Presentation is loading. Please wait.

Presentation is loading. Please wait.

Commonwealth Housing Forum 2004 Presentation by Milton R. Pratt, Jr. HUD Regional Director Wednesday, December 15, 2004.

Similar presentations


Presentation on theme: "Commonwealth Housing Forum 2004 Presentation by Milton R. Pratt, Jr. HUD Regional Director Wednesday, December 15, 2004."— Presentation transcript:

1 Commonwealth Housing Forum 2004 Presentation by Milton R. Pratt, Jr. HUD Regional Director Wednesday, December 15, 2004

2 Sustaining Development & Building Communities “This Administration is working specifically to promote the production of affordable homes.” HUD Secretary Alphonso Jackson

3 HUD’s Financial Resources ä Community Development Block Grant/HOME ä 202/811 Programs ä Capital Bond Fund Financing ä FHA Multi-Family Insurance ä Housing Choice Voucher Program

4 Community Development Block Grant Programs (CDBG) ä Community Development Block Grant Programs -The rehabilitation of affordable housing has traditionally been the largest single use of CDBG grants. -CDBG funds are distributed by formula around the country based on population, income levels, poverty rates and age of housing stock.

5 HOME Investment Partnerships Program ä CDBG is the largest Federal block grant to State and local governments designed to create affordable housing for low-income households. ä Since 1992, through the HOME program, we have committed to produce nearly 130,000 affordable housing units in Pennsylvania.

6 CDBG Funds for Pennsylvania ä CDBG Funds for FY’ 2004 -$348.7 million ä Eligible Uses for the Funds -70% must be used for activities that benefit low- and moderate-income persons. -Funds can be used for rehabilitation, new construction and infrastructure improvements.

7 CDBG Funds for Pennsylvania ä Innovative Uses of CDBG Funds in Pennsylvania -The McFarland Press Apartments: a 49-unit affordable rental property in Harrisburg’s South Allison Hill neighborhood. -This adaptive reuse project included $450,000 of city HOME funds. -Completed in 1997, it has received multiple accolades including a PAHRA award of excellence.

8 What does the future hold for CDBG? ä The trend over the past two years reflects reductions in the program funds because of declining population in Pennsylvania and other factors used to determine funding levels. ä Program continues to be very popular with Congress and local elected officials; however, CDBG experienced a 6% decrease in the budget this year.

9 202/811 Programs ä Funds for FY’ 2004 -$38.5 million for Pennsylvania ä Eligible Uses for 202 Funds -Finance construction, rehabilitation or acquisition with or without rehabilitation of structures that will serve as supportive housing for very low- income elderly and provide for rent subsidies to make them affordable.

10 202/811 Programs ä Eligible Uses for 811 Funds -Provide interest-free capital advances to non- profit sponsors to help finance the development of independent living condominium units and small group homes for persons with disabilities. ä Both programs provide funding assistance to project owners to subsidize operating expenses.

11 202/811 Programs ä Innovative Use of 202 Program -South Philadelphia Presbyterian Apartments were officially dedicated on October 8, 2004. -The apartments provide 66 affordable one bedroom units in a five story building. -HUD provided more than $5.7 million to fund the mortgage of the building and an additional $1.2 million to subsidize the rent for the units.

12 What does the future hold for the 202/811 Programs ? ä Pennsylvania continues to produce competitive projects; however, environmental issues have hampered funding for some projects. ä Nationally, congressional support for these programs is strong. The programs have faced some pressure regarding completion of projects in a timely manner.

13 Capital Fund Bond Financing ä Pennsylvania’s leading the charge with the allocation of capital fund bonds. ä Housing Authorities in the Commonwealth are trying to raise $40 million to be used for infrastructure upgrades in public housing and mixed finance projects. ä Housing Authorities can borrow private capital and pledge part as debt service. ä Structured as a bond transaction which can be done on an individual or group basis.

14 Capital Fund Bond Financing ä Funds for FY’2004 -Congress appropriated approximately $2.7 billion in ‘04 for the Capital Fund Program. -Housing Authorities can use up to 33% of the annual capital fund for debt service.

15 Capital Fund Bond Financing ä Eligible Uses for the Funds -Mixed finance projects and improvements to building systems such as HVAC, windows, doors, deferred maintenance.

16 Capital Fund Bond Financing ä Innovative Use of Capital Fund Bond Financing ä Philadelphia Housing Authority has completed the first bond pool transaction in Pennsylvania in the amount of $150 million. ä Grays Ferry Estates in Philadelphia is a multi- phased mixed finance project undertaken by the Philadelphia Housing Authority.

17 What does the future hold for Capital Fund Bond Financing? ä The future is very promising for this program. ä Currently, a second round pool of funding is underway thanks to PHFA’s leadership and PAHRA support; the leverage amount is greater than the first round.

18 Multi-Family FHA ä FY’ 2004 FHA Initial Endorsements in Pennsylvania and Production/Refinanced Units -$25.6 million -1,403 Units ä Eligible Uses for Funds - HUD provides insurance for loans generated by private lenders for development of multi-family projects. - These may not generate affordable units but they do keep housing stock growing in areas where units are needed.

19 Multi-Family FHA ä Innovative Use of Multi-Family FHA - Heinz Factory in Pittsburgh, Pennsylvania - FHA insured mortgage amounts to $35 million which is approximately ½ of total development cost. -The development includes 267 loft units and is located along the Pittsburgh waterfront. - It is a source of pride and has stimulated additional development in the area.

20 Multi-Family FHA ä Innovative Use of Multi-Family FHA ä Heinz Factory -This project helped to preserve historically significant buildings. -Historic investment tax credits and a conservation easement helped this project which is approximately 83% complete.

21 What does the future hold for Multi-Family FHA? ä Congress looks favorably on this program. ä HUD will continue to refine it to remain competitive in the conventional market.

22 Housing Choice Voucher Program ä Funds for FY’ 2004 for Pennsylvania -$885 million (Section 8, Public Housing Operating Funds, Capital Fund Program, Section 8 Moderate Rehab/SRO, Resident Opportunity and Self Sufficiency Grants) ä Eligible Uses for the Funds -Rental Assistance. -Spur development because developers can rely on subsidies from low-income tenants. -Majority are administered through Housing Authorities, PHFA and HUD directly.

23 Housing Choice Voucher Program ä Innovative Use of Funds -Upland Terrace Development and Pusey Estates Mixed Finance Project: 51 project based units consisting of 2, 3 and 4 bedroom units are currently under construction and could be complete by 2005. -Funding secured from PHFA, HUD Capital Funds and Low-Income Housing Tax Credit Equity among other sources. -Delaware County HA partnered with Pennrose Properties for this project.

24 What does the future hold for the Voucher Program? ä The program must be reformed as it continues to put pressure on all other programs. ä Program was funded in the 2005 Budget at an increase of $300 million for tenant-based vouchers and $800 million across the board. ä HUD will now provide each housing agency with a specific budget amount rather than a fixed number of vouchers.

25 Technical Resources ä Regulatory Barrier Reforms ä Energy Star Program ä Economic Market Analysis ä HUD’s Regional and Local Staff

26 Technical Resources ä Regulatory Barrier Reforms -Regulatory Barriers Clearinghouse, a national Web-based forum that provides state and local governments with opportunities to share ideas and develop solutions to address unique housing challenges.

27 Technical Resources ä Energy Star -Voluntary government-supported labeling program that identifies appliances and products that are more efficient. -Energy Star labels can be applied to new homes or substantially rehabilitated homes under CDBG and HOME Program that are 30% more efficient than a standard house.

28 Technical Resources ä Energy Star Applications -Energy savings by public housing agencies through replacing appliances with Energy Star appliances. -Energy savings attained in HOPE VI new construction. -Energy savings through the use of combined heat and power or cogeneration.

29 Technical Resources ä Economic Market Analysis - HUD has published Comprehensive Housing Market Analyses for the Allentown-Bethlehem- Easton, Erie, Lancaster, Reading and York Housing Market areas. - We’re working on completing analysis for State College and plan to do one for Harrisburg Housing Market in 2005.

30 HUD’s Financial/Technical Resources More information on HUD’s programs is available on the HUD website: www.hud.gov

31 HUD’s Financial/Technical Resources Today’s presentation is available on: http://www.hud.gov/local/index.cfm?state=pa &topic=news http://www.hud.gov/local/index.cfm?state=pa &topic=news under the Highlights section


Download ppt "Commonwealth Housing Forum 2004 Presentation by Milton R. Pratt, Jr. HUD Regional Director Wednesday, December 15, 2004."

Similar presentations


Ads by Google