LOWER MERION TOWNSHIP AFFORDABLE HOUSING OPEN HOUSE JUNE 26, 2018

Transcription

1 LOWER MERION TOWNSHIP AFFORDABLE HOUSING OPEN HOUSE JUNE 26, 2018

2 PURPOSE Inform residents of affordable housing programs and supportive services available in the community

3 PARTNERS Lower Merion Affordable Housing

4 SPEAKERS Introductory remarks Commissioner Anthony Stevenson, Ward 4 Senator Daylin Leach Lower Merion Township Carissa Hazelton, Planner Emily Crane, Community Development Technician Lower Merion Affordable Housing - Mike Leibowitz, President Genesis Housing Corporation - Judith Memberg, Executive Director Montgomery County Housing Authority - Joel Johnson, Executive Director Montgomery County Housing & Community Development, Emma Hertz, Program Office Administrator Bryn Mawr Trust - Thomas Forker, Senior Vice President

5 WHAT IS AFFORDABLE HOUSING Affordable Housing is generally defined as housing costs that equal up 30% of a household s gross income. Cost Burdened: Housing costs = >30% gross income resulting in difficulty affording food, transportation, and clothing Includes utilities, taxes, insurance, condo fees In Lower Merion, 30% of homeowners and 45% of renters reported housing costs exceeding 30% of their gross income

6 WHAT IS AFFORDABLE HOUSING HUD Income Guidelines: Use Area Median Income (AMI) to determine income guidelines based on household size for different geographic areas. Extremely Low Income: Up to 30% of AMI 4 person Household = $26,200 Affordable Housing = $720/month Low Income: Up to 50% of AMI 4 person household = $43,700 Affordable Housing = $1,200/month Moderate Income: Up to 80% AMI 4 person household = $69,900 Affordable Housing = $1,900/month The median income in Lower Merion is high at $118,704, but nearly 30% of households earn less than $69,900 (not adjusted for household size)

7 ADDRESSING A NEED Home Value Median Value of owner-occupied units Pennsylvania: $166,000 Lower Merion: $558,200 Three times higher than Pennsylvania 10 % of owner-occupied units are affordable to a moderate-income household (valued below $199,999)

8 ADDRESSING A NEED Rental units Pennsylvania: 66.4% are rented for under $1,000/month Lower Merion: 18.5% (957 units) are rented for under $1,000 Age of housing: Predictor for needed rehabilitation Pennsylvania: 48.7% built before 1960 Lower Merion: 64.3% built before 1960

9 PROGRAMS OFFERED BY THE TOWNSHIP Residential Rehabilitation Program Provide financial assistance to income-eligible homeowners to rehabilitate owner-occupied homes. Up to 80% AMI Example: Family of four $69,900 (2018) 176 properties have been improved through this program ( ) The average cost of improvement to each home: $26,800 Funded through Community Development Block Grant program

10 PROGRAMS OFFERED BY THE TOWNSHIP Home Purchase Program Secure affordable housing for income-eligible families Up to 80% AMI Example: Family of four $69,900 (2018) Nine properties have been purchased through this program (20xx 2018) Funded through Community Development Block Grant program

11 AFFORDABLE UNITS RESULTING FROM PARTNERSHIPS AND ZONING INCENTIVES BACKGROUND 64 affordable, age qualified rental units Age and income limits established by the U.S. Department of HUD Section 202/8 Supportive Housing for the Elderly The project was funded through: Section 202 Housing & Development Assistance Fund of the Pennsylvania Department of Community Affairs Community Development Block Grant program A land lease agreement with the Township Name Address Criteria Contact Ardmore House Senior Apartments 75 Ardmore Avenue Ardmore, Pennsylvania Income qualified seniors Gross & Quade Phone: ardmore@gqmt.com

12 AFFORDABLE UNITS RESULTING FROM PARTNERSHIPS AND ZONING INCENTIVES BACKGROUND 53 affordable, age qualified rental units Redevelopment of a former PECO site Funded through a variety of sources including housing investment tax credits that subsidized the development of the senior apartment building Five of the 31 market rate townhomes were offered for sale to first time income qualified families at more than 50 percent below market value. The townhomes have since become market-rate. Name Address Criteria Contact Ardmore Crossing Apartments 213 West County Line Road Ardmore, Pennsylvania Income qualified seniors Montgomery County Housing Authority Phone:

13 AFFORDABLE UNITS RESULTING FROM PARTNERSHIPS AND ZONING INCENTIVES BACKGROUND 14 affordable rental units 11 one-bedroom units 3 two-bedroom units Privately funded by a for-profit developer. The project utilized zoning incentives to develop a 33-unit, marketrate apartment building on an adjacent lot and renovate the existing 14-unit apartment. Name Address Criteria Contact The Athens Apartments 11 East Athens Avenue Ardmore, Pennsylvania Low- to moderate-income households Berger Properties Phone:

14 AFFORDABLE UNITS RESULTING FROM PARTNERSHIPS AND ZONING INCENTIVES BACKGROUND 10 unit owner-occupied condominium development comprised of semi-attached homes Constructed and sold to lower income first-time homebuyers May be sold at market rate, but Township receives proportional share of the net proceeds of the sale of the home to support affordable housing programs Name Address Criteria Spring Avenue Townhouse Development Spring Avenue and Simpson Road Ardmore, Pennsylvania Market rate (formerly lower-income, first time homebuyers)

15 AFFORDABLE UNITS RESULTING FROM PARTNERSHIPS AND ZONING INCENTIVES CRITERIA Six affordable rental units Conversion of the historic building into apartments was completed in 1996 The project was funded through the Low Income Tax Credit program, in partnership with a local financial institution Name Address Criteria Contact 13 Saint Asaphs Road 13 Saint Asaphs Road Bala Cynwyd, Pennsylvania Low- to moderate-income households Main Line Executive Realty mler@comcast.net

16 Lower Merion Township Affordable Housing Open House Genesis Housing Corporation

17 Rent Versus Buy

18 Free Housing Counseling Free Classes every month in Norristown & offered in Lower Merion in the Fall Credit and Credit Scores Money Management Home Buying Individual counseling (after attending credit class)

19 Home Buyer Programs

20 PHFA Programs

21 PHFA Programs

22 PHFA Mortgage Credit Program

23 Renovation Loans Allow for the purchase of a home AND the money for repairs or renovations Purchase 200k + Renovation 50k = 250k Renovation Loan Two Types: FHA(203k) Limited & Standard Fannie Mae Homestyle

24 Limited 203(k) Maximum of $29,000 in repairs No minimum in repairs No HUD consultant required Standard 203(k) Minimum of $5,000 in repairs No maximum for repairs (up to FHA county limit) HUD consultant required Able to finance up to 6 months of PITI payments

25 Fannie Mae HomeStyle Renovation The HomeStyle is a Conventional Loan that allows borrowers to finance repair costs into one loan. Similar to the FHA 203(K) Loan

26 Homestyle Primary Residence Max loan size is $453,100 Any type of renovation or repair is eligible, as long as it is permanently affixed to the property. Renovations should be completed within a twelve-month period

27 Some tips Find lender experienced in Renovation Lending Plan on 45 days to close, once the contractor is approved Find licensed contractor ASAP Expect some delays in the construction process

28 Questions? Judy Memberg Genesis Housing Corp Follow us on Facebook!

29 Montgomery County Office of Housing and Community Development LOWER MERION AFFORDABLE HOUSING OPEN HOUSE JUNE 26, 2018

30 Montgomery County Office of Housing and Community Development provides a comprehensive, coordinated program that addresses housing, community, and economic development within Montgomery County.

31 Affordable Housing Programs 1) Fair Housing trainings to landlords, realtors, housing developers 2) Rehabilitation of owner occupied housing 3) Rental assistance to special needs populations 4) Grants for development of affordable rental housing 5) Grants/ loans to support home ownership 1) Acquisition/ rehab/ construction of homes through nonprofit developers 2) First Time Homebuyer s Program

32 First Time Homebuyer s Program Directed to assist low, moderate, and median income households interested in purchasing a home in Montgomery County. Eligible participants may receive assistance with down payment and closing costs. Participants will be required to complete a counseling package and meet with the counselor one on one to go over budget, credit, mortgage financing, and home ownership responsibilities. Funds for the program are supplied through the county s Affordable Trust Fund in coordination with the Recorder of Deeds Office.

33 First Time Homebuyer s Eligibility To be eligible for a loan, the household must: 1. Be a first time homebuyer or not owned a home within the previous three years; 2. Have a household income below the area median income; 3. Intend to occupy the property purchased as a primary residence; 4. Be creditworthy and able to qualify for a mortgage (Conventional, FHA, or VA) at or below the current market rate; 5. Currently reside and/or be employed full time within Montgomery County at the time of Program application and closing; 6. Complete the required counseling program prior to executing any contract of sale for the purchase of real estate; 7. Have a minimum of $3, liquid assets at the time of application (no gifts of cash or equity permitted towards the first 3%.)

34 Income Eligibility Limits FAMILY SIZE 80% MEDIAN INCOME MEDIAN INCOME 1 PERSON $ 48,950 $ 61,200 2 PERSON $ 55,950 $ 70,000 3 PERSON $ 62,950 $ 78, PERSON $ 69,900 $ 87,400

35 First Time Homebuyer s Program: Application Process Applications can be obtained from the Department of Housing & Community Development (610) The funds are available to all qualified applicants on a first come, first serve basis. Any eligible household interested in participating in the program must be income and loan eligible PRIOR to entering into an agreement of sale (or putting a deposit on a property). There is a $25.00 non refundable fee payable at the time of application.

36 Grant Terms 1. Grant amount is based on the financial need of the applicant s household, selling price of property, and household assets. 2. Assistance up to a maximum of 10% of the estimated affordable sales price for participants, not to exceed $10, Interest rate of zero percent (0%). 4. Repayment only if: Home is sold, conveyed, granted or otherwise transferred; Vacated or abandoned as a primary residence within 15 years from the date of purchase of the property; Used as investment or income producing property.

37 Q&A SESSION