Fighting Gentrification & Displacement with Housing Acquisition Moderator: Peter Cohen, Council of Community Housing Organizations Panel: Karoleen Feng, Mission Economic Development Agency Rebecca Foster, San Francisco Housing Accelerator Fund Geeta Rao, Enterprise Community Partners Deven Richardson, San Francisco Housing Development Corporation Jason Vargas, East Bay Asian Local Development Corporation NPH Conference 2018
The Bay Area faces a regional displacement crisis Source: Urban Displacement Project
In San Francisco, and across the region, displacement disproportionately affects low-income communities Source: Laurel Engbretson, Impact Assessment 2018
Across the Bay Area, acquisition is being used to counter widespread displacement San Francisco: Small Sites Preservation (SSP) Program Oakland: Acquisition Program Bay Area: Metropolitan Transportation Commission s Preservation Pilot Bay Area: CASA
Small Sites Program The Small Sites Program was designed to protect lowincome residents from eviction while also increasing the supply of permanently affordable housing in the city. 305 San Carlos Source: SFHAF
The Small Sites Program is targeting households at risk of displacement 90% of Small Sites properties are located in high-risk neighborhoods Picture and data source: Laurel Engbreston, SSP Impact Report 2018
Most people protected by Small Sites would likely be displaced if they had been evicted Of households reporting from a 2018 Impact Report: 78% are low income 54% are families with children 32% have at least one elderly family member 24% have at least one disabled family member Source: Laurel Engbreston, SSP Impact Report 2018
SFHAF provides bridge financing for Small Sites and other housing programs that need innovative financial tools.
San Francisco Bay Area Preservation Efforts Bay Area Preservation Pilot $10M MTC seed funding (top loss) with $39M in CDFI financing midterm-loan product up to 10 years target goal: 200-400 units SF Small Sites Program grew from $3M to $116M completed projects: 26 buildings, 184 units and 9 commercial spaces 323 people stabilized pipeline: 14 buildings, 154 units and 19 commercial spaces Oakland Measure KK $100M from $600M infrastructure bond 1 st issuance of $17M: 6 projects (238 units) average of $62K per unit MidPen, Garland Plaza, Sunnyvale SFCLT, Mission, San Francisco EBALDC, 10 th Street, Oakland
Bay Area Preservation Pilot Fund Metropolitan Transportation Commission (MTC) Program Structure ❿$49 million revolving fund with $10 million top loss from MTC. Enterprise and LIIF will originate and manage loans ❿Minimum project size of 4 units ❿Affordability 75% of units for households at 80% AMI ❿Maximum loan size of $7 million ❿Term of up to 10 years BAPP 4+ units Bay Area
BAPP IMPACT Once a property is acquired using a BAPP loan, developers will have up to 10 years to stabilize the property The loan will cover finance acquisition costs as well as carrying costs such as life and safety repairs and reserves. Residents will not be displaced Developers will have time to determine a financial plan to ensure the long-term affordability of the property. Beyond 10 years, developers will secure Low-Income Housing Tax Credits and/or other existing sources of affordable housing financing to ensure long-term affordability. LIIF and ECLF estimate 200-400 homes will be taken off the speculative market and positioned to maintain permanent affordability. This pilot phase has the potential to be scaled up after evaluation by Program Managers and the Working Group.
Common Financing Challenges Financial Feasibility Extremely low rents from existing tenants Timing Due diligence reports property condition & environmental Closing process with City Determining rehabilitation scope and budget Significant deferred maintenance Seismic retrofit Property & Asset Management Staff capacity vs. outsourcing PM Overseeing rehabilitation process
Fighting Gentrification & Displacement with Housing Acquisition Moderator: Peter Cohen, Council of Community Housing Organizations Panel: Karoleen Feng, Mission Economic Development Agency Rebecca Foster, San Francisco Housing Accelerator Fund Geeta Rao, Enterprise Community Partners Deven Richardson, San Francisco Housing Development Corporation Jason Vargas, East Bay Asian Local Development Corporation NPH Conference 2018