AT RISK San Antonio Office of San Antonio Office of Historic - - PowerPoint PPT Presentation

Alyssa Frystak PlaceEconomics Katlyn Cotton PlaceEconomics Cory Edwards Cory Edwards San Antonio Office of San Antonio Office of Historic Preservation Historic Preservation

O PPO RTUNITY

AT RISK

The Contribution of San Antonio’s Older Housing to Affordable Housing

APRIL 28TH 2020

Office of Historic Preservation

• Historic De sig nation
• De sig n Re vie w
• De m olition Pe rm it Re vie w
• Cultural Initiative s
• Vacant Build ing s Ord inance

Welcome to San Antonio!

7th Largest Population 25th Largest Metro

SAN ANTONIO'S OLDER HOUSING STOCK

A la r g e r p e r ce n ta g e

• f Sa n An to n io ’s

h o u sin g sto ck w a s b u ilt b e tw e e n 19 15 a n d 19 3 0

SAN ANTONIO'S OLDER HOUSING STOCK

Th e d e m o g r a p h ics o f Sa n An to n io ’s h isto r ic d istr icts a r e a sta tistica l m ir r o r fo r th e city a s a w h o le

DEMOLITION PERMITS

$35 Million

• Grants (m ultip le source s)
• Ge ne ral fund sp e nd ing ($10 m il)
• Local p artne rship s

Local Housing Programs

Homeowner Assistance Development Incentives Emergency / Risk Mitigation Acquisition

Owner-Occupied “Rehabilitation”

• De m olition
• Non-sustainab le b uild ing

p ractice s and waste g e ne ration

• Loss of characte r and authe nticity

Potential Outcomes

Preservation and Affordability

"Bu t h o u se s, w ith r a r e e x ce p tio n s, a r e n o t h isto r ica lly sig n ifica n t. Re sid e n tia l h isto r ic d istr icts m o stly se r v e to p r o te ct p r o p e r ty v a lu e s, a n d th e g o v e r n m e n t sh o u ld sto p p r iv ile g in g th a t g o a l o v e r

• th e r v a lu e s lik e a cce ss to

a ffo r d a b le h o u sin g ."

HISTORIC PRESERVATION TAKING HITS IN THE MEDIA

“Th o se lim its o n r e n o v a tio n a n d co n str u ctio n a r e d ir e ctly co n n e cte d to th e fa ct th a t p e o p le liv e in te n ts u n d e r th e h ig h w a y a t th e e d g e o f m y n e ig h b o r h o o d .”

“Fo r m e r r e sid e n ts o f th e Ba r r y Fa r m p u b lic h o u sin g co m p le x in So u th e a st DC h a v e b e e n p u sh in g fo r m o n th s to g e t a h isto r ic d e sig n a tio n , w h ich th e y sa y w ill a llo w th e m to p r e se r v e so m e o f th e ir co m m u n ity ’s h isto r y — a n d p e r h a p s e x e r cise so m e co n tr o l o v e r th e p la n s fo r its r e d e v e lo p m e n t.”

"Th e e x istin g h o u sin g sto ck is th e m o st a ffo r d a b le h o u sin g w e h a ve ."

Sa n An t o n io Re s id e n t , Ho u s in g Ta s k Fo rc e Me e t in g

SAN ANTONIO'S OLDER HOUSING STOCK

Historic preservation is not causing an affordable housing crisis.

In fact, older buildings (designated or otherwise) are playing an important role in meeting affordable housing needs.

What we hop e you take away from this we b inar:

• Data-d rive n arg um e nts to d e fe nd and ad vocate for p re se rvation
• Tools and strate g ie s for p re se rving old e r, afford ab le housing
• How San Antonio is using this re p ort to ad d re ss this issue

The Study

This study looked at all housing built before 1960—not limited to historic districts. We looked at:

• Characte ristics of old e r housing stock: size ,

location, cond ition

• Contrib ution to afford ab ility: house hold incom e ,

re nt le ve ls, and p rop e rty value s

• Share of this stock at risk
• Tools to utilize this old e r housing
• for afford ab ility

22%

In San Antonio,

• f all housing units we re b uilt

b e fore 1960.

90% of the se are sing le fam ily

p rop e rtie s.

90% of the se are not p rote cte d

b y historic d e sig nation.

Where are they?

Unsurprisingly, densely concentrated near downtown

This is a m atte r of e q uity: worke rs with low wag e job s ne e d to b e locate d ne ar transit and job s in the Ce ntral Busine ss District. The se are also rap id ly ap p re ciating are as.

Who lives there?

81% of households in pre-1960 areas are Hispanic. Pre-1960 areas skew towards homeownership and longer tenure.

What are the incomes?

23% of households live in these block groups.

Howe ve r, a larg e r share of low-incom e house hold s re sid e in the se b lock g roup s. Thirty-thre e p e rce nt (33%) of the house hold s m aking 60% AMI or le ss live in the se are as.

What size?

Unit size is a major determinant of affordability.

Th e s ize o f a n e w h o m e b u ilt to d a y is n e a rly d o u b le o n e b u ilt a c e n tu ry a g o (2 ,9 4 7 s q ft).

What condition?

Pre-1960 units are more likely to be in average or fair condition.

Ave rag e – e vid e nce of typ ical we ar and te ar, d e fe rre d m ainte nance can b e q uickly/che ap ly re solve d Fair – Minor re p airs ne e d e d to b ring it into ave rag e cond ition

What are the rents?

“You cannot build new and rent cheap.” – PlaceEconomics Proverb

Housing afford ab ility is typ ically d e fine d as 30% of a house hold ’s incom e .

Property Values

The average assessed value is lower in pre-1960 properties, but they are increasing at a faster rate than the rest

• f the city.

In p re -1960 p rop e rtie s, while the total value chang e d 46%, land value s alone incre ase d 68%. This m ake s the se p rop e rtie s incre asing ly vulne rab le to d e m olition. Eve ry we e k ove r the last te n ye ars, San Antonio has lost 3 units of p re - 1960 housing to d e m olition.

So what did we learn?

And where can we intervene?

Old e r housing te nd s to b e value d lowe r b e cause of its ag e , size , and cond ition. A larg e r share of low-incom e re sid e nts live in p re -1960 housing . The e xisting p re -1960 housing stock is p rovid ing larg e ly unsub sid ize d and unp rote cte d afford ab le housing . Whe re the land value e xce e d s the im p rove m e nt value , the se p rop e rtie s are vulne rab le to d e m olition and infill that furthe r chang e s the m arke t cond itions in that ne ig hb orhood .

Thinking about a tool framework

• Unsubsidized
• Dependent on owner’s ability to

rehab & maintain building economically

• Vulnerable to many variables
• Subsidized by public sector
• LIHTC & Housing Choice

Vouchers

• Often paired with federal &

state Historic Tax Credit

lowercase afford ab le housing Up p ercase Afford ab le Housing

lowercase p reservation Up p ercase Preservation

• Non-designated older building

stock

• Makes up a large share of most

city fabric

• Not eligible for preservation

incentives

• Funding gap for rehab is common
• Designated historic; Listed

individually or as part of a district

• Properties are eligible for

preservation incentives

• Often paired with LIHTC & other

housing incentives

Ask these questions

Who is the user? Who does it benefit? Affordable Housing or affordable housing? Preservation or preservation?

The Recommendations

Assessment Freeze

RECOMMENDATIONS

• Fam iliar p re se rvation ince ntive , b ut e xp and e d

to old e r housing stock

• Ad d e d to the arse nal of othe r asse ssm e nt-

b ase d ince ntive s to cre ate a holistic tax ab ate m e nt toolkit

✔฀Property owners ✔฀Developers ✔฀Affordable Housing ✔฀affordable housing ✔฀Preservation ✔฀preservation

Deferred Payment Loans for Structural Repairs

RECOMMENDATIONS

• Cause safe ty issue s and can le ad to d e m olition
• Costly b ut not visib le re p airs
• Hard to re coup inve stm e nt in re nt
• Re p aym e nt d e fe rre d until sold or at fixe d d ate ;

lie n p lace d on p rop e rty

✔฀Property owners ✔฀Developers ✔฀Affordable Housing ✔฀affordable housing ✔฀Preservation ✔฀preservation

Lender Risk Mitigation Program

RECOMMENDATIONS

• Risk associate d with re hab costs & low- to m od e rate -

incom e b orrowe r’s ab ility to re p ay

• An org anization p artne rs with a b ank to g uarante e a

loan in case of d e fault

• Loan for d own p aym e nt or re hab of old e r housing
• Exam p le : Hab itat for Hum anity Virg inia

✔฀Property owners ✖฀Developers ✖฀Affordable Housing ✔฀affordable housing ✖฀Preservation ✔฀preservation

Multiple Resource Affordable Housing District

RECOMMENDATIONS

• Trad itional historic d istricts are g ove rne d b y contig uous

g e og rap hy

• Multip le Prop e rty Listing s (MPLs) are g ove rne d b y share d

the m e s, te nd s, and p atte rns of history; non-contig uous

• Citie s can d e sig nate old e r, afford ab le housing typ olog ie s as

MPLs (b ung alows, shotg uns, 2-4 flats, e tc.)

• Exam p le s: Bung alow MPL & Sing le Room Occup ancy

Ap artm e nt Hote l MPL, Chicag o

✔฀Property owners ✔฀Developers ✔฀Affordable Housing ✔฀affordable housing ✔฀Preservation ✖฀preservation

Housing Preservation Revolving Fund

RECOMMENDATIONS

• Com m on tool in p re se rvation; Two m od e ls: acq uisition

and loan

• Acq uisition Mod e l: 1) acq uire , 2) stab ilize , 3) se ll or re nt
• Pe rp e tual p re se rvation and afford ab ility cove nants

attache d to p rop e rty at tim e of sale or as te rm s of loan

• Proce e d s from re nt or sale g e t “re volve d ” to fund future

inve stm e nts

✔฀Property owners ✔฀Developers ✖฀Affordable Housing ✔฀affordable housing ✖฀Preservation ✔฀preservation

Unconventional Tools

Revoking Exemptions or Development Rights

RECOMMENDATIONS

• Hom e ste ad Exe m p tion: p ortion of asse sse d value is not

sub je ct to local taxe s; b e ne fit of owne r-occup ancy

• Re com m e nd that any lot whe re a p re -1960 housing unit

was raze d is not e lig ib le for the Hom e ste ad Exe m p tion

• Sim ilarly, a d e ve lop m e nt m oratorium could b e p lace d
• n the site for fixe d p e riod

✔฀Property owners ✔฀Developers ✖฀Affordable Housing ✔฀affordable housing ✔฀Preservation ✔฀preservation

Rental Registration & Inspection Program

RECOMMENDATIONS

• Re sid e nts d e se rve safe housing ; Old e r, afford ab le units

are ofte n lost to d e fe rre d m ainte nance

• Eve ry re ntal unit is re g iste re d and routine ly insp e cte d ;
• wne r inform e d of ne ce ssary re p airs
• Way to d ire ct p rop e rty owne rs to inform ation and

financial assistance , if availab le

✔฀Property owners ✔฀Tenants ✔฀Affordable Housing ✔฀affordable housing ✔฀Preservation ✔฀preservation

Develop ADU Policy for Affordable Housing

RECOMMENDATIONS

• De m olition ofte n hap p e ns whe n value of land e xce e d s what

can sup p ort a sing le d we lling

• 21% of San Antonio’s sing le -fam ily lots have the cap acity to

se nsitive ly accom m od ate an ADU

• Incom e b e ne fits owne r and re sid e nts are p rovid e d with

afford ab le housing op tions

• Use of ADUs for short-te rm re ntals should b e re g ulate d or

b anne d

✔฀Property owners ✔฀Tenants ✖฀Affordable Housing ✔฀affordable housing ? Preservation ? preservation

Community Land Trust

RECOMMENDATIONS

• Com m unity Land Trusts (CLT) se p arate the land from the

im p rove m e nt

• Proce ss: 1) CLT acq uire s p rop e rty, 2) CLT m aintains
• wne rship of land b ut se lls the im p rove m e nt with long -te rm

le ase , 3) if owne r se lls, p roce e d s sp lit accord ing to le ase ag re e m e nt

• In San Antonio, total p rop e rty value incre ase d b y 45%, b ut

land value alone incre ase d b y 68%

• Be st for citie s that are strug g ling with soaring land value s

✔฀Property owners ✖฀Tenants ✖฀Affordable Housing ✔฀affordable housing ? Preservation ✔฀preservation

How are these being used?

Is it too easy to demolish?

• Fe e structure
• Environm e ntal and re g ulatory

com p liance

• Are city p rog ram s (cod e

com p liance ) working ag ainst afford ab le housing g oals?

Demolition Policy

• Arrest deterioration
• Prolong the life of a building

before substantial rehabilitation is needed

• Roofs, foundations, building

envelope (Under1Roof)

Grow Repair and Maintenance Programs

REHABARAMA

• Private Donations
• Volunte e r Contractors
• 300 Volunte e rs
• Ad d e d value of $5k - $25k p e r

hom e

Getting Creative

• City acquisition
• Partner with non-profits
• Sell to qualified buyer
• Repeat

Utilize Existing Vacant Building Stock

Deconstruction as a mitigating strategy for demolition

• Supports the local circularity of materials
• Increases availability and affordability of historic building materials
• Discourages hasty demolition of pre-1960 housing stock
• Potential role of City as facilitator for materials innovation center or exchange

supporting local housing programs

Questions?

C o r y Ed w a r d s

Deputy Historic Preservation Officer

San Antonio Office of Historic Preservation cory.edwards@sanantonio.gov

K a t ly n C o t t o n

Director of Marketing and Design

PlaceEconomics kcotton@placeeconomics.com

A ly s s a Fr y s t a k

Research and Data Analyst

PlaceEconomics afrystak@placeeconomics.com