Citizen Academy Spring 2017 11/10/2018 Housing Tools Used to Preserve and Create Affordable Housing in the City of Alexandria, VA NCDA NATIONAL COMMUNITY DEVELOPMENT ASSOCIATION JANUARY 23, 2017 Office of Housing

Citizen Academy Spring 2017 11/10/2018 Affordable housing in Thornbury South Gloucestershire England “a joke” Posted by Glyn Ley | Updated 2017-03-23 San Fran “Affordable Housing” is a JOKE–$600,000!!!! And UP! By Stephen Frank The term “affordable housing” is a joke in London. Affordable housing mandates a bad joke By Gilroy Dispatch Staff May 21, 2009 Affordable housing a joke in Wanaka, NY By Marjorie Cook Affordable Housing in Thornbury, a joke Posted by Glyn Ley | Updated 2017-03-23, Houston Chicago Plans for Affordable Housing Near The 606 is a Joke, Experts Say by Margaret Paulson in News on Aug 12, 2015 12:20 pm Affordable housing plan for 10 units in Mullum, Australia a joke April 19, 2016 | by Christine McNeil, Echonetdaily, Australia Queens Crap: Affordable housing: more of a joke than ever Albany, New York From NY Post Office of Housing

Objective: Preserve and Develop Affordable Housing Citizen Academy Spring 2017 11/10/2018 Objective: Preserve and Develop Affordable Housing Discuss three tools used in the City to develop and preserve affordable rental housing units Share success stories Office of Housing

Citizen Academy Spring 2017 11/10/2018 Size: 15.5 square miles Population: approx. 155,000 Located 7 miles south Washington D.C. Offers array of historic and cultural attractions Historic center: Old Town Well served by public transportation (AMTRAK, DASH, Metro, VRE, Airport) One of the highest-income jurisdictions in Virginia …ABOUT THE CITY Office of Housing

Citizen Academy Spring 2017 11/10/2018 % of homes in which a language other than English is spoken: 32% Median household income: $89,134 Average assessed home value: $532,492 Renter-occupied homes: 57.5% Average rent: $1,760 Housing cost-burdened renters: 44% …OUR HOUSING REALITY Office of Housing

THE CITY’S AFFORDABLE HOUSING CHALLENGE—THE REAL ESTATE MARKET Citizen Academy Spring 2017 11/10/2018 THE CITY’S AFFORDABLE HOUSING CHALLENGE—THE REAL ESTATE MARKET Increase in average assessed value of residential property in the city 166% Increase in average rent for 2-bedroom in the city Increase in average household income in DC metro area 73% 32% . Source: HUD Income Limits, 2000-2017; City of Alexandria, Office of Housing 2017 Apartment Survey and Office of Real Estate Assessments, 2000-2017 Office of Housing

THE CITY’S AFFORDABLE HOUSING CHALLENGE—OTHER Citizen Academy Spring 2017 11/10/2018 THE CITY’S AFFORDABLE HOUSING CHALLENGE—OTHER Cost of achieving deeper levels of affordability (30-40% AMI) Preservation of assisted properties Potential decline in federal funding (CDBG and HOME) Changing regional demographics Long-term employment trends Since 2000, the City lost nearly 16,000 market affordable rental housing units Office of Housing

Citizen Academy Spring 2017 2013 Housing Master Plan 11/10/2018 Result of multiyear community engagement process Road map to guide City investment in affordable housing preservation and production Established a Housing for All policy: housing options for all abilities, life stages and incomes Emphasis the need for citywide distribution of affordable units to help foster social and cultural diversity within mixed-income communities Emphasis on housing opportunities in higher-density areas with access to transit, jobs, and amenities Focus on the length of housing affordability GOAL 2,000 units with new affordability by 2025 www.alexandriava.gov/HousingPlan Office of Housing

Housing Master Plan Tools Citizen Academy Spring 2017 AH Housing Master Plan Tools 11/10/2018 Bonus density and/or bonus height in exchange for affordable housing units Housing Trust Fund (developer-funded through voluntary contributions using established formula) Optional parking reductions for affordable housing (.5-.75 spaces/unit) + much more! Office of Housing

SECTION 7-700: BONUS DENSITY AND HEIGHT AFFORDABLE UNITS Provides developers up to 30% of additional bonus density and/or height (up to 25’ in areas where the height limit is more than 50’) in exchange for affordable housing units 1/3 of bonus units (or equivalent) must be committed affordable units Bonus units may be located offsite if they are of equivalent value Permits more than 30% bonus density if authorized by small area plan Allows developers to make a cash contribution in lieu of units to the Housing Trust Fund (equivalent to value of units) BONUS UNITS BY-RIGHT

Citizen Academy Spring 2017 Bonus Density 11/10/2018 Bonus Height Bonus Density Bonus Density Bonus Height Bonus Density The Bradley Bonus Density Bonus Density Bonus Height Office of Housing

HOUSING TRUST FUND Dedicated funding source created in 1980s to support the expansion and preservation of affordable housing options in the City HTF has been used for the following: Development and rehabilitation projects Match for federal HOME funds Homebuyers education, counseling, and foreclosure prevention services Downpayment and closing cost assistance to first-time homebuyers Rental assistance grants Transitional housing, shelter rehabilitation, case management, and supportive services for the homeless

HOUSING TRUST FUND IMPACT Leveraged over $150 million dollars in private and public financing to construct and preserve more than 1,100 affordable housing units Over $20 million pledged On average, $1 of developer contribution leverages up to $6 in other funding Units produced or preserved with HTF assistance are secured with restrictive covenants of 40 years or more

HOUSING TRUST FUND IMPACT Citizen Academy Spring 2017 11/10/2018 Jackson Crossing $400,000 HTF investment leveraged: $16 million in LIHTCs City land note + commercial financing 78-unit apartment complex, affordable for households at 60% AMI for 60 years Offers one, two, and three- bedroom apartments and accessible units Office of Housing

HOUSING TRUST FUND IMPACT Citizen Academy Spring 2017 11/10/2018 St. James Plaza $3.1 million HTF investment leveraged: $20 million in LIHTCs $285k from CDBG $880k from HOME + commercial financing 93-unit apartment complex, affordable for households at 40%-60% AMI for 60 years Offers efficiencies, one, two, and three-bedroom apartments Office of Housing

HOUSING TRUST FUND IMPACT Citizen Academy Spring 2017 11/10/2018 Gateway at King and Beauregard $3.5 million HTF investment leveraged: $16 million in LIHTCs $350,000 from HOME + commercial financing 74 rental units affordable for households at 40%-60% AMI for 40 years Part of larger mixed-use redevelopment with market-rate apartments, retail, a grocery store Office of Housing

HOUSING TRUST FUND IMPACT Citizen Academy Spring 2017 11/10/2018 The Station at Potomac Yard $7.3 million HTF investment leveraged: $8.6 million in LIHTCs $8.3 million in VHDA loan; City grants and loans 64 rental units affordable for households at 60-80% AMI co-located with fire station (also includes ground floor retail) Public, private and nonprofit partnership Developer provided land and money for fire station Office of Housing

SECTION 8-200: OPTIONAL PARKING REDUCTIONS FOR AFFORDABLE HOUSING Optional reduced parking ratios: 0.75 spaces per unit (units up to 60% AMI) 0.65 spaces per unit (units up to 50% AMI) 0.5 spaces per unit (units up to 30% AMI) Additional reductions granted based on: 10% parking reduction if property is within a specified metro or bus-rapid transit walkshed 5% parking reduction if property is within one-quarter of a mile of four or more active bus routes 10% or 5% parking reduction if property has specified walkability index score 5% percent if property includes 20 percent or more studios

SECTION 8-200: OPTIONAL PARKING REDUCTIONS FOR AFFORDABLE HOUSING Carpenter’s Shelter

HOUSING MASTER PLAN GOAL Citizen Academy Spring 2017 11/10/2018 HOUSING MASTER PLAN GOAL 2,000 units with new affordability by 2025 Source: City of Alexandria, Office of Housing, January 2018 Office of Housing

WHY WE HAVE BEEN SUCCESSFUL IN AFFORDABLE HOUSING PROJECTS Citizen Academy Spring 2017 11/10/2018 WHY WE HAVE BEEN SUCCESSFUL IN AFFORDABLE HOUSING PROJECTS Widespread awareness of the need for affordable housing Community outreach and education (publications, website, Citizen Academy, Housing Committees, interdepartmental collaboration) Support for the importance of affordable housing and the requirement for city investment to make it happen Open approach to innovative projects (i.e., “how can we do this?”) Capable nonprofit development partners Strong relationships with the state housing finance agency that administers LIHTCs, as well as with lenders & investors 5+ year pipeline created through predevelopment loans Approach advances opportunities for “deep affordability” Office of Housing

Lucinda Metcalf, Compliance Manager Office of Housing 421 King Street, Suite 215, Alexandria, VA 22314 cindy.metcalf@alexandriava.gov 703-746-4990 www.alexandriava.gov/Housing