Community Planning, Housing and Development COUNTY MANAGERS - - PowerPoint PPT Presentation

COUNTY MANAGER’S PROPOSED FY 2020 BUDGET

County Board Work Session

Community Planning, Housing and Development

March 5, 2019 @ 3:00 p.m.

To promote the improvement, conservation, and revitalization of Arlington’s physical and social environment.

Department Overview

• The Department is made up of 6

functional areas:

• Business Operations
• Planning
• Neighborhood Services
• Housing
• Zoning
• Inspection Services

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Community Planning, Housing and Development

Department Overview

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2018 CPHD Highlights

• 589 affordable housing units committed
• 7 site plans approved, including VHC
• $7.5 million in NC projects in 8

neighborhoods

• 10.5 million s.f. of construction permitted

and inspected

• 854 Certificates of Occupancy issued
• Ballston Quarter implementation
• Schools implementation
• 4MRV Area Plan adopted

Community Planning, Housing and Development

Department Overview

• Four funding sources:
• General Fund
• Housing and Community Development Fund
• Development Fund
• Non-Departmental/AHIF

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Community Planning, Housing and Development

COUNTY MANAGER’S PROPOSED FY 2020 BUDGET

County Board Work Session

General Fund

March 5, 2019 @ 3:00 p.m. County Board Work Session

Summary of Proposed Budget Changes

FY 2019 Adopted FY 2020 Proposed

Change % Change

Expenses $11,430,510 $11,703,260 +$272,750 +2.4% Revenue $1,288,000 $2,356,764 +$1,068,764 +83.0% Staff 83.5 FTEs 82.0 FTEs

• 1.5 FTEs
• 1.8%*

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• Increase in FY 2020 revenue includes new fees associated with GLUP studies and

conceptual site plan reviews, an inflationary increase to all existing fees, and an increase in projected development.

• FY 2020 staffing reflects a combination of moving 3 existing Code Enforcement

positions into the Development Fund and adding 1.5 new Planner positions into the General Fund, resulting in 1.5 fewer positions overall in FY20.

* Position changes discussed in subsequent slides. General Fund

Summary of Proposed Budget Changes

FY 2019 Adopted FY 2020 Proposed

Budget Impact Staff Impact

GLUP Study Fees

• $75,101

+$75,101

• Conceptual Plan Review Fee
• $29,000

+$29,000

• Add Principal Planners for

Planning and Housing (Projected Development and Amazon)

• $225,000

+$225,000 +1.5 FTEs Single Family Loan Servicing

• $35,090

+$35,090

• Support for the 2020 Census
• $100,000 (one-

time) +$100,000

• 7

General Fund

Detail: Proposed Reductions

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Eliminate Consultant Services for Training Program Service Impacts Budget Impact

• Eliminates consultant services for training program
• Will stagger its training over multiple fiscal years

and find an alternative way to deliver certain content. FY 2019: $11,850 FY 2020:

• Change:
• $11,850

General Fund

Detail: Proposed Reductions

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Transfer of Code Enforcement Positions to Development Fund Service Impacts Budget Impact

• No impact to service delivery.
• Transfers one Construction Codes Manager (1.0

FTE) and two Community Codes Supervisors (2.0 FTEs) from the General Fund to the Development Fund.

• Costs associated with transfer into the

Development Fund are offset by the elimination of the ISD Deputy Building Official position and revenue increases. Change:

• $377,307

Staff Impact

• 1.0 Construction Codes

Manager (filled)

• 2.0 Community Codes

Supervisors (filled)

General Fund

Detail: Proposed Reductions

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Reduce Historic Preservation Consultant Services Service Impacts Budget Impact

• Decrease consultant services funding for the

Historic Preservation program.

• May slightly delay the completion of Historic

Preservation projects and activities.

• Evaluating alternative methods of delivering

services. FY 2019: $60,000 FY 2020: $51,836 Change:

• $8,164

General Fund

Key Budget Considerations

• Primary focus of reductions was on efficiencies, redundancies, and

alternative ways of service delivery with emphasis on discretionary activities and services.

• Longer-term issues include an overall increase in development (enhanced

by Amazon) and impacts to housing options (Affordable and Missing Middle).

• Staying the course on CPHD’s strategic priorities (technology, customer

service, employee development, program effectiveness and communication) in light of work demands.

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General Fund

COUNTY MANAGER’S PROPOSED FY 2020 BUDGET

County Board Work Session

Housing and Community Development Fund

March 5, 2019 @ 3:00 p.m. County Board Work Session

Summary of Proposed Budget Changes

FY 2019 Adopted FY 2020 Proposed

Change % Change

Expenses $1,992,088 $3,084,312 +$1,092,224 +54.8% Revenue $1,992,088 $3,084,312 +$1,092,224 +54.8% Staff 4.5 FTEs 4.5 FTEs

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• FY 2020 Proposed includes program income estimates ($350,000 for CDBG and

$340,000 for HOME).

Housing and Community Development Fund

Key Budget Considerations

• While funding projections are stable for FY 2020, the future of federal

budgets remains uncertain

• Staff is exploring several long-term strategies to fill the gap if federal funding

is reduced:

• Streamlining grants administration
• Developing opportunities for programs or projects that generate more program

income

• Supporting programs with General Funds when feasible

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Housing and Community Development Fund

COUNTY MANAGER’S PROPOSED FY 2020 BUDGET

County Board Work Session

Development Fund

March 5, 2019 @ 3:00 p.m. County Board Work Session

Summary of Proposed Budget Changes

FY 2019 Adopted FY 2020 Proposed

Change % Change

Expenses $21,722,133 $22,851,032 +$1,128,899 +5.2% Revenue $21,722,133 $26,511,763 +$4,789,630 +22.0% Staff 106.0 FTEs 113.0 FTEs +7.0 FTEs +6.6%

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• FY 2020 expenses reflects the addition of the Future Development Contingency Fund that will allow for

flexibility in planning and development capacities related to Amazon ($300k).

• FY 2020 revenue reflects an inflationary increase of 2.5 percent to all existing fees, projected increase in

development activity, and development associated with Amazon.

• FY 2020 staffing reflects the addition of two positions associated with the increase in development

activity associated with Amazon ($215,000 , 2.0 FTEs) , three positions to assist with current workload needs ($293,349 , 3.0 FTEs) and the transfer in of the three Code Enforcement positions from the General Fund ($377,307, 3.0 FTEs)

Development Fund

Summary of Proposed Budget Changes

FY 2019 Adopted FY 2020 Proposed

Budget Impact Staff Impact

Increase in projected development activity $15,209,920 $25,548,153 +$10,338,233

• Increase all fees 2.5%

(Inflationary Indicator) $316,983 $963,610 +$646,627

• Add a Zoning Plan Reviewer

(Projected Development and Amazon)

• $90,000

+$90,000 +1.0 FTE Add a Fire Protection Engineer (Projected Development and Amazon)

• $125,000

+$125,000 +1.0 FTE

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Development Fund

Summary of Proposed Budget Changes

FY 2019 Adopted FY 2020 Proposed

Budget Impact Staff Impact

Transfer of Code Enforcement Positions

• $377,307

+$377,307 +3.0 FTEs Add a Business Systems Analyst

• $101,131

+$101,131 +1.0 FTE Add a Permit Processing Specialist

• $75,322

+$75,322 +1.0 FTE Add a Fire Inspector

• $116,896

+$116,896 +1.0 FTE Future Development Contingency Fund

• $300,000

+$300,000

• 18

Development Fund

Detail: Proposed Reductions

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Eliminate Deputy Building Official Position Service Impacts Budget Impact

• Special project work will be redistributed among

staff, delayed, or postponed.

• Supervision is now provided at a functional level.

Change:

• $198,829

Staff Impact

• 1.0 Deputy Building Official

(filled)

Development Fund

Department Overview

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Development Fund (Fund 570)

March 2018

• Restart system

development

• ePlan online

payment deploys

Winter 2019

• Consolidated

permit counter

• pens on 10th floor

(Feb 19)

• System testing

begins with public

Spring/Summer 2019

• Phase I

implementation

• 33 permit types

2020

• Phase II

implementation

• 40 permit types

Permit Arlington

A County-wide initiative to improve land development, building and permitting processes

• Program Goals
• Streamline business processes
• Enhance technology and communication tools
• Deliver excellent customer service
• Increase transparency and accountability
• Customer Experience Vision

One team, one voice, delivering a responsive permitting experience driven by understanding and listening to our customer needs

• Centralized customer service seamlessly

integrated with an intuitive online user experience

• A knowledgeable and friendly team providing

consistent information

• Convenient and transparent from start to finish

Key Budget Considerations

• Evaluate the long term stability of the Fund through a comprehensive fee

study

• Development pipeline increases effect on staff
• Permit Arlington

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Development Fund

COUNTY MANAGER’S PROPOSED FY 2020 BUDGET

County Board Work Session

Non-Departmental/AHIF

March 5, 2019 @ 3:00 p.m. County Board Work Session

AHIF Program Overview

Non-Departmental/AHIF

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• County is a mission-driven lender
• Goal is to create and preserve committed affordable units (CAFs)

affordable to families earning 40%-60% of the area median income (AMI) for 60 years

• AHIF is used for residual receipt / cash flow loans
• $123 million in loan repayments received to-date
• 41% of loans have paid in full
• County Board has approved over 100 loans
• $357 million allocated to-date, supporting approximately 7,000 CAFs

AHIF as an Affordable Housing Tool

Non-Departmental/AHIF

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• AHIF is the

primary source of funding for CAFs in Arlington

• CAFs are also

created through site plan and form-based code

5,938 6,233 6,525 6,578 6,885 7,254 7,463 7,729 8,122 8,431 8,740 4,755 4,866 5,072 5,353 5,429 5,723 6,032 6,602 7,117 7,426 7,735

4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000 FY '10 FY '11 FY '12 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '20

# of CAFs

Total # of CAFs AHIF financed CAFs

AHIF Secures CAFs and Leverages Funds

Non-Departmental/AHIF

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368 CAFs 451 CAFs 585 CAFs 497 CAFs 173 CAFs 433 CAFs

• AHIF preserves existing

CAFs by extending affordability

• AHIF creates new CAFs

through acquisition and construction of units

• Every $1 million in AHIF

can preserve or create approximately 12 CAFs and leverage $4 million in

• utside funding

380 CAFs

100 200 300 400 500 600 700

FY14 FY15 FY16 FY17 FY18 FY19 - Projected FY20 - Projected

Existing CAFs Preserved New CAFs Financed

AHIF Provides Options to Low-Income Families

Non-Departmental/AHIF

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• As the overall number of

market rate affordable units (MARKs) declines, Housing Grants participants and other low- income families have fewer housing options

• CAFs funded with AHIF

provide a supply of units for these families and help fill the gap

2 4 6 8 10 12 14 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Thousands

CAFs Filling The Gap

Total CAFs at or below 60% AMI MARKS at or below 60% AMI Units Affordable at or below 60% AMI

AHIF Appropriation History

Non-Departmental/AHIF

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• The County Board

appropriated more than $80 million to AHIF between FY 2014 and FY 2019

• The County Manager is

proposing an increase in

• ngoing funds in FY 2020

(ongoing funds would be 60% of total)

• Goal is to eventually fund

100% of AHIF with ongoing funds

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 FY 2014 Adopted FY 2015 Adopted FY 2016 Adopted FY 2017 Adopted FY 2018 Adopted FY 2019 Adopted FY 2020 Proposed $6,755,716 $4,755,716 $4,256,017 $4,355,957 $4,905,406 $6,694,158 $8,744,186 $5,724,907 $8,200,000 $8,200,000 $9,363,829 $10,111,006 $7,645,256 5,733,942

On-going One-time

266 CAFs affordable for 60 years

Projected FY 2020 Funding Sources - $22,590,048

Non-Departmental/AHIF

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$88 million in

• utside funds

$6,694,158 $3,500,000 $341,202

AHIF - ongoing funds 39% AHIF - one-time funds 25% Federal CDBG Entitlement 2% Loan Repayments & Payoffs 19% Developer Contributions 15%

Housing Affordability Needs Are Intensifying

Non-Departmental/AHIF

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• Pressures on existing housing stock continue
• As population growth occurs, demand will increase for

existing housing stock, putting pressure on current affordability

• Options available to households at or below 60% of

AMI have declined since 2010

County Efforts to Support Housing Affordability

Non-Departmental/AHIF

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• Commitment to provide existing programs, such as AHIF

and Housing Grants, with General Fund support

• Expanded efforts to explore housing program options

and identify ways to further leverage County funds for housing

• CM recommendation to increase Housing Division

capacity with an additional FTE