OneMECK Affordable Housing Overview January 5, 2016

Affordable/Workforce Housing

Affordable Housing –Housing units for households earning up to 60% of the median household income. Workforce Housing –Housing for households with insufficient incomes to secure quality housing in close proximity to their place of employment. –Housing for households earning between 60% ($40,320) and 120% ($80,640) of the median household income. Inclusionary Housing Programs –Require market-rate developers to set-aside a percentage of housing units as affordable housing. Definitions

Housing Choice Voucher Program (Section 8) –the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. –Housing units for households earning at or below 30% ($20,150) of the median household income. Project Based Vouchers (Section 8) –A component of a public housing agency’s housing choice voucher program. Definitions

The United States Department of Housing and Urban Administration established the following goals: –Provide safe decent and affordable housing –Provide a suitable living environment –Expand economic opportunities for low and moderate income households U.S. Department of Housing and Urban Administration

The City of Charlotte Housing Policies embraces the goals established by the United States Department of Housing and Urban Administration and identified the following housing goals: –Preserve the existing housing stock –Expand the diversity of housing types –Support family self-sufficiency initiatives Since 1999, the City has engaged in a comprehensive discussion of its Housing Policies with citizen advisory groups and City Council. There’s an estimated need for approximately 34,000 units of affordable housing. City of Charlotte Housing Goals/Roles

City of Charlotte’s Existing Programs Housing Program Funding Sources –Community Development Block Grant Funding –HOME Funding –Emergency Solutions Program –Housing for People with Aids and HIV –Housing Trust Fund Housing Programs –Housing Trust Fund –HouseCharlotte Down Payment Assistance –Tenant Based Rental Assistance –Housing Rehabilitation –A Way Home Endowment

The Housing Trust Fund was established in 2001 and is designed to provide gap financing to developers of housing for households earning 60% ($38,500) and below the Area Median Income. The Housing Trust Fund is financed through voter approved housing bonds. Funds are made available through a competitive request for proposal process and is aligned to leverage funding from the North Carolina Housing Finance Agency. Housing Trust Fund

Housing Trust Fund Background Financed 5,542 affordable housing units since 2002 Completed 4,640 housing units Total Development - $544 million Funds Committed - $93 million Leverage Ratio of 1:6 Rehabilitation of existing housing stock is important

Housing Trust Fund Developments Cherry Garden Senior Apartments 1727 Baxter Street, Cherry Neighborhood Completed: May 2010 The Affordable Housing Group

Housing Trust Fund Developments Springcroft at Ashley Park Senior Apartments 6701 Oakengate Lane, South Park Neighborhood Completed: October 2009 Charlotte Mecklenburg Housing Partnership

Housing Trust Fund Developments The Retreat at Renaissance 3240 New Renaissance Way Completed: June 2013 Laurel Street Residential/Charlotte Housing Authority

Housing Trust Fund Developments Brightwalk Appraised tax value when purchased was less than $1M Anticipated tax value when complete is $60M PreviousCurrent

Brightwalk Today Mixed-Income Development –Diverse resident mix –214 Affordable/Workforce multi-family housing units –77 Market Rate and Affordable/Workforce single-family homes and townhomes –Over 200 single-family and townhomes currently under development –Additional lots under contract with Standard Pacific over next 18 months

Brightwalk Today

Affordable Housing Community Investment Programs The City can increase the supply of affordable housing by: Housing Locational Policy Land Acquisition Program Tax Credit Development Program Supportive Services Program Voluntary Incentive-Based Housing Program Single Family Foreclosure Acquisition Program Multi-Family Rehabilitation and Acquisition Program The Chimneys Apartments - North Sharon Amity Road Ashley Square at South Park – Broad Street

Mixed-Income Housing Development is defined as planned development that has a percentage of the dwelling units targeted to households earning 80% or below the area median income and developed according to an approved preliminary site plan. The program was created in 2013 as a result of a Council approved action directing staff to pursue regulatory and financial incentives to encourage the development of diverse housing types by the private sector. Voluntary Mixed-Income Housing Development Program

This program seeks to encourage mixed-income housing developments in targeted locations through a voluntary, incentive-based density bonus within the R-3, R-4, R-5, and R-6 single family zoning districts and the R-8MF and R-12MF multi-family zoning districts. The program goals are to: –Incentivize private sector development of diverse housing types –Disperse affordable housing throughout the community –Encourage a range of housing types and income levels, and –Increase opportunities for people to age in place. Voluntary Mixed-Income Housing Development Program

After

Best Practices Collaboration (government agencies and private sector) is critical. –Linking housing and school integration in the Section 8 Housing Choice Voucher Program Target vouchers to help families with children access lower poverty, high performing schools (Baltimore, Dallas, King County) –Placing new assisted housing in low poverty, high performing school districts: Project Based Section 8: Use state and local bonding authority to acquire small multi-family developments in high performing school zones (King County, WA) Inclusionary zoning and scattered site public housing (Montgomery County, MD; Denver, CO)

Best Practices Make government owned-land available for affordable housing development where appropriate. Partner with philanthropic land owners to create mixed-income communities. Build school integration into existing HUD and Department of Education Collaborations.

Looking Ahead Continue working with partners to improve the perception of affordable housing Continue assisting developers that produce quality affordable housing Continue addressing the issue through collaboration and leveraging funds