1. Gap Financing Tools for Affordable Housing A presentation to the Virginia Housing Coalition Housing Credit Conference September 5, 2013 VHC Sept 2013 1

2. Owns 1,117 rental homes at 13 properties valued at $200M Award-winning, innovative Founded in 1989 Led by Arlingtonians: Staff & Board Most properties funded by: LIHTC VHDA Financing Arlington County Gap Financing Low Cost Land Acquisition APAH: A Non-Profit Affordable Housing Developer 2

3. AHIF: Affordable Housing Investment Fund Affordable Housing Ordinance produces on-site units and AHIF contributions Density— Rezoning, Bonus, Transfer of Development Rights Public Land for Housing, land banking, faith community land Bonds: Industrial Development Authority Housing Grants: rental subsidy Permanent Supportive Housing: rental subsidy and services Major Arlington County Affordable Housing Tools 3

4. Focus: Affordable Housing Investment Fund (AHIF) Revolving fund est. 1985 Target 60 years affordability Target leverage 4:1 with other funds 5 – 10% supportive housing Repaid from cashflow, typ. 50% Preference for below market fees, acquisition costs Funded with Federal HOME funds, local general revenues, 1% of County recordation tax, loan repayments and developer contributions under Affordable Housing Ordinance 4

5. Advocacy and Information: Important Development Tools APAH and partners (eg the faith community), publicize challenges facing low income households, like loss of affordable units County elected officials make affordable housing a top goal. Leadership facilitates funding, policies and approvals 5 County lost 14,000 market affordable units between 2000 - 2011

6. HOME Investment Partnership Program Pass Thru To States/Localities $2B/year 25% Local Match Build or renovate, 20 yr term Part of Consolidated Plan Section 8 Rental Subsidy Community Development Block Grants (CDBG)—housing & services for low income Federal Affordable Housing Tools 6

7. Focus: Density Rezoning: Strategic rezoning to allow more affordable units Bonus density allowing larger buildings in exchange for on-site affordable units and/or contribution to AHIF Density Transfer allows density to be transferred to an affordable site or sold to help finance preservation of existing units 7

8. Focus: Public Land for Housing Pioneered with long term ground lease at Arlington Mill Community Center Leverages height and density with other County uses Significantly reduces development costs for acquiring new land 8

9. Fairfax County 2014 Funding $5 million in Housing Blueprint funds Focus: Extremely low incomes, particularly homeless or disabled (20% of units serve at or below 30%AMI); Low income working families (60% of units serve at or below 50% AMI); and Moderate income workforce (20% of the units serve between 51%AMI and 100%AMI) Leverage other sources such as private equity and financing and Low- Income Housing Tax Credits (LIHTC) 9

10. Alexandria Housing Opportunities Fund Development and preservation of affordable rental and sales housing. Priority to City-certified Community Housing Development Organizations (CHDOs). Leverage funding from all available sources--fill gaps. Low interest loans or grants serving below 60% of the area’s median income. May cover feasibility analysis; pre-development activities; housing preservation; and development costs. 10

11. Prince William County Funding $500,000 in CDBG Funds awarded competitively to non-profit organizations Maximum award $225,000 Public service grants at 100%/50%/25% annually Repayable loan at zero interest or deferred appreciation 11

12. Leverage Private or bond mortgage financing HUD Loan Programs Land Banking Non-profit-owned garden apts. Faith community Philanthropy Private contributions & grants Volunteer support Historic Tax Credits Federal (20%) and state (25%) of eligible rehabilitation costs Other Affordable Housing Tools 12

13. Focus: Land Banking Redevelop existing, older, low density garden apartment communities or faith properties in transit-oriented locations Lower development costs because of existing non-profit ownership Rezoning provides more affordable units and can create new Smart Growth, energy- saving and Transit Oriented features 13

14. Our Vision A diverse and inclusive, transit-oriented, sustainable community that welcomes and values all residents. Our Role Marry best practices in affordable housing finance and development with a deep commitment to the local community to advocate, preserve, and build affordable housing. Nina Janopaul, APAH President/CEO 703-276-7444 (w) 14