000 mortgage, assuming a 20%
down payment and no other income earners in the
household. This would allow that same household
to afford approximately 58% of the County’s
housing supply, indicating there is sufficient
“affordable” product within the County. The age,
condition, location, type/size and availability of
these units is unknown and may present some
issues for potential homeowners. There are areas
where a high concentration of units exist and areas
where it would be hard to find an affordable unit.
< 2 5 % 2 5 - 3 4 % 4 5 - 5 0 % > 5 0 %3 5 - 4 4 %
% o f “A f f o r d a b l e ” U n i t s
( < $ 1 5 0 , 0 0 0 )
A F F O R D A B L E S U P P LY.
< $ 1 5 0 , 0 0 0> $ 1 5 0 , 0 0 0
P R O D U C T I O N E M P L O Y E E S
P R O F E S S I O N A L E M P L O Y E E S
There are several factors that lead to housing
decisions - size/type, location, quality and age
of the unit. Without an in-depth analysis of the
existing supply it is hard to quantify how much
this impacts Dubois County’s ability to regionally
compete for housing. While 58% of the County’s
housing units are below $150,000, a large portion
of those are likely older construction - average
value for a house built between 1950-1959 is
just $99,900. Due to the stability of the market,
affordable housing is likely to be a long-term issue.
<$250
$251-$499
$500-$749
$750-$999
$1,000-$1,499

MASTERBR AND JAS PER ENGI NES & ENGI NES
E M P LOY M E N T P R O J E C T I O N S .
If businesses meet their projections, it is
estimated that there will be at least 900 to 1,100
new jobs created by the top 16 employers in
Dubois County, but possibly as many as 1,500.
Their ability to attract and retain employees has
gotten “somewhat” to “much harder” over the last
few years due in part to low employment rates,
availability of qualified employees and getting
people to move to the area. Initial growth
is expected to be primarily production level
employees at approximately 9 to 10 businesses.
On average, the growing companies expect to
hire around 50 new employees each year with the
exception of a few firms who plan to add much
greater numbers if candidates are available.
2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9
350
450
250
2 0 0 1 J O B T O TA L 2 0 1 3 J O B T O TA L

One of the most important factors to consider in any economic development effort is
the people who will choose to make a decision to live or not live in your community.
This is especially important for places like Dubois County, where the unemployment
rate is far below the national average and existing businesses identify relocation as
a critical hurdle to growing their business. New studies have shown that investing
in a sense of place, quality of life and community initiatives offer greater returns
than traditional economic development incentives. Ball State University’s Center for
Business and Economic Research cites four key components that affect a town or city’s
ability to attract new, qualified employees - K-8 schools, quality of place / livability,
responsive government and health care / healthy options. With plans already in place
to improve their downtowns and shared public spaces, Dubois County must continue
to focus on a holistic, county-wide economic development initiative that improves the
area’s sense of place and allows it to compete regionally for new employees, residents
and businesses.
COMMUNITY AS AN ATTRACTION TOOL
learn more
G R O W T H LO C AT I O N S .
Based on existing employment information
provided by the employers and their projections
for future growth, it can be assumed that a
majority of the new job creation will be in
Jasper - approximately 1,000 new jobs (70%.)
Ferdinand will see the next largest increase in
jobs - approximately 400 (26%) with Huntingburg
capturing only a small portion (5%) of projected
employment growth - approximately 70 new jobs.
ShareofProjectedJobs
20%
40%
60%
80%
J A S P E R H U N T I N G B U R G F E R D I N A N D

There is an obvious short-term market
opportunity that can be capitalized on to
bring new or rehabilitated “affordable” housing
options to Dubois County. While growth rates
for traditional housing indicators - population,
housing and employment growth - have been
anemic and less robust than other peer cities,
there is still an opportunity to implement a
successful housing strategy in a thoughtful,
well-organized manner. A significant workforce
housing issue has been identified and the current
supply, while affordable, is not easy to identify
and is often scattered, dated and of lower quality.
Inventory is not the issue in Dubois County.
Affordable single-family options exist, but may
require some level of rehabilitation or renovation
to satisfy the County’s potential customer base
- putting the burden on the home-buyer, who
is likely unexperienced or uncertain of what
that entails. Additionally there is no direct
connection between housing opportunities and
job concentrations.
A housing response in Dubois County must not
be just about building homes, but about linking
opportunities to jobs and housing; reinforcing
communities with improved infrastructure,
home values and an influx of new residents
as well as supporting local employers who are
the economic backbone of the Region so they
are able to continue to do business in Dubois
County.
HOUSING STRATEGY
building a
CO N C LU S I O N 1 .
Traditional market
indicators for
Dubois County
do not reflect a
significant increase
in housing demand.
CO N C LU S I O N 2.
There is limited
opportunity
for significant
new housing
construction based
on past trends and
current, traditional
demand levels.
The age and quality
of housing stock
may present an
opportunity for
a “replacement”
housing strategy
within specific
neighborhoods.
The current rental
inventory is
inadequate in both
quality and options
within each of the
communities.

The majority
of housing is
“affordable” to
the workforce,
but limited in
age, quality and
location.
Current commuters
are not likely to
drive significant
housing demand;
other factors
are influencing
their housing
decision besides
employment.
Existing
development
standards, cost of
construction and
availability of land
impede and / or
disincentivize new
workforce housing
construction.
Employer job
growth projections
for the next 5 years
are an important
component that will
impact the level of
housing demand in
the near future.
E M P LOY E E FA C TO R .
The concentration of jobs, approximately
22,000, within Dubois County is its greatest
asset and likely to drive any future housing
development. With only a limited number
of employee survey responses indicating a
desire to move in the near future, the existing
customer base - while a potential customer
pool - is less likely to be a future housing
consumer than a new employee - one moving
from outside the Region. Of the existing
employees, there is some likelihood that a small
portion of the commuter population could be
enticed to relocate to Dubois County with high
quality, affordable options near employment
centers. But again the 1,000+ projected new
employees - 200 new employees a year - are
more likely to consume new housing and are
therefore the target market for a Dubois
County Housing Strategy.
H O U S I N G FA C TO R .
The Region’s housing market is growing -
by nearly 40% over the last few years - but
Dubois County is not keeping pace. The
County’s share of new construction has
decreased from 19% (pre-recession) to just
12% (post-recession). Additionally, since 2010
new construction in Dubois County accounts
for just 13% of the new units added to the
Region. Within Dubois County, Jasper is the
housing driver, building approximately 84%
of the County’s new units in 2013. However,
a majority of these new homes do not fall into
what’s been defined as “affordable” for the
growing workforce in the area. The average
construction value in 2013 was in excess of
$260,000 - $110,000 over the recommended
“affordable” price threshold. While Dubois
County, and more specifically Jasper, are
adding to the existing housing supply, they are
not providing a product that is accessible
to one of their largest consumer markets -
production level manufacturing employees.

f u t u r e e m p l o y e e s
1 0 - 1 5 %
The ability of Dubois County and its communities
to capture new residents is dependent on several
factors - quality of housing product, price points,
perceived value, neighborhood amenities and
the quality of life present in each community.
Additionally, capture rates (percent of the potential
market that can be attracted) will vary based on the
target markets as well as the proposed locations
for new housing within Dubois County. Based on
recent trends, survey responses and historic data it
is likely that both existing and future employees are
the most likely housing driver. To take advantage of
this potential housing customer base, primary job
clusters and the neighborhoods in their immediate
vicinity should be targeted due to their proximity to
employment, community services and amenities.
e x i s t i n g e m p l o y e e s
3 - 5 %
E M P LOY M E N T P R O J E C T I O N S .
e s t i m a t e d c a p t u r e r a t e s
g e n e r a l p o p u l a t i o n
0 - 1 %
JASPER
231 Job
Cluster
(5 min. drive time
Division & US 231)
HUNTINGBURG
Near Downtown
Job Cluster
(2.5 min. drive time
9th St. & Chestnut)
FERDINAND
Industrial Dr
Job Cluster
(2.5 min. drive time
3rd St. & Scenic Hill)
# Employees 7,000 +/- 2,500 +/- 2,500 +/-
Projected New Jobs (in 5 years) 800 - 1,000 limited 350-500
# Households 2,171 652 415
# Housing Units 2,355 730 443
Vacancy Rate 8% 11% 6%
% Owner Occupied 70% 53% 79%
% Renter Occupied 30% 47% 21%
% Rental in Single-Family Units 50% 13% 2%
Median Home Value $119,304 $81,190 $122,917
Median Rent $504 $496 $466
Median Age of Housing 1971 1948 1976

K E Y A S S U M P T I O N S .
• Inventory is not the biggest issue - location,
age and condition are key concerns.
• Affordable single-family options exist in
Jasper and Huntingburg, but may require
some level of rehab or renovation to satisfy
today’s customer.
• Ferdinand’s existing inventory of housing is
limited.
• Currently there are few linkages between
job clusters and housing opportunities.
• Land cost/availability, development
regulations/standards and better defined
“higher end” market act as barriers to
affordable housing construction.
• Several key housing products are not
apparent in the Dubois County market -
affordable mixed-income, high quality multi-
family product and affordable single-family
housing in high amenity neighborhoods.
Every two years, the Urban Land Institute (ULI) completes
a community preference survey to gauge trends and
feedback on what Americans want in their community.
This national-level information is helpful as Dubois
County looks to attract new employees and households
from outside the Region. Based on employment
projections, the millennial (ages 18-36) population and
their housing and community desires becomes a critical
market segment. They are likely to drive demand for
more compact, mixed-use developments and generally
desire communities that are more walkable, bikeable and
diverse. Additionally, 63% of those surveyed want to
live in a community where they do not need to use their
car often. These trends reinforce the need to create new,
diverse housing opportunities near existing job clusters
that integrate community amenities and access to local
retail and services. Understanding and incorporating
these national trends into local community and economic
development policies will allow Dubois County to
compete on a much broader level.
COMMUNITY PREFERENCES
learn more
CO M M U N I T Y F E AT U R E S .
want to be in walkable
neighborhoods with sidewalks,
crosswalks and other
pedestrian-friendly features.
50% OF AMERICANS
R U R A L L I V I N G .
desire to live in rural / small-
town areas - but still desire
proximity to destinations and
services.
42% OF AMERICANS
D I V E R S I T Y.
reported a desire to live in
a community with a mix of
ages. Two-thirds prefer to live
in a community with a mix of
cultures and backgrounds.
78% OF AMERICANS
source: “America in 2015: A ULI Survey of Views on Housing,
Transportation, and Community” - May 2015

Herron Morton Place, a near-Downtown Indianapolis
neighborhood experienced a successful revitalization
by restoring / rehabbing its diverse housing stock
- which includes single-family, duplexes, courtyard
apartments and small multi-family buildings - as
well as integrating well-designed new construction
into the existing neighborhood fabric. This two-fold
approach has brought new life to the neighborhood
and created greater density by reducing the number
of empty or underutilized lots. The integration
of diverse housing types provides something for
everyone from large historic mansions, new modern
infill homes, and affordable apartments, condos and
town homes. Prices in the neighborhood range from
$140,000 condos just down the street from fully
restored homes priced upwards of $1 million dollars
and everything in between.
URBAN NEIGHBORHOODS
case study
J A S P E R S T R AT E G Y.
goal: Take advantage of Jasper’s
Downtown and adjacent
neighborhood revitalization
efforts by encouraging in-fill
and new housing investment in
targeted areas near the “231 Job
Cluster.”
2 2 5 - 3 7 5 u n i t s
p o t e n t i a l 5 Ye a r D e m a n d f o r W o r k f o r c e H o u s i n g
The existing job base combined with
projected job growth creates a strong
argument for a well-defined, quantifiable
housing market in Jasper. With the average
cost of construction in 2014 at $260,000,
most entry level employees - the job
category projected to grow - cannot afford
what is being constructed. Jasper should
consider focusing much of their efforts
on a single-family initiative - both new
construction (120-230 units) and the
rehabilitation of existing units (30-50
units) to provide a diversity of housing
choices for its growing workforce. Multi-
family development must also play a role to
fully address the gap in workforce housing.
Over the next 1-3 years, Jasper has the
potential to create an additional 50-100
new units of high quality apartments or
other attached (townhomes, stacked flats,
lofts, etc.) product.
I N D I A N A P O L I S , I N

Base
Number.
Capture
Rate.
Potential
Annual
Demand.
JASPER 231 Job Cluster
Market Potential
Existing Job Base* 5,000 3-5% 30-50
Estimated Annual Job Growth** 765 10-15% 15-25
Estimated Household Growth 330 0-1% 0-3
Potential New Annual Demand 45 - 75 units annually
*accounts for approximate production and service jobs only ** based on projected growth within the 231 Job Cluster.
S T R AT E G Y 1.
Focus new housing opportunities within a 5 minute drive of the 231 Job Cluster.
S T R AT E G Y 2.
Create or reinforce quality neighborhoods with strong connection to community
amenities, services, and employment opportunities.
S T R AT E G Y 3.
Focus on a quality multi-family project that reinforces targeted Downtown areas.
S T R AT E G Y 4.
Identify single-family blocks in near-Downtown neighborhoods that would
benefit from reinvestment and have rehab and infill opportunities.
S T R AT E G Y 5.
Identify a strategically located property that would support the development
of 30-50 new workforce homes in a holistic neighborhood setting.

With the philosophy of “better rather than bigger,” Danielson
Grove in Kirkland, Washington is set within a larger
neighborhood context where each home is constructed on a
private lot with shared access to parking and common outdoor
areas. Home prices in this Seattle neighborhood start in the
Mid-$500,000’s with homes ranging from 1,500-1,700 square
feet. People are willing to pay the higher cost in return for the
community setting, amenities and distinct details that make
these homes unique. In some ways these homes are “affordable”
- more traditional homes in the area start at $545,000 and exceed
the multi-million dollar mark. The compact design allows for a
higher density development with a more spacious, community-
emphasized designed that encourages social interaction and
value-added amenities at a lower cost to the consumer.
POCKET NEIGHBORHOODS
case study *Site Specs.
LOT
110 x 160 ft.
0.4 acres
UNITS
8 - 840 sq. ft.
DENSITY
19.8 du/acre
PARKING
1 space/du
SETBACKS
10 ft. front
5-6 ft. side/rear
BUILDING
24 x 35 ft.
* specs not for Danielson Grove
du = dwelling unit
HUNTINGBURG STRATEGY.
goal: Modernize the City ’s housing
inventory through a concentrated
renovation and new housing
program as part of a larger
economic development program,
improve its ability to compete
regionally for residential growth &
reinforce revitalization efforts.
7 5 - 1 2 5 u n i t s
The projected absorption of workforce housing is based
on the assumption that Huntingburg can capture some
portion of the projected County-wide job growth. There
is some ability to capture a greater share of the market if
the City can capitalize on its quality of life and create the
types of units needed to attract the employee market. A
majority of the short-term housing efforts should focus
on bringing new single-family units onto the market. With
a decent housing stock to start with, Huntingburg should
focus 50% of its effort (35-70 units) on rehabilitation in
existing neighborhoods combined with infrastructure and
other neighborhood amenities. New construction (35-70
units) also presents an opportunity, if the development is
within a well-designed neighborhood context located near
amenities, services and employment clusters.
Base
Number.
Capture
Rate.
Potential
Annual
Demand.
HUNTINGBURG Near Downtown
Job Cluster Market Potential
Estimated Annual Job Growth** 1,275 0-1% 0-3
Estimated Household Growth*** 1-2 10-25% 1-2
Potential New Annual Demand 15-25 units annually

K I R K L A N D, WA
S T R AT E G Y 1.
Focus on a compact area near existing job clusters and the Downtown area.
S T R AT E G Y 2.
Reinforce existing neighborhoods near job clusters - both emerging / newer
neighborhoods near 12th Street and the historic core south of Downtown.
S T R AT E G Y 3.
Emphasize curb appeal and unique market features that allow the City to
market the community’s diverse housing options and small town quality of life.
S T R AT E G Y 4.
Create neighborhoods with a variety of housing choices that integrates or
physically connects to surrounding jobs, services and recreational opportunities.
S T R AT E G Y 5.
Evaluate the role of Main and Jackson Streets as potential improved north-
south connectors between neighborhoods and the Downtown core.
* accounts for approximate
production and service
jobs only
** based on projected growth
of 1,275 production level
jobs within the County
*** based on limited house-
hold formation that is pro-
jected for Huntingburg

Taken from Rural by Design - “most residents
also live within walking distance of typical town
amenities, such as schools, shops, churches, and
playgrounds. They often feel a real attachment to
their neighborhood and a definite sense of place
about their street, where they know many of their
neighbors. When queried about what they like about
living in a traditional town, the same items surface
time and again: they enjoy the variety, convenience,
and neighborliness that comes with living in such
places.” These features, already evident in many
of Dubois County’s towns and cities, should be the
focal point of redevelopment, revitalization and new
development efforts. The authentic sense of place /
community and access to traditional town amenities
is something that can be marketed and promoted to
improve regional competitiveness. Rural by Design
is a vast collection of design tips and guidance,
development standards and relevant best practices
and case studies from around the country that are
applicable to Dubois County’s housing efforts.
RURAL BY DESIGN
case study
1 0 0 - 1 7 5 u n i t s
As one of the largest concentrations of
jobs and potential job growth, Ferdinand
- if desired - is in a position to grow its
residential population base. There is a
need for additional workforce housing, both
for-rent and ownership that is currently
missing from the market. The Town’s
low vacancy rate and limited supply of
units indicates an ability to absorb new
housing units if they were made available.
Additionally, the Town has a locational
advantage over other parts of Dubois
County due to its access to I-64 which could
translate to an opportunity to attract
additional regional households. To
increase its residential base, the strategy for
Ferdinand focuses on predominately new
construction single-family (75-125 units)
and the modernization / rehabilitation of
existing homes (15-25 units) near Main
Street. With a rental vacancy at 0% there
is an obvious demand for quality multi-
family units. The Town could likely support
between 25-50 new multi-family units over
the next 1-3 years.
F E R D I N A N D S T R AT E G Y.
goal: Reinforce Main Street (Hwy
162) and the North Ferdinand
Gateway by establishing new
housing opportunities that
utilize remnant agricultural land,
underutilized industrial parcels
and infill lots in designated target
areas.

S T R AT E G Y 1.
Establish goals and objectives designed to stablize and / or grow the population
and reintroduce Ferdinand as a quality option within the larger regional market.
S T R AT E G Y 2.
Focus the Town’s 5 year housing and redevelopment program at the North
Gateway target area.
S T R AT E G Y 3.
Reconfigure industrial and underutilized properties for future single-family
development.
S T R AT E G Y 4.
Introduce new housing products along Main Street that create appropriate scale
and attractive design while addressing the need for newer workforce rentals.
Base
Number.
Capture
Rate.
Potential
Annual
Demand.
FERDINAND Industrial Dr. Job
Cluster Market Potential
Estimated Annual Job Growth** 1,275 10-15% 6-10
Estimated Household Growth*** 0 0% 2-3****
Potential New Annual Demand 20-35 units annually
* accounts for approximate production and service jobs only
** based on projected growth of 1,275 production level jobs within the County
*** based on limited household formation projected for Ferdinand
**** targeted efforts to change trajectory of household growth and attract regional households

For Dubois County, economic development
is inherently linked to the major employers’
ability to attract qualified employees and their
families to live and work in one of its many
cities and towns. A function of that ability is
the supply of housing, specifically workforce
housing. For Dubois County to offer long-
term support to one of its most valuable assets
- its high concentration of jobs - they must
adapt their economic development efforts to
incorporate growing workforce housing options
near existing job clusters.
While traditional housing indicators are weak,
employees represent an obvious short-term
market opportunity for housing development.
Existing options at affordable price points are
dated, scattered and often lower quality units.
With average new construction values around
$260,000 per unit, local builders have primarily
focused on meeting a higher income market
segment, leaving a gap in the much needed
workforce housing market. In order to bring
new or renovated housing into the market, it
must compete price wise with these older, less
expensive options - identifying a need for some
type of intervention. This intervention will
likely come in as a “value-added” component of
a larger housing initiative. The response must
be as much about economic vitality as it is a
response to a specific housing need.
To this point, no one approach or tool will solve
Dubois County’s current housing issues, but a
multi-faceted, organized approach will offer
the best results for not only the employers,
but the towns and cities, and ultimately the
residents who have already chosen Dubois
County as their home. By integrating economic
and community development, the recommended
approach aims to service many different
constituent groups and improve the County’s
ability to attract new residents and investments
in the future.
Independent of what direction is chosen
for future housing initiatives, the selected
approach should be designed in a manner that
ensures both local community objectives are
met in addition to expanding housing options.
The community must define their individual
objectives but should focus on reinforcing
existing neighborhoods, developing new
neighborhoods with a sense of place, attracting
developers with the ability to provide desired
product types with added features at the right
price points and growing job clusters by making
Dubois County a desirable place to live.
ACTION PLAN
outlining the

P I LOT P R O J E C T.
The goal of the proposed pilot project is two-fold - define the market opportunities of
the employee customer base and create local capacity that can transition into a long-term
county-wide housing initiative.
The housing market, most notably workforce housing, is not well-defined to those outside of Dubois County - but
presents a significant opportunity to those that understand it and know how to take advantage of it. Therefore,
investment of any scale has been limited and does not adequately meet the needs of the existing employers and their
employees. There is a need to “prove” the market and help define the opportunities that exist within Dubois County.
By utilizing a demonstration or pilot program, the County will be able to effectively demonstrate the strength of the
employee market to potential developers, investors, employers and future customers. The project will also show how
community-oriented amenities like - mixed-use neighborhoods, open space, mix of product types and quality design -
become critical pieces in attracting a regional market to Dubois County.
A pilot project allows those involved with local housing initiatives and development a chance to build capacity
that currently doesn’t exist within any one municipality. The need to hire multiple staffs and engage employers,
developers and customers individually is limited and will greatly reduce the time commitment of each
implementation partner. Even more, by partnering several municipalities and organizations, the overall burden and
potential risk associated with a new housing program is limited for the individuals. A pilot project becomes a way to
“test” out various methods and organizational structures with no long-term commitments or fear of taking on more
than any one organization can handle.
3 0 - 5 0 u n i t s
p o t e n t i a l s c a l e o f 1 s t j o i n t e f f o r t
d e m o n s t r a t i o n p r o j e c t t o i n c l u d e o w n e r
& r e n t e r p r o d u c t i n a l l 3 c o m m u n i t i e s
why county-wide approach? To many
potential investors, employees and residents
Dubois County is viewed as one community.
As a diverse community of 42,000 people with
different lifestyle options for everyone, Dubois
County competes better than it can as three
smaller communities with limited options.
This requires cooperation between the cities
and towns with the shared goal of economic
prosperity for the entire County.
$ 1 5 0 , 0 0 0
t a r g e t e d p r i c e p o i n t f o r o w n e r s h i p
w i t h p r i c e s r a n g i n g f r o m
$ 9 0 , 0 0 0 - $ 2 0 0 , 0 0 0
$ 6 7 5 p e r m o n t h
t a r g e t e d p r i c e p o i n t f o r r e n t a l u n i t s
w i t h m o n t h l y r a t e s b e t w e e n
$ 3 5 0 - $ 1 , 0 0 0
3 : 2
r a t i o o f n e w c o n s t r u c t i o n t o
r e h a b , b u t b a s e d o n s p e c i f i c n e e d ,
a v a i l a b i l i t y o f l a n d a n d p r o d u c t

2015 2016 2017 2018 2019
Key Task Q2 Q3 Q4 Q1 Q2 Q3 Q4
Define Goals/Objectives of Dubois County Housing Program
Organize Partners & Begin Outreach to Other Funders
Identify Housing Partner & Define Role / Expectations
Establish Housing Program Framework
Define & Identify Demonstration / Pilot Project
Target Sites for Acquisition / Land Control
Work with Local Banks to Develop Favorable Financing
Begin Discussions with Developer / Builder
Build Model Units for both Rehab and New Housing Product
Marketing & Outreach to Home-Buyers
Pre-Sell Units to Qualified Home-Buyers
On-going Construction of New and Renovated Units
Evaluate Outcomes and Adjust/Expand to Meet Demand
Projected Completion of 50 unit Demonstration Project
P R O J E C T R O L E S .
P R O J E C T T I M E L I N E .
Partners.
Key Task
Define Goals/Objectives of Dubois County Housing Program
Organize Partners & Begin Outreach to Other Funders
Identify Housing Partner & Define Role / Expectations
Establish Housing Program Framework
Define & Identify Demonstration / Pilot Project
Target Sites for Acquisition / Land Control
Work with Local Banks to Develop Favorable Financing
Begin Discussions with Developer / Builder
Build Model Units for both Rehab and New Housing Product
Marketing & Outreach to Home-Buyers
Pre-Sell Units to Qualified Home-Buyers
On-going Construction of New and Renovated Units
Evaluate Outcomes and Adjust/Expand to Meet Demand
Projected Completion of 50 unit Demonstration Project
D E V E L O P E R / B U I L D E R ( D )
P U B L I C S E C T O R ( P )
H O U S I N G P A R T N E R ( H )
O T H E R F U N D E R S ( F )
E M P L O Y E R S ( E )
(E) (P) (H) (F) (D)
*
see page 32 for information on key players

Total Cost.
Per Unit
Cost.*
Uses.
acquisition1 $450,000 $10,000
construction2 $5,460,000 $121,333
site costs $112,500 $2,500
architecture & engineering (A&E) $218,400 $4,853
soft costs $240,900 $5,353
construction management $111,450 $2,477
financing $35,000 $778
reserves $67,500 $1,500
Total Project Cost $6,696,750 $148,794
S O U R C E S & U S E S B U D G E T.
O T H E R F U N D E R S ( F )E M P L O Y E R S ( E )
H O M E - B U Y E R S ( B ) P U B L I C S E C T O R ( P )
Total Funding.
Per Unit
Funding.*
Sources.
home-buyer downpayment $200,873 $4,464
local investment $803,490 $10,000
other public investment $334,788 $16,667
conventional debt $5,294,878 $117,664
Total Project Cost $6,696,750 $148,794
1
assumes average land cost of $30,000 per acre, average home price of $20,000 and requires some to
significant renovation and $5,000 per undeveloped infill parcel
2
assumes average new construction cost of $90/sq. ft., renovation cost of $85/sq. ft. and average home size
of 1,400 sq. ft.
* assumes 45 new or rehabilitated units as part of the demonstration project - 15 renovated units, 15 infill
new construction and 15 new construction units in new or expanded neighborhood

TOOLS & RESOURCES
identifying
In order to achieve the key objectives of a joint
housing effort, it is necessary to have a complete
“toolkit” of resources and funding sources
to assist with the task. Tools can be used to
facilitate development, reduce financial risk or
increase affordability of units. With each tool
there is a different intended user - developers and
home-buyers - but some may be flexible enough
for both. The tools provided are intended to
increase employment attraction in the targeted
job cluster areas, develop an economic and
housing development program that benefits
businesses and reinforces core neighborhoods
with additional investment and establishes an
effective public-private partnership focused on
accomplishing those tasks.
E M P LOY E R S . P U B L I C S E C TO R .
H O U S I N G PA R T N E R .
H O M E - B U Y E R S . D E V E LO P E R / B U I L D E R . OT H E R F U N D E R S .
The employers are a critical component of
identifying and attracting qualified home-
buyers and will benefit from improved
employee attraction and retention which will
facilitate their projected expansion plans.
The public sector will be primarily responsible
for infrastructure improvements, expedited
entitlement processes and pre-development
activities. They will benefit from an improved
and expanded tax base as well as a greater
ability to attract new residents and businesses.
The housing partner may be an existing or newly created nonprofit or for profit entity
that partners with the employers and public sector to lead housing efforts within Dubois
County. This organization or individual will be responsible for organizing and leading the
housing initiatives which may include activities such as collaborating with the partners to
meet broader community/ economic development goals, pre-development, marketing and
sales, construction management and transactions with potential home-buyers.
Home-buyers will benefit
from an improved process
as well as a menu of
financial resources that
make Dubois County a
more desirable location.
Benefits to the builders
will be both financial in
the form of incentives
and ease of entitlement
as well as identification
of qualified customers.
Federal, State and private
funders will bring resources
that meet their goals of
affordability, homeownership
and community/economic
development.
DUBOIS COUNTY HOUSING PROGRAM ORGANIZATION FRAMEWORK

User. Provider.
Tools and Resources*
Construction Financing
Down Payment Assistance (DPA)
Housing Counseling
Home-Buyer Identification
Home Owner Tax Credits
Individual Development Account (IDA)
Interest Rate Buy-Down
Land Assembly
Land Write-Down
Loan Guarantee
Second Mortgage
Tax Abatement
Wealth Building
The Indiana Housing and Community Development Authority (IHCDA)
has a variety of programs and incentives for both housing developers
and home-buyers, with the goals of creating expanded housing
opportunities and revitalizing neighborhoods. Several programs
would be beneficial in assisting Dubois County grow their supply of
workforce housing. For more information visit www.in.gov/ihcda.
• Affordable Home - below market interest rates
• My Home Conventional - low, fixed interest rate
• Next Home - down payment assistance of up to 4%
• Mortgage Credit Certificate - 20-25% tax credit on interest
• Development Fund - up to $500,000 loan on eligible activities
IHCDA HOUSING PROGRAMS
learn more
* additional information on each tool provided on the following pages
HOUSING TOOLS & RESOURCES OVERVIEW
(H) (F) (P) (E)
(D) (B)
O T H E R F U N D E R S ( F )E M P L O Y E R S ( E )
H O M E - B U Y E R S ( B ) P U B L I C S E C T O R ( P )

TAXABATEMENT.
For many home-buyers the most difficult period in adjusting to the expense of buying a home is in the
first few years. Tax abatement allows a significant expense to be phased in over a period of time. The tax
abatement tool is a direct benefit to the home-buyer and can be used as a policy tool to support local
neighborhood revitalization objectives.
Employer Assisted Housing (EAH) comes in a variety of forms from programming to
actual development and ownership of residential units. Typically it comes in the form
of a financial incentive from the employer to the employee to assist with housing cost -
likely in the form of down payment assistance. Cash contributions may be either grants,
loans or some type of matching that allows employees to purchase housing around
employment centers. Other EAH programs may involve providing funding for a nonprofit
organization to develop and manage a program, often in collaboration with other area
employers. While employers are providing financial incentives it can be a cost effective
means of providing a benefit to the employee. In some industries EAH programing costs
less than the cost associated with recruiting and training new employees and assists
with attraction and stability of the workforce. Additionally, it allows businesses to lead
community revitalization efforts and build a better quality of life for their families as well
as their employees.
source: Employer-Assisted Housing Resource Guide - Greater M innesota Housing Fund
EMPLOYER ASSISTED HOUSING
learn more
SECONDMORTGAGE.
A Second Mortgage Program is a form of down payment assistance. Its purpose is to both make it easier
for a homebuyer to qualify for a conventional mortgage and to assure that the mortgage payments are
affordable. The second mortgage is normally offered by a local program sponsor and can be based on
household income and other program objectives. The second mortgage amount varies but typically falls
within 5% to 10% of the home purchase price. The second mortgage if in loan form often carries more
favorable terms compared to a conventional mortgage. A loan deferral or termination can occur if program
conditions are satisfied often over a 5-10 year period. There are several potential funding sources to
support a second mortgage program. It is not unusual to see Community Development Block Grant (CDBG)
or Home Investment Partnership (HOME) monies used to fund this type of tool. These federal monies which
are available directly to cities and/or the State of Indiana can be used to support the housing needs of low
and moderate income families. In addition, an employer assisted housing program can serve as a vehicle
for employer contributions to be used for the purpose of providing second mortgages to home-buyers.
L E A D
EXPANDED INFORMATION ON HOUSING TOOLS & RESOURCES
P U B L I C S E C T O R ( P )L E A D

DOWNPAYMENTASSISTANCE.
A down payment assistance program typically introduces a “new” source of outside funds designed to
assist a homebuyer in meeting a mortgage loan provider’s down payment requirements while at the
same time reducing the mortgage amount. The down payment assistance can range from a small token
contribution to satisfying the total funds needed. Often in those areas where housing prices are inflated
or not at an affordable level the mortgage assistance tends to be at the higher end.
There are often several rules or commitments that the home-buyer must agree to in order to be
considered for the assistance. They can include but are not limited to the following -
• Must satisfy the programs objectives typically tied to household income and/or geography,
• Must qualify for the mortgage amount required to purchase the home,
• Must personally be able to provide a portion of the down payment amount (often 3-10%),
• Must agree to live in the house for a specified period of time, and
• Must agree to participate in housing counseling classes (subject to home-buyers experience.)
The down payment assistance can be provided as a loan or as a deferred loan/grant. If a loan, it is often
provided with favorable terms (i.e. lower interest rate and extended time on principle payments). If the
latter, the home-buyer must be in good standing with mortgage provider as well as in compliance with
the program requirements.
INTERESTBUY-DOWN.
One tool that can be used to reduce the monthly housing expenses for lower-income homeowners is an
interest rate buy-down program. This program allows a third party funder - potentially a nonprofit housing
organization or employer - to either pay some portion of a home-buyers monthly interest payment or to
pay an upfront fee, effectively lowering their interest rate. As the interest payments decrease, the amount
paid by the third party funder may be reduced or discontinued. This tool is most appropriate in higher
cost housing markets and when affordable product is in limited supply.
MORTGAGEASSISTANCE.
A Mortgage Assistance Program is designed to help home-buyers secure affordable mortgages. The
programs normally offer lower down payment requirements, below market interest rates and reduced
closing costs. Guarantees are also provided, in most cases through public-sector backed mortgage
insurance programs that encourage lenders to loan to households that may be considered a slightly higher
risk given the lender’s underwriting requirements. Both the United States Department of Agriculture
(USDA) and the Indiana Housing and Community Development Authority (IHCDA) offer programs that are
designed to secure mortgage loans for households that are deemed to be reasonable credit risk but are
finding it difficult to qualify for conventional financing.
L E A D H O U S I N G P A R T N E R ( H )

HOUSINGCOUNSELING.
A housing counseling program can be an effective tool to inform first time and inexperienced home-buyers
about the responsibilities and pitfalls associated with home buying and ownership. Issues ranging from
available financing programs to assessing a household’s housing needs to maximizing housing value can
be addressed in a well-structured housing counseling program. The housing counseling program may be a
collaborative effort between financial institutions, local housing entities and public sponsors who have an
interest in promoting local housing initiatives.
TAXCREDITS.
The Indiana Housing and Community Development Authority (IHCDA) provides lower-income first time
home-buyers with an annual tax credit of up to $2,000 on their federal taxes over the entire term of the
buyer’s mortgage. The annual credit is based on a 20-35% tax credit rate on the buyer’s yearly interest
payments and increases the amount of the home-buyers income that is available for other expenses
such as home repairs, improvements or savings. Income limits for the program are based on 125% of
the Area Median Income (AMI.) The Mortgage Credit Certificate can be used with both conventional and
government mortgages and can be paired with other IHCDA programs.
IDA.
An Individual Development Account (IDA) is a State or Federal matched savings account for households
earning less than 175% of the Federal Poverty Guidelines (2015: $42,437 for a family of 4) and are
employed. Households receive a $3 dollar match for each dollar saved up to $4,800 match over the
required 3 year period. Participants are required to deposit $300 annually to remain in the program. This
program creates opportunities for individual and family wealth building and provides a structure and
incentive for saving for future home-ownership, down payments or other large investments.
LOANGUARANTEE.
Loan guarantees can be offered to “low risk” households that find it difficult to qualify for a conventional
mortgage. The loan guarantee can be used to address perceived credit risk by the lender. Often the loan
guarantee is not for the full mortgage amount.
There are a number of loan guarantee programs designed to serve households either with limited incomes
or credit issues. Loan guarantee program platforms can be through an existing institutional lender/
program entity such as the United States Department of Agriculture (USDA) or established locally by a
program sponsor.
O T H E R F U N D E R S ( F )L E A D

LANDWRITE-DOWN.
Depending on the community, land can comprise 10-20% of the cost of a home. In urban in-fill areas there
may have been both an acquisition and site clean-up cost (demolition, site issue) that creates an additional
expense. In certain cases the land parcel may both be expensive as well as elusive – individual land parcels
may be difficult to secure. Recognizing this, a public sector or mission driven entity may work to secure
targeted land parcels to make available to either developers or home-buyers to encourage single-family
construction and homeownership. In such instances it is not unusual for the entity to write-down the cost
of the land to the builder/buyer. This can make a significant difference in enticing new home development
and also help the builder/buyer secure the necessary financing for the building activity. The land write-
down is often tied to specific program requirements and objectives. The assistance with land cost can also
be provided in some form of deferred payment.
CONSTRUCTIONFINANCING.
New residential development programs often require that model homes be built and made available for a
period of time. The homes are used to market an area or program and to inform the targeted home-buyer
market about the opportunities tied to the new housing program.
Construction Finanncing Assistance (CFA) is intended to assist and incentivize the builder / developer
with their financing for new housing construction. It is not unusual for builders to find it difficult
or undesirable to borrow monies to build on speculation or to provide model homes. In such cases
construction financing may either be difficult to obtain or carry an above market interest rate. In such
cases the builder feels as though he/she may be carrying higher risk than they wish to.
In the case of a CFA project, an entity (i.e. public or program sponsor) will provide some level of guarantee
for the construction financing to build speculative or model homes. The assistance may range from help
with the interest rate paid by the builder during the time in which the home is under construction and
being marketed, to guaranteeing a portion of the construction loan. Rarely will the guarantee be for more
than 50% of the loan amount and often much less. Both the financial institution and the builder will feel
the loan exposure rests somewhere between the construction loan amount and the minimum sales price
required to realize a sale. The guarantor will often require the builder/developer to leave its profit and
some portion of its overhead in the home until the guarantee is no longer in place and/or the home is sold.
BUYERIDENTIFICATION.
Having a readily available pool of qualified buyers can alleviate or manage some of the risk developers
and home-builders face in an uncertain market. Home-buyer identification may be a joint effort by
participating employers and the housing partner to market opportunities and incentives to potential
buyers. This will require effort on the part of the employer to be sure that their employees know the
resources and financial assistance are available and how to access them. By connecting the qualified
buyers with developers and builders, the employers are serving a critical function - ensuring there is
sufficient demand to support creation of new or improved housing units.
P U B L I C S E C T O R ( P )L E A D
O T H E R F U N D E R S ( F )L E A D
L E A D E M P L O Y E R S ( E )

There is no one tool, resource or incentive to get the job done, but likely a combination of two or three are
needed and will vary on a case-by-case basis. Below is an example of how the tools and funding sources
can be layered together to make purchasing a home in Dubois County a value proposition. Incentivizing
households to purchase homes within the County is a win-win for all involved parties - it expands the
municipalities’ tax base, improves the quality of life in target neighborhoods and eases employee attraction
and retention efforts of the local employers while strengthening the employer-employee bond.
The following three examples demonstrate how tools such as down payment assistance, second mortgages
and tax abatement can effectively reduce the existing barriers to affordable homeownership. The models
assume that most production level employees are unlikely to have sufficient savings and financial standing
to support a conventional loan and down payment. Using these assumptions a conventional, community/
employer loan program and neighborhood reinforcement model were developed and show potential savings
to the homeowners and includes a 3% program overhead charge to account for administering the programs.
Each model is to be used as an example and all aspects - from interest rates to down payment amounts - are
subject to change based on the lending requirements of each financial institution.
The housing partner and the home-buyer
would work with local banks to determine
a financing structure that satisfies local
mortgage underwriting requirements, while
still creating a value proposition for the
employee. Under this scenario, the employee
would work directly with the selected housing
partner to locate and purchase a qualified home
- most likely within a targeted development or
neighborhood. This model would assume that the
employee would be required to occupy the home
for a specific period of time and would potentially
also have requirements tied to job tenure with
their current employer. This ties the incentives to
the larger community and economic development
objectives such as homeownership, community
investment and employee retention.
This model assumes the homeowner is purchasing
a $150,000 home and receiving a forgivable loan
to assist with meeting underwriting standards.
Terms.
Community/Employer Loan.
mortgage term 30 years
interest rate1 4.5%
down payment2 1% / $1,545
second mortgage3 6% / $9,270
total mortgage amount $143,685
monthly mortgage payment $735
insurance (PMI)4 0.25% / $30
monthly property taxes5 1% / $60
Total Monthly Payment6
$825
total monthly savings ($115)
savings over life of loan ($41,400)
CO M M U N I T Y / E M P LOY E R LO A N .
1
assumes slightly better interest rate due to community/
employer participation and investment
2
significantly reduced down payment amount to be
supplemented by a non-traditional source of funding
3
acts as forgivable loan if all requirements (community
objectives, housing and employment tenure) are met
4
assumes bank will have less stringent requirements due to
community/employer participation
5
assumes a graduated tax abatement equal to 50% average
reduction over the 10-year time period
H O U S I N G TO O L S I N A C T I O N .

By utilizing a conventional loan, an employee
must work directly with a real estate broker and
bank to locate and purchase a home. This is the
most traditional method of purchasing a home,
but may be unrealistic for many production
level employees. Given the modest incomes of
many employees, down payment amounts and
the ability to satisfy loan underwriting, may be
impediments to homeownership under this model.
a $150,000 home using current mortgage rates.
CO N V E N T I O N A L LO A N .
Terms.
Conventional Loan.
interest rate 5%
down payment* 10% / $15,450
insurance (PMI) 0.5% / $60
monthly property taxes 1% / $129
Total Monthly Payment $940
The Neighborhood (Reinvestment) Loan would
target infill and rehabilitation opportunities
in existing neighborhoods adjacent to job
clusters. The public sector and housing partner
would work together to identify distressed
single-family homes to purchase and renovate
to be made available as part of the employee-
purchase program. Employers would work
with the housing partner and local banks to
determine a financing structure that satisfies
underwriting requirements, while still creating
a value proposition for the home-buyer. This
model incorporates occupancy and employment
requirements that directly link the housing
incentives to larger community and economic
development objectives such as increased
homeownership, neighborhood stabilization and
employee attraction and retention.
a recently renovated home ($131,000*
) and
receiving a forgivable loan to assist with meeting
underwriting standards.
Terms.
Neighborhood Loan.
interest rate1 4.5%
down payment2 1% / $1,311
second mortgage3 3% / $3,933
insurance (PMI) 0.5% / $55
monthly property taxes 1% / $109
Total Monthly Payment6
$808
total monthly savings ($132)
savings over life of loan ($47,500)
N E I G H B O R H O O D LO A N .
1
assumes slightly better interest rate due to community/
employer participation and investment
2
significantly reduced down payment amount to be
supplemented by non-traditional source of funding
3
acts as a forgivable loan if all requirements (community
objectives, housing and employment tenure) are met
*
renovated home price assumes acquisition cost of $50,000,
home size of 1,200, renovation cost at $65/sq. ft. and a 3%
program fee. In order to have a ready supply of qualified
homes, it is assumed the housing partner - in conjunction
with the employer, public and private sectors - will be
responsible for acquisition, rehab and other neighborhood
investments needed to create market-friendly units for this
program.

L E A R N M O R E .
for more information
please contact
ED COLE, PRESIDENT
Dubois Strong
961 College Avenue
Jasper, IN 47546
(812) 482-9650

Final Dubois County housing strategies

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Final Dubois County housing strategies

Similaire à Final Dubois County housing strategies (20)

Plus de Matthew Crane

Plus de Matthew Crane (20)

Dernier

Dernier (10)

Final Dubois County housing strategies