Washington Park Housing Development Presented by April 5, 2014
Our Mission To foster nonprofits that create quality housing and strong neighborhoods; to work collaboratively; and to create decent housing that is affordable to low- to moderate-income people in a nondiscriminatory manner.
BAND Is A 501( c )( 3 ) member organization that advocates for affordable housing and community economic development in Broward County; BAND fosters the growth of Broward County Community Development Agencies and encourages partnerships among its member organizations. BAND provides opportunities for information sharing and networking among organizations interested in addressing the affordable housing challenges of Broward County.
Our History Throughout our history, BAND has been at the forefront of addressing the affordable housing needs of Broward County residents. Through numerous collaborative efforts, BAND has: Developed18 new construction, scattered site single-homes in the City of Hollywood; Acquired and rehabbed over 140 single-family homes throughout Broward County utilizing Neighborhood Stabilization Program (NSP) funding. As a result of the NSP program, over 125 LMI families are homeowners and blighted and distressed communities have been stabilized.
Project Description 3.5 acre property with 22 existing rental units currently developed on the site, located in the Washington Park community of Hollywood. Amenities Include: Gated Entry Elevators Clubhouse Pool Tot Lot
Veterans Families The Vision Seniors Is to create a housing development that is representative of the South Florida community. This Washington Park housing development will include a mix of affordable housing units with set asides for seniors and veterans.
Market Assessment by Zip Code White population: 25,459 Black population: 5,249 American Indian population: 75 Asian population: 1,097 Native Hawaiian and Other Pacific Islander population: 32 Other race population: 146 Two/more races population: 680 Hispanic/Latino population: 13,183
Estimated Median Household Income in 2011: This Zip Code: $52,363 Florida: $44,299 Percentage of Family Households: This Zip Code: 43.2% Florida: 45.1% Residents with income below the poverty level in 2011: This Zip Code: 10.2% Florida: 17.0% Median gross rent in 2011: $1,119
Market Assessment of Target Community Washington Park / Beverly Park Population by race White (58.3%) of population Black (41.7%) of population Median household income: $42,628 Unemployment: 8% Residents below the poverty level: 12% Median house or condo value: $96,968 Median contract rent: $848 Housing Stock Age: Over 30 years (50%) Lack of affordable rental units
Additional Needs Data Homeless Population Statistics There are over 4000 homeless individuals in Broward, of which 1/3 or about 1320 are children. One of the major factors contributing to this is lack of affordable housing. Once a person loses their job, place to live, etc., they have to start at the bottom usually with part-time hours, lower rates of pay and little or no savings. Additionally, many employers keep the hours low as to remove the need to provide benefits. Being that this area's median income is at the low end of the county, there is a greater need for affordable housing.
Project Concept The project will consist of the acquisition of the 3.5 acre property with the 22 rental units and 1300 sq. ft. club house that are currently developed. The project is currently site planned for an additional 42 units (mostly 3/2). BAND will complete the buildout of two additional buildings. BAND is proposing to reduce the square footage of the new units and increase the unit density by 12 units (adjusting unit make up to 2/2 and adding1/1).
Existing Site as of April 2014 Walk Score: 52/100 (Somewhat Walkable) Transit Score: 36/100 (Some Transit) Land Size: 3.5 Ac+/- Zoning: RM-18 Approved Site Plan for 64 Units
Housing Design Concepts Blend in with existing structure and neighborhood Garden Style Apartments 3-4 Stories
Collaborations BAND will look to partner with its member organization to: Provide property management services Offer onsite supportive services for seniors and veterans Prepare renters for homeownership through onsite financial literacy and homebuyer education
Other Collaborators United Way of Broward County (Mission United) Broward County Elderly and Veterans Operation Sacred Trust Volunteers of America Salvation Army and Broward Outreach Centers.
Financial Feasibility PHASE 1 Project AS-IS Additional Units Acquisition 2,000,000 2,000,000 Remaining Capital Needed 9,348,664 11,490,228 Cost/Door 222,587 212,782 Bldg B Units 24 32 Bldg C Units 18 22 Bldg A Financing (1,500,000) (1,500,000) Cash Required 500,000 500,000 PHASE 2 Cost of Bldg B 5,342,094 6,809,024 Bldg B Financing (2,001,000) (2,523,000) Cash Required 299,000 377,000 Mezzanine Value 3,042,094 3,909,024 PHASE 3 Cost of Bldg C 4,006,570 4,681,204 Bldg C Financing (1,392,000) (1,740,000) Cash Required 208,000 260,000 Mezzanine Value 2,406,570 2,681,204 SUMMARY Total Cost 11,348,664 13,490,228 Total Financing Requirement 4,893,000 5,763,000 Total Cash Requirement 1,007,000 1,137,000 Total Mezzanine Requirement 5,448,664 6,590,228 CASH OPPORTUNITIES Developer Fee Equity 1,500,000 1,500,000 City of Hollywood Request 500,000 500,000 Broward Housing Finance Authority 500,000 500,000 HOME Funds 350,000 350,000 Total Cash Opportunity 2,850,000 2,850,000 Critical Period Average DCSR 1.30 1.34
Project Pro Forma PROJECT "AS-IS" YEAR 1 YEAR 2 YEAR 3 YEAR 4 Gross Potential Revenue $326,496 $623,042 $853,015 $870,075 6% Less: Vacancy Factor $(19,590) $(37,383) $(51,181) $(52,205) Effective Gross Income $306,906 $585,659 $801,834 $817,871 Less: Operating Expenses $(127,105) $(262,963) $(365,212) $(375,767) Less: Replacement Reserves $(5,500) $(11,500) $(11,845) $(16,000) Net Operating Income $174,301 $311,196 $424,777 $426,103 ADDITIONAL UNITS YEAR 1 YEAR 2 YEAR 3 YEAR 4 Gross Potential Revenue $326,496 $719,714 $999,956 $1,019,955 Less: Vacancy Factor $(19,590) $(43,183) $(59,997) $(61,197) Effective Gross Income $306,906 $676,531 $939,959 $958,758 Less: Operating Expenses $(127,105) $(308,147) $(433,078) $(445,600) Less: Replacement Reserves $(5,500) $(11,500) $(11,845) $(16,000) Net Operating Income $174,301 $356,885 $495,036 $497,158 6 % Current Debt Service $(111,824) $(236,527) $(323,277) $(323,277) Current DCR 1.56 1.32 1.31 1.32 Current Debt Service $(111,824) $(269,058) $(377,496) $(377,496) Current DCR 1.56 1.33 1.31 1.32 Target DCR 1.30 Target DCR 1.30
Sources & Uses Debt Financing Opportunities CASH OPPORTUNITIES Developer Fee Equity Gibraltar Private Bank & Trust City of Hollywood (HOME, CDBG, NSP) Section 221 (d)(4) Broward Housing Finance & Community Development (HOME, CDBG, NSP, etc.) Federal Home Loan Bank Florida Housing PLP
Community Benefits Residents will benefit and engage with neighbors of a variety of ethnic groups, social groups, and income ranges Residents will have direct access to programs and community events offered by property management company Increase population and consumer spending within the City of Hollywood Increased tax revenue to the City of Hollywood
Threats & Challenges Threats NIMBYSM Political Issues Regulatory Issues Challenges Stigma of Affordable Housing Political support could change High Impact Fees