Preservation of Affordable Housing Aaron Gornstein, President and - PowerPoint PPT Presentation

Preservation of Affordable Housing Aaron Gornstein, President and CEO presentation to Florida Housing Coalition Preservation Workshop

About Preservation of Affordable Housing (POAH) POAH is a national nonprofit organization that owns and manages 10,000 apartments at 100+ communities in 11 states and DC. We employ three strategies: 1. Preservation of existing at-risk affordable housing 2. Production of new affordable housing 3. Comprehensive community revitalization The Jackson, Chicago IL

Preservation Approach / Principles • Allocate resources for preservation • Prioritize (1) rental assistance & (2) strong markets • Intervene well before restrictions expire • Use existing public debt as leverage for preservation • Sponsor mission impacts future preservation cost Dom Polski, Chicopee MA

Asset Management for Long-Term Preservation Key ingredients for long-term affordability: • Secure long-term affordability covenants • Structure for long-term financial & physical viability • Manage capital accounts & effect early Limited Partner exits Salem Heights, Salem MA

Preservation Example: Trinity Towers, Melbourne FL • 510 senior units; 80% Sec 8 PBRA • Built 1967-1981; extensive capital needs • POAH acquired & managed while assembling resources • 4%/9% LIHTC; SAIL; FHLB; seller note; deferred fee • In-place rehab / no displacement

Preservation Example: Billings Forge, Hartford CT • 113 family units, majority tax credit units; some Sec 8 PBRA • Acquisition & management during financing period • Historic rehab w/ federal & state HTCs • Employment program, onsite restaurant and farmer’s market, Family Self Sufficiency Program

Preservation Example: Temple Landing, New Bedford, MA • 173 family units, no PBRA • Distressed 12-acre superblock site w/ gang activity, hi vacancy • Combined rehab/rebuild, new streets to revitalize site, positive impact on surrounding area • 9% LIHTC, state funds, local HOME

Key Preservation Policy Issues Florida: • Resource allocation for preservation • Streamlining 4%/bond deal underwriting • Implementing income averaging • Tax relief for true nonprofit LIHTC deals Federal: • 4% LIHTC fixed rate (Cantwell-Hatch) • Grandfather existing residents (C-H) Hawthorne, Independence MO