AFFORDABLE HOUSING COMMITTEE Presented by Matthew Cable Community - - PDF document

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AFFORDABLE HOUSING COMMITTEE Presented by Matthew Cable Community - - PDF document

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11/26/2019 AFFORDABLE HOUSING COMMITTEE Presented by Matthew Cable Community Development Division AGENDA Call to Order & Welcome Approval of Minutes November 5, 2019 Old Business New Business Bowen National

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Presented by

AFFORDABLE HOUSING COMMITTEE

Matthew Cable Community Development Division

Call to Order & Welcome Approval of Minutes

  • November 5, 2019

Old Business New Business

  • Bowen National Research’s Housing Needs Update
  • Affordable Housing Services Program Description, Guidelines & Application Overview

Next Steps

  • Individual Review of Affordable Housing Services Program Components

Announcements Public Comment Adjourn

AGENDA

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PUBLIC COMMENT

Public Comment will be taken at the end of the meeting Please Sign-in now on the Sign-In Sheet if you wish to make public comment

“The focus of this analysis is to assess the market characteristics of, and to determine

the housing needs for, Buncombe County.” – Bowen National Research 2019 HNA

Process:

  • Evaluate various socio-economic characteristics
  • Inventory and analyze housing supply (rental and owner product)
  • Conduct stakeholder interviews
  • Evaluate special needs populations
  • Provide housing gap estimates to help identify housing needs

Update the 2014 Housing Needs Assessment

HOUSING NEEDS ASSESSMENT 2019

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Population is increasing Households are increasing Senior households projected growth Cost burdened households remain a challenge Overcrowded housing situations remain a challenge Vacancy of rental units is improving Rents are rising Inventory of affordable homes for sale has declined

KEY FINDINGS & INFORMATION POPULATION

83,393 92,452 99,477 154,925 173,870 184,744 50000 100000 150000 200000 250000 300000 2010 2018 (Estimate) 2023 (Projected) City of Asheville Buncombe County

238,318 266,322 284,221

65% 65% 65%

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HOUSEHOLDS

100,439 111,165 118,310 90000 95000 100000 105000 110000 115000 120000 2010 2018 (Estimate) 2023 (Projected) Households <25 4,639 4% 25 to 34 15,825 13% 35 to 44 18,552 16% 44 to 54 18,944 16% 55 to 64 21,873 18% 65 to 74 21,205 18% 75+ 17,272 15%

2023 (Projected)

<25 25 to 34 35 to 44 44 to 54 <25 4,459 4% 25 to 34 14,981 15% 35 to 44 17,170 17% 44 to 54 19,582 20% 55 to 64 19,554 19% 65 to 74 12,804 13% 75+ 11,890 12%

2010

<25 25 to 34 35 to 44 44 to 54 55 to 64 65 to 74 75+

HEADS OF HOUSEHOLD

<25 4,466 4% 25 to 34 15,651 14% 35 to 44 17,626 16% 44 to 54 18,889 17% 55 to 64 21,871 20% 65 to 74 18,509 16% 75+ 14,153 13%

2018 (Estimate)

<25 25 to 34 35 to 44 44 to 54 55 to 64 65 to 74 75+

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7,774 22% 15,930 44% 12,094 34%

2014 Report

Severe Cost Burdened Cost Burdened Not Burdened

COST BURDENED RENTER HOUSEHOLD

7,439 19% 17,643 46% 13,212 35%

2019 Report

Severe Cost Burdened Cost Burdened Not Burdened 6,428 10% 16,934 26% 41,769 64%

2015 Report

Severe Cost Burdened Cost Burdened Not Burdened

COST BURDENED OWNER HOUSEHOLD

5,283 8% 14,310 21% 47,590 71%

2019 Report

Severe Cost Burdened Cost Burdened Not Burdened

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OVERCROWDED HOUSEHOLDS

394 1,197 157 878 2,109 2,718 240 817 500 1000 1500 2000 2500 3000 Severe Overcrowded Renter Household Overcrowded Renter Household Severe Overcrowded Owner Household Overcrowded Owner Household 2014 Report 2019 Report

MULTI-FAMILY RENTAL HOUSING

2019 Report:

  • 719 vacant units (95.3% occupancy)
  • 4 affordable vacant units (99.9% occupancy)

2014 Report:

  • 99 vacant units (99.2% occupancy)
  • 0 affordable vacant units (100% occupancy)

Annual Average Market Rate Rent Increase from 2014 to 2019: 5.4% Annual Average Tax Credit Rent Increase from 2014 to 2019: 4.8%

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MEDIAN RENTS MARKET RATE MULTIFAMILY

BEDROOM BATH 2014 MEDIAN RENT 2019 MEDIAN RENT STUDIO 1 $667 $825 1 BR 1-2 $830 $1,054 - $2,155 2 BR 1-2.5 $800 - $1,031 $1,100 - $1,310 3 BR 1-3.5 $739 - $1,100 $889 - $6,928 4 BR 1.5-2 $789 - $1,005 $1,000 - $1,560

ANNUAL MEDIAN SALES PRICE

$199,900 $188,000 $196,000 $206,608 $215,000 $240,000 $265,000 $285,000 $303,000 $180,000 $200,000 $220,000 $240,000 $260,000 $280,000 $300,000 $320,000 2010 2011 2012 2013 2014 2015 2016 2017 2018

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Rental Housing Gap Estimates

<80% AMI: 3,198

  • <30% AMI: 1,124
  • 30%-50% AMI: 1,044
  • 51%-80% AMI: 1,030

80-120% AMI: 904

For Sale Housing Gap Estimates

<80% AMI: 845 80-120% AMI: 2,673

HOUSING GAP ESTIMATES

TOTAL COUNTY RENTER HOUSEHOLDS BY INCOME

4,853 7,792 6,564 4,331 3,341 2,339 3,883 1,333 3,692 8,057 6,169 5,438 5,243 3,011 6,473 3,322 3,198 7,893 5,840 5,570 6,009 7,038 7,289 4,299 1000 2000 3000 4000 5000 6000 7000 8000 9000 <$10,000 $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $59,999 $60,000 - $99,999 $100,000+ 2010 2018 2023

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TOTAL COUNTY OWNER HOUSEHOLDS BY INCOME

3,408 6,601 8,067 7,463 7,458 6,971 14,883 11,153 2,436 5,928 5,735 6,133 6,410 6,905 18,401 17,811 2,470 6,367 5,606 5,927 6,194 7,263 20,996 20,352 5000 10000 15000 20000 25000 <$10,000 $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $59,999 $60,000 - $99,999 $100,000+ 2010 2018 2023

NEXT STEPS ANNOUNCMENTS PUBLIC COMMENT ADJOURN

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Program Description Program Requirements and Guidelines Program Activities Application Application Budget Form Application Scorecard

AFFORDABLE HOUSING SERVICES PROGRAM

I.

PRIORITY

  • II. BACKGROUND
  • III. LEAD DIVISION
  • IV. APPLICATION PROCESS
  • V. GOALS
  • Increase the stock of affordable housing
  • Preserve the existing housing stock
  • Reduce substandard housing
  • Support homeownership initiatives, such as downpayment assistance programs

PROGRAM DESCRIPTION

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I.

APPLICANTS

  • II. INSTRUCTIONS FOR SUBMITTING APPLICATIONS
  • III. ACTIVITIES*
  • Construction of new affordable single-family or multifamily housing for sale/rent
  • Conversion of existing non-residential structure(s) for affordable single-family or

multifamily housing for sale/rent

  • Emergency repair of single-family units for income eligible clients
  • Downpayment assistance for income eligible homebuyers
  • Tenant-based rental assistance in connection with homelessness prevention

PROGRAM REQUIREMENTS & GUIDELINES

*Eligible activities (except construction of units for rent) must take place outside City of Asheville limits.

  • IV. DEFINITION OF AFFORDABILITY*
  • To be considered affordable units, units for sale must be:
  • Sold as affordable (within 30% of the buyer’s income)
  • Sold to an eligible homebuyer (<80% AMI adjusted for household size)
  • Have a maximum sales price (HUD limit)
  • To be considered affordable rental units, units for rent must be:
  • Rented at a rate not to exceed HUD’s Fair Market Rent
  • Rented to eligible tenants (<80% AMI adjusted for household size)

PROGRAM REQUIREMENTS & GUIDELINES

*Updated based on annual data released by HUD, typically in April.

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  • V. PROJECT AND REIMBURSEMENT TIMEFRAME
  • Construction/Conversion Projects Must:
  • Be scheduled to break ground within 12 months of application submittal
  • Begin requesting reimbursement within 18 months of application submittal
  • All other projects must complete expenditures and request reimbursement

within 12 months of submission of an application.

PROGRAM REQUIREMENTS & GUIDELINES

*Updated based on annual data released by HUD, typically in April.

  • VI. CONSTRUCTION AND CONVERSION LOANS

NEW CONSTRUCTION PROGRAM AND LOAN TERMS: UNITS FOR SALE & RENT

  • Eligible Applicants: For-profit corporations, partnerships, or sole proprietors;

private incorporated non-profit agencies with IRS 501(c)(3) or similar designation;

  • r public non-profit agencies
  • Maximum Loan Amount: $25,000 per affordable unit
  • Uses: Affordable unit construction, infrastructure improvements, professional

services, and costs of permitting

  • Form: Construction loan secured by a lien on the property being assisted
  • Term (For Sale): Five (5) years or until the property is sold, whichever occurs first
  • Term (For Rent): Fifteen (15) years
  • Interest Rate: Fully amortizing at an interest rate of 2%; interest may be deferred

until the loan principal is due

PROGRAM ACTIVITIES

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  • VI. CONSTRUCTION AND CONVERSION LOANS

CONVERSION CONSTRUCTION PROGRAM AND LOAN TERMS: UNITS FOR SALE & RENT

  • Eligible Applicants: For-profit corporations, partnerships, or sole proprietors; private

incorporated non-profit agencies with IRS 501(c)(3) or similar designation; or public non- profit agencies

  • Maximum Loan Amount: $25,000 per affordable unit, based on a licensed

contractor’s estimate of required repairs to bring the units up to building code and including service delivery and administration costs in the estimates

  • Uses: Affordable unit construction, infrastructure improvements, professional services,

and costs of permitting

  • Form: Construction loan secured by a lien on the property being assisted
  • Term (For Sale): Five (5) years or until the property is sold, whichever occurs first
  • Term (For Rent): Fifteen (15) years
  • Interest Rate: Fully amortizing at an interest rate of 2%; interest may be deferred until the

loan principal is due

PROGRAM ACTIVITIES

  • VI. CONSTRUCTION AND CONVERSION LOANS

CONSTRUCTION AND CONVERSION LOAN AGREEMENTS May include:

  • Project completion time limits
  • Project record access by Buncombe County staff
  • Income of occupants/owners
  • Affordable rent levels for the lifetime of the loan plus five (5) years of occupancy
  • Fair Housing and Equal Rights Opportunity principles adherence requirements
  • Conflict of interest prohibitions

Require:

  • Applicants submit regular progress reports
  • Applicants abide by Fair Housing principles, which prohibit discrimination
  • Units constructed/converted must be openly marketed

PROGRAM ACTIVITIES

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VII.EMERGENCY REPAIR

  • Eligible Applicants: For-profit corporations, partnerships, or sole proprietors;

private incorporated non-profit agencies with IRS 501(c)(3) or similar designation;

  • r public non-profit agencies. The applicant must have no financial interest in the

unit(s) to be repaired.

  • Maximum Assistance: $15,000 per unit
  • Repairs:
  • Must benefit an eligible homeowner (<80% AMI)
  • Must be performed on units where the applicant has no financial interest
  • May include repairs for life safety issues
  • May be used for retrofitting units for handicapped needs.
  • Repairs >$10,000 but <$15,000:
  • Must be forgivable loan funded repayable within ten (10) years sold

PROGRAM ACTIVITIES

VIII.DOWNPAYMENT ASSISTANCE LOANS AND LOAN AGREEMENTS

  • Eligible Applicants: For-profit corporations, partnerships, or sole proprietors;

private incorporated non-profit agencies with IRS 501(c)(3) or similar designation;

  • r public non-profit agencies. The applicant must either coordinate homebuyer’s

education classes or require participants complete homebuyer’s education course

  • Maximum Loan Amount: $20,000 per affordable unit
  • Uses: Downpayment assistance must benefit an eligible homebuyer (<80% AMI)

who completes a homebuyer’s education course and be for an affordable unit for sale.

  • Form: Non-forgivable loan, secured with a lien on the property being assisted
  • Term: Due in the event the homeowner no longer lives or sells or refinances unit
  • Interest Rate: 0%
  • Loan Agreements: Loan agreements shall be executed between the County and

applicant for the project

PROGRAM ACTIVITIES

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  • IX. TENANT-BASED RENTAL ASSISTANCE
  • Eligible Applicants: Private incorporated non-profit agencies with IRS 501(c)(3) or

similar designation; or public non-profit agencies. The applicant must specialize in working with homeless families or those at risk of homelessness and must provide housing stabilization services and after placement follow up for clients.

  • Maximum Assistance: $1,500 per household
  • Uses: Security and utility deposits, moving expenses, and first month’s rent
  • X. BUNCOMBE COUNTY PERMIT FEE REBATE PROGRAM
  • XI. BUNCOMBE COUNTY EMPLOYEE HOUSING ASSISTANCE PROGRAM

PROGRAM ACTIVITIES

  • X. MINORITY BUSINESS PARTICIPATION
  • XI. REVIEW PROCEDURE

XII.ADMINISTRATION

PROGRAM REQUIREMENTS & GUIDELINES

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  • Overview
  • Applicant Information
  • Project Summary
  • Project Team
  • Past Experience
  • Construction/Conversion Construction Project Details
  • Downpayment Assistance
  • Emergency Repair Details
  • Tenant-Based Rental Assistance
  • Conflicts of Interest
  • Attachments (Scoring Sheet and Budget)

APPLICATION