Housing Authority of the County of San Bernardino Increasing and Sustaining Affordable Housing

Housing Authority of the County of San Bernardino (HACSB) Medium sized agency consisting of 10,000+ vouchers, 1,600+ Public Housing units (prior to RAD) and about 2,800 multi-family units. Annual budget of about $140,000,000 Largest County (geographically) in the contiguous U.S. Conducted a 335 unit Public Housing disposition in 2010 before it became more difficult to get dispositions approved.

Public Housing Disposition

Public Housing Disposition

Valencia Grove – Former Public Housing Community

Modular Construction

HACSB PUBLIC HOUSING

HACSB’s Approach to RAD Had significant deferred maintenance on some properties. Funding cuts (proration) seemed to be endless. Second largest PH community (252 units) had not undergone significant rehabilitation in more than 2 decades. Other PH communities received minor to substantial rehabilitation over the years utilizing ARRA, CFFP and Capital Fund. These factors lead to the development of the strategy for HACSB’s RAD conversions.

RAD Strategy Demolition and new construction (increase the number of affordable units) One large PH community 252 units Multi-phase redevelopment to over 400 units RAD conversion with significant rehabilitation One large PH community of 217 units RAD conversion with minor rehabilitation – no debt. 689 units in several properties

RAD - New Construction First Phase of Portfolio Approval: Valencia Vista – 75 units PBV/LIHTC Offsite development utilizing Transfer of Assistance

RAD Property – Valencia Vista

RAD – New Construction Second Phase of Portfolio Approval: Olive Meadow – 61 units PBV/LIHTC First onsite development at the existing PH site.

RAD Property – Olive Meadow

New Construction Challenges - RAD Funding Relying on 9% Tax Credits which are very competitive and can delay the project significantly. Availability of City/County contributions to the development. PBV rents through RAD may not be adequate and increasing them via MTW flexibility may be necessary.

New Construction Challenges - RAD Site approval through FHEO Existing site did not meet the requirements of an area of opportunity. HACSB had to identify 140 units that were in areas of opportunity where existing PH residents could move if desired. Approximately 30 residents took this option and were relocated.

RAD Conversion Minor Rehab HACSB has converted 552 units via this strategy. All conversions were PBV and no-debt was placed on the properties. Largest PH community to convert was 296 units. Realization that these could be financially viable through general operations.

Financial Overview – RAD No-Debt Conversion

Challenges – No Debt RAD Conversions Physical condition of the property The conversion will require a Physical Condition Assessment (PCA). Potentially large initial outlay of capital to pass the RAD approval process. Clear communication and direction to the PCA consultant is vital. Delineate between items addressed during routine operations and capital needs.

Challenges - No Debt RAD Conversions Existing debt on PH properties will need to be addressed. Energy Performance Contract (EPC) – extremely difficult to get approved to keep as existing debt. Capital Fund Financing Program HACSB payed off its EPC debt.

Non-Profit Affiliate Housing Partners I (HP I) is a 501(c)3 affiliate of HACSB Formed in 1991 to pursue housing development and acquisition traditionally not available to HACSB. Currently owns 700+ units of housing.

Housing for Seniors Developed through non-profit (HP I) – 50 PBV/LIHTC units of new construction. 10 units designated for individuals with mental health service needs.

Horizons at Yucaipa

HACSB Acquisitions

Future Developments Housing for Veterans and Chronically Homeless Veterans housing including 50 VASH PBV (86 units) Permanent Supportive Housing for chronically homeless (38 units). Next phase of multi-phase RAD development (140 units).

Thank You! Questions?