Legislative Finance Committee Cloudcroft July ly 10, 10, 2019 - - PowerPoint PPT Presentation

SLIDE 1

Cloudcroft July ly 10, 10, 2019 2019

Legislative Finance Committee

Permian Basin Housing Briefing New Mexico Mortgage Finance Authority Jay Czar, Executive Director

SLIDE 2

2018

MFA Annual Production Highlights

• Tota

tal P Producti tion: MFA’s total production was $531 mi milli llion in 2018.

• Homeown

wnership: In 2018, MFA made more loans to homebuyers than in any time in its history. More than 2,800 New Mexican families became homeowners in 2018 using $420.1 million in MFA loans and $16.8 million in down payment assistance. The numbers reflect an increase of 13 percent from 2017.

• Constructi

tion F Financing: g: MFA provided $52.4 million in financing to construct and rehabilitate more than 370 apartments and affordable homes.

• Rehabilitati

tion A And En Energy-Effic iciency I y Improv

• vements: Almost 800 low-income families received

home rehabilitation or energy-efficiency improvements through $8 million in MFA funding.

• Ho

Homeless P Preventi tion And S Supportive Ho Housing: MFA partners sheltered and housed almost 8,700 people experiencing homelessness with $1.3 million in MFA funding. In addition, $1.9 million in supportive housing vouchers and services stabilized or prevented homelessness for 300 households with special needs, and $830,000 in rental assistance rapidly re-housed or prevented homelessness for 700 households.

• Renta

tal A Assista tance: MFA processed more than $30 million in project-based Section 8 rental assistance for 5,200 low-income renter households.

• Asset

ets U Under er M Managem emen ent: In 2018, MFA managed $3.4 b billio lion in assets.

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SLIDE 3

In Eddy and Lea Counties

MFA Five Year Production

MFA Production by Programs 2014-2018 Eddy County Lea County Counties Combined New Mexico Homeownership $11,205,834 $21,744,179 $32,950,013 $1,454,292,771 Rental $47,068,223 $50,454,590 $97,522,813 $576,604,080 Community Development $210,886 $188,939 $399,825 $17,324,939 Five-Year Expenditures by County $58,484,943 $72,387,708 $130,872,651 $2,048,221,790 Percent of Total NM Expenditures 2.86% 3.53% 6.39% Percent of NM Population 2.73% 3.29% 6.02%

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SLIDE 4

In Eddy and Lea Counties

MFA Five Year Multifamily Production

Name of Development City County Year Awarded Total Development Cost Total Units Roselawn Manor Apartments Artesia Eddy 2015 $13,104,879 63 Colonial Hillcrest Apartments Carlsbad Eddy 2016 $14,416,196 75 Villa San Jose Apartments Carlsbad Eddy 2017 $7,212,665 60 Parkside Place Apartments Carlsbad Eddy 2018 $15,289,314 80 Eddy County Developments $50,023,054 278 New Leaf Community Hobbs Lea 2014 $13,437,301 72 Playa Escondida Hobbs Lea 2014 $12,287,568 60 Parkside Terrace Hobbs Lea 2015 $12,686,040 65 Washington Place Hobbs Lea 2015 $8,387,561 76 Lea County Developments* $46,798,470 273 Total Developments $96,821,524 551

*In 2 2019, 19, M MFA a awar arded $ $11, 1,57 573, 3,250 i 50 in t tax credits t to Skyview T Terrac ace i in H Hobbs, a a 72 u unit p property with a a Total al Development C Cost o

• f $

$15, 5,698 698,57 573

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SLIDE 5

Eddy County

Population, Income and Poverty

55,322 45,674

60,703

20,000 30,000 40,000 50,000 60,000 70,000 US NM Eddy

Median HH Income

14.6% 20.6%

14.6%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% US NM Eddy

Poverty Rate Growth Rate Household Income Distribution

2.76% 0.24% 2.13%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% US NM Eddy 1-Year Growth Rate 5-Year Growth Rate 11.5%

15.7%

9.4%

9.8% 12.4%

11.2%

9.5% 10.8%

8.1%

13.0% 14.0%

14.5%

17.7% 17.3%

18.5%

12.3% 11.2%

14.4%

14.1% 11.4%

15.0%

12.1% 7.4%

8.8%

US NM Eddy Less than $15,000 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,000 $150,000 or More 6.4%

10.9%

7.8%

7.0% 10.1%

10.0%

7.8% 9.6%

8.0%

11.8% 13.5%

12.3%

18.3% 18.6%

18.6%

14.3% 13.1%

13.4%

17.9% 14.3%

18.3%

16.6% 9.9%

11.5%

US NM Eddy

All Households Homeowner Households

20.6%

25.7%

13.2%

14.7% 17.2%

14.2%

12.7% 13.4%

8.3%

15.1% 14.9%

20.0%

16.6% 14.6%

18.1%

8.8% 7.1%

16.7%

7.3% 5.2%

7.1%

4.3% 2.1%

2.5%

US NM Eddy

Renter Households

57,900 2018 Population

Source ces: American Community Survey 2013-2017 5-Year Estimates, Annual Estimates of the Resident Population, April 1, 2010 to July 1, 2018

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SLIDE 6

Eddy County

Demographics

2.63 2.65

2.64 2.62 2.63 2.63 2.64 2.64 2.65 2.65 2.66

US NM Eddy

Average Household Size Median Age

37.8 37.3

35.9 30.0 40.0

US NM Eddy

48.2% 38.2% 1.8% 8.7% 1.3% 1.8%

47.5% 48.5% 1.4% 1.3% 0.5% 0.8%

Hispanic White Black or African American Native American and Alaksa Native Asian Native Hawaiian and Pacific Islander Other

17.6% 61.5% 12.3% 0.7% 5.3% 0.2% 2.5%

Eddy County New Mexico United States

Race & Ethnicity

38.5%

36.0%

41.0%

2.6% 3.4%

4.4%

5.8% 7.5%

6.9%

17.0% 20.9%

18.2%

9.9% 8.3%

8.4%

6.9% 6.3%

6.0%

17.1% 15.3%

11.2%

US NM Eddy Homeowners:Married couple HH Homeowners: Male Headed HH Homeowners: Female headed HH Homeowners: Non Family HH Renters: Married couple HH Renters: Male Headed HH Renters: Female headed HH Renters: Non Family HH

Household Type

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

US NM Eddy Living with Non-Family Living with Family Living Alone

Senior Households

63.8%

67.9% 70.6%

36.2%

32.1% 29.4% US NM Eddy Owner-Occupied Units Renter-Occupied Units

Homeowners and Renters

Source ce: American Community Survey 2013-2017 5-Year Estimates

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SLIDE 7

Eddy County

Housing Stock Age of Housing Type of Housing

52.6% 53.1%

56.5%

7.1% 2.9%

1.3%

4.0% 11.7%

12.8%

10.3% 12.5%

14.6%

8.7% 6.5%

3.8%

15.5% 8.8%

5.7%

1.6% 4.2%

5.2%

US NM Eddy

Owner Occupied, Single Family Owner Occupied, Attached Owner Occupied, Mobile Home Renter-Occupied Single Family Renter Occupied, 1-4 Attached Renter Occupied, Apartment Renter Occupied, Mobile Home

3.2% 3.0%

7.6%

14.5% 15.9%

8.4%

14.0% 17.8%

9.8%

13.6% 16.9%

11.7%

15.5% 17.7%

12.6%

10.8% 10.3%

14.0%

10.5% 9.7%

20.4%

5.1% 4.1%

9.5%

12.9% 4.6%

6.0%

US NM Eddy 2010 or Later 2000s 1990s 1980s 1970s 1960s 1950s 1940s 1939 or Earlier

Housing Conditions

0.4% 1.0%

0.6%

0.8% 0.9%

0.4%

3.3% 3.5%

4.5%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% US NM Eddy Lacking Complete Plumbing Lacking Complete Kitchens Overcrowded

Source ce: American Community Survey 2013-2017 5-Year Estimates

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SLIDE 8

Eddy County

Housing Market and Affordability

$185,000 $165,000 $190,900 $175,000

$200,000 $200,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000

NM (32,006) Eddy (880)

2016 2017 2018

$585 $643 $581 $697

$602 $663 $0 $100 $200 $300 $400 $500 $600 $700

Rural NM* (4.4%) Eddy (1.1%)

2016 2017 2018 Eddy County

44%

Renters Who Can Afford a Median- Priced Home

New Mexico

28%

Eddy County

71%

Renters Who Can Afford Average Rent

New Mexico

49%

Source ce: MFA Calculations Source ce: MFA Calculations

3,987 2,332 1,655

• 1,000

2,000 3,000 4,000 5,000

• Apts. for

Current Population Existing Apartments Apartment Gap

Gap in Apartments

Source ce: MFA Calculations

14.1% 12.6%

8.3%

9.5% 9.4%

6.2%

75.5% 76.4%

84.9%

0.8% 1.7%

0.6%

US NM Eddy Cost Burdened Extremely Cost Burdened Not Cost Burdened Not Computed

Cost Burden for Homeowners

23.2% 21.9%

17.9%

23.7% 22.6%

11.7%

45.7% 44.5%

55.2%

7.4% 10.9%

15.2%

US NM Eddy

Cost Burden for Renters

Number of home sales, 2018 in parenthesis 2018 rental vacancy rate in parenthesis

Source ce: American Community Survey 2013-2017 5-Year Estimates

Median Home Price Average Rent

Source ce: New Mexico Association of Realtors Housing Trends Source ce: MFA/Bureau of Business and Economic Research Rental Survey

SLIDE 9

2.76% 0.24%

• 0.85%
• 1.50%
• 1.00%
• 0.50%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% US NM Lea 1-Year Growth Rate 5-Year Growth Rate

Lea County

Population, Income and Poverty

55,322 45,674

59,285

20,000 30,000 40,000 50,000 60,000 70,000 US NM Lea

Median HH Income

14.6% 20.6%

16.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% US NM Lea

Poverty Rate Growth Rate Household Income Distribution

Source ces: American Community Survey 2013-2017 5-Year Estimates, Annual Estimates of the Resident Population, April 1, 2010 to July 1, 2018

6.4%

10.9%

8.1%

7.0% 10.1%

8.8%

7.8% 9.6%

7.7%

11.8% 13.5%

11.4%

18.3% 18.6%

21.9%

14.3% 13.1%

13.3%

17.9% 14.3%

17.9%

16.6% 9.9%

10.9%

US NM Lea 11.5%

15.7%

12.4%

9.8% 12.4%

9.4%

9.5% 10.8%

7.5%

13.0% 14.0%

12.3%

17.7% 17.3%

21.3%

12.3% 11.2%

13.8%

14.1% 11.4%

14.7%

12.1% 7.4%

8.7%

US NM Lea Less than $15,000 $15,000 to $24,999 $25,000 to $34,999 $35,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,000 $150,000 or More

All Households

20.6%

25.7%

21.6%

14.7% 17.2%

10.8%

12.7% 13.4%

7.0%

15.1% 14.9%

14.0%

16.6% 14.6%

20.0%

8.8% 7.1%

14.8%

7.3% 5.2%

7.8%

4.3% 2.1%

4.1%

US NM Lea

Homeowner Households Renter Households

69,611 2018 Population

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SLIDE 10

Lea County

Demographics

2.63 2.65

3.04 2.40 2.50 2.60 2.70 2.80 2.90 3.00 3.10

US NM Lea

Average Household Size Median Age

37.8 37.3

31.7 0.0 10.0 20.0 30.0 40.0

US NM Lea

56.8% 37.2% 3.6% 0.7% 0.0% 1.7%

Hispanic White Black or African American Native American and Alaksa Native Asian Native Hawaiian and Pacific Islander Other

48.2% 38.2% 1.8% 8.7% 1.3% 1.8% 17.6% 61.5% 12.3% 0.7% 5.3% 0.2% 2.5%

Lea County New Mexico United States

Race & Ethnicity

38.5%

36.0%

43.6%

2.6% 3.4%

4.3%

5.8% 7.5%

6.1%

17.0% 20.9%

14.1%

9.9% 8.3%

11.5%

6.9% 6.3%

5.8%

17.1% 15.3%

11.4%

US NM Lea Homeowners:Married couple HH Homeowners: Male Headed HH Homeowners: Female headed HH Homeowners: Non Family HH Renters: Married couple HH Renters: Male Headed HH Renters: Female headed HH Renters: Non Family HH

Household Type

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

US NM Lea Living with Non-Family Living with Family Living Alone

Senior Households

63.8%

67.9% 68.1%

36.2%

32.1% 31.9% US NM Lea Owner-Occupied Units Renter-Occupied Units

Homeowners and Renters

Source ce: American Community Survey 2013-2017 5-Year Estimates

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SLIDE 11

Lea County

Housing Stock Age of Housing Type of Housing

52.6% 53.1%

54.2%

7.1% 2.9%

1.3%

4.0% 11.7%

12.3%

10.3% 12.5%

14.8%

8.7% 6.5%

2.6%

15.5% 8.8%

7.3%

1.6% 4.2%

6.3%

US NM Lea

Owner Occupied, Single Family Owner Occupied, Attached Owner Occupied, Mobile Home Renter-Occupied Single Family Renter Occupied, 1-4 Attached Renter Occupied, Apartment Renter Occupied, Mobile Home

3.2% 3.0%

5.3%

14.5% 15.9%

7.9%

14.0% 17.8%

7.4%

13.6% 16.9%

15.6%

15.5% 17.7%

18.7%

10.8% 10.3%

15.3%

10.5% 9.7%

21.3%

5.1% 4.1%

4.7%

12.9% 4.6%

3.8%

US NM Lea 2010 or Later 2000s 1990s 1980s 1970s 1960s 1950s 1940s 1939 or Earlier

Housing Conditions

0.4% 1.0%

0.6%

0.8% 0.9%

0.7%

3.3% 3.5%

5.6%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% US NM Lea Lacking Complete Plumbing Lacking Complete Kitchens Overcrowded

Source ce: American Community Survey 2013-2017 5-Year Estimates

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SLIDE 12

Lea County

Housing Market and Affordability

Lea County

53%

Renters Who Can Afford a Median- Priced Home

New Mexico

28%

Lea County

65%

Renters Who Can Afford Average Rent

New Mexico

49%

Source ce: MFA Calculations Source ce: MFA Calculations

4,693 2,399 2,294

• 1,000

2,000 3,000 4,000 5,000

• Apts. for

Current Population Existing Apartments Apartment Gap

Gap in Apartments

Source ce: MFA Calculations

14.1% 12.6%

6.9%

9.5% 9.4%

4.6%

75.5% 76.4%

87.7%

0.8% 1.7%

0.8%

US NM Lea Cost Burdened Extremely Cost Burdened Not Cost Burdened Not Computed

Cost Burden for Homeowners

23.2% 21.9%

12.3%

23.7% 22.6%

16.7%

45.7% 44.5%

57.3%

7.4% 10.9%

13.8%

US NM Lea

Cost Burden for Renters

Source ce: American Community Survey 2013-2017 5-Year Estimates

$185,000 $164,000 $190,900 $158,000

$200,000 $170,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000

NM (32,006) Lea (658)

2016 2017 2018

$585 $674 $581 $691

$602 $702 $0 $100 $200 $300 $400 $500 $600 $700

Rural NM* (4.4%) Lea (5.3%)

2016 2017 2018

Number of home sales, 2018 in parenthesis 2018 rental vacancy rate in parenthesis

Median Home Price Average Rent

Source ce: New Mexico Association of Realtors Housing Trends Source ce: MFA/Bureau of Business and Economic Research Rental Survey

SLIDE 13

For the Permian Basin

Top Three Housing Funding Priorities

New Mexico Housing Trust Fund Down Payment Assistance Homeowner Rehabilitation

• Serves low- to moderate-income individuals

and families.

• Flexible funding source available to public

and private organizations to fund acquisition, infrastructure, new construction and/or rehabilitation costs for homeownership or rental housing.

• Serves targeted low- to moderate-income

homebuyers.

• Down payment and closing cost assistance

through a low-interest second mortgage loan, which may be forgivable in certain situations.

• In 2018 MFA provided 2,790 down payment

assistance loans for an average loan amount

• f $6,115.
• The average household size for the program

is 2.5 persons.

• Serves low-income homeowners.
• Provides assistance to low-income

homeowners who lack the resources to make necessary repairs to their homes.

• In 2018, 17 single family homes were

rehabilitated (52 are expected in 2019).

• MFA utilized $8 million to rehabilitate or

provide energy-efficiency improvements to nearly 800 families.

• Coming Soon - Veterans Rehab Program for

energy saving, accessibility and code compliance improvements. Program Highlights Program Description

• To date, the New Mexico Housing Trust Fund

combined with other sources has awarded more than $45 million to build or rehabilitate 3,284 housing units. In the process, MFA has leveraged $474 million in other funding sources, a 25-to-1 return on the state’s $18.7 million investment.

• Flexible loan and grant options.

SLIDE 14

For the Permian Basin

Additional Funding Opportunities

• Provide direct grants/assets or incentivize donations to support affordable

housing development, which may be eligible for a New Mexico Affordable Housing Tax Credit.

• Acquire, rehabilitate and sell distressed homes similarly to the Neighborhood

Stabilization Program.

• Support market-rate housing solutions to complement MFA’s affordable housing

work.

• Provide resources to develop senior housing or improve accessibility in seniors’

homes.

• Provide funds to support organizational capacity development of local service

providers.

• Provide homebuyer counseling/financial literacy resources.
• Encourage utilization of the “Income Averaging” option for Low Income Housing

Tax Credit (LIHTC) projects to support mixed-income communities.

• Research state legislation creating a state low-income housing tax credit program.

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SLIDE 15

Jay Czar, Executive Director jczar@housingnm.org (505) 767-2210