Our thanks to First Bank for sponsoring Onslow’s Housing Shortage Forum on March 21st at the Jacksonville Country Club.
JOED brought together developer (L-R) John L. Pierce (John L Pierce and Associates); affordable housing builder James Maides (East Point Homes); Onslow County Director of Planning and Development Carter Metcalf (Onslow County); financial lender Susan Edwards (First Bank); and residential builder Jason Nelson (Atlantic Construction) to share their expertise as panelists.
Challenges to meeting the housing inventory need are often driven at the national and statewide level: interest rates, supply chain inconsistencies, funding for affordable housing, and regulatory requirements. The forum’s objective was to engage these five local experts in crafting a short list of actions that can be taken at the local level, within a year, which will enable our builders to increase their delivery rate of our housing inventories.
- Longtime local developer John L Pierce opened with, “It takes too long to bring lots to market.” Related to permitting requirements, he proffered that it’s unlikely to see quick changes in federal policies, but local efforts can be effective in some cases. He complimented improvements in the county’s planning and zoning department but voiced concern over the risk of losing trained employees to other jurisdictions. He recommended fully staffing planning departments and specific actions to improve employee retention through more competitive pay and benefits.
- Homebuilder Jason Nelson noted that supply chain issues and timeframes for CO’s have improved but the workforce pipeline is a continuing challenge. Fortunately, Onslow County Schools offer construction trades classes and have invested in the Eastern Carolina Regional Skills Center. High school students– many of whom participate in Trades Day hosted by the Jacksonville Chamber of Commerce and Coastal Carolina Community College, have participated in job shadowing opportunities at his business. His recommendation centered on a streamlined permitting process: frequently used floorplans could be “preapproved” within 24-hours, freeing up permitting staff to focus on “custom builds.”
- While the population of Onslow County is projected to hit 274,000 by 2050, Planning and Development Director Carter Metcalf advised that preparing to meet future housing needs has multiple layers. Predicting the required variety of homes is multi-faceted: our county is among the state’s “youngest” –often with young families– and popular with retirees who often require different amenities in their homes. With recent changes and staffing in his department, Carter Metcalf outlined the department’s focus on building capacity and increasing efficiencies, as well as forming positive local relationships. He noted that Onslow County can serve as an ally for–and a liaison between–local builders/developers and state agencies.
- Building affordable housing includes funding challenges. James Maides outlined the arduous process of submitting for tax credits through the North Carolina Housing Finance Agency. Briefly stated, the federal government allocates tax credits to each state based on population. Those funds are then dispersed into 3 NC regions and awarded to contractors on an extremely competitive basis—only 30% of NC submissions are awarded. His company has been awarded the tax credits for three housing projects in Jacksonville, developing 208 units for affordable housing. Over the next two years, another 40 units are approved. The staggering fact is those units will provide only 1.3% of the current need in our immediate market area. Like all builders, Mr. Maides faces cost increases and permitting requirements. He complimented the City of Jacksonville’s planning and permitting department for their efficiency and assistance. He noted that many cities and counties share the cost burden by budgeting specifically for affordable housing efforts.
- Susan Edwards has seen many interest rate and economic cycles in her career of over thirty years as a lender. Buyers and investors are more cautious right now given the higher interest rates, increase in values and elevated construction costs. Buyers may “downsize” their home preference for affordability or they may simply wait for a better interest rate. Borrowers and builders are hopeful for anticipated interest rate decreases. Until then, she recommends that homebuyers look at all financing options to take advantage of the best rate available and consider refinancing once the interest rates move down.
Panel’s Recommendations (can be locally enacted, within one year) :
- Fully staff local government planning departments and offer compensation packages conducive to employee retention.
- Implement a 24-hour residential building permit policy.
- Expand local government funding for affordable housing.
