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4A THE HOUSING CRUNCH THE DAILY ASTORIAN • THURSDAY, OCTOBER 27, 2016 In Gearhart, vacation rentals, second homes play a big role Few rentals, no subsidized housing By R.J. MARX The Daily Astorian EARHART — Changes in vacation rental rules in Gear- hart could make long-term options more available . Vacationers and sec- ond-home owners are the name of the game in the city’s housing equa- tion. Fifty-eight percent of Gear- hart’s homes are vacant seasonally or part time, according to the Ore- gon Employment Department . Only 10.8 percent of Gearhart’s homes are available for year-round rental, and fi nding one at any price is a challenge for new arrivals. What makes “Gearhart, Gear- hart” is a theme for the city , and people of all viewpoints see a need for its preservation. “Gearhart is one of the most desirable places to live,” mayoral candidate Bob Shortman said . “Even the elk have moved in.” He said his goal is to keep Gear- hart’s small-town feel while manag- ing growth. Matt Brown, also a candidate for mayor, said if a city is not always planning, “outside infl uences are going to plan the city for you.” “You constantly have to fol- low your comprehensive plan, your vision for Gearhart,” Brown said. “I’ve been here since I was born in 1975. It was a residential commu- nity because folks had a vision in the comprehensive plan to make a sustainable residential community.” Defi ning that vision is a key aspect of housing in a city where the term “affordable housing” is an oxymoron — Zillow puts the median home price at $364,700 . Windermere Real Estate lists properties in Gearhart, with con- dos starting at about $200,000. A brand-new 2,500-square-foot G Jeff Ter Har/For The Daily Astorian It’s no joke that elk are part of Gearhart’s housing mix, along with vacationers and second-home owners. home on Diamond Lane is listed for $549,000. At the top of the mar- ket, homeowners are seeking $3.3 million for a 6,500-square-foot, seven-bedroom, fi ve-bath beach- front home. A South Ocean Avenue four-bedroom, three-bath home in the desirable Gin Ridge community is available for about $2.5 million. Gearhart has few rentals and no subsidized housing . “I don’t have anything on the market right now,” Bonnie Belden-Doney, the operations direc- tor of North Coast Rentals, said. “Everything is rented.” On the average, she said, she gets fi ve or six calls a day from peo- ple around the country looking for long-term rentals. Recent prices for one-year rentals in Gearhart range from a one-bed- room cottage on B Street for $975 per month to $3,000 for a three-bed- room, two-bath condominium. For those able to buy, there are plenty of opportunities, accord- ing to Windermere Realtor Melissa Eddy. “When people are coming to Gearhart and Seaside full time, they Melissa Eddy Bonnie Belden-Doney are prepared to purchase a home at buy and they recognize that they will pay,” Eddy said. Infrastructure For property owners seeking to build, the city charges $1,150 for a water connection, $35 for a grad- ing permit, and a building permit based on the state’s permit fee pro- gram, according to City Administra- tor Chad Sweet. Unlike Seaside and other neigh- boring communities, Gearhart has no system development charges for new projects. These charges, paid by builders, are designed to cover city services for water, roads and other infrastructure, and are con- sidered an impediment by some developers. But growth is hard-fought and every new development is met with a lengthy review . The city’s vulnera- bility in the tsunami zone is a factor in where housing may be located. Parts of the city are rated the “high- est level” of hazard zone, according to the Oregon Department of Geol- ogy and Mineral Industries. Available infrastructure also lim- its Gearhart’s housing growth — energy, water lines and streets. If a sewer system is required, Gearhart residents would be faced with a big decision as to how to foot the bill, Councilor Dan Jesse said . Developers should consider unde- veloped land east of U.S. Highway 101, he said, which is potentially safer and offers opportunities for new construction. Will ordinance increase availability? Gearhart used to be “low-key, kind of under the radar,” Planning Commissioner Terry Graff said . Visitors came for the Hood to Coast relay, the Seaside beach vol- leyball tournament and holidays, “but it always worked, people came back every year and there weren’t any problems,” he said. That has changed with the advent of easy rentals on the i nter- net, he and others have said . These discussions resulted in regulation of short-term rental properties, seek- ing registration, inspection and 24-7 emergency contact among other provisions. According to an April city staff report, there are 1,480 permanent residents in the city limits . Of the city’s 1,450 housing units, more than half are for seasonal use or rental. The new r ules hark back to the goals of the 1994 master plan “to ensure Gearhart retains its residential com- munity character.” Cliff Johnson, the co-founder and chief development offi cer of Vacasa, which represents or man- ages a number of Gearhart proper- ties, said short-term rentals allow homeowners to keep their prop- erties in the family without being forced to sell. “The common thing is I hear they don’t want new development,” he said earlier this year . “One way is to make more lodging available through vacation homes.” Vacasa is booking guests in homes that would otherwise remain empty, generating public revenue through lodging taxes and boost- ing traffi c in local stores and restau- rants, he said. Right now the balance is shifting as residents wait for the ink to dry on the ordinance and see whether opponents challenge the rules . “Through attrition we can get that number to start leveling off and going back down,” said Brown , who supports the new rules. “Maybe we can get more affordable housing for families, either long-term housing or otherwise.” Cannon Beach: Local business and their employees affected by crunch Continued from Page 1A Kucera has spoken about living in Tillamook County because he cannot fi nd housing locally . Cannon Beach Fire Chief Matt Benedict also struggled to fi nd hous- ing in town. He stayed in the Cannon Beach and Arch Cape fi re stations for several months until fi nding a place to rent and then purchasing a home. “I basically sold everything I had so I could buy a house here,” said Benedict, who recently closed on a Haystack Heights home. “We’re happy. It’s where we want to be.” Housing specialists and local busi- ness leaders interviewed in an afford- able housing report in 2013 said most of the city’s workers reside in other towns. M any earn too much money to qualify for low-income housing, but not enough to live in town. Housing for workers The affordable housing task force — comprised of community mem- bers, the Northwest Oregon Housing Authority, local business representa- tives and more — began in 2014. This year, the task force saw con- ceptual designs for affordable hous- ing options on the downtown Spruce Street parking lot, the city’s RV park and the former children’s center building in Tolovana Park. The task force is recommending park model homes in 12 spaces at the city-owned RV Park for affordable housing. A November presentation at City Hall will provide more informa- tion about the homes. Putting park model homes in the RV Park would not require major changes in infrastructure and zoning, and would meet the need for individ- uals or couples, task force members said. The task force considered the Spruce Street concept unrealistic, as it would take up downtown parking. Though city government has pin- pointed a need for workforce hous- ing, some residents raised questions about whether the city can sustain more people and how neighbors of the RV Park would be affected. Res- idents have also spoken about keep- ing the Tolovana Park children’s cen- ter, one potential housing site, open for community use. The Cannon Beach Chamber of Commerce supports the city’s efforts to create workforce housing. Court Carrier, the chamber’s executive director, said the city’s need for an adequate workforce, affordable housing and a school are interconnected . “From the chamber’s perspec- tive, our interest is to fi nd a place for employees to live,” said Carrier, who serves on the board of Clatsop Eco- nomic Development Resources . “It is so diffi cult to recruit people to work here on a full-time basis if they can- not afford to live here.” PACIFIC 103 Long Beach 4 401 202 CLATSOP Area of focus Cannon Beach N 26 101 TILLAMOOK Source: U.S. Census Bureau $18,750 $26,077 Persons in poverty 23.3% 16.6% High school graduate or higher, age 25 or older 89.3% 89.5% Businesses, workers affected Without health insurance, under age 65 23% 11.5% Veterans 137 313,261 $466,900 $234,100 1,795 1.72 million Jason Menke, co-owner of Sea Level Bakery, said some employees have had diffi culty fi nding housing or have been in-between housing. “It’s more diffi cult to fi nd employees, because of the lack of housing there’s a lack of a work- force to begin with,” Menke said. “When we fi nd someone who’s interested, it’s extremely diffi cult fi nding them housing so it’s affect- ing their ability to work here or not.” E mployees have found housing through Craigslist , word of mouth or are sleeping on friends’ couches. Staff has also lived in Wheeler or Gearhart, which is “doable but not ideal,” Menke said. Haystack Rock Awareness Pro- gram coordinator Melissa Keyser said the lack of housing affects the program’s employees, leading to high turnover. “I spend a lot of time hiring peo- ple,” she said, noting that some employees have found rooms to rent but want their own space. For a period of time, Cannon Beach Police Chief Jason Scher- merhorn noticed some overnight campers were city employees who were unable to fi nd a place in town to live. Jordan Gulasky, a former Sea Level Bakery employee who strug- gled to fi nd housing, said she felt understaffed at work this summer — and the area’s lack of affordable housing is not conducive to com- munity activities for young peo- ple . “No one else can fi nd a way to live here so we have a severe lack of youth community,” she said. Gulasky has since relocated to an affordable home in Nehalem. City c ouncilors have tied the clo- sure of the children’s center in April with the lack of families in the area due to the housing shortage. Todd Johnston, the executive director of the Northwest Oregon Housing Authority, said the city affordable housing task force has a public process and “takes into account the different viewpoints of residents.” “Now it comes to a question of, ‘What does the community really want?’” he said. “I’m thankful that I’ve been able to be part of the pro- cess. There is not going to be an easy solution.” Item WAHKIAKUM Wash. Ore. Seaside people interested in purchasing investment properties in Cannon Beach to rent short-term, said there is no proven connection between short-term rentals and the afford- able housing shortage. The city considered suspend- ing new licenses for vacation rent- als, one part of the short-term rental program, but decided against the suspension in August. Cannon Beach at a glance 101 Cannon Beach* Oregon Population (2015 est.) 1,702 4.03 million Median household income $44,423 $50,521 Male median income $28,542 $37,399 Female median income Median housing value, owner-occupied units Total housing units *Based on 2010-14 American Community Survey 5-year Estimates Alan Kenaga/EO Media Group New fi re chief fi nally fi nds place to call home Cannon Beach is a challenge ANNON BEACH — After beginning his job in June, Beach Fire Chief Matt Bene- dict initially stayed at the Can- non Beach or Arch Cape fi re sta- tions with his family and two small dogs when they came to visit him. The diffi culty in fi nding appropriate housing affected their family life. “We just want to fi nd a place we want to call our home,” Ben- edict said in July. “We’re kind of in limbo right now, not sure C City Planner Mark Barnes said it is diffi cult to imagine how Cannon Beach could grow. “It would have to be done through infi lling vacant lots, more density or more space,” he said. Building up is not an option for a town that prides itself more like a vil- lage than a city . Higher-priced community Robin Risley, principal broker at Cascade Sotheby’s International Realty, said Cannon Beach has a low housing inventory and high prices. “Cannon Beach is one of the higher-priced communities along the coast,” with comparable prices to Lake Oswego, Risley said. An affordable house to someone making about $55,000 a year would be about $200,000, Risley said. In the past year, three houses in Cannon Beach sold for under $300,000. As of late August, some condo units were available for less than $200,000 — but only for an owner- ship stake of one month of annual usage. Risley, a member of the Cham- where ‘home’ home is. the local area. A lot of As soon as we can get the houses are rentals into our property, that and summertime is time would be the best. Less they’re going to make apartment hunting, more money on short-term concentrating on job.” rentals.” Moving to town Benedict’s story has during the busiest tour- a happy ending. He ist season, when long- found a place to rent Matt term rentals are diffi cult in late summer. After Benedict to come by, didn’t help. selling their homes “Finding housing is diffi cult in Pendleton, Benedict and his right now, especially to fi nd a wife, Amanda, purchased a home rental. A lot of the houses to pur- in Haystack Heights this month. chase are very expensive and “I basically sold everything I I’d prefer to live in the Cannon had so I could buy a house here,” Beach area ,” he said during the Benedict said. “We’re happy. It’s summer. “It’s just that they are a where we want to be.” lot higher than any place around — Lyra Fontaine ber of Commerce board, said she rec- ommends Seaside instead of Can- non Beach to buyers with lower price ranges in mind. “The inventory is a lot smaller in Cannon Beach than in Seaside, so there are more opportunities for a beach house that is affordable,” she said. Long-term rentals in Cannon Beach are scarce compared to Sea- side or Warrenton, said Bonnie Belden-Doney, North Coast Rental Property Manager with Windermere Stellar. Though short-term rentals pro- vide ample fl exibility for property owners, Belden-Doney said home- owners can rent their house out for nine months out of the year. “I think it’s a win-win situa- tion when you rent long-term,” Belden-Doney said. “You have someone who cares for the home.” Other renters, she said, are willing to live month-to-month in homes that are on the market. The renters must be prepared to leave when the house sells. Some property owners have shifted the use of their homes from vacation rentals to long-term rent- als to avoid dealing with short-term rental regulations, Belden-Doney said. However, Barnes said more prop- erty owners seem to be making their homes available as short-term rentals. Short-term rental debate According to c ensus estimates, 60 percent of Cannon Beach hous- ing units are seasonal or vacation rentals. . S hort-term rentals have been tied to neighborhood disturbances and a factor in the lack of long- term rentals. But some say short- term rentals, considered more lucra- tive than long-term rentals, are part of the city’s economy. Room taxes help fund the city’s budget. In the recent citizen survey, 59 percent said it was essential or very important that the city reduce the number of short-term rentals in res- idential neighborhoods. Barnes, who fi elds calls from
