1. Delaware State Housing Authority FY 15 Joint Committee On Capital Improvement Public Hearing February 11, 2014 Delaware State Housing Authority 18 The Green Dover, DE 19901 (302) 739-4263 (888) 363-8808 Visit us at www.destatehousing.com

2. DSHA Presentation Presentation Summary – Core Businesses Accomplishments and Highlights Delaware Housing Market Overview State Budget Production Reports FY 15 Budget Request

3. DSHA Mission Our mission is to efficiently provide, and to assist others to provide quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans

4. DSHA Core Businesses Homeownership Homebuyer Mortgages Second Mortgage Assistance Foreclosure Mitigation Home Rehabilitation Rental Rental Housing Development Multi-Family Site Preservation Rental Subsidies Asset Management

5. DSHA Accomplishments and Highlights First-Time Homebuyer Tax Credit Mortgage Financing Partnerships Bond Restructuring ($2.5 M savings) $5M in New Rental Subsidies

6. Delaware Housing Market Overview

7. Housing Market Review: Building Permits Source: U.S. Census Bureau, CenStats Database

8. Housing Market Review: Home Sales Source: County Board/Associations of REALTORS©

9. Housing Market Review: Home Prices Source: County Board/Associations of REALTORS©

10. Housing Market Review: Mortgage Delinquencies Source: Mortgage Bankers Association, National Delinquency Survey

11. Housing Market Review: Foreclosure Filings

12. Housing Market Review: Sheriff Sales Source: Lexis Nexis Database, compiled by Counties, AG, and DSHA

13. FY15 Bond Bill Request

14. Affordable Rental Housing Program FY13 Production Report $4,000,000 (FY 13 Bond Bill)

15. ARHP FY13 Production Affordable Rental Housing 3 multi-family rental housing sites 216 units Housing for 600 people Nearly $2 million in HUD rental subsidy preserved

16. Affordable Rental Housing Program FY13 Funding Leverage ARHP FY13 Funding Summary: HDF Leveraged Amount $45.2 million (8.5 : 1 ratio) Economic Activity Created $ 37.1 million (7:1 ratio) Jobs Created or retained 259 ARHP Dollars Allocated$5.3 million Low Income Housing Tax Credits$16.4 million Private Loans$11.8 million Other (Federal, Donations, Contributions)$17.0 million Total$50.5 million

17. Affordable Rental Housing Program (ARHP) FY15 Bond Bill Request $6,000,000

18. Rental Housing Needs Rents Increasingly Unaffordable in Past Decade Median rent in DE increased 50% from 2000 to 2012, median renter household income only 15%. Demand for New Affordable Rental Housing 39,850 Delaware renter households are cost- burdened. Of these, 19,695 are severely cost- burdened. Preservation and Rehab Needs 47% of sites are over 15 years old or since last rehab 44% of sites in fair/poor physical condition 26% with total reserves below $50,000

19. Affordable Rental Housing Program (ARHP) Affordable Rental Housing Rehabilitation of existing units Creation of new units 4-6 sites, 300 – 350 units Continue leveraging public/private resources

20. Stoneybrook Apartments Before Renovation During Construction

21. Walnut Street Apartments Under Construction

22. Heron Run Before Renovation During Construction

23. Heron Run Completed

24. Heron Run Solar Panel Installation

25. FY15 Bond Bill Request

26. Downtown Development District Grants $7,000,000

27. Downtown Development Districts 1.Applications made by jurisdictions to Office of State Planning Areas in high need Plan for designated area Jurisdiction incentives 2.Review by Cabinet Committee on State Planning Issues 3.Designation by the Governor

28. Downtown Development District Grants 1.Request for $7 million in Bond Bill Grants for development investments made within DDD Up to 20% of hard costs 2.Administered by DSHA Adoption of rules, regulations Application process Allocation of grants Monitoring for compliance

29. Downtown Development District Grants Eligibility Requirements Must be compliant with DDD plan Residential, commercial, mixed use Minimums (1 st year, subject to change): Threshold of $25,000 for single residential or mixed-use building Threshold of $100,000 for multi-family residential, commercial or industrial Limitations (1 st year, subject to change): $250,000 within 5 year period for investments of $5 million or less 5% of investment up to $500,000 for investments over $5 million

30. FY15 Bond Bill Request

31. Contact Information Anas Ben Addi, Director Delaware State Housing Authority 18 The Green Dover, Delaware 19901 Telephone: 739-4263 Fax: 739-6122 Toll Free: 888-363-8808 E-mail: Anas@destatehousing.com Thank you!