Affordable Housing Needs & Initiatives Presentation to The - - PowerPoint PPT Presentation

Loudoun County Affordable Housing Needs & Initiatives

Presentation to The Northern Virginia Building Industry Association June 14, 2018

6/19/2018

Why did HNA

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Purpose: Assess Current and Future Housing Needs Assumptions:

• 1. Local and regional employment growth will drive the majority of

housing demand in Loudoun County in the future.

• 2. Commuting patterns into and out of Loudoun County will not

change over the forecast period (2015 to 2040).

• 3. Housing preferences based on key household characteristics will

not change.

Purpose of the Housing Needs Assessment Demographics Housing Needs Assessment 2015 - 2040

5% 13% 41% 25% 8% 4% 4%

Living alone (>65) Living alone (<65) Married Couple with Children Married Couple without children Single Parent Other Family without children Other Non-family

HNA Forecast to 2040:

Majority of HH growth related to Net New Jobs Growth in Older Adult HHs will increase at the fastest rate Largest increase in 35 to 44 headed HHs (Aging Millennials) Increasing Racial & Ethnic Diversity Large Family Market/Larger HH sizes

Demographics

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Current Mix

Area Median Income for 2018 = $117,200* Identified in the Revised General Plan, Article 7 of the Zoning Ordinance, and Chapter 1450 of the Codified Ordinance Washington, D.C. Metropolitan Statistical Area includes Loudoun and other jurisdictions in the Region. Used to Determine Income Eligibility in County, State, and Federal Housing Programs.

*Based on a 4-person household. For more details, visit www.loudoun.gov/ami

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What is Area Median Income?

55% 16% 11% 10% 8% >100% >70% to 100% >50% to 70% >30% to 50% 0% to 30% 45%

AMI Distribution

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HNA Forecast to 2040:

Need Grows All Along the Income Continuum Significant Increase in High Income HHs (150% AMI) Fastest Growth in HHs at 50% to 60% AMI

Current Distribution

*Income multiplied by 3 serves as a general standard for determining purchase power to buy a home. 30% of monthly income for housing and utilities is the general standard for determining affordability.

AMI

Income as % of AMI Purchase Power (3x income) Affordability (Income divided by 12 x 30%)

100% $ 117,200 $351,600 $2930 90% 105,480 316,440 2637 80% 93,760 281,280 2344 70% 82,040 246,120 2051 60% 70,320 210,960 1758 50% 58,600 175,800 1465 40% 46,880 140,640 1172 30% 35,160 105,480 879 20% 23,440 70,320 586 10% 11,720 35,160 293

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Housing Affordability*

Buyers Renters

Industry Sector Number of Employees Average Annual Pay % AMI

Government 24,694 $59,280 50% Professional, Scientific and Technical Services 20,120 $110,396 94% Retail Trade 18,412 $29,952 26% Accommodation and Food Service 16,398 $23,972 20% Construction 15,707 $76,128 65% Healthcare & Social Assistance (includes Hospital) 12,300 $56,264 48% Transportation & Warehousing (includes Airport) 10,658 $47,216 40%

County Industries and Average Pay

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HNA Forecast to 2040:

Job Growth Driven by Professional/Business Sector

VEC: 12/17

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Housing Affordability

HNA Forecast to 2040:

Slight Decline in Overall Cost Burden Increase for Low and Moderate Income HHs (<80% AMI) (including Older Adults & Renters)

Current Distribution

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Greatest Need among Low and Moderate Income Renters Unmet Need for 11,200 Rental Units

• 75% for HHs with incomes below 60% AMI

Unmet Need for 3,400 Home Ownership Opportunities

• 1,400 for HHs with incomes below 100% AMI

Current Housing Needs

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Total SFD SFA MF Existing 127,076 67,500 39,390 20,199 Net New +66,604 33,620 22,060 10,911 TOTAL 193,680 101,120 61,450 31,110 Forecasted Housing Demand Total SFD SFA MF HNA Forecast 193,680 101,120 61,450 31,110 RGP Forecast 175,380 82,030 50,070 43,280 Difference (18,300) (19,090) (11,380) 12,170 Comparison of Current Land Use Plan to HNA Forecast

HNA Forecasted Demand

Increasing Demand Across the Housing Continuum for:

• Low-cost,

small unit rental housing for young Millennial/Entry level workers over next 10 years

• Smaller,

more modestly-priced housing for Aging Millennials with families

• Accessible housing & communities for Aging Resident

Baby Boomers and Persons with Disabilities

• Multi-generational housing
• Affordable housing for low and moderate income

households

• Single-family housing for high-income, large families.

Growing Housing Affordability Challenges are expected to

• ccur through 2040

Housing Needs Assessment Conclusions

6/19/2018 12 Full report available at: www.loudoun.gov/housing

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Housing Challenges

• Insufficient Supply (Rising Prices/Growing Need)
• Preservation of Affordable Market Housing
• Affordable Dwelling Units Hitting Covenant Term
• Strategy to Capture a Share of Pipeline & New Units
• Prompting Affordable Housing Development
• Planning for Growth

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Planning For Growth

• Update to Land Use Plan
• Addressing Growth

Opportunities & Housing Demand

• Draft Plan to PC in August

The Housing Market cannot meet all areas of housing need. Residents and workers should be served by a range of housing

• pportunities.

Housing diversity is important to the health of the community. Address “continuum of need” without labels. Unmet housing needs are defined as housing for incomes ranging from 0% to 100% AMI. Programs are required to address the housing needs of residents and workers priced out of the housing market.

Housing Policy Highlights

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Approaching Market Rate

Unmet Housing Needs Continuum

0% to 30% 30% - 70% 100% + Area Median Income Area Median Income Area Median Income

Renter

Home Ownership Greatest Need

Requires different approach/resources at each level. There is no one size fits all.

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County Policy Approach

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Current Housing Initiatives

Board of Supervisors Convened Housing Summit:

• 21 Speakers including Non-profits, Affordable Housing Developers,

Employers, Experts from the Region

• County Departments (Planning, Family Services, Mental Health, and

Economic Development) Joined Together to Present Impacts of Lack of Affordable Housing

• “Housing Primer” Published
• Directed Staff to:
• Comprehensive Review of Zoning Ordinance to Remove Barriers to

Affordable Housing (In progress)

• Inventory Public Land as Opportunity for Projects (TLUC 6/19)
• Establish Revolving Loan Fund (FGOEDC 6/12)
• EDAC Ad Hoc Housing Committee Established to Identify Solutions
• Multiple Topic-Specific Focus Groups Convened by DFS

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Current Housing Initiatives

Recent Amendments to the Affordable Dwelling Unit Program to provide financing flexibility & capture multi-family units in the pipeline as affordable units. Recent Amendment to the Housing Trust to provide better access to funding & support Low Income Housing Tax Credit (LIHTC) projects. Establishment of Affordable Multi-family Housing Loan Program To Date:

• $6.56 Million in Loans
• 3 LIHTC Projects
• 320 affordable apartments

2015 Fiscal Impact Committee Guidelines

Forecasted New Housing Units by Type

2015 Fiscal Impact Committee, Intermediate Scenario

18,000

New Housing Units

16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000

SFA SFD MF

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Current Housing Initiatives

Revisions to Article 7/Chapter 1450 (ADU Ordinances) ADUAB Recommendations (6/12) include:

• Adjust Income Range to 0% to 70% to use funds for LIHTC projects
• Apply to projects proposing 20 units or more
• Remove density requirement (1 dwelling unit per 40,000 square feet)
• Remove exemption of R1, CR1, TR1, JLMA1
• Adjust timing of delivery
• Simplify Buy-out formula

Next Steps:

• July TLUC
• Board of Supervisors Intent to Amend
• Planning Commission Review & Recommendation
• Board of Supervisors Review & Adoption

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Affordable Dwelling Unit Sales 2005 - 2017

50 100 150 200 250 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ADU New Sales and Resales to Certificate Holders (Includes County Owned Since 2014) 223 148 172 144 88 62 91 122 239 219 168 127 173 ADU New Sales and Resales Sold at Market 43 15 5 22 37 33 25 101 70 48 6 2

Affordable Dwelling Unit (ADU) Sales 2005-2017

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Affordable Dwelling Unit Covenant Expirations by Year

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 17 21 33 49 158 101 95 113 185 198 127 143 104 61 32 70 99 222 193 143 103 144 1 1 2 7 13 23 20

ADU 15-Year Covenant Expirations by Year

# of Units Expiring # of Covenant Expired Resales

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Other Housing Initiatives

• Board of Supervisors Approved 3 Housing Positions in FY

2019 Budget

• Successful Application for VASH Vouchers to help Veterans
• Revitalization

Area Designation to support LIHTC Applications

• Revised Agreement to Increase ADUs in Leesburg
• Comprehensive Review of Zoning Ordinance to remove

barriers

ADU Grants to Non-profits Down Payment Assistance Education/Counseling

Unmet Housing Needs Continuum

Each part of the continuum requires a different approach and different resources. Greatest Need Renter

Home Ownership

Approaching Market Rate

ADU HCV Loans to LIHTC & HUD 221(d) (4) Homelessness Prevention Program Homeless Center Emergency Services Permanent Supportive Housing Grants to Non-profits Proffered Unmet Housing Needs Rental Units Home Improvement Programs Proffered Unmet Housing Needs Units

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County Programmatic Approach

0% to 30% 30% to 70% 100% Area Median Income Area Median Income Area Median Income

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Questions?

Glenda M. Blake Director, Department of Family Services Sarah Coyle Etro Assistant Director, Department of Family Services Brian P. Reagan ADU Program Supervisor, Department of Family Services

www.loudoun.gov/housing