1. The Dollar $ and Sense of Affordable Housing in Arlington 2015

2. This module will help you...  Appreciate the public-private partnership that creates/preserves affordable units in Arlington  Understand the major cost components  Learn how the community benefits  Answer questions and counter misunderstandings Updated June 3, 2015

3. Myths you may hear  The County pays a lot of money for affordable housing. It’s charity: the people who live in it don’t work or contribute. The market can be trusted to solve the problem. Affordable housing providers don’t pay taxes.

4. Q1 Why does Arlington County pay [fill in a large number here] for an affordable* unit? *a committed affordable unit, or CAF

5. A It doesn’t! CAFs are privately developed and owned. A County LOAN contribution leverages other $$.

6. A note about partnership Other area jurisdictions have at least some public housing. Arlington’s public-private partnership model has become today’s “best practice.”

7. County dollars are loan dollars... from AHIF, the County’s revolving Affordable Housing Investment Fund Less than a of each AHIF dollar is from the County general revenue fund Source Affordable Housing Implementation Framework Draft 2.0, 2/19/15

8. AHIF loan dollars County has allocated $161M+ since FY08 to create/preserve/renovate 2,517 units averaging $64k in County funds per unit for past 8 years collecting $69M in timely loan repayments and payoffs and $31M in developer contributions

9. Leveraging public loan dollars Developers generally leverage $3  4 for every County loan $1 Typical funding sources for tax credit projects in Arlingtonacquisition projects in Arlington Source Affordable Housing Implementation Framework Draft 2.0, 2/19/15

10. Leveraging public dollars Land banking/contribution by developers The Serrano, purchased by AHC in 2014 for $62M, preserves 280 affordable/workforce/ market-rate units Property can be subdivided to add mixed-use, mixed-income, or affordable units

11. Leveraging public dollars Land banking/contribution by developers The Springs, a 27-unit property purchased by APAH in 1997 Provides land on the urban fringe near Ballston for a new, 104-unit mixed-use development

12. Q2 Why do committed affordable units cost so much?

13. A Land!!... and they are built to County and State codes and requirements. CAF costs are comparable to new market-rate units.

14. Major cost drivers Land values Building standards/required materials Undergrounding of parking/utilities Green/sustainable building practices Retail space set-asides

15. Land prices add to costs 2009 APAH preserved Buchanan Gardens, paying $12M for 111 units ~$108k per unit

16. Land prices add to costs 2011 AHC preserved Arbor Heights from market-rate uptick, paying $35M for 198 apartments in 8 buildings on 8.5 acres ~$177k per unit

17. Quality materials, like brick and glass help developers compete when seeking tax credits comply with standards desired by the community (as expressed in the Neighborhoods Form-Based Code) help make buildings distinctive  more attractive streetscapes Quality materials add costs

18. but make attractive neighbors

19. Parking adds to costs Undergrounding parking costs  Average $35k per space Can cost much more depending on site conditions

20. “Greening” adds costs Virginia gives EarthCraft* points towards tax-credit awards *Energy, water, and resource efficiency standards geared for the SE Arlington’s Neighborhoods Form-Based Code requires EarthCraft or LEED** **Re-uses materials or uses recycled, green, and low- or no-emission products; practices ecological balance in energy use.

21. Retail set-asides... Required by County for street-front properties, retail space requires  additional parking spaces higher ceilings and retail “fixtures” staff to handle retail leasing and management

22. Q3 Sure, those living in committed- affordable units benefit. But what about the rest of us?

23. A CAFs provide benefits to the wider community.

24. Community benefits Job creation, short- and long-term Residence Construction jobs Long-term jobs Arlington Mill34126 The Jordan25819 Residential New Construction Economic Impact Calculator http://housingvirginia.org/Res-New-Cons-Econ-Imp-Calc.aspx

25. Community benefits Housing for employees in key sectors A large majority of CAF households are working households Source Housing Division, Arlington County CPHD, Feb 2015

26. Community benefits Lower environmental impact/ greater efficiency EarthCraft/LEED building standards SmartCards are provided for many CAF residents Access to public transit keeps more cars off the road

27. Community benefits Sidewalks and streetscapes Attract businesses, foot traffic, buzz... and more businesses Invite walking, contemplation, sense of place Ellen’s Trace

28. Accessibility/inclusion CAFS provide housing for persons with special needs Permanent supportive housing (PSH) and barrier-free units... help integrate persons with disabilities and the elderly into the community

29. Accessibility/inclusion Permanent Supportive Housing ( PSH ) 197 CAF s leased by persons with disabilities and youth aging out of foster care PSH program provides case management, rental assistance, and other support services 81% of PSH tenants served since 2004 program launch have remained in permanent housing

30. Education benefits Montessori school @ The Jordan serves 24 kids ages 3  5 (1/3 residents of affordable housing, 2/3 local community) vPoint at Clarendon construction preserved/renovated education building housing early childhood programs for 170+ children

31. Education benefits Greenbrier Learning Center provides afterschool enrichment at APAH properties. AHC community centers offer afterschool, tutoring, teen, ESL, and stay-in-school programs.

32. Education benefits Since 2008, all 61 teens in AHC’s program have graduated high school and 80%+ have gone to college.

33. Education benefits In 2014, 92% of elementary students in AHC after-school programs improved reading level by one grade and/or read at/above grade level. Summer camps prevent “learning loss.” Student stability helps neighborhood schools.

34. Preservation/renovation Retaining neighborhood feel/ renewing local landmarks Some examples...

35. Preservation/renovation vPoint at Clarendon vPoin

36. Preservation/renovation Colonial Village, Wesley Housing

37. Preservation/renovation Buchanan Gardens, APAH Housing that “fits” families

38. Preservation/renovation The Gates, AHC

39. Preservation/renovation The Larkspur, CPDC

40. Stability benefits Affordable, family-size apartments allow stable communities without overcrowding. Average annual turnover in Arlington CAFs 20% Nationwide turnover rates hover around 50%* Relatively low turnover for CAF tenants suggest they contribute to community stability.** *Multifamily Executive, Feb 2013 **Arlington County Housing Division, August 2014

41. Economic benefits Dollars flow back into Arlington Nonprofits not exempt from taxes and fees  AHC properties paid $2.6M in real estate taxes in 2014. APAH properties paid $1.9M in real estate taxes in 2014.

42. Dollars flow back into Arlington APAH has paid $797K for permits, tap, and inspection fees ( PTI ) for The Springs, a 98-unit property under construction in Ballston AHC paid $723k in PTI for The Shell, a recently-opened 83-unit building on Columbia Pike Economic benefits

43. To summarize... Arlington does not develop and own affordable housing. It lends to private developers who leverage additional non-County funds (3 or 4 to 1) to build and who repay their loans on time.

44. To summarize... Affordable housing costs no more to build than market-rate units for land, design, materials, and labor...... and its developers pay their share of taxes and fees.

45. To summarize... Affordable housing benefits the community, not just its tenants, through Attractive new buildings or renewed/renovated properties Job creation and convenient, stabilizing housing for workers in vital economic sectors

46. Long-term tenancy as well as resident services programs, helping stabilize neighborhoods and schools Targeted efforts to support student success... and skills for further education and employment

47. Reliable and supportive housing for persons with disabilities Taxes and fees to County coffers

48. Please visit our website AllianceforHousingSolutions.org for more on these and other topics in housing affordability.