Affordable. Broadway Corridor. Housing in. Dory Van Bockel Program Manager, PHB. April 24, 2018

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1 Affordable Housing in Broadway Corridor Dory Van Bockel Program Manager, PHB April 24, 2018

2 Area Median Income-AMI (aka Median Family Income-MFI) AMI%/ HH Size % $15,690 $17,940 $20,190 $22,410 60% $31,380 $35,880 $40,380 $44,820 80% $41,850 $47,800 $53,800 $59,750 1

3 Income for Housing in Portland On average, Black and Native American households in Portland cannot afford to rent a two-bedroom apartment. Af. American median income = $ 27,923 N. American median income = $ 22,247 Average median income= $ 55,571 As published in the October 2015 Portland State of Housing Report ACS data $698 rent $556 rent $1389 rent 2

4 Housing Relationships People of color Single mothers Foreign-born residents Lower income Lower home ownership rates Lower wealth Lower opportunities Housing Stability better Health, Education and Financial outcomes for families 3

5 Cost of Housing There are approximately 55,000 cost burdened households below 80% AMI 4

6 Current Rents Compared to Income Average Central City rent for new construction: $2,000 80% AMI rent: $1,100 $900 rent discount per month 60% AMI rent: $840 $1160 rent discount per month 5

7 Housing Programming Since 2000, 80,000 new individuals (29,000 households) have been added to Portland 123,000 new households anticipated between 2010 and 2035 In 2014, 1828 multi-family units added; permits issued for another 4236 units 10,000 more affordable units (80% MFI and below) are needed over the next 20 years (information via ACS and Portland Comprehensive Plan) 6

8 Housing Set-Aside for Broadway Corridor Portland Housing Bureau partnered with Prosper Portland to acquire the USPS site - $14.5M of the total $88M Council goal that 30% of the housing onsite would be affordable 720 out of 2400 units Financial study determined best strategy is for PHB to have control of two development sites 7

9 Return on Cost with Inclusionary Housing Compared to Pre-Inclusionary Housing 30% at 0 60% MFI; 10% IH at 60% MFI $18,700,000 30% at 0 80% MFI; 20% IH at 80% MFI $42,000,000 35% at 0 80% MFI; 20% IH at 80% MFI $27,000,000-1,619,765-49,763,423-40,983,

10 Affordability and Land Value With Inclusionary Housing, the non-phb sites contribute 10% of units as affordable at 60% AMI most beneficial to projects underlying land value - quicker repayment of Prosper Portland s line of credit reduces the gap for PHB to leverage the required affordable units 9

11 Collaboration Case Studies HR&A 10

12 Housing Programming Based on the level of density and Framework Plan assumptions: Estimated total residential units, depending on programming = 2400 o30% affordable = 720 o20% developed by PHB = 480 o10% of total units - developed by private market through Inclusionary Housing (IH) = 240 Regardless of ultimate programming onsite, there is a commitment to provide the affordable housing Units affordable up to 60% AMI 11

13 Affordable Units through Inclusionary Housing The 240 units affordable at 60% AMI will receive: o Ten-year tax exemption on all residential portions of projects with affordable units o SDC exemptions on affordable units only o Affordable Housing CET exemption on affordable units only Projects are providing affordable units rather than paying the fee-in-lieu PHB will be reviewing each building permit against the IH requirements 12

14 PHB Development PHB s control of the 2 sites allows for maximum control and flexibility Potential partnership with developers o providing gap financing through non-profit partnerships o mixed-income projects result in most opportunities for low-income residents o deeply affordable units 13

15 PHB Investment Assuming $100,000 average investment for unit: PHB needs at least $48M Funding allotted to PHB Projects in Broadway Corridor River District TIF $5.5M Anticipated CET Revenue in BC $7.9M Total $12.4M 14

16 PHB Development Phase I PHB development of the two sites Phased, with 1 project as soon as possible 240 units Maximizing density on the site presumably taller/denser construction 15

17 PHB Funding Gap = $35.6M Other possible revenue: Short-term rental Housing Investment Fund Federal (CDBG/HOME) General Fund Additional citywide CET funds Costs could increase for either project, but the 2 nd project in particular, which could be another 5 years out 16

18 Additional Information 16