gap financing tools for affordable housing a presentation to the virginia housing coalition housing...
TRANSCRIPT
Gap Financing Tools for Affordable Housing
A presentation to the
Virginia Housing Coalition
Housing Credit Conference
September 5, 2013
VHCSept 2013
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• Owns 1,117 rental homes at 13 properties valued at $200M
• Award-winning, innovative• Founded in 1989• Led by Arlingtonians: Staff & Board• Most properties funded by:
• LIHTC• VHDA Financing• Arlington County Gap Financing• Low Cost Land Acquisition
APAH: A Non-Profit Affordable Housing Developer
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• AHIF: Affordable Housing Investment Fund• Affordable Housing Ordinance produces
on-site units and AHIF contributions• Density— Rezoning, Bonus,• Transfer of Development Rights• Public Land for Housing, land banking,
faith community land• Bonds: Industrial Development Authority• Housing Grants: rental subsidy• Permanent Supportive Housing: rental
subsidy and services
Major Arlington County Affordable Housing Tools
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Focus: Affordable Housing Investment Fund (AHIF)
• Revolving fund est. 1985• Target 60 years affordability• Target leverage 4:1 with other funds• 5 – 10% supportive housing• Repaid from cashflow, typ. 50%• Preference for below market fees,
acquisition costs• Funded with Federal HOME funds, local
general revenues, 1% of County recordation tax, loan repayments and developer contributions under Affordable Housing Ordinance
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Advocacy and Information: Important Development Tools
• APAH and partners (eg the faith community), publicize challenges facing low income households, like loss of affordable units
• County elected officials make affordable housing a top goal.
• Leadership facilitates funding, policies and approvals
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County lost 14,000 market affordable units between 2000 - 2011
County lost 14,000 market affordable units between 2000 - 2011
• HOME Investment Partnership Program• Pass Thru To States/Localities• $2B/year• 25% Local Match• Build or renovate, 20 yr term• Part of Consolidated Plan
• Section 8 Rental Subsidy• Community Development Block
Grants (CDBG)—housing & services for low income
Federal Affordable Housing Tools
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Focus: Density• Rezoning: Strategic rezoning to
allow more affordable units• Bonus density allowing larger
buildings in exchange for on-site affordable units and/or contribution to AHIF
• Density Transfer allows density to be transferred to an affordable site or sold to help finance preservation of existing units
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Focus: Public Land for Housing
• Pioneered with long term ground lease at Arlington Mill Community Center
• Leverages height and density with other County uses
• Significantly reduces development costs for acquiring new land
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Fairfax County 2014 Funding• $5 million in Housing Blueprint funds • Focus:
Extremely low incomes, particularly homeless or disabled (20% of units serve at or below 30%AMI);Low income working families (60% of units serve at or below 50% AMI); andModerate income workforce (20% of the units serve between 51%AMI and 100%AMI)
• Leverage other sources such as private equity and financing and Low-Income Housing Tax Credits (LIHTC)
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Alexandria Housing Opportunities Fund
• Development and preservation of affordable rental and sales housing.
• Priority to City-certified Community Housing Development Organizations (CHDOs).
• Leverage funding from all available sources--fill gaps.• Low interest loans or grants serving below 60% of the area’s
median income. • May cover feasibility analysis; pre-development activities;
housing preservation; and development costs.
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Prince William County Funding• $500,000 in CDBG Funds awarded competitively to
non-profit organizations• Maximum award $225,000• Public service grants at 100%/50%/25% annually• Repayable loan at zero interest or deferred
appreciation
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• Leverage• Private or bond mortgage financing• HUD Loan Programs• Land Banking• Non-profit-owned garden apts.• Faith community
• Philanthropy• Private contributions & grants • Volunteer support
• Historic Tax Credits• Federal (20%) and state (25%) of
eligible rehabilitation costs
Other Affordable Housing Tools
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Focus: Land Banking• Redevelop existing, older, low
density garden apartment communities or faith properties in transit-oriented locations
• Lower development costs because of existing non-profit ownership
• Rezoning provides more affordable units and can create new Smart Growth, energy-saving and Transit Oriented features
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Our VisionA diverse and inclusive, transit-oriented, sustainable community
that welcomes and values all residents. Our Role
Marry best practices in affordable housing finance and development with a deep commitment to the local community
to advocate, preserve, and build affordable housing .
Nina Janopaul, APAH President/CEO703-276-7444 (w)
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