9/28 All Presenters

Innovations and Risks in

Preserving Affordable Rental

Housing Near Transit

September 28, 2010

Denver, Colorado

• 501(c)(3) nonprofit, supporting organization to the Denver Community Foundation. Established 2003, staffed 2007

• Mission: To acquire, develop, and preserve community assets in urban areas in the Denver Metro area

• Invested over $21 million in real estate, serving over 10,000 low and moderate income

people

• 400 full and part-time jobs are supported by ULC real estate investments

• Promote community development; strengthen neighborhoods through preservation of key

areas of influence

• Preserve community assets in existing or emerging neighborhoods to ensure their

continued public benefit

• Acquire strategic sites in anticipation of market changes through land banking along

transit corridors

• When possible use 99 year land lease with partners to ensure permanent public benefit

About Urban Land Conservancy (ULC)

• Over next 10 years, the Regional Transit Department (RTD) will build FasTracks, a $4.7 billion initiative passed by the voters in 2004*. • 119 miles of rail lines, 60 new

rail stations, and a network of bus feeder routes.

• Demand for housing within ½ mile of a light rail station will grow from 45,000 households today to 155,000households in 2030, a 344% increase.[1]• 40% of this growth is projected

to come from low income households, at or below 80% AMI ($57,450 for a family of four)

• Up to 44,000 additional affordable homes added/preserved near transit

• Demand for more than 700 additional affordable homes at each station area by 2030

*Cost estimates to complete FasTracks are now over $6.9 billion!

[1] Source: Enterprise Community Partners, “The Case for Mixed-Income Transit-Oriented Development in the Denver Region,” March 2007.

• $15 Million fund designed to finance land and property acquisition for affordable homes near transit

- Enterprise Community Partners: Assemble loan capital; fund manager; largest investor $5 million

- ULC: 10% investor ($1.5 million) and sole borrower

- City of Denver: Top loss funding of $2.5 million & recipient of the MacArthur Foundation

Housing Preservation Award: $2 million PRI and $250,000 grant for early warning system

• Up to 1,200 affordable homes over the next 10 years

- 60% AMI rental, 95% AMI ownership

- Goal of 15% of homes targeted for 30% AMI households

• Quickly provides patient, high-risk capital at low cost: Fixed at 3.5% at 90% LTV

• Purchase and hold sites for up to 5 years

Denver Transit Oriented Development (TOD) Fund

The West Line Corridor

Preservation of Affordable Housing Along Transit Corridors

Dahlia Apartments

Foreclose of six buildings with thirty-six 2-

bedroom apartments in northeast Denver. One

block from high frequency bus line.

Dahlia was the first TOD Fund acquisition and

includes Neighborhood Stabilization Funds (NSP)

of $450,000. TOD Fund, provided a $1,000,000

acquisition loan and ULC is partnering with Hope

Communities with the permanent take out and

land lease

Total acquisition and rehab: $1.75 million

Jody Apartments

Located less than 300 feet from a future RTD

light rail stop on the West Corridor.

ULC has extended a 99-year land lease to a

nonprofit, NEWSED, that bought the

improvements on the site: four rental buildings

serving over 100 residents.

52 of the 62 apartments are permanently

affordable, with 12 of the 52 committed to

households at 30% AMI and below.

Total acquisition and rehab: $3.25 million

Mt. Baker Housing (MBH)

• Established 1988

• Community Based Organization

• MBH Serves Low and Moderate

Income Families

• Acquisition / Rehab - Primary

Housing Development Strategy

• TOD Since 1988

Southeast Seattle’s Rainier Valley

•Absentee Landlords & Blighted Buildings

•Redlined Neighborhood

•Most Diverse Zip Code in the Country (AOL news)

•Gentrification is Driving Out Long Time Residents

•10.7 Square Miles, 49,000 population

Light Rail Route (Central Link)

Partial Light Rail Route (in red)

Crestwood Place Before-After

Seattle Real Estate

Typical New Construction Project TDC/Unit $225,000-$250,000

Price/Unit Seattle $151,000

Average Price/Unit Rainier Valley $55,000-$80,000

Raw land/Unit $10,000-25,0000

Crestwood Place TDC (Actual)

Total Development Cost/Unit $93,846

Acquisition Price/Unit $65,384

Total Renovation Cost/Unit $24,900

Other $3,562

DCR 1.05

HOW CAN WE DO THIS!?

• Comprehensive Property Screening System

• Detailed Property Database

• Due Diligence System

• Innovative Funding Strategy

Partners in Innovation:

Preserving Affordable Rental Housing Near

Transit

The Imperial Hotel Case Study

Bruce Gunter, President

Progressive Redevelopment, Inc.

Atlanta, GA

Progressive Redevelopment, Inc.

•Wide range of affordable housing for low to

moderate income families; supportive

housing for individuals; seniors housing.

•22-year developer, owner and manager of

affordable rental housing

•Largest in the state; 4,200 units developed.

Current portfolio is 24 properties

•Vertically integrated org structure:

development / owner, property management,

and resident services.

Atlanta Urban Sprawl

Atlanta Housing Only Atlanta Housing + Transportation

YELLOW = 45% of income or less BLUE = more than 45% of income

H+T AFFORABILITY INDEX

IMPERIAL ON PEACHTREE

ATLANTA BELTLINE

National Housing Trust

National nonprofit committed to safeguarding affordable housing preservation

– REAL ESTATE DEVELOPMENT

– LENDING

– PUBLIC POLICY INITIATIVES

National Work Supporting Transit-Connected Affordable Homes

• Report on Subsidized Housing Opportunities Near Transit

and the 50+ Population with AARP & Reconnecting America

• Tracking QAP incentives and sharing best practices

• State Preservation Policy Toolkit for Smart Growth America

• Report released today: Preserving Affordable Housing Near

Transit

NHT in Washington, D.C.

• INSIDE D.C.

• Owner, Partner or

Development

Consultant to

Tenant

Associations and

Cooperatives

• 10 Projects

• 655 Units

• Majority are

transit-connected

• D.C. METRO AREA

• 13 Projects

• 907 Units

• GreenPATH Fund

R Street Apartments

• TRANSIT ACCESS

• Walking distance to 3 metro stations

• Served by 8 high-frequency bus lines

• “Walker’s Paradise” - Walk ability

score of 98 out of 100 means no car

needed

• PROJECT FACTS

• 130 units serving 30% AMI up to

Market

• $25 Million project with Tax exempt

bonds, LIHTC, Historic Tax Credits,

and Subordinate City Loan

• Green Communities Project

• Saved from Condo Conversion

Columbia Heights Metro• Major

gentrification

• Huge new

shopping center

with Target, Best

Buy, Gym,

Marshalls &

Staples built at

Metro

• New supermarket,

high-priced condos

and restaurants

near by

• Two current NHT

projects within .25

miles of metro: St.

Dennis and

Monsignor

Romero

Apartments

• Hubbard Place

Apartments

• Case Study in

the Report

• Within ½ mile

of metro.

• High-frequency

bus right in front

of building on

14th Street

• Section 8

preserved

• Tenants use

rights to partner

for preservation

Mt. Pleasant Preservation• ST. DENNIS APARTMENTS

• Private condo converter purchased building and tried to move existing low-income residents out.

• The Martinez Family was the last holdout and won legal battle for right to purchase building. At their request, NHT Enterprise purchased the deteriorated, vacant building on their behalf using Enterprise Community Loan Fund and DC SAFI loan as bridge.

• $10 MILLION: For two years, NHT Enterprise has been assembling 9% LIHTC, Tax Credit Exchange program, Historic Tax Credits, Soft DC gov’t loan, and 8 project-based vouchers to fund the renovation and permanent financing.

• Closing to happen within next few weeks.

• MONSIGNOR ROMERO APTS

• Owner unsuccessful at moving residents out for high-end condo conversion

• Huge fire destroyed half of building. NHT Enterprise helped residents buy unsubsidized building in July 2010 with $4.1 million loan.

• NHT Enterprise and residents plan to use 9% LIHTC, Historic Tax Credit and City loan to rebuild and renovate as affordable in this gentrifying neighborhood.

Speakers

• Mike Rooney, Executive Director, Mt. Baker Housing Association

www.mtbakerhousing.org

• Bruce Gunter, President & CEO Progressive Redevelopment, Inc.

www.prihousing.org

• Rob Richardson, Development Manager, National Housing Trust

www.nht.org

• Aaron Miripol, President & CEO, Urban Land Conservancy

www.urbanlandc.org