1. Delaware State Housing Authority DSHA FY 2014 Budget Joint Bond and Capital Infrastructure Committee Hearing February 27, 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 Delaware Housing Market FY14 Bond Bill Budget Request – Affordable Rental Housing Program (ARHP)

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 Home Again Wilmington Senior Tax Assistance Program Housing Needs for People with Disabilities Community Impact Study DelawareHousingSearch.org State Rental Assistance Program

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. Delaware Housing Market Review

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: Mortgage Delinquencies Source: Mortgage Bankers Association, National Delinquency Survey

10. Housing Market Review: Foreclosure Filings

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

12. 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

13. 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

14. 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

15. Affordable Rental Housing Program FY12 Production Report

16. Affordable Rental Housing Program FY12 Production Rental housing creation – $14 million state investment in FY12 $4 million from Bond Bill $10 million from Delaware’s Future Fund – 6 rental housing sites – 388 units – 68 ADA units – 1,048 individuals housed – $1.6 million annual federal rent subsidy

17. Bank Loans: $5.4M 17 LeverageLeverage Federal HOME Grants: $2.3 M Other (Federal, Donations, Contributions) : $4 M Tax Credit Equity: $39.9 M Total Leverage: $51.6 M State Investment Leverage Ratio is 4.4 to 1 FY12 Permanent Financing Leverage Report State Funding: $ 11.8 M

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

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

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

21. North Lake Village Middletown, DE 52 Family Units Before During Rehab

22. Affordable Rental Housing Program FY14 Budget Request $6,000,000

23. Projected Outcomes Need for an ongoing rental housing investment program funded by the state FY14 outcomes from $6 million: Leverage federal tax credit programs Preservation and new construction of shovel-ready projects 3-4 sites (200-300 units) Leverage $24 million in other funds Economic impact of $42 million 225 Delaware jobs

24. 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

25. 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!