Dunham Court by the numbers and Plan B ANNOTATED. Don't just take my word for it.
The problem is a shortage of housing. (1) For the homeless and people living on the edge the problem is a crisis. (2) For more than three quarters of Cape Elizabeth residents who own their own homes (3) that have recently doubled in value (4) and will pay substantially more in property tax, (5) the housing problem is not a crisis but rather an opportunity to help solve it.
One old-fashioned way to ease a housing shortage is to create new housing (6) — and that’s where the story of Dunham Court begins.
Before Dunham Court there was and still is Ocean House Commons. (7) The two lots located in the heart of Cape Elizabeth where Dunham Court hopes to be developed are part of an approved village-style subdivision of 4 lots on the brand newly created town green where our war memorial was recently transferred and adjacent to the historic town hall building and public skating rink. Ocean House Commons allows for 26 apartments on the two lots Dunham Court would occupy. (8)
Development of Ocean House Commons consistent with Cape’s zoning ordinance would net the above referenced 26 apartments upstairs in the two buildings according to the site plan and downstairs is approved for commercial space consistent with the Comprehensive Plan to generate community engagement. Buy a coffee, sit on a bench, chat with your neighbor (9). The public cost of developing Ocean House Commons is zero.
Dunham Court amends the zoning ordinance in substantial ways to allow for a giant building of 49 one-bedroom apartments (10) restricted to low-income tenants for 45 years (11) and will pave over the skating rink and takeover parking at town hall. (12) There will be no commercial space on the ground floor (13) and the town green will serve as the de facto front lawn for the apartment building. After 30 years the developer will own the real estate free of debt (14) and after 45 years free of affordable housing restrictions. (15) Dunham Court will result in a net gain of 23 one-bedroom apartments restricted to low-income tenants for 45 years. (49 -26 = 23).
Setting aside for now other high costs the public will bear if Dunham Court is developed — the proposed TIF, state and federal tax-credits, interest and fees, for example — the public cost to develop Dunham Court is 13.5 million dollars. (16)
The estimated worth of Dunham Court once developed is $4 million dollars. (17)
When you divide the total cost ($13.5 M) by the net gain of dwelling units (23) you see taxpayers will pay $587,000 each for 23 one-bedroom apartments restricted to low-income tenants for 45 years.
The Dunham Court 1-bedroom, low-income model excludes kids (18) and the Cape Elizabeth workforce. (19)
For $587,000 we could and should buy 23 three-bedroom homes (20) and offer them to families seeking a head start on the path of the American Dream. (21)
The marketing campaign for Plan A -- the Dunham Court model -- suggests it’s a moral cause and opposition to it immoral. It’s not. There’s a better path that’s morally and fiscally more responsible.
Plan B is an alternative proposed amendment to the zoning ordinance for voters to consider. (22) Plan B will allow but not mandate development of Community Housing, i.e. affordable housing for families, on town-owned land left by Thomas Jordan and his wife Mary in 1825 for the purpose of housing people without means. (23)
Plan B is about creating a neighborhood of homes that would be accessible to families and kids and remain affordable forever. (24) Community Housing will cost less, be more inclusive of our workforce and offer a substantially higher quality of life.
Updated May 4, 2022 to include End Notes
[1] There's never been such a severe shortage of homes in the U.S. Here's why
https://www.npr.org/2022/03/29/1089174630/housing-shortage-new-home-construction-supply-chain
[2] Homelessness, housing crunch spreads to rural Maine, https://wgme.com/news/local/homelessness-housing-crunch-prevalent-in-rural-maine
[3] Cape Elizabeth Comprehensive Plan, Page 62 https://www.capeelizabeth.com/media/Planning/Comprehensive%20Plan%20for%202019.pdf
[4] In 2017 my home was appraised at $495K and today has an estimated value of $1.2 M across real estate websites.
[5] Cape Elizabeth is currently doing a town-wide reevaluation https://www.capeelizabeth.com/media/Reports/Real%20Estate%202022/TOWNWIDE-LETTER-intro-to-reval-v2.pdf
[6] “It really is about supply and demand — not enough houses, and huge numbers of people wanting homes.” https://www.nytimes.com/2022/01/20/upshot/home-prices-surging.html
[7] Cape Approves Subdivision https://www.pressherald.com/2019/12/19/cape-approves-subdivision-at-town-center-project/
[8] “Proposal for Housing at Ocean House Commons” presented by the Szanton Company, page 15, “Current Zoning: requires 3,000 sf of land per unit = 26 units. Amendment would allow for 49 units” https://evocloud-prod3-public.s3.us-east-2.amazonaws.com/meetings/47/attachments/2697.pdf
(9) “The project aligns with the town’s desire to create a town center, a central area that is pedestrian-friendly with a common meeting place and easy access to open space and nearby residential neighborhoods.” https://www.pressherald.com/2019/12/19/cape-approves-subdivision-at-town-center-project/
[10] Szanton Proposal, pages 17-18, “What we’d need in Zone Amendment” https://evocloud-prod3-public.s3.us-east-2.amazonaws.com/meetings/47/attachments/2697.pdf
[11] Affordable housing created in compliance with this section must 41 maintain low-income affordability for a minimum of 45 years.” https://evocloud-prod3-public.s3.us-east-2.amazonaws.com/meetings/47/attachments/4754.pdf
[12] Szanton Proposal, page 19 “Parking” https://evocloud-prod3-public.s3.us-east-2.amazonaws.com/meetings/47/attachments/2697.pdf
[13] Szanton Proposal, page 18, “Current zoning requires 1st floor be reserved for commercial areas Amendment would allow for housing on the 1st floor” https://evocloud-prod3-public.s3.us-east-2.amazonaws.com/meetings/47/attachments/2697.pdf
[14] The Szanton Company Tax Increment Financing Proposal, August 31, 2021, page 5 “financial Sources” https://evocloud-prod3-public.s3.us-east-2.amazonaws.com/meetings/47/attachments/4467.pdf
[15] See footnote 11 supra
[16] The Szanton Company Tax Increment Financing Proposal, August 31, 2021, page 5 “Development Expenses” and “Financial Sources” https://evocloud-prod3-public.s3.us-east-2.amazonaws.com/meetings/47/attachments/4467.pdf
[17] See Affordable Housing TIF Memorandum dated September 3, 2021 from Maureen O’Meara to CE Town Council, page 4, “The Town Assessor has estimated that the Dunham Court project will increase the property value to $ 4 million.” https://evocloud-prod3-public.s3.us-east-2.amazonaws.com/meetings/47/attachments/4468.pdf
[18] See Szanton Proposal, page 11 “Project Overview 49 one-bedroom apartments = financial feasibility” https://evocloud-prod3-public.s3.us-east-2.amazonaws.com/meetings/47/attachments/2697.pdf
[19] “The largest employer in town is the Cape Elizabeth School Department”
https://www.capeelizabeth.com/UniqueCharacteristics. Cape teachers as well as public works and public safety workers would be excluded because they make “too much” Collective Bargaining Agreement https://core-docs.s3.amazonaws.com/documents/asset/uploaded_file/523515/Teachers_signed_20-23.pdf,
[20] “The median listing home price in Cape Elizabeth, ME was $525K in March 2022” https://www.realtor.com/realestateandhomes-search/Cape-Elizabeth_ME/overview
[21] IN THE NATION; Why Owning a Home Is the American Dream
[22] “Attorney Cynthia Dill’s new “Plan B” petition seeks another referendum to create a “community housing” zone for low- and moderate-housing.” https://www.pressherald.com/2022/04/14/petition-in-cape-elizabeth-would-establish-affordable-housing-zone-at-gull-crest/
[23] Reliving the Past, by Barbara Sanborn https://www.pressherald.com/2006/05/31/reliving-the-past-3/
[24] Unlike the Dunham Court model that will be publicly financed and privately owned by the developer, Community Housing on public land would be (1) less expensive because land doesn’t need to be purchased and financed and (2) owned by the town and leased to families with low and/or moderate income in perpetuity.
[25] Moderate income households. "Moderate income households" means households in which gross income does not exceed 150% of the median income of the county or metropolitan statistical area in which the household is located. 30-A MRS Sec. 5002