Affordable Housing City Commission Workshop November 13, 2019 - - PowerPoint PPT Presentation

Affordable Housing City Commission Workshop

November 13, 2019

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Defined by the Department of Housing and Urban Development (HUD). Based on formula that no homeowner/tenant should pay more than 30% of income to housing costs. Eligibility determined by percentage of Area Median Income (AMI).

• Tallahassee AMI = $68,900 for a family of four
• Median House Cost is $227,000*
• Median rent is $957

Percentage Category Tallahassee Income Limit by Number of Persons in Household 1 2 3 4 5 6 7 8 Extremely Low income <30% of AMI $ 14,490 16,560 18,360 20,670 22,350 24,000 25,650 27,300 Very Low Income < 50%

• f AMI

$ 24,150 27,600 31,050 34,450 37,250 40,000 42,750 45,500 60% of AMI $ 28,980 33,120 37,260 41,340 44,700 48,000 51,300 54,600 Low Income Limit < 80%

• f AMI

$ 38,640 44,160 49,680 55,120 59,600 64,000 68,400 72,800

Defining Affordable Housing

*Leon County Data

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Cost Burdened

30% 50%

Severely Cost Burdened

Cost Burdened

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Family of 6 Family of 3 Higher Education Student Income: $60,000 Not low-income Rent: $957 19% of annual income for housing Not cost burdened Income: $60,000 “Low-income” Rent: $1,500 30% of annual income for housing Is cost burdened Income: $9,000 “Extremely Low income” Rent: $400 50% of income for housing Severely cost burdened Likely a dependent

Demonstration of AMI and Cost Burdened

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City of Tallahassee Households by Income and Housing Cost Burden*

• Total # of households: 75,195
• Total # Cost Burdened - greater than 30%: 41,299
• Percentage of Cost Burdened households: 54%
• 39% represents student population

Students

*Shimberg Center Data

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Affordable Housing Financial Resources

Federal Grants (administered by City)*

• Community Block Development Grant

(CDBG)

• HOME Investments Partnership Program
• Emergency Shelter Grant (ESG)

State Grant (administered by City)*

• State Housing Initiatives Program (SHIP)

City

• Affordable Housing Trust Fund (nonrecurring)
• Southside CRA

*External funding sources offer less flexibility.

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42 City owned parcels which can be considered for affordable housing development

Land Resources

N

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Resources Continued – Incentives and Partnerships

City partners with agencies to leverage dollars (including but not limited to):

• Tallahassee Housing Authority
• Tallahassee Lenders’ Consortium
• Purpose Built Communities
• Big Bend Homeless Coalition

City offers incentives to encourage affordable housing development (including but not limited to):

• Expedited permitting
• Technical assistance
• Water and sewer connection fee exemption
• Density Bonus’
• Inclusionary Housing

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Strategic Focus: Homeownership Programs

1. Affordable homeownership supports other City objectives such as neighborhood redevelopment and revitalization 2. Programs that assist in the rehabilitation of existing homes are a more cost-effective strategy to support the City’s affordable housing inventory 3. Many of the City’s affordable housing revenue sources, such as SHIP, require that the majority of the assistance be directed to homeownership 4. The state and federal government provide direct funding to public housing authorities and other assistance such as low income tax credits targeted to support affordable rental housing

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• Consolidated Plan
• Local Housing Assistance Plan
• Annual Action Plan
• Consolidated Annual Performance

and Evaluation Report (CAPER)

• SHIP Annual Report
• Citizen Participation Plan
• Strategic Plan 2024

Documentation and Planning

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Ongoing City Programs

City Program 5-Year Accomplishments Emergency Home Repair (EHRP) 349 Owner Occupied Housing Rehabilitation 60 Accessibility Rehabilitation 50 Code Enforcement Rehabilitation 11 Storm Damage Mitigation Program 16 Down Payment Assistance 115 Permanent Relocation 51 Rapid Rehousing/Homeless Prevention 977

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New Affordable Housing Initiatives

• Goal of establishing community land trust (CLT)
• Canopy Inclusionary Housing Project
• Expanded eligibility for down payment assistance program; partnered with

Tallahassee Lenders’ Consortium

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City provides $65,000 and 200 hours of volunteer assistance for each home. Since 2017, built 8 homes utilizing over 1,600 City volunteer hours with more underway in 2020. Community Contribution Tax Credit Program recoups ~88% of the cost for the City.

Recommendation: Continue Support for Habitat City Build Program

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Utilize $500,000 of the Affordable Housing Trust Fund and/or CRA to leverage short-term loans Not-for-profits apply for up to $250,000 for 18 months or less to develop affordable housing properties

Recommendation: Short-Term Loan Program

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Summary

• A significant number of the City’s low-income households are

“cost burdened” and spend greater than 30% of their income

• n housing costs.
• The City uses federal and state grant funds and CRA and

general fund revenue to support a variety of programs to preserve and expand the City affordable housing inventory.

• The City has historically invested the majority of its resources in

affordable homeownership.

• The current and proposed affordable housing programs and

initiatives support the Strategic Plan 2024 through the preservation of existing affordable housing and the expansion

• f supply through new construction.

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