draft public presentation december 17, 2020

Deer Creek Townes

Villages of Apex Community

Apex PeakFest

DRAFT Public Presentation

Apex DRAFT Affordable Housing Plan

December 17, 2020

Meeting Instructions:

• The event is being recorded and will be posted at apexnc.org/affordablehousing.

• Questions and comments can be submitted anytime during the event. Use the chat box located next to the live stream.

• You may also call in a question. Dial 919-300-5265, enter meeting code 9161, and press *2 to leave a voicemail. Voicemails are limited to 2 minutes.

• Questions and comments will be visible to the hosts only. All comments will be anonymous and read or summarized by the moderator.

• If time does not allow all submitted questions to be discussed, a summary of questions and responses will be posted on the plan website.

• A comment form is also available online for additional comments on the draft plan. You can see it on the meeting screen or can complete it at publicinput.com/AHPcomments.

AGENDAPlan Purpose and Process

Housing Needs Assessment

Vision & GoalsQ&A

Recommendations

Action PlanQ&A

Next Steps

PLAN PURPOSE AND PROCESS

“Affordable housing” incorporates many distinct but related issues:

Housing Supply

Housing Stability

Gentrification

Homeownership

Housing Quality

Access to Opportunity

Aging in Place

Supportive Housing

RacialEquity

Rental Affordability

Housing Diversity

Apex Affordable Housing Plan Update | 6HR&A Advisors, Inc.

HR&A Advisors, Inc. Apex Affordable Housing Plan Update | 7

The Town of Apex already plays a central role in the housing market through regulation and public investments.

The town influences the regulatory environmentin which developers make investment decisions

The town deploys public fundsfor infrastructure, amenities, and development

Regulatory Approachese.g. zoning, review and approval

processes

Information Dissemination

e.g. public outreach, design guidebooks, developer

engagement

Infrastructure Approachese.g. parks and amenities, public

transit, streetscape improvements

Monetary Approachese.g. public land, loans, tax

abatement, grants


The programs and policies recommended in the Apex Affordable Housing Plan fall into two main categories, aligned with the Town’s role.

Use municipal regulations and zoning authority to indirectly improve affordability by increasing the supply of housing, or to directly incentivize the production of affordable units.e.g. zoning & development processes, affordable housing incentive zoningLand Use

Provide below-market rate loans, grants, or other public resources to close the gap between what a household can afford to pay and the costs to develop and operate housing.e.g. gap financing for new construction, down payment assistance, public land sale

Subsidy


The draft plan offers tools for the Town to use to help address the affordable housing issues identified in Apex.

The plan does: The plan does not:

• Propose a specific affordable housing development project

• Identify specific locations for affordable housing in Apex

• Identify the affordable housing needs in Apex through a housing needs assessment and stakeholder and public engagement

• Propose land use and subsidy tools the Town can use to address the affordable housing needs identified

The Draft Affordable Housing Plan has been developed over a span of approximately 8 months.


May June July Aug Sept Oct Nov Dec Jan

Affordable Housing Plan Kickoff

Housing Needs Assessment

Recommendations

Affordable Housing Plan Drafting and Development

Update with Preliminary Recommendations

Plan Presented for Adoption

Stakeholder Engagement

Steering Committee Meeting

21 3 5

Planning Board and Town Council Updates

4 21

Public Presentation

Public Survey

Stakeholder input has been gathered and used throughout plan development.

• Contacted 25 and spoke with 10 housing developers, social service providers, and realtors

• Gained insight about housing needs, trends, and the regulatory and development environment in Apex

• Contacted 25 community leaders and were connected to 11 individuals known to be impacted by housing issues

• Spoke in depth to 7 individuals who shared important insights about their personal experiences

• 1,200 online participants

• Broad range of sentiments about housing issues in Apex, but agreement that issues exist

Survey Stakeholder Interviews Individual Outreach

• Regularly updated page about the Plan on Town website• Affordable housing fact sheet • Utility bill mailers• Email distribution list

Outreach Methods

• Flyers and handouts at key locations, including schools, churches, and non-profits

• Public-facing housing needs assessment• Public-facing report and presentation


Presentation & Hearings

• Virtual public presentation

• Q&A and comment form

• 2 public hearings

HOUSING NEEDS ASSESSMENT

The Housing Needs Assessment identifies those issues that are most pressing for Apex, including determining who is and is not served by Apex’s housing market.

Can people who work in

Apex afford to live here?

Through the engagement process we heard…

People in Apex need supportive services

Young people aren’t

choosing to live in Apex

Housing diversity is a concern: too

many large homes

Affordable housing

should be built near

transit

Some residents are being displaced

How can Apex be a welcoming

community for all?

Seniors struggle to

find housing to age in place


Apex Affordable Housing Plan Update | 14

Cost burden for Apex residents is increasing for renters at all income levels, and for homeowners at lower income levels.

Cost-Burdened Homeowner Households Cost-Burdened Renter Households

3,150Total cost-burdened* households earning less than $75,000

700Extremely cost-

burdened households

HR&A Advisors, Inc.Source: ACS 5-Year Estimates (2018)

*A cost-burdened household pays more than 30% or more of their income in rent or mortgage.


Apex is losing moderate-income households, particularly among homeowners, and gaining higher income renters and homeowners.

Source: ACS 5-Year Estimates (2018)

0

100

200

300

400

500

600

700

800

900

1,000

Less than$20K

$20K to$34,999

$35K to$49,999

$50K to$74,999

$75K to$99,999

$100K to$149,999

$150K ormore

Change in Income Distribution - Renters

2010 2018

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Less than$20K

$20K to$34,999

$35K to$49,999

$50K to$74,999

$75K to$99,999

$100K to$149,999

$150K ormore

Change in Income Distribution - Homeowners

2010 2018

-605Homeowner HHs earning $50K to

$75K

+1201Renter HHs earning above $75K


Apex has a rental housing gap of units affordable to households earning less than $40,000.

HR&A Advisors, Inc.Source: ACS 5-Year Public Use Microdata Samples (2018)

Current Rental Housing Gap, 2018

- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Less than $100K

Less than $80K

Less than $60K

Less than $50K

Less than $40K

Less than $30K

Supply Need

-1.3K unitsMaximum Affordable Rent: Less than $750

-650 unitsMaximum Affordable Rent: Less than $1,000

+350 units

+800 units

+950 units

+700 units


Over the next decade, Apex is projected to add 1,900 jobs with incomes below $75,000, which will contribute to the Town’s affordable housing need.

HR&A Advisors, Inc.Source: EMSI, ACS 5-Year Estimates (2018)

83%of Apex Job Growth, 2020-2030

+900 Jobs under $35K

E.g. Grocery Cashier

+650 Jobs from $35-50K

E.g. Firefighters

+350 Jobs from $50-75K

E.g. Registered Nurses

Based on the Housing Needs Assessment, the team identified key areas of need for Apex:HOMEOWNERSHIP• Apex is rapidly losing affordable entry-point homes or “starter homes” for new owners including young families.

• Market pressures appear to be displacing moderate-income families, including homeowners.

RENTAL AFFORDABILITY• Apex does not have a proportional share of the region’s subsidized rental housing, and new development of LIHTC units has been

limited. Barriers to affordable housing development include high land costs and limited access to transit.

• Apex has a gap of 2,000 rental units affordable to households earning less than $40,000, and this gap is projected to grow as rents rise and the number of low-income workers and renters grows.

DIVERSITY• Apex is not attracting young adults, which may be due in part to a lack of housing in walkable, high-amenity nodes.

• Apex's population is increasingly white. The lack of diversity is likely due to a combination of factors including historical segregation patterns, perceptions, and affordability challenges.

TOWN CAPACITY• The Town lacks a Housing Manager to manage housing programs and oversee implementation of the Affordable Housing Plan

• Apex’s development review and approval processes lack clear guidelines and can pose barriers to new housing development.

• Most of the supportive housing and services in Apex is provided through small programs run by religious organizations or nonprofits.


VISION AND GOALS


The Town and Steering Committee developed a shared vision and goals based on public input and an analysis of Apex’s housing needs.

HR&A Advisors, Inc.

Vision: Apex welcomes people of diverse backgrounds, and supports opportunities for affordable, safe, sanitary, and quality housing that meets the needs of people of all incomes, ages, and abilities. To fulfill this vision, Apex will:

Welcome, attract, and retain a diverse population.

Meet the housing needs of a diverse population, including providing housing that is affordable to people with moderate and low incomes.

Connect affordable housing development with transit service, transportation infrastructure, and amenities.

Partner regionally to meet the needs of vulnerable populations.

Raise community awareness of affordable housing needs, solutions, and broader impacts.

QUESTIONS?

RECOMMENDATIONS

Fourteen recommendations in three key areas are proposed to address the Plan vision and goals:

BUILD THE TOWN’S CAPACITY

• Town Staff Capacity

• Housing Advisory Board


ADVANCE ADVOCACY & PUBLIC EDUCATION

• Annual Housing Report and Dashboard

• Diversity & Racial Equity Initiatives

• Affordable Housing Advocacy Partners

IMPLEMENT PROGRAMS & POLICIES

• Affordable Housing Incentive Zoning

• “Soft Density” By-Right Zoning

• Transit-Oriented Development Density

• Accessory Apartments

• Low Income Housing Tax Credit (LIHTC) Gap Financing

• Public Land Acquisition and Sale

• Owner-Occupied Rehabilitation Assistance

• Down Payment Assistance & Homeownership Counseling

• Emergency Rental Assistance & Supportive Services

RECOMMENDATIONS: BUILDING THE TOWN’S CAPACITY


Increase Town Staff Capacity

HR&A Advisors, Inc.

• Align staff roles & capacity with plan implementation needs

• Hire a Housing Manager to manage the administration of the Affordable Housing Fund and proposed Housing Advisory Board

Town of Apex Planning & Community Development Department

How it works:

Zoning Compliance

Supervisor4 Staff

Ensures that all development and

land use is compliant with Town ordinances

Current Planning

Manager7 Staff

Oversees the plan review process and advises property

owners and developers

Long-Range Planning

Manager4 Staff

Plans for the Town's future and

oversees the implementation of long-range plans

Housing ManagerStaff (TBD)

Oversees affordable

housing programs and the Housing Advisory Board

Recommendations:


Housing Advisory Board

HR&A Advisors, Inc.

• Form a public Board or Committee

• Leverage Apex’s committed base of housing advocates and professionals

• Role:• Advise Town Council on

housing priorities and funding allocations

• Communicate with the public about affordable housing

How it works: Recommendations:

MEMBERSHIP

TOWN STAFF ROLE

RESPONSIBILITY

8-10 council-appointed members, representing the following groups:

• Affordable housing providers (recipients of Town funds)• Real estate professionals & lenders• At-large community members & affordable housing residents • Regional representatives• Town Council member (nonvoting)

1. Provide Town Council with policy and funding recommendations2. Assist in the creation of an Annual Housing Report3. Advise on Housing Advocacy efforts

1. Administrative support and technical assistance for board activity2. Provide information about related Town initiatives, policies, and programs

RECOMMENDATIONS: ADVANCING ADVOCACY & PUBLIC EDUCATION


Annual Housing Report & Dashboard

HR&A Advisors, Inc.

• Develop a report and housing dashboard to track and report metrics associated with affordable housing needs, programs, and expenditures

• Communicate with residents about the importance of affordable housing and the Town’s actions


Annual Housing Reports should include:

Metrics to diagnose affordabilitye.g. entry price point, rates of housing cost burden by tenure

Key Performance Indicators for programse.g. households served by income band, units produced or preserved

The online dashboard can be updated more frequently, including data such as assistance provided through Apex Cares.


Diversity & Racial Equity Initiatives

HR&A Advisors, Inc.

Diversity:

• Develop and deploy a welcoming message to attract and retain a diverse population

• Engage with residents to understand current messaging and barriers

• Remove or reduce barriers to attracting a diverse population

Equity:

• Set racial equity goals for new programs

• Reduce racial disparities through the use of Town funds


Diversity initiatives are marketing and

partnership efforts that emphasize a Town’s

values and messaging, with the goal of becoming more

welcoming of different races, ethnicities, religions,

sexual orientations, gender identities, incomes,

and other groups

Racial equity initiatives acknowledge the history and intentional design of many racial inequities and set racial equity goals for

new programs with the intentional of reducing

disparities in the way the Town supports affordable

housing


Affordable Housing Advocacy Partners

HR&A Advisors, Inc.

• Work with Housing Advisory Board members and other organizations to develop an advocacy and education plan

• Develop public-facing informational materials to explain the Town’s affordable housing plan

• Integrate advocacy efforts into Annual Housing Report


The Town can partner with community groups to support advocacy efforts:

Tours of affordable housing

developments

Publication of individual

affordable housing stories

“Explainers” and fact sheets for proposed and

existing programs

RECOMMENDATIONS: IMPLEMENTING PROGRAMS & POLICIES

HR&A Advisors, Inc.

Land use sets the future development pattern of different areas of Apex through the Land Use Map.

Apex Affordable Housing Plan Update| 32

Apex 2045 Land Use Map• The Land Use Map (pictured) lays out the desired

future development pattern, including the density of residential development in different areas

• Land use also guides future development through tools like incentive zoning and overlay districts

• Zoning designations more specifically define and regulate what kinds of uses are allowed on specific parcels

• Zoning designations also set the design and development guidelines of those uses on each parcel, such as setbacks and parking requirements

Source: Town of Apex


Affordable Housing Incentive Zoning

HR&A Advisors, Inc.

• Develop an incentive zoning condition, specifying target affordability and available incentives

• Ensure that program design provides adequate incentives to encourage affordable housing development


Long-term affordability of a

portion of units through rent or price

reduction or an equivalent fee

DEVELOPEROFFERS

AFFORDABILITY

TOWNOFFERSINCENTIVES

Increased density

Reduced parking requirements or

setbacks

Incentive zoning conditions encourage developers to provide a public good, such as affordable housing units, as part of a proposed development, in exchange for incentives that compensate

for the loss of revenue.


“Soft Density” By-Right Zoning

HR&A Advisors, Inc.

• Amend zoning to allow soft density development in areas suitable for increased density, with a focus on neighborhoods in and around the Town Center

• Engage with developers and residents in downtown-adjacent neighborhoods to evaluate opportunities and barriers to increasing the development of “soft density” housing


“Soft Density” or “Missing Middle” Housing

Detached Single Family

Home

Townhome Duplex Triplex or Quad

Mid-rise Apartment

Increasing Density

“Soft Density” refers to attached single family housing such as townhomes, duplexes, and triplexes which can accommodate more households and provide smaller units for residents.


Transit-Oriented Development Density

HR&A Advisors, Inc.

• Identify areas suitable for increased density based on planned transit improvements and Future Land Use Map

• Revise Future Land Use Map to show higher residential density in transit-adjacent areas

• Conduct public engagement to explain TOD

• Ensure that proposed TOD developments are subject to the incentive zoning condition


Transit-Oriented Development (TOD) is…

CONNECTED& ACCESSIBLE

FOCUSED& COMPACT

MIXED-USE

Encouraging development of multifamily development near employment centers and transit helps create denser urban nodes and reduces the need for renters to rely on

personal vehicles.


Accessory Apartments

HR&A Advisors, Inc.

• Work with homeowners, HOAs, and developers to reduce barriers and encourage development

• Create a menu of designs based on the building code and the local building stock

• Conduct a pilot program to develop 5 affordable units by offering $50,000 low-cost construction loans


01 Design AssistanceDevelop a menu of potential designs or patterns for construction to reduce architecture costs to residents

03 Financial AssistancePilot a program to provide low-cost loans for the construction of

accessory apartments

02 Regulatory AssistanceSimplify the permitting process for

accessory apartments to make it easier and intuitive to get permits, or

changing other requirements that may limit feasibility

Accessory apartments are small secondary units built as part of or adjacent to single family homes.


Low Income Housing Tax Credit (LIHTC) Gap Financing

HR&A Advisors, Inc.

• Provide gap funding for LIHTC developments that also receive support from Wake County

• Coordinate with the County to negotiate funding agreements

• Town funds should compensate for the higher cost of land in Apex

• Dedicate Apex Affordable Housing Funds annually to support LIHTC


4% LIHTC Project

Total Project Costs: $38.9M

200 New Construction Units:216 unitsAverage 60% AMI

Wake County Loan $3.0M

Permanent Loan $24.2M

LIHTC Equity $9.3M

Deferred Developer Fee $0.4M

Apex Loan $2.0M

Soft Costs $7.3M

Construction Costs $27.3M

Wake Land Costs $2.3M

Apex Land Premium $2.0M

PROJECT COSTS FUNDING SOURCES

LIHTC is a federal program administered through the state and the primary tool for the development of new affordable rental units. Local governments frequently provide low-cost loans

to LIHTC developers to close the financial “gap”.


Public Land Acquisition & Sale

HR&A Advisors, Inc.

• Develop a land acquisition and disposition policy that ensures suitable sites are identified and designated for affordable housing

• Work with County to identify suitable County-Owned sites for affordable housing

• Release an RFP for development of priority sites


In North Carolina, local governments can provide land to developers through a competitive process at reduced prices in exchange for affordable housing.

Determine feasibility by size, shape, and constraints

Prioritize based on land use and road access

Filter for opp-ortunity areas

Setting of affordable housing goals and release of RFP

Selection of a parcel of public land

Proposal or bid submission

Public private partnership established

Development

The public land process begins with assessing the feasibility of parcels and

ends with disposition of these parcels for sale.


Owner-Occupied Rehabilitation Assistance

HR&A Advisors, Inc.

• Adopt & provide funding for the proposed Apex Cares program

• Identify opportunities to align Apex Cares with Wake County rehabilitation program

• Conduct outreach to potential Apex Cares participants

• LEARN MORE AT: https://www.rttriangle.org/


01 Participants Determine EligibilityParticipants must be owner-occupants of single family homes, and earn below 65% AMI (roughly $61,000)

03 Complete ProjectsProjects can include repair or

replacement of roofing, electrical systems, plumbing, and any other items

determined eligible by the Town

02 Town Assigns ContractorsThe Town partners with a nonprofit

housing provider and provides them with grants of up to $15,000 to make

repairs for homeowners

The Town has proposed a program, Apex Cares, to provide rehabilitation assistance to income-qualified homeowners.


Down Payment Assistance & Homeownership Counseling

HR&A Advisors, Inc.

• Provide funding for Down Payment Assistance to nonprofit operators of local programs

• Layer funding with State and County programs to maximize available funding and help Apex residents build wealth

• Pair with tools that increase the supply of moderately-priced housing, including soft density zoning


Down Payment Assistance reduces the up-front costs of homeownership through grants or forgivable loans

$242,000 Affordable mortgage for

a household making $56,000 annually

$280,000Home Purchase Price

$25,000 DPA

Total Purchase Price

$13,000 from household

Homebuyer counseling provides prospective first-time homebuyers with assistance in planning for buying a home and budgeting for the full costs of homeownership

$56,000 is 60% of the household Area Median Income (AMI) in Apex. This assumes FHA financing based on a 5% down payment from the household with a 30-year, fixed rate mortgage.


Emergency Rental Assistance & Supportive Services

HR&A Advisors, Inc.

• Provide grant funding to nonprofits serving vulnerable populations in Apex:

• Those in need of supportive services

• Households facing homelessness

• Award funds through a competitive process

• Work with nonprofit partners to monitor ongoing need


01Allocate funds to serve vulnerable populations and set criteria to select awardees

03Award funds to nonprofits with

highest-scoring proposals. Monitor impacts of implementation and

ongoing need.

02Issue an RFP and score responses based on

scoring criteria such as based on demonstrated need and organization capacity

ACTION PLAN


The Draft Plan recommends timing for each recommendation and shows how they will address the vision and goals.

HR&A Advisors, Inc.

Action Timing

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BUILD THE TOWN’S CAPACITY To ensure the successful implementation of the Affordable Housing Plan, Apex needs to build its capacity to oversee new housing programs.

Town Staff Capacity Near-term

Housing Advisory Board Near-term

ADVANCE ADVOCACY AND PUBLIC EDUCATION Building awareness and understanding about Affordable Housing in Apex will be critical to the success of the Plan.

Annual Housing Report Mid-term

Diversity & Racial Equity Initiatives Mid-term

Affordable Housing Advocacy Partners Mid-term


The recommended programs and policies in the Draft Plan address the vision and goals established by the Steering Committee.

HR&A Advisors, Inc.

Action Timing

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IMPLEMENT PROGRAMS AND POLICIES Apex will provide funding for new programs and make policy changes to meet its affordable housing goals.

Affordable Housing Incentive Zoning Near-term

Owner-Occupied Rehabilitation (OOR) Assistance Near-term

Low Income Housing Tax Credit (LIHTC) Gap Financing Near-term

Support for Homeownership Mid-term

Transit Oriented Development Density Mid-term

“Soft Density” Zoning By-Right Mid-term

Public Land Acquisition & Sale Long-term

Accessory Apartments Long-term

Emergency Rental Assistance and Supportive Services Long-term


The Town recently created the Apex Affordable Housing Fund, which will generate $1 million annually for affordable housing programs.

ERA & Supportive Services $50,000

Homeownership $200,000

Owner-Occupied Rehabilitation

$200,000

LIHTC Gap Financing$500,000

$1,000,000

ANNUAL FUNDING

1 development every 2 to 4 years, depending on tax credit type, size, and amount of County financing, or an average of 50 units per year

POTENTIAL ALLOCATION

ANTICIPATED IMPACTS

12 to 15 units per year

3-5 units per year

Varies by program

Pilot program of 1 unit per year

Accessory Apartments $50,000• Determined by Apex’s

Town Council

• Recommended by the Housing Advisory Board

• Reevaluated each year

The allocation of these funds will be:

Sample Apex Affordable Housing Fund Allocation and Impacts

QUESTIONS?

NEXT STEPS

Next Steps in Planning Process


Town Presentations

September

Goals, Tools & Recommendations

September-October

Draft Plan

November

HR&A Advisors, Inc.

Revise Draft Plan based on public feedback2

Town Presentations

December

Adopt Plan

January

1 December 28th - Written comments requested via https://www.publicinput.com/AHPcomments

January 11th at 4:30 - Planning Board public hearing and possible recommendation to Town Council3

January 26th at 6:00 pm - Town Council public hearing and possible adoption of the Plan4

https://www.publicinput.com/AHPcomments

THANK YOU!

draft public presentation december 17, 2020

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