1. Delaware State Housing Authority DSHA FY 2014 Budget Joint Finance Committee Hearing February 5, 2013 Delaware State Housing Authority 18 The Green  Dover, DE 19901 (302) 739-4263  (888) 363-8808 www.DEStateHousing.com

2. Outline DSHA At a Glance FY14 Budget Request - HDF Base Budget - State Rental Assistance Program

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

4. DSHA New Initiatives State Rental Assistance Program Home Again Loans for Heroes Wilmington Senior Tax Assistance Program Housing Needs for People with Disabilities Community Impact Study DelawareHousingSearch.org

5. DSHA New Efficiencies Organizational consolidation saved $260,000 in salary Debt restructuring Saved $1.7 million in interest payments Program leverage 500 new homeownership loans New mortgage financing structure Saves on cost of issuance

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

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

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

9. Housing Market Review: Foreclosure Filings

10. Housing Market Review: Foreclosure Filings 2012 Source: Lexis Nexis Database, compiled by Counties, AG, and DSHA

11. Housing Market Review: Rental Market Changes 2000 - 2010 20002010Increase Median Gross Rent$639$95249% Median Family Income $55,257$68,74624% Cost-burdened Renters* 28,12845,26461% % of Renters Cost- burdened 34%51%50% Source: U.S. Census Bureau, 2000 Census and 2010 American Community Survey * Cost burdened is defined as spending 30% or more of household income on rent

12. Housing Market Review: Cost-Burdened Households Source: HUD 2005-2009 CHAS Data, compiled by DSHA Cost-Burdened is defined as spending 30% or more of household income on rent Severely Cost-Burdened level is 50% of income

13. FY14 Budget Request HDF Base Budget$4,070,000 Affordable Rental Housing Program $6,000,000 State Rental Assistance Program $3,000,000 Total DSHA Budget$13,070,000

14. Housing Development Fund FY12 Production Report

15. Housing Development Fund FY12 Unit Production Rental Housing Homeownership Rehabilitation/Preservation264 Units New Construction76 Units Rental / Security Deposit Assistance448 Units Rehabilitation285 Units Acquisition/Rehabilitation16 Units New Construction27 Units Pre-Purchase Counseling425 Units

16. 16 LeverageLeverage State Resources (HDF): $ 10.2 M Federal HOME Grants: $14.1 M Other (Federal, Donations, Contributions) : $2.3 M Tax Credit Equity: $32.4 M Total Leverage: $48.8 M HDF Investment Leverage Ratio is 4.8 to 1 Housing Development Fund FY12 Leverage

17. Housing Development Fund FY14 Budget Request $4,070,000 Base Budget

18. Housing Development Fund $4,070,000 Affordable Rental Housing Rehabilitation of existing units Creation of new units Affordable Homeownership New units Owner-occupied rehabilitation Housing counseling

19. Carvel Gardens Laurel, DE 100 Family Units Before After

20. The Cascades at Milford 76 Family Units Community Building Solar Panels New Construction

21. Hampton Circle Seaford, DE 35 Senior Units New Construction Ms. Erethia Smith, Resident

22. Manlove Manor Wilmington, DE 40 Senior Units New Community Building Before Rehab in Process

23. State Rental Assistance Program FY 13 Production Report $3,000,000 FY 2013 Budget

24. Introduction The purpose of the State Rental Assistance Program (SRAP) is to assist low-income individuals who are eligible to receive supportive services and require affordable housing to live safely and independently in the community.

25. Program Goals Provide rental subsidies to program participants who require, and have access to continuing home- and community-based services Establish partnerships with state agencies and community service providers Move individuals out of state-run long-term care facilities and into home- and community-based care programs Transition program participants to financial self- sufficiency or to other affordable housing resources

26. Populations Served Clients exiting state-supported and privately run long-term care facilities Youth aging out of foster care Families for whom the lack of affordable housing is a barrier to reunification Individuals at-risk of requiring services from or being admitted to a state-supported institution DSAMH clients identified as target populations in the USDOJ Settlement with the State of Delaware

27. SRAP Production Finance Report Applications Pending Vouchers IssuedUnits LeasedTotal Applications Pending Funds Reserved (1) Vouchers Issued Funds Reserved (1) Units Leased Funds Encumbered (2) Application, Vouchers and Units Total Funds Reserved and Encumbered 67$569,500107$909,500178$1,428,928352$2,907,928 SRAP Production and Pipeline (as of 12/31/2012): (1) Based on annual estimate of $8,500 per Voucher (2) Based on actual expenditures

28. SRAP Production Vouchers Issued SRAP Vouchers by Agency DHSS-DSAAPD/DMMA57 DHSS-DDDS16 DHSS-DSAMH134 DSCYF-Youth41 DSCYF-Families37 TOTAL285 19 Participants have transitioned to other permanent housing 9 participants have been terminated from the program due to violations

29. DPC Settlement Agreement SRAP is a key tool in the State’s effort to implement the DOJ Settlement on the Delaware Psychiatric Center (DPC) DSAMH has transferred additional funding to the SRAP program to ensure Settlement housing goals are met July 2012 goal was to provide 100 additional new housing vouchers (SRAP provided 75) July 2013 goal is to provide 200 additional new housing vouchers (SRAP target is 150) Settlement housing target for FY14 is 550.

30. DPC Settlement Agreement SRAP is starting to show a cost avoidance benefit – especially with people covered by the Settlement Agreement 135* SRAP vouchers issued to DSAMH clients exiting DPC or at-risk of admission to DPC. Average length of stay at DPC for these clients is 60-days at a cost of $36,180 per client or $4,848,120 for all 135 clients. The cost to provide SRAP rental housing assistance to the same cohort of 135 is $974,565**. Cost avoidance for this one sub-population of SRAP in the first of their participation in the SRAP program is $3,873,555. *Including SRAP vouchers funded by DSAMH **Actual cost of rents ($7219) for DSAMH clients used

31. $3,000,000 To continue the program and continue to provide housing to 350 current and new SRAP program participants. SRAP FY14 Budget Request

32. SRAP Program Participants… In Their Own Words

33. FY14 Budget Request HDF Base Budget$4,070,000 Affordable Rental Housing Program $6,000,000 State Rental Assistance Program $3,000,000 Total DSHA Budget$13,070,000

34. 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!