We are not growing. We are aging in place. Like everywhere in America, but even more so in Juneau, population demographics reflect the biggest change in our history. The first “baby boomers” hit 65 last year. By 2040, the senior population of this country will double to 80 million. In 10 years the population of Juneau grew by just 1.8 percent (compared to 13.3 percent for Alaska as a whole). Now get this—over the same period, Juneau’s senior population grew by 185 percent! We didn’t snag a bunch of folks off the cruise ships, we all just got older. And our kids moved out to school and opportunity elsewhere.
Because I am now a senior, I don’t pay sales tax. Property taxes on my home will be reduced substantially. I ride the bus for free. How long Juneau will be able to continue to reward this “sourdough” for his longevity? Especially since during this decade of stagnant growth and graying we added another high school, another swimming pool, ski lifts, hockey rinks, another parking garage and millions in airport and cruise ship dock improvements. These undeniably positive community assets are part of what makes this quality of life admired by our middle class brethren in the Lower 48. Nevertheless, they also mean recurring public expenditures.
Of course there is more to Juneau than the affluent middle class. Actually, four out of 10 Juneau households meet the definition of “low-income”. They are either “rent burdened” or they are part of the 10 percent that depend on government rental assistance. Most disturbing is the fact that we are Alaska’s most homeless city. Our per capita homeless rate is three times that of Los Angeles County. Tonight, more than 500 Juneau households are homeless.
To continue the good life and to narrow the gap between the haves and have-nots we need new human capital and private investment. We need to attract and retain tomorrow’s workforce; the innovators, the entrepreneurs, the skilled crafts people who will build the businesses and the homes and fill the classrooms with their children. But, when they consider a move to Juneau, their first question is: “housing?”
Our greatest challenge is affordable housing. In 2005, the United Way sponsored a series of community forums concluding that increasing the stock of affordable housing should be the number one goal for political leaders, planners and the community at large. In response, the City and Borough of Juneau established the Affordable Housing Commission, which made its first very small predevelopment loan last year.
Meanwhile, state and federal agencies have eliminated construction programs and reduced rental assistance to low-income households. No multifamily affordable housing project for the general population has been built here for almost a decade. If Juneau is to meet its need for affordable housing it will have to bring the problem home, to own the problem, and take responsibility for solving it.
We have the resources. That is clear from our history of capital project investment. For what we spent on the new parking garage we could build at least 60 affordable apartments; for the price of the new high school, almost 400 in scattered sites throughout the city. Private and public land parcels are available for development. Non-profits like St. Vincent de Paul, The Glory Hole, Housing First, AWARE and others have developed proposals and the Affordable Housing Commission now gives us a mechanism to address the challenge. Best of all, we don’t need to add to the operating costs of local government to do it. Projects built and nominally “owned” by non-profits are in fact public community assets. They cannot be sold in the open market, but by federal law can only be transferred to another non-profit for a similar public purpose—in perpetuity.
Why change? Because the alternative is a Juneau that is economically and politically irrelevant—a quaint back-water populated by aging “boomers” with a declining standard of living and the highest homeless rate in the country.
Change the priorities for public capital investment. Let the city Assembly and our legislators know that viable, non-profit affordable housing projects must be part of the capital project list this year, and the next and the next—until the trend of community decline is reversed.
• Austin, general manager of the St. Vincent de Paul Society, has worked for 15 years to end homelessness in Juneau.
Comments (24)
Add commentVery cogent argument
Mr. Austin is on point and persuasive.
One often thinks--why don't young people simply move here for these entry and service sector jobs. Austin provides the answer: it is housing.
And the larger ramifications are well detailed in the article: no new taxpayers means a shrinking tax base (ever exacerbated by increasing numbers of seniors with exemptions), fewer workers to run businesses, government, and non-profits, higher costs, fewer students in schools, etc.
We are like a many of the countries facing very daunting demographic challenges.
The only caveat may be that Juneau's older population strikes me as extremely civic minded, active and relatively healthy (and may be part of the answer and solution).
Mr Austin,
Might be able to sell his argument a little more convincingly if the "study" underlying his "homeless" statistics was not hopelessly flawed. In reality the number of homeless families in Juneau is far less than the five hundred he cites.
The other flaw in his thinking is where he states that we “have the resources” to solve this problem and points to the large sums of money the city spent on a new school, a parking garage and improvements at the airport. Those projects were paid for with bonds, borrowed money that will not be paid back for a number of years. Those resources will not be available again for a long time and it is doubtful that we currently have the borrowing capacity to float additional bonds of that magnitude and even if we did, Is now a good to significantly increase our long-term debt?
Juneau also lacks quality
Juneau also lacks quality neighborhoods
I think our younger people see places like Oregon and think "wow" Oregon has taken the time to develop nice communities & neighborhoods, where people are concerned about their impact on each other and so they move there, or stay there after attending school.
Juneau seems to be going down the tube as far as being a "nice" place to live. Too many people and not enough consideration for others here.
Federal Housing
Federal Housing subsidies are down because Barney Frank is gone. Good riddance to that good ol' boy program - FNMA.
Quality neighborhoods you want? Try developing a neighborhood in this town. The cost to permit is 20-30% of development cost. Profit margins are very low. Vacant land is extremely expensive. Your looking at a 5-10 year investment we millions of up front costs before you start to see profits.
The airport improvements were built with mostly Federal monies. The improvements to the CBJ parts have sustainable revenues - it was a positive improvement for Juneau and a necessary improvement for keeping the Capital.
Ski area, pool, hockey rink are all positive attributes that are helping gray our population.
The new High School was a waste of money for a population with a declining enrollment. Pure folly.
Now is a good time to borrow money - cheap rates - Juneau is AA rated. But, affordable housing is unsustainable. It does not pay for itself. If we are going to take it on - we need to know that our taxes will go up. I'm willing to pitch in if it is subsidized and not given away.
why change
I would say housing costs are important factor in quality of life. No one is responsible for your neighborhood being a nice place to live but the people who live there so you are only to blame. Also housing here is expensive and at an inflated value. Why should I pay more when it will go back down after the mine is done operating? Who is going to want to pay twice what a property is worth when they can live in a better place for a lot less? It's greed greed greed. They only people who are happy are landlords and like some people I know who's home are worth over four times what they paid thirty years ago. I think we know what is going on, the baby boomers want to make out like bandits and make us who have just started are careers feel poor, when in a normal west coast community we would be happy and have money left over for whatever we want. People do care about other people's quality of life down there and there a rich person will help you with out trying to rip you off. Thanks Juneau for ruining your children's dreams.
Affordable housing in Juneau
Affordable housing in Juneau is a huge problem. But there is a larger problem. In the years our family has lived here, we have seen countless professionals move to Juneau for specific jobs, ecstatic about the opportunity to live in the isolated beauty of this wonderful place. With the exception of only one or two of these people over the past decade, they have all moved back to the lower 48 as soon as finances allowed, with very bad experiences to overcome both personally and professionally.
Here's why: The professional working environment in Juneau is hostile toward outsiders. This is a scenario we have witnessed (and experienced firsthand) countless times. This includes healthcare, government agencies, mental health, non-profit, legal professions, education, just to name a few. Even more shocking is that this attitude carries over into the volunteer arena--people we know with specialized skills and experience who volunteered time, energy and knowledge as board members with non-profit agencies were treated unbelievably disrespectfully. Rejecting professionals who actively attempt to VOLUNTEER their expertise indicates a severely dysfunctional community.
Underneath the friendly surface, Juneau's "professional" work environments are openly hateful toward experienced (some licensed professionals) people who want to contribute fresh perspectives and skills to a community they wish to invest in for the future of everyone who makes Juneau home. These valuable people will not and have not stayed to beg this town to accept what they are able and willing to offer. This will be Juneau's loss as people age and young folks take their education (from these nice new school improvements) elsewhere.
Personally, we have reconciled the fact that we may never be able to afford to own a home here, but without a tolerable work environment to pay our outrageous rent every month, even WE are beginning to wonder if dealing with the gigantic chip on Juneau's shoulder is worth the effort. We don't expect that Juneau "can handle the truth." This is not an opinion. This is a brutally honest observation (by us and many other people) over the past decade.
PS: The homeless estimation in this article is accurate. Anyone who participated in the (very) recent homeless "survey" can validate this.
Interesting
That the author states we need more multi- family affordable housing and then the entrepreneurs, engineers, tradesmen and their families will flock to Juneau. Sorry but that kind of housing only brings in the poor who are looking for someone else to pay their way. Those on Welfare, medicaid, food stamps and section 8 housing vouchers. They are the takers not the givers that the author states Juneau seeks.
Yes housing prices are stable here, not overinflated. We live on the ocean and as you drive down the coast you will find homes along the pacific ocean that are also priced higher than the inland neighbors homes. That is the price you pay for living where you can go boating, fishing...
the overstated homeless rate is yet again part of the socialist agenda to get more money out of those that work for it and give it to those that choose not to work for it.
thank you
Mr Austin is calling attention to the first of several major issues that allow for such a beautiful community to fall stagnant: too many financial incentives for the aging population (of which I am one) and very few for the next generation. The housing prices and current assessments can no longer be justified, especially given the neglect of many of the homes on the market. The complications of permitting new developments and the local opposition to them make for few, if any, new affordable options. The rental market here is simply unaffordable for a young adult starting a career. The highest paid state jobs have largely been moved north. The ability to retire and rehire limits new employment opportunities. The resource development jobs are limited by the resource's availability and the lack of community commitment by the companies, and by the employees who fly in and out to do the work. Many of our health care workers live out of state, at least part of the year. Even our school district superintendent doesn't live here full time and pays no property taxes because his family lives in Oregon, not Juneau, so he rents an apartment here. In other words, the aging and part time population is creating a huge obstacle to community redevelopment that the next generation is eager to get started.
Affordable Housing
Affordable housing is NOT the same as low income housing.
Affordable housing is NOT for people on Section 8.
Affordable housing is for people who make their own money, but are rent burdened - which is easily any single, working parent, and many single people just getting established professionally.
When a 2 bedroom apartment can run $1200 a month, you need to net $43,200 annually to not be rent burdened. That is a gross of somewhere around $50,000. Anything less than that and you are in need of affordable housing.
No, no, daffy. Tikitime is
No, no, daffy. Tikitime is right--anyone who makes less than $50,000 a year (which is to say, the majority of the country) is a bad person, an undesirable, an inferior lifeform, not worth being kept alive.
Luckily, we have ze Ubermenschen like Tikitime to set us all straight. I can't wait for his memoirs, "My Struggle," to come out. As I understand it, it will lay out a concrete, "master" plan for elevating the human race and reducing the "takers" in our society.
And the possible good news.....
I see also in the paper today a possible counterpoint to the graying of Juneau; that would be the 600 degrees/certificates granted at UAS.
If young people can come and live in Juneau the first few years in a way that assimilates them into the community and provides relatively obtainable cost of living, then they can possibly (especially if they graduate) fill the local jobs, eventually buy the few starter homes, condos, etc (with FHA first time home buyer), and pay sales taxes for 40 years and ideally property taxes from their mid-late twenties onward.
UAS may be a way to allow the reasonable living costs (student housing) and social connections, as well as an educated local workforce.
Readers may have noted the recent budget allocation for expansion at Banfield Hall. That is a key piece for Juneau and UAS..The student housing is full at present and few private landlords likely want seasonal 18-22 year old tenants.
You know what they say RavenLunatic...
Whatever you decide works for you and yours, ask yourself one question. Did you move to Juneau, or did the community come begging you to move here?
My observation over multiple decades is that those who came here and loved it, will do what it takes to stay. Those who came here for a job/career, tend to leave it, once the Alaska adventure wears off, or their spouse threatens to leave them.
The latter is what causes the expensive housing problem.
The City
Owns lots of desirable land here. Could some of that be freed up in some way to attack this problem?
My Turn
Good piece!
Maybe we could consider housing Juneau's homeless folks in the parking garage since nobody much parks there.
What are you asking for?
It reads like Mr Austin would like the city to build a housing complex or two and hand over to a non-profit to "nominally own". Not sure what that looks like. Groups like he refers to have agenda and client bases that do not fit the population he wants us to address. So I am a bit confused as to what the proposal is here.
I understand that rents are high for those working in the entry level of the employment pool. I do. But I have concerns about building a new subsidized housing project. We have low income apartments, and T&H has tried to build some great little neighborhoods. Unfortunately, it only takes one or two who lack pride in their home or their own bodies to drag the whole area down. Make what could have been great family housing, cute starter apartments into unsavory and unsafe places to live.
We really need to look at how to avoid that before we build anything else. Clean up what we have. I think there may be more available housing than people realize. They just don't want to live there. Can we fix that? If not, building more isn't going to change anything. We have to find a way to stand up and say not in our community. Not in our neighborhoods.
lat58
You hit the nail here! But it has been mentioned before..with no results.
thalkick
Did we not already mention we could not lose the 5 parking spaces on Shattuck way?
jeanm
The school district superintendent lives in Oregon? Are you serious?
ken dunker II
If you are curious as to who in our school district administration "lives" here and you define that as owning property in Juneau, go to the school district website, look under "Contact" to see the names of the superintendent and directors, then google "Juneau tax assessor" and see if anything comes up.
School superintendent does not live in Juneau full time
It's true. And wrong. He can be seen flying first class back and forth many weekends to his "home".
Tikitime...people that are on
Tikitime...people that are on Medicaid..food stamps..or have housing assistance are those that have life struggles and need a little help to survive..sometimes life doesn't go our way..and people end up in tough situations...there are disabled people who were left with no other choice than to take this help and there are families who got dealt a bad deck of cards...not everybody that is on these programs are takers...but accepters of help..and rather than suffering they are glad that it is there...don't be so quick to judge...perhaps one day in your life you will need help and then be glad it is there..
@junomom
Ive never had a problem giving folks a helping hand up, just not a long term hand out, big difference. The need to be on welfare, food stamps... should be time limited and then it would be available for those that need it occasionally. Should also come with work requirements and drug tests. People get on that stuff and then think they are entitled to it forever, hence the word entitlements.