Transcript Document 7328848

Gap Financing Tools for Affordable Housing
A presentation to the
Virginia Housing Coalition
Housing Credit Conference
September 5, 2013
VHC
1
Sept 2013
APAH: A Non-Profit Affordable Housing Developer
• 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
2
Major Arlington County Affordable Housing Tools
• 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
3
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
4
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
County lost 14,000 market affordable
units between 2000 - 2011
5
Federal Affordable Housing Tools
• 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
6
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
7
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
8
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); and
Moderate income workforce
(20% of the units serve between 51%AMI and 100%AMI)
• Leverage other sources such as private equity and financing and LowIncome Housing Tax Credits (LIHTC)
9
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.
10
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
11
Other Affordable Housing Tools
• 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
12
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, energysaving and Transit Oriented
features
13
Our Vision
A 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/CEO
703-276-7444 (w)
14