to view the Affordable Housing Plan - Town of North Andover

I. EXECUTIVE SUMMARY
North Andover, like all of the communities in Massachusetts, has a responsibility to plan and
provide for affordable housing. With the ever-increasing cost of housing ownership and rental
units, the challenge of sustainable growth management and servicing the unique needs of different
demographic groups, committing to, creating and maintaining affordable housing is a major task to
undertake in North Andover. There are benefits to addressing this issue that include the town
having more control over the type, location and size of new housing and more control during times
when it is faced with developer driven housing projects. Another benefit of proactively planning for
housing and then implementing the action items is that the demographic groups who most need
relief from skyrocketing housing costs are being assisted so that they can stay in North Andover and
have a choice of what type of housing unit is the most appropriate for their lifestyle. North
Andover must decide how to best manage demographic and land use changes and continue to plan
for additional growth and housing in the future.
North Andover has several priority housing needs, some which include:
1) Affordable homeownership units are needed for households who are earning less than
the area median income (which according to HUD was $75,750 in 2005).
• 80% of AMI is $60,600 and approximately 30% of the households in North
Andover are earning less than 80% of the AMI. Households with incomes at
this level can afford a home priced at about $156,000, with the median single
family home sales price at $550,000 in 2005, which results in an affordability gap
of about $394,000.
• According to 2000 Census Data, 35% of North Andover households were
earning less than $50,000 and 24% were earning less than $35,000 (which is less
than 50% of AMI) annually.
2) Providing affordable rental units and assisted living units that are appropriate for elderly
and disabled residents living in North Andover.
• In 2000, residents in North Andover aged 65 and older made up over 13% of the
town’s entire population. This age group is significantly represented.
• Of the residents 65 and older, almost 32% reported that they cope with some
type of disability (physical, mental, self-care).
• Approximately 18% of renter households are elderly, age 65 and older.
• Among those elderly renter households, almost 50% pay more than 35% of their
income on rent.
• Median income drops dramatically for residents who are older than 65. The
median household income in North Andover for 2000 was $72,728. For
residents ages 65-74 it dropped to $43,163 and for those 75 and older, it dropped
further to $21,894. The ability to pay for housing changes significantly as North
Andover residents age.
North Andover Affordable Housing Plan
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