A public education event of the Alliance for Housing Solutions Cosponsored by the Columbia Pike Revitalization Organization (CPRO) Adapted from opening remarks by Michelle Winters, Moderator September 16, 2015

2 We thank moderator Michelle Winters and panelists Ed Delany, Capital One John Welsh, AHC Inc. Paul Browne, Wesley Housing Dev. Corp. and Steve Cover, Arlington County The following slides are taken from panelist presentations, with annotations by AHS.

Michelle provides context 3

Our subject is dollars and bricks but remember what drives that Mixed-income housing provides opportunity for workers of various skills and incomes... and builds community and stability. 4

What incomes are we talking about? Fast Food Prep Shampooers Pharmacy Aides Retail Sales EMT/Paramedic Mental Health Counselors School Teachers Insurance Underwriters Budget Analyst Optometrist Subsidy possibleNo explicit subsidy 5 Locally (Arlington County), the lion’s share of public resources to support affordable housing are targeted for households earning 60% AMI—Area Median Income—and below. The federal housing tax credit program (LIHTC) strictly limits their use to those households, although creative deal structures can allow mixed income on a site where various income levels are served. For the lowest income workers, direct rent subsidies are often needed in addition to a lower base rent.

Mixed-income housing— developer considerations Scale Building levelNeighborhood level Affordability SubsidizedNatural variation Neighborhood Weak marketStrong market Mix Mostly affordableMostly market Reason Policy requirement/ incentive Developer choice 6 “Mixed income” comes in many shapes and sizes. In deciding whether to produce a mixed-income site, a developer weighs multiple factors, not least: how many units should be affordable and how many market rate?

Urban Land Institute 2014–2015 Mixed-income award finalists ProjectCity Total Units Affordable (<60% AMI) Workforce (60–120% AMI) Market or > 120% AMI Total % affordable and workforce BASE Capitol HillSeattle3281%19%0%100% 30 HavenReading MA530%55%45%55% Chambers LoftsTrenton6459%0%41%59% Warehouse Artist LoftsSacramento11674%0%25%74% Paseo VerdePhiladelphia12044%14%42%58% Box DistrictChelsea MA15352%10%37%62% 1400 MissionSan Francisco1900%88%12%88% Charlesview Residences and TH Boston26081%12%7%93% Old Town CommonsAlexandria VA36535%065%35% Emerald VistaDublin CA37647%4%49%51% Source Urban Land Institute Terwilliger Center for Housing 7 These ULI award finalists range in size, with various income level mixes. Michelle reported that it is difficult to find finalists—in other words: putting together mixed-income sites is not easy!

Reduces neighborhood opposition Reduces need for external (government) subsidy Market-rate units can help offset costs of affordable units Streamlined approvals and other public benefits Improved property performance Some benefits of mixing Old Town Commons, Alexandria Developer: EYA Source ULI Terwilliger Center for Housing 8

Financing Partnerships Design and amenities Market acceptance Social environment/ political acceptance Services Management Issues in mixed-income development Paseo Verde, Philadelphia Developer: Jonathan Rose, Co. Source ULI Terwilliger Center for Housing 9 In communities like Arlington, the public-private partnership approach to affordable housing provision results in the expectation that affordable units/buildings are like those of market rate of similar age and design type.

Arlington’s mixed-income experience... includes varied mixes—  affordable units scattered throughout a new market-rate building  a single site incorporating a relatively balanced mix of affordable and market units  a range of housing types within a neighborhood 10

Arlington’s mixed-income experience Two Arlington examples/case studies—  a standalone mixed-income site currently under construction by Wesley Housing Development Corp.  a hybrid site by AHC Inc. at the center of an evolving mixed-income neighborhood 11