Arlington County Department of Community Planning, Housing, and - - PowerPoint PPT Presentation

Arlington County

Department of Community Planning, Housing, and Development

Baltimore Affordable Housing Trust Fund Commission October 22, 2019

AHIF Management and Internal Controls

AHIF Program Overview

Community Planning, Housing and Development

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• Affordable Housing Master Plan – adopted in September

2015

• County is a mission-driven lender
• Goal is to create and preserve committed affordable

units (CAFs) affordable to families earning 40%-60% of the area median income (AMI) for 60 years

• County Board has approved over 100 loans
• $374 million allocated to-date, supporting approximately

7,000 CAFs

AHIF Secures CAFs and Leverages Funds

Community Planning, Housing and Development

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368 CAFs 451 CAFs 585 CAFs 401 CAFs 173 CAFs 433 CAFs

• AHIF preserves existing

CAFs by extending affordability

• AHIF creates new CAFs

through acquisition and construction of units

• Every $1 million in AHIF

can preserve or create approximately 12 CAFs and leverage $4 million in outside funding

380 CAFs

100 200 300 400 500 600 700

FY14 FY15 FY16 FY17 FY18 FY19 FY20 - Projected

Existing CAFs Preserved New CAFs Financed

290 CAFs affordable for 60 years

FY 2020 AHIF Projected Sources - *$24,649,461

Community Planning, Housing and Development

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$96 million in

• utside funds

$6,694,158 $3,500,000 $341,202

AHIF - ongoing funds 35% AHIF - one-time funds 29% Federal CDBG Entitlement 2% Loan Repayments & Payoffs 20% Developer Contributions 14% * Note: FY20 projected sources include AHIF and federal sources used for multifamily and single family development projects

How do we maximize the impact

• f AHIF to increase the supply of

affordable units?

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Identifying Projects

Community Planning, Housing and Development

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• Notice of Funding Availability (since FY 2018)
• Applications submitted through ZoomGrants
• Application review & scoring staff recommendation
• Applicant notification
• Staff underwriting and community process (Commission

review)

• County Board consideration

Once County Loans are approved, how do we manage and monitor the County’s investment in the long term?

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Portfolio Asset Management and Compliance

Community Planning, Housing and Development

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Portfolio management protects County investments & unit affordability:

• Physical inspections ensure code

compliance

• Occupancy monitoring confirms

CAF rules are upheld

• Financial and organizational

monitoring supports financial sustainability

Arbor Heights 198 units

Portfolio Asset Management and Compliance

Community Planning, Housing and Development

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• Financial Monitoring and Asset

Management:

– Analyze and verify annual residual receipt payment calculations – Analyze and monitor loan performance – Recommend loan term changes if accumulated debt is no longer supportable - this protects the property and County loan

Leckey Gardens 40 units

Portfolio Asset Management and Compliance

Community Planning, Housing and Development

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• 100% of loans are in compliance with County

loan agreements

• 40% made payments in FY 2018

–Most other loans are deferred or properties still under construction

• County funds are loans, not grants

–$129M in loan repayments received to-date –40% of loans have paid in full

Internal Controls – Lessons Learned

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Tips for Managing the Fund

Community Planning, Housing and Development

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• Separation of duties
• System integrity and fund reconciliation
• Chart of accounts – revenue and expense
• Tell your story!

Questions?

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ANNE VENEZIA

Housing Finance Supervisor Arlington County avenezia@arlingtonva.us

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