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

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Jan 06, 2023 285 likes •376 views

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

SLIDE 1

Preservation of Affordable Housing

Aaron Gornstein, President and CEO

presentation to

Florida Housing Coalition Preservation Workshop

SLIDE 2

About Preservation of Affordable Housing (POAH)

POAH is a national nonprofit

rganization 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

SLIDE 3

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

SLIDE 4

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

SLIDE 5

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

SLIDE 6

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

SLIDE 7

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

SLIDE 8

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)