New Castle County Workforce Housing Program Annual Report to County Council FY 2017
What is Workforce Housing? Voluntary Partnership with the local construction industry to include affordable homes in new communities. This initiative does not use Federal, State or County funding. Developers received density bonuses and relief from County Code if they agreed to provide affordable housing. Workforce Housing is interspersed within the community. Units are indistinguishable from market rate homes. Targets less than 80% and 120% AMI households.
Housing Counseling Prior to closing, all borrowers must be certified as having completed a Homeownership Education Program with a New Castle County recognized HUD approved housing counseling agency.
Additional Information Do NOT have to be a first time homebuyer Can own another home (rental income considered) May combine other New Castle County loan programs if qualified
New Requirements Housing Uniformity (other NCC programs) No more than 52% debt-to-income ratio Asset disqualifier of more than 20% of purchase price (subject to approval) Effective on purchase agreements signed after July 1, 2017
Housing Uniformity Seminar Held on June 28, 2017 in conjunction with National Homebuyers Month (June) Invited Real Estate professionals Lenders Housing Counselors Real Estate agents Workforce Housing Builders (5 participated) Over 60 people attended
Income Chart Effective April 14, 2017 Number in Family Less than 80% of Area Median Income Less than 100% of Area Median Income Less than 120% of Area Median Income 1 $46,600 $58,300 $69,960 2 $53,250 $66,600 $79,820 3 $59,900 $74,900 $89,880 4 $66,550 $83,200 $99,840 5 $71,900 $89,900 $107,880 6 $77,200 $96,600 $115,920 7 $82,550 $103,200 $123,840 8 $87,850 $109,900 $131,880 $83,200 Median Income (FY 2017), family of four New Castle County (Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metropolitan Statistical Area) http://www.huduser.org/portal/datasets
Workforce Housing Applicant Income 5% 47% 20% Less than 80% Less than 120% Not Approved Pending 28% 189 Applications received
Workforce Housing Applicants Applicants must submit an application, paystubs, bank statements, Federal income tax return and a photo ID. Income qualification is completed by our office and certification issued or denied. Fiscal Year # Applications % Increase 2012 4-2013 20 500% 2014 64 320% 2015 80 125% 2016 131 68% 2017 189 31% 2018* 56 27%* * To date compared to same time last year
Homeownership Monitoring Homeownership units require additional work like obtaining mortgage documents and housing counseling certification. Settlement documents and coordination with attorney also required. After settlement, homeownership units are monitored annually for 15 years. Homeowners must submit a certification, copy of their ID, utility bill and homeowner insurance declaration. Fiscal Year Applicants Homeowners Increase % 2012 4 0-2013 20 0-2014 64 2 200% 2015 80 13 550% 2016 131 16 23% 2017 84 40 60% 2018 22* 12* 25%* TOTAL 83 * To date compared to same time last year
Rental Monitoring Rental units are monitored annually. Leasing agents must submit a new lease showing tenant is still residing in the unit. Rental Development FY2017 # Applications Units Rented Total Required Units % Completed Bayberry 38 21 39* 85% Emblem at Christiana 37 22 20 100% High Hook Farms** 3 2 ** ** Marra Landing 0 4 6 100% Reserve at Becks Pond 14 41 48 100% * Bayberry is still under construction ** High Hook Farms rentals are homeownership units experiencing a hardship Spring Oaks is a Workforce Housing development. According to their agreement, they are able to have their off-site units at Cheltenham Village. These applicants are already income qualified. However, annual monitoring is required for these units and tenants. Rental Development Units Rented Cheltenham Village 25
Annual Monitoring During the construction/sales phase, the Department of Community Services completes on-site annual monitoring inspections for compliance. Meetings occur with developer and sales staff. Bayberry North, Middletown Darley Green, Claymont Emblem at Christiana, Newark Goldsborough Farm, Townsend High Hook Farms, Middletown Ironside Crossing, Newark Marra Landing, Wilmington Ponds of Odessa, Townsend Preserve at Robinson Farms, Townsend Reserve at Becks Pond, Newark Spring Oaks, Middletown
Bayberry North Located in Middletown, Delaware on Boyd s Corner Road According to the agreement, Bayberry North can offer rentals and for sale units on-site or off-site to moderate (120% AMI) income households Currently offering on-site rentals Community club/lake house is complete Total homes planned (951) Workforce Housing units (39) 85% Complete!
Bayberry North Single Family Detached House Approximately 2,100 square feet 4 bedrooms 2.5 bathrooms 2 car garage Appliances included Window treatments and lawn service Currently renting for $1,950/month* Maximum Affordable Rent per New Castle County $2,350/month *Subject to change
Bayberry North Two-Story Attached House Approximately 1,810 square feet 3 bedrooms 2.5 bathrooms 1 car garage Appliances included Window treatments and lawn service Currently renting for $1,650/month* Maximum Affordable Rent per New Castle County $2,230/month *Subject to change
Bayberry North Three-Story Attached House Approximately 1,800 square feet 3 bedrooms 2.5 bathrooms 1 car garage Appliances included Window treatments and lawn service Currently renting for $1,500/month* Maximum Affordable Rent per New Castle County $2,230/month *Subject to change
Bayberry North
Darley Green Located in Claymont, Delaware on Darley Road New Castle County and developer finally reach agreement; New Master Workforce Housing Agreement approved on December 14, 2016 According to the agreement, Darley Green will offer Workforce Housing (WFH) units on-site with 65% to be homeownership LC Homes now selling WFH units Total homes planned (869) Workforce Housing units (107) 10% Complete!
Darley Green Example Workforce Housing Unit LC Homes The Claymont Model Approximately 1,980 square feet 3 bedrooms 2 bathrooms 1 Car Garage Market rate $254,900* *Subject to change
Darley Green Example Workforce Housing Unit Montchanin Builders The Emerson Model Approximately 1,350 square feet 2 bedrooms 1 bathrooms 1 Car Garage Market rate $244,865* *Subject to change
Darley Green Montchanin Builders hosted New Castle County and guests for a 75 th Workforce Housing celebration during Homebuyer Month (June) Current Maximum Sales Price is $268,767.61 and it excludes extras or premiums that may be requested by the purchaser. Thirteen (13) units have been sold and there are five (5) sales pending.
Emblem at Christiana Located in Newark, Delaware on Stanton-Christiana Road Offers rental units to low (80% AMI) and moderate (120% AMI) income households Total homes planned (245) Workforce Housing units (20) 100% Complete!
Emblem at Christiana Market Rate for apartments 1 BR $1,345+ 2 BR $1,710+ 3 BR $1,875+ Maximum Affordable Rent 80% AMI 1 BR $1,230 2 BR $1,360 3 BR $1,500 Maximum Affordable Rent 120% AMI 1 BR $1,890 2 BR $2,110 3 BR $2,330
Goldsborough Farms Located in Townsend, Delaware on Fieldsboro Road According to the agreement, Goldsborough Farms can offer rentals and for sale units on-site or off-site to low (80% AMI) or moderate (120% AMI) income households Currently offering on-site for sale units Four (4) units have been sold to below 120% AMI households. Seven (7) units must be sold to low-income households per staging plan Handler Homes is handling next phase Total homes planned (143) Workforce Housing units (13) 31% Complete! One homeowner is going through the foreclosure process DTI requirement
Goldsborough Farms Example Workforce Housing Unit The Falston II Model 2,475 square feet 3 bedrooms 2.5 bathrooms Market Rate $292,900* Maximum Allowable Sales Price for 3 BR per New Castle County $286,200 (80% or below) $454,800 (81% to 120% AMI) *Subject to change
High Hook Farms Located in Middletown, Delaware on Vance Neck Road Total homes planned (390) Workforce Housing units (78) 69% Complete! According to the agreement, High Hook Farms can offer rentals and for sale units on-site or off-site to moderate (120% AMI) income households Currently offering on-site for sale units Fifty-four (54) total WFH units have been sold Forty-three (43) units have been sold to 120% AMI Eleven (11) units have been sold to 80% AMI Eight (8) sales currently pending Two homeowners have experienced a hardship and are currently renting their units
High Hook Farms Example Workforce Housing Unit The Wexford Model Approx. 1,658+ square feet 3+ bedrooms 2.5+ bathrooms Market Rate $220,000* Maximum Allowable Sales Price for 3 BR $454,800 (based on 120% AMI) *Subject to change
Ironside Crossing Located in Newark, Delaware on Ironside Road Total homes planned (20) Workforce Housing Units (4) 50% Complete! According to the agreement, Ironside Crossing can offer rentals and for sale units on-site to low (less than 80% AMI) and moderate (less than 120% AMI) income households Currently offering on-site for sale units Developer had a problem finding low-income qualified households; offered lease purchase option for townhomes
Ironside Crossing Example Workforce Housing Unit The Twin Model Approx. 2,155+ square feet 3 bedrooms 3 bathrooms Market Rate $329,000* Maximum Allowable Sales Price for 3 BR $454,800 (based on 120% AMI) *Subject to change
Marra Landing Located in Wilmington, Delaware on Newport Gap Pike Total homes planned (27) Workforce Housing units (6) 100% Complete According to the agreement, Marra Landing can offer rentals and for sale units on-site to low (80%) or moderate (120%) income households Offered on-site rental units
Marra Landing Example Workforce Housing Unit Approximately 2,000 square feet 3 bedrooms 2 bathrooms 1 car garage Currently renting for $1,850/month* Maximum Affordable Rent per New Castle County $1,400/month (80% or below) $2,230/month (81% to 120% AMI) *Subject to change
Marra Landing Currently in violation Developer had submitted an amendment to move 3 units off-site to Grubbs Landing Road. Land Use issued determination: Comply with the UDC provisions addressing deed restriction changes including securing County Council approval; Record applicable documents to removed affordability controls from the established workforce housing unit; Create affordability controls to run with the new workforce housing unit; and Amend the staging plan and record plan as necessary to accurately reflect the location of the workforce housing units (see UDC 40.07.314). If the Master Workforce Housing Agreement requires amendment or revision due to the relocation of a workforce unit, that agreement must also undergo revision. Violation notice was issued May 5, 2017. First extension granted until September 6, 2017 (90 days) Second extension granted until October 10, 2017 (30 days) Final extension granted until November 17, 2017 (30 days)
Ponds of Odessa Located in Middletown, Delaware on Vance Neck Road Total homes planned (280) Workforce Housing Units (20) 25% Complete! According to the agreement, Ponds of Odessa can offer rentals and for sale units on-site to moderate-income (120% AMI) households Currently offering on-site for sale units Five (5) total WFH units have been sold Three (3) units have been sold to 120% AMI Two (2) units have been sold to 80% AMI
Ponds of Odessa Example Workforce Housing Unit The Massey Model Approx. 1,785 square feet 3 bedrooms 2+ bathrooms Market Rate $234,900* Maximum Allowable Sales Price for 3 BR $454,800 (based on 120% AMI) *Subject to change
Preserve at Robinson Farm Located in Townsend, Delaware on Fieldsboro Road Total homes planned (476) Workforce Housing Units (65) 8% Complete! According to the agreement, Ponds of Odessa can offer rentals and for sale units on-site or off-site to low (80% AMI) and moderate (120% AMI) income households Currently offering on-site for sale units Five (5) total WFH units have been sold All units have been sold to 120% AMI Two (2) sales are pending one to 80% AMI
Preserve at Robinson Farms Example Workforce Housing Unit The Somerset II Model Approx. 1,878 square feet 3 bedrooms 2.5 bathrooms Market Rate From $220,500* Maximum Allowable Sales Price for 3 BR per New Castle County $286,200 (80% or below) $454,800 (81% to 120% AMI) *Subject to change
Reserve at Becks Pond Located in Newark, Delaware on Salem Church Road According to the agreement, Reserve at Becks Pond can offer rentals units on-site to low (80% AMI) or moderate-income (120% AMI) households Total apartment units planned (240) Workforce Housing units (48) 100% Complete! 85% Rented
Reserve at Becks Pond Market Rate for apartments 1 BR $1,205+ 2 BR $1,350+ 3 BR $1,625+ Maximum Affordable Rent 80% AMI 1 BR $1,230 2 BR $1,360 3 BR $1,500 *Subject to change Maximum Affordable Rent 120% AMI 1 BR $1,890 2 BR $2,110 3 BR $2,330
Spring Oaks Located in Middletown, Delaware on Dupont Highway Total homes planned (246) Workforce Housing Units (50) On-site (25) Off-site (25) 50% Complete! Developer received a special waiver 100% AMI income qualified households Five (5) year affordability period Provides housing counseling Off-site units (25) have been located in Cheltenham Village
Spring Oaks Example Workforce Housing Unit The Magnolia Model Approx. 1,485 square feet 3 bedrooms 2.5 bathrooms Market Rate From $199,999* Maximum Allowable Sales Price for 3 BR 100% AMI $440,700 *Subject to change
Moderately Price Dwelling Units Ordinance was approved in December 2014 Three (3) active plans Text Amendment introduced October 10, 2017 Scheduled for PLUS November 15, 2017 Planning Board possibly February 2018
QUESTIONS?? Stephanie Rizzo snrizzo@nccde.org 302-395-5611