Affordable Housing Workshop Gladys Cook April 20, 2017 Punta Gorda, FL Is Workforce Housing an Insulting Term?
Our Thanks to the Florida Housing Catalyst Program Sponsored by the Florida Housing Finance Corporation
FHC Conference
FHC Publications Housing Network News Journal Home Matters Report Creating Inclusive Communities in Florida Guide to Affordable Housing Funding Sources CLT Primer Landlord Collaboration Guidebook Residential Rehabilitation Guide Small Scale Rental Guide to Development and Operation Homeward Bound Special Needs Housing
Request a Site Visit to prepare for AHAC, Monitoring, or more Call (800) 677-4548 Up to 6 hours of training in your office Review of Files, Staffing, Procedures Discuss new and existing strategies
The Florida Housing Coalition, Inc., is a statewide nonprofit organization whose mission is to bring together housing advocates and resources so that all Floridians have a quality affordable home and suitable living environment.
Workshop Objectives Overview of demand for affordable housing in SW Florida Overview of supply mechanisms in Region Review of Terms and Implications Discussion of current issues and topics Exchange of ideas
Questions?
Legislative Update
Alert: Ask House to Move to Senate Position
SHIP Distribution Estimates 2017-2018 Collier Naples Charlotte Punta Gorda 3,309,877 199,323 1,523,080 180,017 Glades 350,000 Hendry 390,074 Lee Fort Myers Cape Coral Sarasota Sarasota 4,352,995 737,945 1,697,885 3,462,372 539,908
Other Bills CRA sunset Brandeis Task Force on Local Government Regulations
The Mission: Ending Homelessness to First Time Homeownership Opportunities
What is Affordable Housing? It is safe and decent housing- it differs from market rate housing in two ways: 1. The income of the family living in the housing 2. The financing of the housing
Income Restricted Family must be income eligible: This is defined in terms of the area median income as adjusted by family size: Extremely low income family income is below 30% of the area median income (AMI) Very low income- below 50% of AMI Low income- below 80% of AMI Moderate income- at or below 120% AMI Workforce- at or below 140% AMI
Safe, Decent and Affordable Does not include housing that is substandard Housing is affordable if family is spending no more than 30% of income on housing costs If family spends over 30%, it is assumed they are cost burdened If family spends of 50% of income on housing costs, they are severely cost burdened There is not a societal concern for those whose income exceeds 120% or 80% of AMI.
Financing Lower payments for rent or mortgage result in housing costs being affordable Financing mechanisms that bring these costs down are the result of government subsidies Ex. State Housing Initiatives Partnership or Low Income Housing Tax Credits For more information see FHC s guidebook Affordable Housing Resource Guide - also workshop May 25 in Tampa.
Affordable Housing is Market Rate Housing That is built by the private sector with Financial Subsidy from Government This allows developer to pass savings on to the buyer or renter Differs from traditional public housing built in large barrack style Government no longer builds and operates housing unless in partnership with private sector
Affordable housing is indistinguishable from market rate housing Physical appearance Costs are the same
Who Lives in Affordable Housing? Workforce teachers, teachers aides, nursing assistants, medical techs, retail workers, government employees, emergency services providers, law enforcement, hotel clerks, legal assistants, bus persons, hair stylists, cafeteria workers, chefs, wait staff, nurses, police officers, cashiers, medical assistants, instructors, flight instructor, sales associate, claims assistant, hotel maids, bus drivers, child care staff.
Cost Burdened Low Income Households in Florida
Low income families with severe cost burdens
Mismatch Between Rents and Wages Comparison of Median Wages for Common Occupations and 1-Bedroom Fair Market Rents.
Mismatch Between Rents and Wages Comparison of Median Gross Rent with Affordable Rent at Median Renter Income in Florida
Who lives in affordable housing The Elderly 10% of all elderly households in Florida (65 and up) live at or below the poverty level There are 206,869 lower income, cost burdened renter households paying more than 30% of their income on housing 66% are paying more than 50% of their income on housing costs
Who lives in affordable housing People with disabilities And those who may be homeless People who rely on SSI income receive $735 per month. Fair market rents would consume over 100% of that income Set asides in affordable housing projects can meet these needs Intentional communities and shared housing may be provided
Why Include Affordable Housing in Your Community? It s the law: Florida Statutes Chapter 163.3177(6)(f) Housing Element consisting of principles, guidelines, standards, strategies to be followed in- Housing all current and anticipated residents Providing adequate sites Eliminating substandard housing
Housing Drives Economic Development Primary concern of companies making expansion decisions Traffic congestion from commuting negatively impacts business and taxes budgets Limits foreclosure and forfeits; Construction multiplier Education Benefits Health Benefits Jail and Hospital savings
Must be data driven Shimberg Center for Affordable Housing provides every local government with data showing how many units of homeownership and rental units are needed Housing Matters Report informs Legislature of the importance of a home s impact on peoples health, education, personal success, public safety and the economy Homeless Information Management System
Ending Homelessness
Loss of Affordable Rental Housing
Challenges for Homebuyers Housing costs exceed wages for many occupations Median Income of Selected Occupations Compared to the Income Needed to Afford a Median-Priced Home (2016 Q3)
Median Income of Selected Occupations Compared to the Income Needed to Afford a Median-Priced Home (2016 Q3)
Housing for Special Needs SHIP 20% setaside Persons with disabilities Youths aging out of foster care Victims of domestic Violence Persons receiving SSI or SSDI Persons receiving veterans benefits
So- Is Workforce Housing an Insulting Term? Workforce housing
What about Attainable housing Sustainable housing Balanced housing Community housing Public housing Subsidized housing
Lets look at SW Florida Counties Sarasota Charlotte Lee Glades Hendry Collier
Number of Assisted Units County # Assisted Units County # Assisted Units Collier 4,912 Sarasota 2,195 Lee 6,277 Glades 78 Charlotte 2,139 Hendry 645 Source: Shimberg Center
Assisted Housing by Types by County 70 63 60 50 40 39 30 27 29 26 20 10 0 3 1 2 11 11 12 5 5 5 6 1 2 1 19 13 7 8 7 4 2 2 3 3 3 Collier Lee Charlotte Sarasota Glades Hendry Properties Family Family/Elderly Elderly Disability Homeless Farmworker 4
Funding Sources Federal State Local Private
U.S. HUD Programs HOME CDBG ESG NSP Affirmatively Furthering Fair Housing
USDA- Rural Development 502 Homeowner loan- direct 504 Homeowner loans and grants- repairs 514 Multifamily Farm Labor 515 Multifamily Senior suspended 516 Multifamily Family 538 Loan Guarantees Mutual Self Help Multifamily Rental Assistance
Florida Housing Finance Corporation
FHFC Main Programs Elderly Housing Community Loan Home Investment Partnerships Low Income Housing Tax Credits Multifamily Energy Retrofit Program Multifamily Mortgage Revenue Bonds SAIL PLP
Requests for Applications (RFA s) Rule Workshops RFA Schedule Costs Competition
Florida Housing Finance Corp. RFA s: 2017 samples HOME for rental in rural areas SAIL to preserve farmworker or fishing worker Housing Credit and SAIL for Homeless and Disabled Smaller permanent supportive housing for persons with developmental disabilities Mid-sized County Housing Credits- in the Fall
Low Income Housing Tax Credits (HC) Allocating agency Florida Housing Finance Corporation Largest source of funding for rental development in the state Awarded to developers of affordable Multifamily rental Dollar for dollar reduction in federal tax liability Credits are sold to corporations to reduce their tax liability through syndication to become equity investments used to finance affordable rental units
9% Credit Example $11,000,000 total development cost (TDC) $1,000,000 land and other ineligible costs 100% of units are low income [$10,000,000 eligible basis] X [.09 tax credit] X [100% low income] = $900,000 credit request X [10 years] X [$.95 syndication rate] = $ 8,550,000 or 78% of TDC Gap of $2,450,000
Pre-application research QAP(Qualified Allocation Plan) Proximity- points Limited Development Areas Areas of Opportunity Local Government Preferences Who can apply What was funded before
Underwriting Requirements Appraisal Market Study Capital Needs Assessment for existing properties Survey Environmental (soil, wetlands, wildlife, historic)
SHIP Local Housing Assistance Plan Annual Allocation 75% Construction 65% Homeownership 30% Very Low Income 30% Low Income 20% Special Needs Manufactured Housing Ok Rapid Rehousing Rental Assistance
Change in SHIP for Rental Assistance- Effective July 1, 2016- SB 1534 (c) A rent subsidy program for very-low-income families with at least one person with special needs as defined in s. 420.0004 or one individual experiencing homelessness as defined in s. 420.621. The period of rental assistance may not exceed 12 months for an eligible household.
Rapid Rehousing An approach that helps people who are homeless move into permanent housing as quickly as possible Permanent Housing- a rental unit where client signs a lease Minimal Program requirements beyond the lease Minimal barriers to entry ( no minimum income requirements, sobriety, employment)
Does Rapid Rehousing Really Work? YES! Reduces homelessness Reduces the length of time a person is homeless Reduces returns to homelessness Minimizes trauma due to being homeless
Collaboration Coordinate with Continuum of Care provider to: Identify Rapid Rehousing applicants Assist and identify appropriate and accessible permanent housing Administer Individualized short term financial assistance Utility Deposit Security Deposit Rental subsidy for a defined time period Provide short term case management
Local Resources Development Incentives General Revenue Surplus Land Mentoring and Support
Affordable Housing Advisory Committee (AHAC) AHAC recommends regulatory incentives: Florida Statute 420.9076 Rule 67-37.010 Review the established policies and procedures, ordinances, land development regulations, and adopted local government comprehensive plan and recommend initiatives to encourage or facilitate affordable housing while protecting the ability of the property to appreciate in value.
Florida Community Loan Fund Statewide CDFI Mission-based nonprofit organization dedicated to improving low-income communities throughout Florida by delivering flexible financing and staff expertise Sponsor Federal Home Loan Bank Affordable Housing Lending Community Facilities Community Health Facilities New Market Tax Credits
Predevelopment Loan Program Up to $750,000 for predevelopment expenses Acquistion, permits, surveys, appraisals Available to: Local Governments Nonprofits Public Housing Authorities 1% interest no payments 3 years Must complete project in 3 years
Homeless Challenge Grants Department of Children and Families Annual Appropriation- $5 Million? CoC operating grants
Homeless Housing Assistance Loans Florida Housing Finance Corporation Technical Assistance Annual RFA s with Tax Credits and SAIL
Developmental Disability Grants Florida Housing Finance Corporation Annual appropriation/allocation $10 million Small Projects Large Projects Must show services and community engagement
Habitat for Humanity Collier Lee-Hendry Charlotte Sarasota- x2 Glades-?
Community Land Trusts
Community Land Trusts Growing in Florida Preserve subsidy, create permanent inventory Ground Lease Mechanism Resale Formula Option to purchase CLT homes
What is a Community Land Trust? The vehicle of separating land from building. The nonprofit that holds title to the land and leases the improvements subject to restrictions that keep the improvements affordable in perpetuity.
What is the Purpose of a CLT? To make homeownership more affordable To keep the home affordable forever
How Does it Work? A CLT acquires and retains ownership of land for the benefit of the community and sells or rents the improvements to income eligible families. Homebuyers purchase the house and have the right to use the land under a 99 year lease agreement with the CLT.
Key Benefits for the Home Buyer Price of the home is now affordable Staying in the community without being a renter means: Mortgage payments instead of rent payments Return of equity upon resale Mortgage interest payments are deductible Financial stability able to save without fear of rent increases or loss of housing
Key Benefits for the Public Subsidy is retained Permanent stock of affordable housing is created A nonprofit is providing stewardship
Key to the Success of the CLT Partnership and support of the local government Donation of land to the CLT A highly functioning nonprofit with the ability to provide a pipeline of qualified home buyers A fully informed and engaged community of prospective home buyers A fully informed and engaged lending community Financing from federal, state, and local sources
Key Provisions of the Ground Lease Income restrictions Use restrictions Taxes Inheritance Resale Formulas Shared Appreciation Indexes
Housing Counseling HUD Grants for HUD Approved Agencies Hardest Hit Participation
HUD Approved Housing Counseling Agency (HCA) HCAs are organizations supported or sponsored by HUD and administer housing counseling services across the country. HCAs are eligible to apply to HUD for grant funding under its Notice of Funding Availability (NOFA). Discretionary appropriations by Congress Competitive grant process. HUD funding not intend to cover all counseling costs
114 Florida HUD Approved Counseling Agencies None based in Glades, Desoto, Okeechobee or Highlands Counties
Housing Counseling Services Pre-Purchase Homebuyer Education Workshops Pre-Purchase Counseling Preventing Mortgage Delinquency Workshops Mortgage Delinquency and Default Resolution Financial, Budgeting and Credit Workshops Financial Management/Budget Counseling Home Improvement/Rehabilitation Counseling Rental Housing Counseling Services for Homeless Counseling
Questions?
Our Thanks to the Florida Housing Catalyst Program and The SWFRPC Sponsored by the Florida Housing Finance Corporation