Invest Atlanta affordable housing presentation to Atlanta City Council, 2014

8/11/2019 Invest Atlanta affordable housing presentation to Atlanta City Council, 2014

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Atlanta City CouncilCommunity Development Human Resource Committee

Affordable Housing Work Session

July 22, 2014

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Presenters

Dawn J. LukeManaging Director, Housing Finance

Invest Atlanta

Terri M. LeeDeputy Commissioner

Department of Planning andCommunity Development

Derrick JordanInterim Director, Office of Housing

Department of Planning andCommunity Development

H. Granvel TatePrincipal

1025 Advisors, Inc.

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Agenda

Why we are here: Current realities, community concerns and market

conditions

p. 4

State of the City of Atlantas Housing Market p. 8

Overview of Affordable Housing p. 15

Where Does Affordable Housing Exist within the City of Atlanta? p. 19

Who Creates Affordable Housing in the City of Atlanta? p. 23

City of Atlantas Approach in Addressing the Affordable Housing

Need

p. 27

Citywide Housing Strategy p. 32

The Call to Action p. 37 3


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Why we are here: Current realities, community

concerns, and market conditions

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What does the data say: Atlantas housing market and its citizens have faced the

Great Recession & foreclosure crisis, while powerful demographic forces have

played out.

The number of Atlanta residents who spend more than 30% of their income on

housing has increased significantly since 2000.

The lowest cost housing is concentrated in the places with the fewest jobs.

Over the last twenty years, housing prices have grown faster than incomes.

The Citys residential vacancy rate remains high, despite recent improvements in home

construction.

The Citys population growth has slowed while its share of the regions population has

declined.

The majority of Atlantas housing units are more than 30 years old.

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What does the community say: Residents and business stakeholders expressed

common themes about priorities and key issues for the housing market.

Priorities Residents:

Address issues that impact quality of life alongside housing

Support more multi-family high-rise housing

Address blight

Provide housing for all age groups, especially young families and elderly

Business Stakeholders:

Interagency Coordination / Strategic alignment with APS

Mixed income models (Hope VI)

Key Issues

Residents:

More housing options for young families and desiring a balance of ownership and rental

Connectivity among the housing, economic development, and educational strategies Inclusion of other neighborhood infrastructure (sidewalks, bike paths, etc.)

Continued community representation in the strategy process and implementation

Business Stakeholders

Limited resources / Permanence of affordability

Concentrations of poverty / Location of jobs

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Policies and resources needed to meet the existing housing challenges.

Funding Needed to Implement the Housing Strategy

New issuance of the successful Housing Opportunity Bonds

Funding to increase LBA capacity to acquire and rehabilitate vacant, blighted

properties

Creation of Housing Trust Fund from a variety of sources (payment in lieu of, dedicatedmillage, per unit levy)

Policies for Implementing the Housing Strategy

Changes to TAD Policies to require developers to create workforce housing

Priority tax lien purchase for the LBA

Tax incentives for affordable housing development

New zoning incentives and requirements based on proven models in other cities

Inclusionary Housing policy that requires all new residential developments to have

affordable/workforce housing component 7


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Overview of the City of Atlantas Demographics

Source: 2007-2011 ACS

Total Population: +400,000

# of Cost Burden Residents: ~75,000

Median Household Income: $46,000

Median Home Value: $228,000Median Rent: $910

Population living in poverty: 23%

# of Housing Units: 225,000Residential Vacancy Rate: 20%

Structures 30 years or older: 61%

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More than 30% of Atlanta households earn less than $25,000 a year.

15%

18%

23%

16%

10%

11%

14%

0%

5%

10%

15%

20%

25%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

< $10,000 $10,000 -

$24,999

$25,000 -

$49,999

$50,000 -

$74,999

$75,000 -

$99,999

$100,000 -

$149,999

> $150,000

PercentofHouseh

olds

NumberofHouseho

lds

Income BracketsSource: U.S. Census (2011 5-YR ACS)

Household Income Distribution

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33% of households

earn < $25k


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The number of cost burdened residents has increased.

Source: 2000 Census vs. 2011 5-yr ACS

17,495

37,994

23,507

49,762

0

10,000

20,000

30,000

40,000

50,000

60,000

Cost Burdened Owners Cost Burdened Renters

2000 2011

Atlanta residents who spend more than 30% of their income on housing(2000 vs. 2011)

Source: 2000 Census vs. 2011 5-yr ACS

29%

41%

40%

54%

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Overview of the City of Atlantas Neighborhoods

160,207 total parcels

143,888 Residential parcels

242 neighborhoods

98% of Residential Parcelsare Single Family (1-2 units)

17,638 Vacant Structures and

Lots (11% of total)

3,850 blighted structures(poor/deteriorated) (2.4% oftotal)

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Percentage of Residential and Vacant Parcels in the City

of Atlanta By Council District

TOP 3 COUNCIL DISTRICTS

% OF RESIDENTIAL PARCELS:

1. CD-3 (18%)

2. CD-6 (16%)

3. CD-5 (15%)

% OF VACANT PARCELS*:

1. CD-3 (25%)

2. CD-12 (21%)

3. CD-4 (20%)

Source: SCI Report: APD Solutions, 2013

*Includes Vacant Lots and Structures CD-1 CD-2 CD-3 CD-4 CD-5 CD-6 CD-7 CD-8 CD-9 CD-10 CD-11 CD-12

% of Residential Parcels 12 13 18 12 15 16 10 9 11 10 9 12

% of Vacant Parcels 16 4 25 20 8 3 1 3 19 13 11 21

0

5

10

15

20

25

30

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City of Atlanta Neighborhood Investment Typology

3%12%

17%

16%18%

19%

13%2%

Exceptional

StrongStable

Trending

Transitional

Vulnerable

DecliningFragile

32%

34%

Source: SCI Report: APD Solutions, 2013 14


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Overview of Affordable Housing

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There is a growing divide between market and affordable rates

especially for families.

Area Median

Income % STUDIO

1

BEDROOMS

2

BEDROOMS

3

BEDROOMS

50% $ 563 $ 604 $ 725 $ 837

60% $ 676 $ 725 $ 870 $ 1,005

80% $ 901 $ 965 $ 1,158 $ 1,339

MARKET* $ 955 $ 1,029 $ 1,470 $ 1,985

New Old 4th

Ward Units**

$1,130 $ 1,240 $ 1,890 $ 2,455

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*Market units are based on an average rate of $1.47psf.

**Prices in Old 4th Ward reflect lowest priced market unit in Bohemian House and 755 North Avenue.


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Affordable Workforce Housing Policy, which is based on family size, has to include

working families who are at the high end of the % of Area Median Income but cannot

afford to buy houses in many parts of the city.

$44,000 $75,000 $65,000

$132,000 $225,000 $195,000

100% 140% 140%

$228,000 Median Home Value in Atlanta

Total Household Income

Maximum Home Price

They Can Afford

% of Area Median

Income

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Affordable Housing Income Limits for the Atlanta MSA.

2014 INCOMELIMIT 1PERSON 2PERSONS 3PERSONS 4PERSONS 5PERSONS

30% $ 13,550 $ 15,450 $ 17,400 $ 19,300 $ 20,850

50% $ 22,550 $ 25,800 $ 29,000 $ 32,200 $ 34,800

60% $ 27,060 $ 30,960 $ 34,800 $ 38,640 $ 41,760

80% $ 36,050 $ 41,200 $ 46,350 $ 51,500 $ 55,650

100% $ 45,100 $ 51,600 $ 58,000 $ 64,400 $ 69,600

115% $ 53,400 $ 61,000 $ 68,650 $ 76,250 $ 80,000

120% $ 55,700 $ 63,650 $ 71,600 $ 79,550 $ 83,500

140% $ 63,100 $ 72,100 $ 81,100 $ 90,100 $ 97,300

H

O

M

E

O

W

N

E

R

S

H

I

P

R

E

N

T

A

L

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Where Does Affordable Housing Exist within

the City of Atlanta?

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Subsidized housing is clustered near the City center and the west.

HUD-Subsidized, HUD-

Insured, HUD-Operated,

and LIHTC properties

Source; Policy Map, U.S. Department of Housing

and Urban Developments LIHTC Database, which

was last revised as of August 17, 2012.

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Households with vouchers are concentrated in southern neighborhoods.

Percent of Households

receiving Section 8

Vouchers as of 2009 by

Census Tract

Source; Policy Map, U.S. Department of Housing

and Urban Developments LIHTC Database, which

was last revised as of August 17, 2012.

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Areas of Atlanta with the most jobs have the least affordable housing.

Source: Policy Map, 2011 5-yr ACS

Jobs per tract

Map of Atlantas Employment, 2010

Source: Atlanta Regional Commission

Share of Homes Affordable to FamiliesEarning below 80% AMI

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Who Creates Affordable Housing in theCity of Atlanta?

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A number of different entities play an important role in creating

Atlantas housing landscape.

City of Atlantas Housing

Agencies

City of Atlanta: Office ofHousing

Distributes funding for housingdevelopment & preservation

Invest AtlantaProvides financing for affordable

housing development &homeownership

Atlanta Housing AuthorityAcquires, manages and develops

affordable housing

Public Sector

Georgia Department ofCommunity Affairs

Distributes Low-Income Housing Tax

Credits and offers down paymentassistance

United States Department ofHousing & Urban Development

Administers federal aid to local housingagencies that manage and finance

housing for low income families

MARTA and Atlanta Beltline, Inc.Make land available for development

City of Atlanta / Fulton CountyLand Bank Authority

Banks land for future development

Private/Non-Profit

Enterprise Community PartnersProvides capacity building for non-profits,

funding for workforce housing andconsulting services

Foundations/BanksProvides funding for workforce

development and/or place-basedneighborhood revitalization

NeighborworksProvides capacity building for non-profits,

funding for workforce housing andconsulting services

CDCs/CHDOAcquires, owns, operates, and develop

neighborhood based workforce housingprojects

DevelopersAcquires, owns, manages and develops

workforce housing

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These funding streams run through many different entities.

Housing Opportunity Bonds

Tax Exempt Bonds

Down Payment Assistance

Vine City Trust Fund

BeltLine Affordable Housing Trust Fund

HOME Funds

Community Development

Block Grants (CDBG)

Neighborhood StabilizationProgram (NSP)

CITY OF ATLANTAOFFICE OF HOUSING

INVEST ATLANTA

Hope VI Section 8 / PBRA

Choice Neighborhoods Planning

Grant


ATLANTA HOUSING

AUTHORITY

Low-Income Housing Tax Credits State HOME Funds


1st Mortgage Program

HOME Safe Program

GEORGIA DEPARTMENT OF

COMMUNITY AFFAIRS

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While many of Atlantas primary housing resources have been effective, they

are now largely depleted.

Invest Atlanta Tools

Tax Exempt Bonds

Housing Opportunity Bonds

HOME Investment Partnership

BeltLine Affordable Housing Trust Fund

Homelessness Opportunity Fund

Lease Purchase Bonds

Economic Realities

Conventional taxable rates have beenlower than Tax Exempt Bond Rates

93% Expended; $40mm remains to beissued. Requires Council approval

Federal funding decreased by 40%since 2010

100% Allocated

99.9% Expended

Some success in providing workforcehousing choice in higher cost areas

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City of Atlantas Approach in Addressing the

Need for Affordable Housing

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In recent years, Atlanta has enacted several initiatives to make housing

more affordable for residents.

Established the Atlanta BeltLineAffordable Housing Trust Fund

Established the Homeless Opportunity

Fund

Used Tax Allocation Districts to

facilitate the development of mixedincome communities

Used Lease Purchase Bonds to create

housing choices in high cost areas

Redeveloped public housing as mixedincome communities

Established a Housing Opportunity

Bond Fund

Successful Development Funded to DateNovare Skyhouse Lofts at

Reynoldstown Crossing

Adamsville Green Senior

Apts.

West Highlands Master-

Planned Community

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Four entities played roles in the creation of the Housing Opportunity

Bond Fund (HOB).

Guaranteed payment of debt servicefrom City revenue

Used Housing Authorities Law tocreate non-profit AHOI

Issued the Bonds Implementation Agent for the

programs outlined in the HOBdocuments

Atlanta Housing Opportunity Inc.(AHOI)

Designated Housing Corporation andBorrower of Funds

HousingOpportunity Bond

(HOB)

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HOB has produced more than 2,000 housing units and been leveraged

by private funds >7:1.

Components Revised Budget Funds Expended Funds Leveraged UnitsProduced

Down Payment Assistance for workforce

homeownership

$13,446,446 $13,446,446 $104,656,008 777

Loans for acquisition and rehabilitation/new

construction of multifamily rental units

$4,200,000 $4,200,000 $89,600,807 802

AHA Hope VI Infrastructure Funds for Collegetown

at Harris Homes Redevelopment

$7,500,000 $7,500,000 $44,010,000 489

Land Assemblage Financing Fund for

predevelopment/acquisition cost

$1,800,000 $1,800,000 $21,500,000 --

Direct Land Acquisition to fund City of Atlantas

property acquisitions

$1,000,000 $3,000 -- --

Community Housing Dev. Organization Loans to

create rental and for-sale units

$810,115 $246,438 $283,403 4

Program Administration $5,589,200 $5,589,200 NA NA

Bond Costs of Issuance $708,015 $708,015 NA NA

Totals $35,053,776 $33,493,099 $260,050,218 2,068DRAFT - July 18, 2014 30


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777 homebuyers used HOB down payment assistance to make Atlanta

their new home.

Component ValueClosed Loans New Construction 231

Closed Loans Existing Homes 546

Opportunity Funds Expended $13,446,446

Private Investment Leveraged $104,656,008

Average Family Income $46,605

Average Family Size 1.5

Average Sales Price $147,998

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Citywide Housing Strategy

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Community Engagement: Community meetings were held in various

quadrants of the City to gather residents feedback.

SCI Group 1: South Atlanta11/12/13 Adamsville Recreation Center 68 pm

*Housing Strategy Group 1: Council Districts 3, 9, 10

11/13/13 Adamsville Recreation Center 68 pm

*Housing Strategy Group 2: Council Districts 1, 2, 511/14/13 The Trolley Barn 68 pm


11/19/13 Peachtree Christian Church 68 pm

SCI Group 2: North Atlanta11/20/13 Atlanta Speech School 68 pm


11/21/13 Atlanta Technical College 68 pm

* Coordination: Invest Atlanta and Enterprise Community Partners* Polling and Meeting Assistance: Atlanta Regional Commission

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Our consultants talked to numerous community members and

stakeholders to assist in informing the Housing Strategy.

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The following existing tools, new tools and tactics can best help Atlanta

achieve its housing goals.

Existing Policy Tools to be Enhanced DescriptionThe Housing Opportunity Bond Fund Funds the development and preservation of workforce housing

Tax Allocation Districts Contributes local tax revenues to local projects

The FC/CoA Land Bank Acquires and holds blighted property for redevelopment

The Zoning Code Facilitates more dense development around key urban amenities

New Policy Tools to be Created Description

Inclusionary Zoning Would link workforce housing development with market rate development

Expanded Tax Abatements Would provide a long-term operating subsidy to fill the gap left by affordable units

New Tactics for Housing/Vacant Properties New Tactics for Neighborhoods & Community Development

Targeted Workforce Housing Initiative Neighborhood Agenda at the State Legislature

Vacant Property Registration System & Database Concentration of Housing Dollars and Code Enforcement

Vacant Property Receivership/ Conservatorship Synergize Community and Economic Development

For-profit and Non-profit Developer Collaboration Enhance Neighborhood Gateways

Promote Purchase Rehab Lending Improve Pedestrian Mobility

Implement the Use of a Smart Rehab Code Collaboration with Public and Private Utilities

Enlist and Train Realtors, Builders, and Developers Community Engagement

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Housing Strategy Metrics: Specific milestones that mark success in

achieving the Goals.

Grow Atlantas population by 10 percent (42,000) by 2020.

Reduce the number of Atlanta low- and moderate-income households paying more

than 30 percent of their income for housing by 10 percent (7,500) by 2020.

Reduce the number of vacant, blighted homes by 10 percent (800) by 2020.

Produce or rehabilitate 10,000 residential units for a range of incomes, doubling the

current rate of production, in redeveloping communities job-rich areas by 2020.

Generate $100 million in new funding to support part of the costs of these units by

2020, with the first $40 million issued by the end of 2014.

Ensure that at least 10,000 new and rehabilitated units meet nationally recognized

sustainability and energy efficient criteria by 2020.

*

* Range of incomes is defined as between 80% and 120% of area median income.

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The Call to Action

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Absent of adequate financial resources, IA and the City have taken

several steps to begin implementation of the Housing Strategy.

Changes have been made to TAD policies to include a workforce housing requirement COA has applied and received a technical assistance scholarship from Center for

Community Progress to evaluate current policy and procedures to address blightedproperties

IA working with Office of Planning to enhance Density Bonus ordinance

IA working with LBA to acquire tax delinquent multifamily property

COA is working with a local developer and non-profit to complete a place basedstrategy to address vacant land and blighted properties in the Mechanicsvilleneighborhood and Pittsburgh

COA & IA have participated in two (2) workshops conducted by Enterprise focused on

Transit Oriented Development (TOD) and Inclusionary Housing IA is working on strategy to strengthen the use of Lease Purchase bonds to incentivize

affordable workforce housing

IA is developing a rezoning proposal to be submitted to the Office of Planning andconsidered as part of the evaluation and rewrite of the current zoning ordinance

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Additional policies and potential resources needed to implement the

Housing Strategy.

Funding Needed to Implement the Housing Strategy New issuance of the successful Housing Opportunity Bonds

Funding to increase LBA capacity to acquire and rehabilitate vacant, blighted

properties

Creation of Housing Trust Fund from a variety of sources (payment in lieu of, dedicated

millage, per unit levy)

Policies for Implementing the Housing Strategy

Changes to TAD Policies to require developers to create workforce housing

Priority tax lien purchase for the LBA

Tax incentives for affordable housing development

New zoning incentives and requirements based on proven models in other cities

Inclusionary Housing policy that requires all new residential developments to have

affordable/workforce housing component 39


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Thank you!

For more information, please

contact us at:Dawn J. Luke Terri M. Lee(404) 614-8289 (404) 330-6643

[email protected] [email protected]

Granvel Tate Derrick Jordan

(404) 490-1025 (404) 330-6439

[email protected] [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

Invest Atlanta affordable housing presentation to Atlanta City Council, 2014

Documents