THE IMPACT OF THE CLOSURE OF THE ST THE IMPACT OF THE CLOSURE OF THE ST. PAUL’S AREA PUBLIC HOUSING COMMUNITIES ON AFFORDABLE HOUSING IN NORFOLK

WHO WE ARE Legal Aid Society of Eastern Virginia is a non-profit law firm that represents low-income Virginians at no cost in civil matters We are a firm of twenty-one attorneys and cover all of eastern Virginia, from the Upper Peninsula to the Eastern Shore Our service area has a poverty population of 200,000 persons Or about 1 attorney for every 9,523 low-income persons

EVICTION RATES IN NORFOLK Norfolk is number 6 in the nation for evictions, with a 8.65% eviction rate. There were 4,318 evictions in Norfolk in 2016. That amounts to 11.83 households evicted every day. 8.65 in 100 renter homes are evicted each year. All data from: Eviction Lab, Princeton University, www.evictionlab.org.

Comparison of eviction rates in 2016 Comparison of eviction rates over time 1 Norfolk Norfolk 2 United States United States

11.8 8.65% Norfolk Evictions 4,318 Eviction Filing Rate 27.58% 2016 11.8 EVICTIONS PER DAY 8.65% EVICTION RATE Evictions 4,318 Eviction Filing Rate 27.58% Eviction Filings 13,771 CENSUS DEMOGRAPHICS Population 245,452 % Renter-Occupied Households 56.51% Poverty Rate 16.23% Median Gross Rent $970 Median Household Income $44,480 Median Property Value $193,400 Rent Burden 33.7% Black 41.14% White 44.08% Hispanic/Latinx 7.24% Asian 3.33% American Indian/Alaska Native 0.4% Native Hawaiian/Pacific Islander 0.18% Multiple Races 3.29% Other Races 0.33%

Causes of Eviction Low wages Lack of affordable housing Lack of access to legal assistance

Norfolk, Virginia Housing Market Average weighted rent for combined market-rate and affordable units is: $998 Upper Tier units: $1,375 28% of the rental market is Upper Tier Source 2017, RPRG Absorption Study of Norfolk market Note, NRHA is promoting a later study that evaluates the entire region, not just Norfolk and the region has a more elastic market than Norfolk, CNI Application, Attachment 32

In July 2016, 506 vacancies citywide In July 2016, 275 of the 506 vacant units were in the Upper Tier Norfolk adds 547 households a year Source, 2016 RPRG Absorption Study

Assumptions of the Absorption Study The Absorption Study assumes new building and a vibrant Low-Income Housing Tax Credit “LIHTC” market LIHTC market severely undercut by the 2018 tax reform which lowered corporate income tax There are serious questions as to the viability of this incentive post-tax reform For example, see NY Times Article of Jan. 18, 2018, “Tax Overhaul is a Blow to Affordable Housing Efforts.”

Who Accesses Public Housing and Housing Choice Vouchers in Norfolk? 97% African American 49% Families 12% Disabled, non-elderly 6% Elderly, no disability 12% Elderly, disability 15% Non-disabled, non-elderly, no children 6% Other Housing Choice Voucher 93% African American 38% Families 20% Disabled, non-elderly 14% Elderly, disability 14% Non-disabled, non-elderly, no children 8% Other Source: HUD, https://pic.hud.gov/pic/RCRPublic/rcrmain.asp

Public Housing Supply NRHA is closing and converting almost all of its traditional Low Income Public Housing which reduces the supply of affordable housing in Norfolk Diggs Town, Grandy Village are converting to Rental Demonstration Program which results in a net loss of subsidized units Closure and demolition of Calvert Square, Young’s Terrace and Tidewater Gardens (St. Paul’s Area) – loss of 1,674 units

Demolition of the St. Paul’s Communities 1,674 units combined (Tidewater Park, Calvert Square, Young’s Terrace) 618 units for Tidewater Gardens 197 phase one units

Long-term Replacement Housing 600-700 units in the revitalized St. Paul’s area will be subsidized A net loss of about a 1,000 public housing units Vouchers are not an adequate replacement as the city lacks the rental units

Demographics of St. Paul’s Public Housing Communities 1,674 units 3,680 bedrooms 4,174 official population count 2,215 children Predominately African-American Source, NRHA FOIA Request October 2017

Housing Choice Vouchers Cannot Accommodate the Housing Needs of Norfolk Upper Tier units are not accessible to voucher holders because they are above HUD guidelines in allowable price ($1,095 for a two-bedroom) This is 28% of rental market in Norfolk The housing stock itself cannot accommodate demand – low vacancy rate in Norfolk – less than 1% citywide No Source of Income protections for renters – Landlords can refuse to rent to people who are in the HCV program Source, Absorption Study

Length of Time Voucher Holders Have to Find a Home According to NRHA’s WRITTEN documents, 60 days, with two possible 30 day extensions, for a total possible time of 120 days. The two possible 30-day extensions are given on a case by case basis -Source, NRHA, “Making Smooth Moves”

Relocation Assistance Loans for security deposit, utility deposits Payment of utility connection fees, moving costs Source: NRHA, “Relocation Program”

“Build First, Build Early” Snyder Lot & Police Station Lots– 44 replacement units available by 2021 Red Carpet Lot – 22 replacement units available by 2022 Transit Area Senior – 25 replacement units by 2023 Transit Area Family – 33 replacement units by 2023 Tidewater Gardens I & II – 47 replacement units by 2024 Source, CNI Grant Application, Ex. G

NRHA Waitlists Voucher waitlist: 2761 General public housing waitlist: 1000 Diggs Town: 577 Banks at Berkley: 406 Source: NRHA, FOIA Request, April 2018

Housing Choice Vouchers Enforce Historic Segregation Patterns

Mapping Sources Redlining map: Mapping Inequality, Redlining in New Deal America, https://dsl.richmond.edu/panorama/redlining/#loc=12/36.8733/-76.1509&opacity=0.8&city=norfolk-va Voucher dispersion map: Where Voucher Households Live in the 50 Largest Metropolitan Areas, Center on Budget and Policy Priorities https://www.cbpp.org/research/housing/interactive-map-where-voucher-households-live-in-the-50-largest-metropolitan-areas

Do people have a right to stay in Norfolk?

125 St. Paul’s Blvd., Ste. 400 Norfolk, VA 23510 (757) 627-5423 www.laseva.org