Nonprofit Developer s Perspective on Achieving Affordable Housing. Lee Highway Alliance Educational Forum on Housing Choice

Transcription

1 Nonprofit Developer s Perspective on Achieving Affordable Housing Lee Highway Alliance Educational Forum on Housing Choice September 9, 2017

2 Nonprofit Developer s Perspective on Achieving Affordable Housing Achieving Affordable Housing in Lee Highway is Doable Who: Private nonprofits, such as APAH, AHC, Wesley and CPDC What is Affordable Housing? Committed Affordable Housing ( CAF s) income limits; compare to MARKs Start with housing, then leverage benefits => deliver services to residents On-site inclusionary (by market developers) Sedona/Slate, The View Why: Large and growing NEED to serve HH s at 60% and below Conditions led into adopted Affordable Housing Master Plan (AHMP) How: Good to Great Part 1: Add supply through new construction and preservation Part 2: Build on and with public vision, such as Lee Highway planning process Goals and Planning principles sustainability, thoughtful design, integrated land use Where + When Acquisition & Financing Preservation and stabilization Demo and new higher density construction Commercial sites Mission-based partners Infill onto excess, surface parking Tandem with market rate projects, financed side by side/proximate sites Case Study Columbia Pike, the Trove; Ratios ~ ¼: ¾ 2

3 What is (Committed) Affordable Housing? Affordable is if the household s Rent + Utilities is no more than 30% of household income Committed via financial/legal/land use obligations Long term commitment usually year span Many low income households are served o Ass t teachers, childcare providers, nursing ass ts, school bus drivers o Seniors on fixed incomes o Disabled Household Size 60% 50% 40% 1 $46,380 $38,650 $30,920 2 $52,980 $44,150 $35,320 3 $59,580 $49,650 $39,720 4 $66,180 $55,150 $44,120 5 $71,520 $59,600 $47,680 6 $76,800 $64,000 $51,200 Unit Size 60% 50% 40% Efficiency $1,159 $966 $773 1 $1,242 $1,035 $828 2 $1,489 $1,241 $993 3 $1,721 $1,434 $1,147 4 $1,920 $1,600 $1,280 3

4 Why: Affordable Housing Master Plan (AHMP) Arlington County Board unanimously adopted the AHMP in 2015 o Implementation Plan adopted 2016 Defines County s affordable housing policy and enables Arlington to respond to the current and future needs of residents of all levels of income in the County Organized around three goals o Having an adequate supply of housing for the community s needs o Ensuring that all segments of the community have access to housing o Ensuring that housing efforts contribute to a sustainable community An element of the County s Comprehensive Plan o Culmination of a three-year community effort o Prepares Arlington for the next generation of sustainable, affordable housing that supports our people, improves our neighborhoods and strengthens our economy LH planning process => implement adopted County policy 4

5 Why: Challenge = Declining Affordable Housing Stock in County and DC area In Arlington: A net of 14,000 affordable rental homes were lost between 2000 and 2016 As of 2016, only 2,780 market affordable units (MARKS) remain In Washington DC: 34,000 affordable rental homes were lost between 2005 and 2013 In Metro DC: 150,000 households pay over 50% of their income on rent. Most market affordable units are lost to rent increases and rising land values. 5

6 Why: Acute Need => AHMP Goals 6

7 How: Community Relationships Over Time Mission-based partners Faith based, other nonprofits (eg APC, American Legion, Red Cross) Long term market changes in commercial industries - site consolidation and obsolescence Outmoded retail, auto dealerships (the Jordan) Preserve older garden-style as affordable (Westover, Buchanan) Land banking, demolition and new construction Mid-rise (the Springs) High-rise (Queens Court) Lee Highway urban fabric fit with Affordable Housing prototypes Building size around 100+ unit range is efficient for financing and operations in smaller project sizes than many market rate developments Sites under one acre Side-by-side production of market rate rental or for-sale projects Fairlington, Beauregard projects Excess, surface parking on site of operating residential (C. Hills) Capitalize value in land can work on condo-owned land too Senior, age-targeted buildings as well as family oriented 7

8 How: Proven & Creative Solutions 8

9 How: Planning Momentum and Precedents for Success in Lee Highway Lee Highway visioning goals Economic vitality, sustainability, walkability, and affordability Retaining affordable housing so people who work here or grew up here can afford to live here Committed Affordable Housing fits among elements of good planning Hallmarks of nonprofit Rental assets (vs. for-sale) add variety and choice to housing stock Owner/operators with long term stake Quality execution Long term commitment to affordability Institutional, professional management Recent APAH projects - Arlington Mill and Springs Design award (AIA) Statewide sustainability award (Earthcraft) Land use/residential development deal award (ULI) Governor s award 9

10 Where: Concept and Execution content/uploads/sites/31/2016/11/leehighway_proposedstudyarea_ jpg 10

11 Where: Range of Opportunities Achieving affordable housing is doable along Lee Highway Range of opportunities project sizes and areas/nodes Copy precedents; or, innovative approach to new models Variety of feasible models o Preserve and refinance existing projects some with rehab o Redevelop current underutilized or obsolete sites o Infill of surface parking at existing larger projects o Fee simple or lease land, rental or condo tenure for mixed-use Visionary multi-building market rate projects add to supply of affordable units, too 11

12 Case Study: Trove (Wellington) Columbia Pike Developer is WRIT (Washington Real Estate Investment Trust) Infill of surface parking at existing Wellington Apts, 3.54 acre site Columbia Pike Form Based Code project to add 401 market-rate units 105 existing units will become committed affordable units Development to include public mini-park New 6-story building retains three existing mid-rise with total 711 units 105 units will be converted to committed affordable units, contractually obligated to remain affordable for 30 years. WRIT will pay for the CAF units using no County loans 12

13 Case Study: Trove (Wellington) Columbia Pike Our efforts to revitalize the Pike through innovative approaches to land use and zoning. show results, said County Board [then] Chair Libby Garvey. This is an example where a developer, by choosing Form Based Code, is maximizing this site s potential and adding both committed affordable and market rate housing to the Pike. The County approved the special revitalization district in 2013 to help achieve the community s vision o Sustaining a supply of housing along the Pike to serve a community with a broad mix of incomes, while o Improving streetscape environments o Fostering a walkable community This current case study showcases the potential for Lee Highway o Planning and development o Directions and outcomes 13

14 For more information on how to get involved with APAH, please contact: Laura London Associate Director, Real Estate Development Cheryl Ramp Director of Community Resources & Relations APAH s mission is to develop, preserve, own and advocate for quality affordable housing, and to promote opportunity for residents through partnerships and programs.