Denver Comprehensive Housing Plan. Housing Advisory Committee Denver, CO August 3, 2017

Transcription

1 Denver Comprehensive Housing Plan Housing Advisory Committee Denver, CO August 3, 2017

2 Overview 1. Review of Comprehensive Housing Plan process 2. Overview of legislative and regulatory priorities 3. Overview of five-year strategies 4. Next steps in determining projected outcomes 2

3 Review of Comprehensive Housing Plan process Comprehensive Housing Plan Phase 1 Existing & future conditions analysis April-June 2017 Phase 2 Goal-setting, strategy development, and resource alignment June-August 2017 Phase 3 Plan development, review, and delivery July-September 2017 Ongoing public & stakeholder engagement HAC meetings, stakeholder focus groups, online housing survey, public meeting, and public comment 3

4 Overall organization: Five-year and Year 1 Action Plan Five-year Comprehensive Housing Plan Year 1 Action Plan Includes community profile that explains existing and future conditions and proposed approach for general audience. Outlines concrete, yet flexible approach to broad regulatory, funding, and programmatic decisions through Proposes a five-year strategy framework and related actions. Identifies income and geographic targets. Stand-alone document that explains implementation of proposed approach to City staff and other partners. Proposes specific strategies and related actions to support implementation in the next 12 months. Informs short-term decision-making, such as FY18 budget considerations and programmatic changes. Identifies income and geographic targets. 4

5 Outline: Five-Year Action Plan 1. Introduction (including connections to other planning efforts) 2. Existing and future conditions 3. Guiding principles & legislative and regulatory priorities Connectivity between housing and other affordability investments Focus on serving vulnerable populations Focus on creating inclusive communities and promoting economic mobility 4. Strategy for land 5. Strategies for homelessness 6. Strategies for rental housing 7. Strategies for homeownership 8. Implementation Intended outcomes Implementation table 5

6 Outline: 1 Year Action Plan 1. Current Challenges A need to invest along the income spectrum, but to focus resources on extremely low and low-income residents A need to foster a mix of options throughout Denver, but to focus resources on vulnerable neighborhoods experiencing displacement pressures A need to calibrate specific housing strategies (e.g. preserving existing affordability or developing new affordable options) to address the unique challenges of different neighborhood types 2. Specific strategies and actions in Year One 3. Connections to FY18 budget 4. Outcome Projections 6

7 Connection to other city investments City affordability investments Identifying connectivity between housing and other affordability investments Jobs Housing Health Creating consistent framework for strategies that: Create or preserve housing stock Help households access or maintain housing Defining outcomes by households served 7

8 Legislative and regulatory priorities 8

9 Citywide legislative decisions: Survey results What citywide policies should the City prioritize over the next 5 years? Develop more consistent standards for how affordability will be addressed in medium- and large-scale redevelopment areas 16 Prioritize use of publicly owned land for affordable housing 15 Expand and strengthen development incentives 12 Pursue protections for renters 11 Create property tax relief programs Support broader use of Accessory Dwelling Units Strengthen preservation ordinance s right of first refusal 9 Establish a rental registry and ensure properties meet code requirements Develop more consistent standards for how affordability will be addressed in medium- and large-scale redevelopment areas. Prioritize use of publicly owned land for affordable housing. Expand and strengthen development incentives. Pursue protections for renters. 9

10 Legislative & regulatory priorities LEGISLATIVE & REGULATORY PRIORITIES Prioritize use of publicly owned land for affordable housing Stabilize households through tax rebate programs Pursue proactive enforcement of health, safety and building codes Expand and strengthen land use regulations for affordable and mixed-income housing Strengthen City s Preservation Ordinance to promote longterm affordability Pursue protections for renters Support broader development of accessory dwelling units Establish a rental registry Develop more consistent standards for affordable housing in medium- and largescale developments 10

11 STRATEGIES: Survey results 11

12 Homelessness: Survey results Which strategies are your highest and second highest priority for the City to implement in the next 5 years? Provide gap supportive services for permanent housing. 2 9 Establish outcome metrics and fidelity standards to evaluate performance of the homeless delivery system. 2 3 Add additional permanent supportive housing (PSH) and rapid re-housing (RRH) Second highest priority Highest priority Provide gap supportive services for permanent housing. Add additional permanent supportive housing and rapid re-housing. *For this topic, no information about income or geographic targeting was collected from homelessness. 12

13 Create strategies: Survey results Which strategies are your highest and second highest priority for the City to implement in the next 5 years? Preserve affordability of existing subsidized properties. 3 3 Preserve affordability of unsubsidized small-scale rental properties via acquisition-rehabilitation. 3 3 Preserve affordability of unsubsidized large-scale rental properties via acquisition-rehabilitation. 2 3 Preserve affordability of existing affordable homeownership through a community land trust Second highest priority Highest priority Preserve affordability of existing subsidized properties. Targeting 0-50% AMI Targeting areas with: Limited affordable rental and homeownership options Preserve affordability of unsubsidized small-scale rental properties. Targeting 0-50% AMI Targeting areas with: Limited affordable rental and homeownership options 13

14 Preserve strategies: Survey results Which strategies are your highest and second highest priority for the City to implement in the next 5 years? Build mixed-income and mixed-use developments. Create new rental opportunities. Acquire land for future affordable development. Create new homeownership opportunities. Buy down affordability of existing market-rate rental units Second highest priority Highest priority Build mixed-income and mixed-use developments. Targeting % AMI Targeting areas with: Limited affordable rental and homeownership options Create new rental opportunities. Targeting 0-80% AMI Targeting areas with: Limited affordable rental and homeownership options Acquire land for future affordable development. Targeting 0-30% AMI No clear geographic areas identified. 14

15 Land for future development: STRATEGY 15

16 Land: Five-year strategy summary Strategy: Strategically acquire land for future affordable and mixed-income development. 16

17 Homelessness: STRATEGIES 17

18 Homelessness: Five-year strategy summary Strategies focused on: Housing stock Supportive services Strategies: Effectively target resources to right size intervention. Add housing capacity through funding and policy alignment. Develop a supportive services funding program. 18

19 Rental housing: STRATEGIES 19

20 Rental: Five-year strategy summary Strategies to preserve: Housing stock Preserve affordability of existing income-restricted rental housing. Preserve affordability of unsubsidized small-scale affordable rental housing stock. Preserve affordability of unsubsidized large-scale affordable rental housing stock. Programs to maintain existing housing Promote programs that help families maintain existing rental housing. 20

21 Rental: Five-year strategy summary Strategies to create: Housing stock Promote development of new affordable and mixedincome housing stock. Programs to access rental housing Promote programs that help families access rental housing. 21

22 Homeownership: STRATEGIES 22

23 Homeownership: Five-year strategy summary Strategies to preserve: Housing stock Preserve affordability of existing owner-occupied housing near transit. Programs to maintain existing housing Promote programs that help families maintain existing for-sale housing. Promote programs that help families maintain existing for-sale housing. 23

24 Homeownership: Five-year strategy summary Strategies to create: Housing stock Promote development of new affordable for-sale housing stock. Programs to access for-sale housing Promote programs that help households access forsale housing. 24

25 Outcomes from Five Year Plan 25

26 Discussion Outputs to Outcomes Metrics: Number of Households Served 1. Housing stock created or preserved 2. Households served through programs to ACCESS or MAINTAIN housing Value Impact: Maintain and create inclusive communities, promote economic mobility - Vulnerable populations served - Racial and cultural diversity - Mixed-income communities - Diversity in housing stock 26

27 Discussion Draft Process for Investment Metrics Metrics will be calculated for Five Year and Annual Action Plan based on 2018 budget for housing investments Income Spectrum Target Investment Over 5 Years Investment Strategy Amount Invested Typical City Cost Projected Outputs Homelessness Example: 20 30% of housing funds Housing Stock Program/Service Range of Total Investment Typical City Investment per Household Range of Households impacted Rental Example: 40 60% of housing funds Housing Stock (create/preserve) Program/Service Homeownership Example: 20 30% of housing funds Housing Stock (create/preserve) Program/Service 27

28 HAC feedback on 2018 housing budget Administration 5-7% Land Acquisition 10% New construction 40% Preservation 30% Housing Programs 10%* (ex: rent and utility assistance) Supportive Services 5%* (ex: case management) *City budget will invest additional resources into housing programs and supportive services 28

29 APPENDIX 29

30 Land for development: STRATEGY 30

31 Land: Five-year strategy & one-year actions Five-year strategy Strategically acquire land for future affordable and mixed-income development. Conditions addressed Availability & high cost of land Provides another tool to lower development costs Income & geographic considerations One-year actions Prioritize publicly owned land that can be used for affordable housing. Invest in city or partners direct acquisition for affordable, mixed-income and mixed-use projects. Support long-term affordability through land trust models. Incomes up to 80% AMI Citywide > 31

32 Homelessness: STRATEGIES 32

33 Homelessness: Five-year strategies & one-year actions Five-year strategy Add housing capacity through funding and policy alignment Conditions addressed Limited existing tools to offset operating costs Income & geographic considerations One-year actions Determine the amount of funding available from the dedicated housing fund for 30% AMI or below Complete financial modeling analysis to inform sources, strategies, and level of investment Explore leveraging housing fund to pool rental subsides with existing resources Establish outcomes framework for performance based contracting tools Incomes up to 30% AMI Citywide 33

34 Homelessness: Five-year strategies & one-year actions Five-year strategy Effectively target resources to right-size intervention. Conditions addressed Appropriate housing interventions Existing to homelessness or unknown destinations Support diversion efforts Income & geographic considerations One-year actions Evaluate use of current emergency rental assistance funds based on updated housing needs assessment (unit projections), and; Target rental assistance to households with the longest shelter stays Ensure participation of new PSH units coming online and in pipeline in the Coordinated Entry System (CES) Incomes up to 30% AMI Citywide 34

35 Homelessness: Five-year strategies & one-year actions Five-year strategy Develop a supportive services funding program Conditions addressed Currently no dedicated local funding source for critical services needed in supportive housing Creating a supportive services funding program Income & geographic considerations One-year actions Complete financial modeling analysis to include uses and additional sources of supportive service funding to size the level of service investment Establish fidelity review process and criteria Prioritize supportive services funding Use identified outcomes framework and criteria to amend current service contracts; and Implement performance based contract language based new supportive services investment Incomes up to 30% AMI Citywide 35

36 Rental housing: STRATEGIES 36

37 Rental: Five-year strategies & one-year actions Five-year strategy Preserve affordability of existing income-restricted rental housing stock. Conditions addressed ~2,300 income-restricted units at-risk of expiring through 2022 Limited existing tools to offset operating costs Income & geographic considerations Incomes up to 80% AMI Neighborhood types 1, 2, & 4 One-year actions Provide bridge financing for long-term preservation of existing stock through establishment of Preservation Fund Develop a priority list of properties and establish relationship with owners. Leverage creative investment products to support preservation. 37

38 Rental: Five-year strategies & one-year actions Five-year strategy Preserve affordability of unsubsidized small-scale affordable rental housing stock. Conditions addressed Plays important role in serving lowincome households. Limitations faced by mom & pop owners. No current funding scaled to this product. Income & geographic considerations Incomes up to 50% AMI Neighborhood types 1, 2, & 4 One-year actions Provide bridge financing for long-term preservation of existing stock through establishment of Preservation Fund. Leverage creative investment products to support preservation. Develop and maintain inventory and conduct outreach to owners. 38

39 Rental: Five-year strategies & one-year actions Five-year strategy Preserve affordability of unsubsidized large-scale affordable rental housing stock. Conditions addressed ~130 unsubsidized large-scale properties with rents at or below FMR Risk of conversion to market-rate units in stronger submarkets. No current funding targeting this product. Income & geographic considerations One-year actions Pursue partnerships to create and capitalize a preservation fund. Incorporate local financing mechanisms. Pursue partnerships with DHA to leverage property tax exemption. Develop and maintain inventory and conduct outreach to owners. Leverage non-competitive 4% tax credits that support the acquisition and rehabilitation of unsubsidized properties. Incomes up to 50% AMI Neighborhood types 1, 2, & 4

40 Rental: Five-year strategies & one-year actions Five-year strategy Promote development of new affordable and mixed-income housing stock. Conditions addressed Addresses supply gap (~15,500 units for extremely low-income households) Income & geographic considerations Incomes up to 80% 80% AMI Neighborhood types 2, 3, 4, & 5 One-year actions Continue to hone financing mechanisms to support development (e.g., gap financing, bridge financing, loan guarantees). Explore ways to support live-work units for artists, among other occupations. 40

41 Rental: Five-year strategies & one-year actions Five-year strategy Promote programs that help families maintain existing rental housing. Conditions addressed 15% increase in median rent since 2015 and Q More than half of Denver is classified as vulnerable to displacement Income & geographic considerations Income levels u to 80% AMI Neighborhood types 1, 2, & 4 One-year actions Promote programs that help stabilize families experiencing a housing crisis (e.g., rent and/or utility assistance). 41

42 Rental: Five-year strategies & one-year actions Five-year strategy Promote programs that help families access rental housing. Conditions addressed Addresses availability gap (or mismatch) to help more low-income households access rental housing Income & geographic considerations Incomes up to 80% 80% AMI Neighborhood types 1, 2, 3, & 4 One-year actions Develop pilot program to buy down cost of vacant market-rate rental units (L.I.V.E). Establish open competition provision to achieve efficiencies in L.I.V.E pilot program. Consider master lease agreement option as additional tool. 42

43 Homeownership: STRATEGIES 43

44 Homeownership: Five-year strategies & one-year actions Five-year strategy Preserve affordability of existing owner-occupied housing near transit and/or job centers. Conditions addressed 30% average increase in assessed values between 2015 and ,000 cost-burdened owners, one-third of whom are seniors Income & geographic considerations Incomes up to 80% AMI Neighborhood types 1, 2, 3, & 4 One-year actions Develop mechanisms that secure the longterm affordability for existing and future owners. 44

45 Homeownership: Five-year strategies & one-year actions Five-year strategy One-year actions Promote programs that help families maintain existing for-sale housing. Continue to invest in rehabilitation programs. Target seniors and other vulnerable populations. Explore tax relief to broader group of homeowners. Continue to promote financial literacy programs for existing owners. Promote use of accessory dwelling units as a way to decrease owners housing costs. Conditions addressed 30% average increase in assessed values between 2015 and ,000 cost-burdened owners, one-third of whom are seniors Income & geographic considerations Incomes >30% up 50% to 80% 80% AMI Citywide 45

46 Homeownership: Five-year strategies & one-year actions Five-year strategy Promote development of new affordable for-sale housing stock. Conditions addressed 43% increase in median price of detached homes between 2012 and % increase in median price of attached homes between 2012 and 2016 Lack of missing middle housing types Income & geographic considerations Incomes up to 80% AMI Citywide One-year actions Continue to provide gap financing for development of for-sale housing. Promote tools that support missing middle housing products (e.g., duplex, four-plexes, etc.). 46

47 Homeownership: Five-year strategies & one-year actions Five-year strategy Promote programs that help households access for-sale housing. Conditions addressed 43% increase in median price of detached homes between 2012 and % increase in median price of attached homes between 2012 and 2016 Lack of missing middle housing types Income & geographic considerations Incomes up to 50% AMI Neighborhood types 3, 4, & 5 One-year actions Pursue Live Near Your Work or other employer-assisted housing program partnerships with large employers and anchor institutions. Continue to promote homebuyer counseling programs. 47