Rural Housing Resources: Public-Private Partnerships (P3s) for Housing NC Affordable Housing Conference Rural Housing Resources: Public-Private Partnerships (P3s) for Housing

Development Finance Initiative The Development Finance Initiative (DFI) is a program of UNC-Chapel Hill School of Government and collaborates with communities in NC to attract private investment for transformative projects by providing specialized finance and real estate development expertise. 49% rural

Hurricane Matthew Impact and State’s Goals Focusing on resiliency, NC sought solutions to attract more affordable rental housing development in community but outside areas vulnerable to flooding. Primarily low-income Rural areas Renters with limited FEMA support Source: Flood Risk Information System; 2017 ACS 5-Year

Rural Development Challenges and Solutions Limited land viable for housing development Local government and community support needed Shift from recovery to resiliency challenging for communities facing repeated natural disasters Understand need but lack capacity Stagnant incomes and declining populations Private market not delivering enough new units Lack of multifamily development in recent years  Partner with local gov’t to identify land  Identify building program to meet public interests and market  Support local gov’t in community engagement  Identify subsidy  Identify development partner

Public-Private Partnerships (P3s) for Housing P3s for Housing process: Connect with local government partners Identify suitable development sites in Hurricane Matthew-impacted communities Conduct development feasibility analysis Solicit private development partner State of NC engaged DFI to assist with attracting private investment for the development of affordable housing for low- and/or moderate-income households in hurricane-impacted communities, prioritizing households displaced by Hurricane Matthew.

DFI Feasibility Analysis Site Analysis Public Interests Feasible Project Market Analysis Financial Analysis

Case Study: Lumberton, NC HUD Area Median Income (AMI) is $43,800 for a family of 4. Affordable rent for 2-person, low-income household estimated at $525. Prior to Hurricane Matthew: Est. 6,000 low-income renter households in substandard and/or overcrowded housing, and/or were cost-burdened. Population steadily in decline, with some growth among seniors Hurricane Matthew displaced nearly 500 very low-income households. Source: www.ci.lumberton.nc.us USDA eligible

Identify Viable Land Clear path to site control Existing connection to utilities Outside 100- and 500-year flood zones Development of site meets local public interests Meets LIHTC requirements (i.e. access to amenities, transportation, etc.)

Identify Feasible Building Program Targeting elderly households (55+) earning 60% AMI Accommodate up to 66 apartments – mix of single-story and two-story Based on input from council, staff and community meetings

Financing Source: CDBG–Disaster Recovery HUD flexible grants to help cities, counties, and states recover from presidentially declared disasters, especially in low-income areas. Intended to rebuild the affected areas and provide crucial seed money to start the recovery process. Governed by HUD federal funding requirements. Come several years after the disaster.

Identify Capital Funds Gap Gap Loan Explain tax credits and LHC privately-initiated

Identify Development Partner City selected partner experienced with 4% LIHTC and CDBG. Preliminary application submitted within month of partner selection. Expedited

Next Steps Lumberton and Development Partner proceed to development Rocky Mount solicitation in pipeline State focused on identifying affordable housing opportunities in all Hurricane Matthew-impacted communities

Sarah Odio, Project Manager odio@sog.unc.edu www.dfi.sog.unc.edu