Housing Marcellus Shale Growth
June 23, 2011
The Keystone Energy Forum and the Modular Building Systems Association recently hosted a housing forum to identify and discuss the housing issues in areas affected by Marcellus Shale drilling. Most of the development is occurring in relatively small communities which lack the infrastructure and community resources necessary to accommodate rapid, intense population growth. Additionally, Marcellus drilling activity is affecting the demand and cost for local government services. However, the most difficult issue is the housing shortage and the infrastructure to support it. Local governments are on the front line of this issue.
The housing issue is not merely anecdotal. The influx of workers has the potential to change communities and create new challenges for long-term and new residents regarding community needs such as roads, sewer and water. Rising housing costs have already made it difficult for some low-income households in the Pennsylvania Marcellus region to meet the growing cost for housing. If not properly addressed, these rising costs have the potential to become an effective barrier for such families to remain in those communities.
There are numerous organizations and agencies, public and private, dedicated to addressing housing issues in Pennsylvania but have never experienced this kind of singular rapid increase in need. Given the past history and effectiveness of these groups, most are optimistic that solutions can be found. The modular industry, developers, and homebuilders, for example, are all very capable of producing a housing inventory, but a coordinated plan is clearly needed. An important component to producing a coordinated plan is working with the state regulatory agencies that handle the permitting process for housing development and the necessary infrastructure such as water, sewer, and roads.
Many Marcellus socio-economic studies with housing components are underway or have been completed. The logical central repository for these studies is the Local Impact & Emergency Response Group of the Governor’s Marcellus Shale Advisory Committee. Their report, which is due in July, may provide a good starting point for a housing plan development.
Additionally, financing any sort of final plan is an obvious critical component. The Pennsylvania Association of Community Bankers, for example, and other key financing agencies including, but not limited to PA Housing and Finance Agency, PA Department of Community and Economic Development, USDA, Housing Authorities Foundations, and drilling companies should all have a seat at the table in this critical discussion.
Lastly, while we continue to address these key issues, there is a strong need for continued communication between drilling companies and the communities where they’re operating. Specifically, this dialogue should include topics relevant to both short and long term planning.
Chad Harvey, Executive Director Modular Building Systems Association
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