More affordable housing is needed for future workes at Portsmouth Naval Shipyard, according to report. Courtesy photo

Strategies to support local housing production and to make affordable housing easier to build and are spotlighted in a new Housing Report from the Joint Land Use Study (JLUS), funded through a US Department of Defense grant with the Town of Kittery, Southern Maine Planning and Development Commission (SMPDC), and the Portsmouth Naval Shipyard (PNS).

The report calls for reducing barriers to multi-family housing production, including accessory dwelling units, without increasing requirements such as lot sizes and parking, while still ensuring protection for sensitive areas and aquifers. The report also suggests developing gap financing tools to assist federal workers to buy or rent in the region, and creating a Housing Trust Fund for local sources of funding.

Housing prices in the 10 communities surrounding the shipyard have increased dramatically — 46% in the last three years, according to the report. The study shows that by 2026, the PNS needs to hire approximately 500 new employees and up to 4,000 additional workers to account for retirements or job changes, further stressing the current housing availability. In addition, the Maine State Economist predicts that the current population of 114,000 in these 10 communities will grow to 123,000 by 2038.

SMPDC is managing the JLUS effort in collaboration with the Town of Kittery, and the Shipyard. The JLUS Partnership also includes representatives from the City of Portsmouth, New Hampshire and Maine Departments of Transportation, regional planning organizations, as well as other municipal, state and federal partners.

“Most of us have experienced or know someone dealing with the challenges of this housing market,” said Stephanie Carver, SMPDC transportation director. “We know the problem is complex, but the need for more housing is clear and the lack of housing options has evolved as a significant workforce issue. The lack of suitable land, limited financing support for innovative housing, high construction costs, and regulatory limits and uncertainty are all contributing factors. We see our communities trying to adjust, and we hope the recommended strategies from this report can help them effectively face these challenges.”

Kittery Town Manager Kendra Amaral said “Lack of affordable local housing is a challenge for us all. The PNS cannot fulfill its mission without sufficient workers. Local businesses are also struggling to hire staff. As the PNS continues to grow its workforce, the challenge becomes more acute. The Housing Needs Assessment report provides a clear understanding of the current issues and a strong starting point for regional collaboration on housing solutions that meet our collective needs.”

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“Housing availability and affordability within a reasonable commuting distance from the shipyard does impact our ability to hire and retain workers,” PNS Commander Captain Michael Oberdorf said. “As one of the largest employers in the region, this is important to us. We are pleased to see the detailed research and analysis focused on housing needs in southern Maine compiled in the final report. We look forward to working with our community partners to explore these opportunities addressing the need for more local affordable housing.”

The report points out that nine of the 10 communities in the study area are working on housing affordability already and have Comprehensive Plans that have targeted housing strategies for their towns.

Strategies include:

• increasing density and decreasing lot size

• allowing multi-family housing and providing incentives and zoning for smaller starter homes

• reducing land per dwelling unit requirements for multi-family

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• providing a variety of housing types and supporting efforts to create adequate workforce housing

• reviewing zoning and subdivision regulations

• reviewing town-owned property for affordable housing

• expanding water and sewer capacity

The goal for this latest phase of JLUS was to refine and implement strategies to improve traffic congestion and address housing affordability throughout the region, in addition to building communication and collaboration between PNS and surrounding municipalities. This particular report focuses solely on housing.

The Report, entitled “Joint Land Use Study Implementation, Phase III: Housing Needs Assessment,” can be accessed at: https://smpdc.org/vertical/Sites/%7B14E8B741-214C-42E2-BE74-5AA9EE0A3EFD%7D/uploads/JLUS_HousingNeeds_FINAL.pdf

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