Sacramento Housing and Redevelopment Agency and Affordable Housing April 3, 2017 JOINT POWERS AUTHORITY GOVERNING STRUCTURE COUNTY CITY 1
CITY AND COUNTY COLLABORATION Uniquely structured to apply for, receive and administer federal grants and awards Lead applicant on successful awards HUD values collaboration between jurisdictions SUBSIDY TYPES Operating Subsidy Capital Subsidy 2
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Public and Indian Housing Housing Authorities** Community Planning and Development Cities and States** Office of Housing (FHA) Individuals and Corporations STRUCTURE OF SHRA Housing Authority Public Housing Housing Choice Vouchers (Sect. 8) Housing Finance Agency City of Sacramento County of Sacramento Fed. (HUD) Grants Administrator City of Sacramento County of Sacramento 3
2017 SHRA Proposed Budget - $190.5 Million Resources - Where Does The Money Come From? Federal Vs. Local Housing Choice Vouchers Public Housing Public Housing Capital Fund CDBG CDBG NSP HOME Shelter Plus Care Emergency Solutions Grant HOPWA Choice Neighborhoods Initiative FEDERAL $159.93M 84% Local Housing Housing Trust Housing Successor Affordable Housing Miscellaneous Housing Other STATE & LOCAL $30.60M 16% 7 THE HOUSING AUTHORITY 5th largest Housing Authority in California Ranked in top 20 among nation's 3,400 housing authorities One of the largest landlords in Sacramento County Owns and/or manages over 2,700 units 4
2017 SHRA Proposed Budget - $190.5Million Appropriations - How The Money Will Be Used Housing Assistance Payments (HAP) $106M 56% Capital Projects $31.5M 16% Salaries & Benefits $24.7M 13% Fin Trans. $0.7M <1% Services & Supplies $18.3M 10% Public Services $6M 3% Debt Service $3.3M 2% 9 12,200 12,000 11,800 11,600 11,400 11,200 11,000 HCV Leasing Statistics 2012 2013 2014 2015 Average Number of Vouchers Leased 11,627 11,652 11,574 11,963 12,000 11,980 Lease Up Percentage 99% 98% 97% 99% 99% 99% 2016 Est. 2017 Est. In Millions $110 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 HCV HAP Funding 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Est. 2017 Est. HAP Revenue HAP Expense Cumulative HAP 10 5
Local Housing Finance Agency Multifamily Finance: Gap Financing Tax-exempt Bond Issuer Homebuyer Assistance Long-term Compliance Monitoring Implement City & County Housing Ordinances FINANCING THE PIPELINE $31.2 million 204 affordable units in the City Pensione K 7 th and K 6
INCREASING THE HOUSING SUPPLY 244 new/improved rental units in the City Curtis Park Curtis Park Court Apartments Court Sr. Apts. Major Sources of Funding Low-income Housing Tax Credit (9% and 4% + bond) (IRS) HOME Investment Partnerships Program (HUD) Housing Trust Funds (City) 7
Anatomy of a Deal Anatomy of a Deal 8
Anatomy of a Deal Critical Partnerships Affordable Housing Developers Management Agents Service Providers 9
PRESERVATION 55-year Term Physical Condition Loss of Federal Subsidy Owner and Management Agent Engagement FINANCIAL RESOURCE DECLINE HOME Program Loss of Redevelopment Housing Trust Fund (depends on market) State bond funds have run out 10
HISTORIC CHANGES Reagan-era Tax Reform Role of HUD Low Income Housing Tax Credits Loss of Redevelopment Inclusionary Housing Programs Local Response ON ALERT FOR Tax Reform and Implications for Low Income Housing Tax Credit HUD Budget Overall Block Grant (HOME, CDBG) Loss 11
MAKING HOMES AFFORDABLE 50 new/renovated ownership units Heritage at Del Paso Nuevo Before After Welcome Home Program 7732 40 th Avenue Housing Finance -2016 Highlights: Homeownership Approved financing for 80 families for Homebuyer and Mortgage Credit Certificate (MCC) Programs Calculated sales prices & certified homebuyers for 15 NSP properties Del Paso Nuevo Homes: o Completed construction and sale of 11 new homes in Phase IV o Completed construction and sale of 25 new homes in Phase V o Selected developer for the phased construction and sale of 72 new homes in Phase VI 24 12
Federal Entitlement Programs Public Infrastructure/Facilities/Services Community Development Block Grant (CDBG) Homeless Programs Emergency Solutions Grant (ESG) Housing Assistance HOME Investment Partnerships Program(HOME) Housing Opportunities for Persons With AIDS (HOPWA) Neighborhood Stabilization Program (NSP) Emergency Repair Program/Folsom Handyman Program Fair Housing 25 HOMELESS PROGRAMS 1,152 permanently housed Rapid Rehousing through Emergency Solutions Grant Shelter Plus Care VASH 85,410 bed nights provided Four year round shelters 13
Shasta Hotel Recapitalization 80 Unit Residential Hotel Owned by Shasta Hotel Corp. Last Rehabbed in 1994 Depleted reserves Requires annual SHRA subsidy Developer Partner selected Predevelopment in progress Initial Financing Application submitted Targeting March 2017-9% Tax Credit Application 27 Twin Rivers Redevelopment Tenant Council, Health & Wellness Committee Case Management & Education Liaison On-site Acquisitions underway CEQA/NEPA underway Developing Neighborhood Improvements 28 14
COMMUNITY INVESTMENT Asset Repositioning CNI Implementation River District- Railyards Twin Rivers - Land assembly - Environmental review/entitlement application - Case Management NETWORK OF STRATEGIC PARTNERS 50 partners and growing! 15
FEDERAL OPPORTUNITIES FEDERAL OPPORTUNITIES Promise Neighborhoods Oak Park Promise Neighborhood -SHRA lead in funding opportunities - Managing grant writing activities -Coordinating key partners and stakeholders support 16