Tools to Provide Long-Term Affordability Near Transit and Other Location-Efficient Areas. June 16, 2011

Transcription

1 WEB BINA AR Tools to Provide Long-Term Affordability Near Transit and Other Location-Efficient Areas 1 June 16, 2011

2 Tools to Provide Long-Term Affordability Near Transit and Other Location-Efficient Areas 2 June 16, 2011

3 Tools to Provide Long-Term Affordability near Transit and Other Location-Efficient i t Areas June 16, :30 AM Pacific, 2:30 PM Eastern Allison Brooks Kelly Weiss John L. Payne Reconnecting America PeopleTrust Fairfax County, Virginia Moderated by Ryan Sherriff Center for Housing Policy

4 Webinar Agenda Welcome and Introduction, Ryan Sherriff Reconnecting America, Allison Brooks PeopleTrust, Kelly Weiss Fairfax County, VA, John Payne Questions

5 Reconnecting America Allison Brooks, Reconnecting America, Oakland, CA

6 Reconnecting America Affordability Near Transit

7 Affordability Near Transit Reconnecting America Successful Transit-oriented Development is equitable TOD. Ways to increase affordability: - Increase supply of affordable housing - Preserve existing neighborhoods Subsidized units Unsubsidized housing

8 Reconnecting America Increasing the Supply of New Challenges: - High land prices - Speculation Affordable Housing - Lack of capital to hold land over time - Limited funding - Complexity - Land assembly and rezoning - Community opposition Solutions: - Regulation, incentives, funding - Innovative partnerships

9 Reconnecting America Preserving Subsidized Units Near Transit

10 Reconnecting America Preserving Neighborhoods Near Transit can lead to land value increases TOD and gentrification - Existing renters - Existing owners Transit

11 Reconnecting America Tools that Promote Affordability Increased funding for affordable housing - HUD and US Treasury programs are essential to getting units built - State, regional and local funding Increased support for coordination of housing and transportation planning - HUD regional planning grants (e.g. Honolulu)

12 Tools that Help Create New Affordable Units Structured t funds - Bay Area, Denver, Los Angeles and others - Can support rental or homeownership Policy tools: Reconnecting America - State or regional incentives (e.g. Massachusetts Chapter 40R; Bay Area TOD Policy) - Local policies Inclusionary housing Zoning incentives Value capture

13 Reconnecting America Tools that Prevent Displacement Rent control Condominium conversion control First-Right-of-Refusal laws for tenants and nonprofits.

14 Reconnecting America Tools that Increase Affordable Homeownership Opportunities Linkage fees Self-help/ sweat-equity programs TOD-targeted homeownership assistance Community Land Trusts

15 Reconnecting America Resources Mixed-income income TOD Action Guide: Reconnecting America Featured Topic Page: org/resource-center/tod-and-equity/ center/tod equity/ Allison Brooks Reconnecting America g

16 PeopleTrust Kelly Weiss, PeopleTrust, Austin, TX

17 PeopleTrust City of Austin Snap Shot Population Austin 790,390 MSA 1,705,075 Race/Ethnicity 48.7% Anglo 35.1% Latino/Hispanic 7.7% African-American 6.3% Asian 2.2% Other Poverty Rate 18.4% Median Family Income $62,153 Low Income HUD 80% MFI 1 person HH $41,950 80% MFI 4 person HH $59,900 Very low Income HUD 50% MFI 1 person HH $26,250 50% MFI 4 person HH $37,450 Extremely low income HUD 30% MFI 1 person HH $15,750 30% MFI 4 person HH $22,450 Source: 2010 Census; HUD

18 PeopleTrust City of Austin Housing Snap Shot Housing Tenure Owner Occupancy 45.8% Rental Occupancy 54.2% Source: 2010 Census Home Sales Median Home Sales Price $264,900 Average Home Sales Price $193,100 Source: Texas A&M Real Estate Center 2011 Fair Market Rent 2 Bedroom $963 3 Bedroom $1296 Source:HUD

19 PeopleTrust TODs are new in Austin. TODs in Austin, Texas No inclusionary i zoning allowed in Texas Affordable Housing achieved through: - Financial subsidies - City-owned land - Voluntary incentive programs Development bonuses City of Austin s SMART Housing Program - Fee waivers, expedited review

20 PeopleTrust Encouraging g Long-Term Affordability PLANNING & ZONING: TOD Regulating Plan Housing Affordability: 25% of the bonus square footage reserved as affordable through a City approved affordable housing land trust or other shared equity model approved by the Director, for not less than 99 years from the date the certificate of occupancy is issued Outside CP&R Zone - Owner-Occupied: Households making no more than 80% MFI GOAL 10% of units for 70% - 80% or below MFI 10% of units for 60%-70% or below MFI 5% of units at or below 60% MFI - Rental: Households making no more than 60% MFI GOAL 10% of units for 40% - 60% or below MFI 10% of units for 30%-40% or below MFI 5% of units at or below 30% MFI Inside CP&R Zone - Owner-Occupied: Households making no more than 60% MFI - Rental: Households making no more than 50% MFI 5% units at or below 30% MFI 10% units at or below 40% MFI 10% of units at or below 50% MFI - No Height Increase over max height prescribed by applicable zoning district before adoption of the SAP, unless: - Homeownership at 60% MFI or less - Rental at 50% MFI or less

21 City of Austin: Data by TOD PeopleTrust Median HH Income % Below Poverty Line % > 65 Land Cost per Acre Race Hispanic Race White Race Black Subsidy Amount per Unit: Rental Subsidy Amount per Unit: Owner City of Austin $42, % 6.7% Saltillo $24, % 9.8% $700,000 88% $127,623 $136,731 MLK $30, % 17.5% $384,000 37% 32% 38% $127,623 $83,131 Lamar $43, % 9.8% $700,000 64% $75,870 $149,951 Source: City of Austin, FINAL REPORT & RECOMMENDATIONS: Affordable Housing in the City of Austin s TOD Districts (2008)

22 PeopleTrust TOD Policy Planning vs. Financial Feasibility BUT, IT HAS TO WORK: Incorporating affordable rental or for-sale units in mixed-income developments at the 25 percent goal level set forth in the TOD ordinance would make all prototype projects infeasible, and increase the feasibility gap further for those projects that do not pencil out. (Bay Area Economics, Austin TOD Station Area Planning: Financial Feasibility Analysis)

23 PeopleTrust Austin s Metro Rail System started running in 2010: Look for Trains = Look for Riders

24 PeopleTrust Saltillo TOD, Austin, Texas

25 PeopleTrust MLK TOD, Austin, Texas

26 PeopleTrust Leander TOD

27 PeopleTrust Mueller Airport Redevelopment

28 PeopleTrust Mueller Airport Redevelopment Future Transit Routes

29 Mueller: Master Development Agreement Affordable Housing Requirements At least 25% of all homes at Mueller will be affordable; 80% MFI for for-sale homes; 60% MFI for rental homes. All affordable homes will be generally evenly dispersed Distributed between for sale and rental homes PeopleTrust All residential units in accordance with City s S.M.A.R.T. Housing Program: - 1 year affordability restriction on for-sale units Master Developer agreed to long-term affordability through Shared Equity Homeownership Model(s) - 5 year affordability restriction on rental units Master Developer agreed to 40-year affordability terms for market-rate rental developments

30 Mueller Foundation: Community Foundation for Long-Term Affordable Housing PeopleTrust A non profit corporation created by Catellus (Master Developer) to support/fund long term community goals for Mueller Sources of Funds: Fees paid by builders Community assessment fees (.25% on all real estate sales at Mueller in perpetuity) Shared equity proceeds on affordable housing sales Mueller Foundation Supports Community Benefits: Affordable housing Open space Education

31 PeopleTrust Long-Term Affordable Housing Challenges in TOD Neighborhood demographics and socio-economic factors vary greatly along the rail lines Different product types will have different financing models Local CDCs and neighborhood-based non-profits have varying levels of capacity on a regional basis Regional affordable housing planning is key

32 PeopleTrust Kelly Weiss Executive Director PeopleTrust

33 Tysons Corner John L. Payne A.I.A, Deputy Director for Real Estate Fairfax County Department of Housing and Community Development, VA.

34 Tysons Corner

35 Tysons Corner Comprehensive Plan Expectation of metrics to be proffered to achieve rezoning. Zoning requirements related to bonus density for Affordable Dwelling Unit Ordinance (ADU) County wide workforce housing program in high density transit centers 12% workforce units Up to 20% density bonus Incomes range three tiers 80% 100% 120% AMI

36 Tysons Corner Tysons Comprehensive Plan Expectation of 20% Affordable / Workforce housing in Tysons. Workforce housing is targeted to various income tiers between 50% and 120% of Area Median Income (AMI); for Fairfax County $106,700. Affordable Dwelling Units Requirements: - (4 stories wood frame construction) can be included as part of 20% expectation. - ADU s target < 70% for sale 1/3 <50% 2/3 65% for rental

37 Tysons Corner 1/4 Mile Station Area Workforce housing provision - 20% of total units should be affordable workforce housing. Bonus provision - No bonus units because of unlimited FAR allowed in this area. Non-residential contribution - Contribution of $3.00 per square foot or annual contribution of 25 cents per non-residential square foot excluding ground floor retail

38 Tysons Corner

39 Tysons Corner Beyond 1/4 Mile Station Area Workforce housing provision - 20% workforce housing units excluding bonus units. - Approximately 16% of total units inclusive of bonus units. Bonus provision - 20% bonus provided - Bonus can be either units or commercial square footage. Non-residential contribution - Contribution of $3.00 per square foot or annual contribution of 25 cents per non-residential square foot excluding ground floor retail.

40 Tysons Corner Target Income Tiers Income Tiers: % of AMI 5% of total units % of AMI 5% of total units % of AMI 5% of total units % of AMI 3% of total units - <50-60% of AMI 2% of total units

41 Tysons Corner Solving the Issues Preference that workforce units be provided on site. Land can be provided in lieu of units and units can be provided collectively or by others elsewhere in Tysons. Cash contributions ti in lieu of units is not desired. d Flexibility provided for projects that meet other housing needs. Examples: special needs and lower incomes. Creative strategies encouraged.

42 Tysons Corner

43 Tysons Corner Workforce Housing Reduction in traffic demand Live, work, play, quality living environment Economic sustainability

44 Tysons Corner Tysons Corner John L. Payne Fairfax County, Virginia

45 Questions Tools to Provide Long-Term Affordability near Transit and Other Location-Efficient Areas Thursday, June 16, 2011 Allison Brooks Reconnecting America Kelly Weiss PeopleTrust John L. Payne Fairfax County, Virginia Moderated by Ryan Sherriff Center for Housing Policy

46 Continue the conversation at the HousingPolicy.org Forum! forum.housingpolicy.org/group/sharedequityhomeownership The HousingPolicy.org Forum is a place to pose questions, share ideas, and learn from the experience and expertise of colleagues around the country. Membership isfree and open to anyone who has an interest in housing policy. Questions from this webinar will beanswered Questions from this webinar will be answered in the Shared Equity Homeownership group.

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