REQUEST FOR INFORMATION17-013

AFFORDABLE HOUSING DEVELOPMENT

Community ServicesCommunity Development Division

February 9, 2017

Consolidated Plan• Identified Rental Housing as a High Priority for the

following population:– Extremely Low & Low Income– Families with Children– Elderly & Frail Elderly– Public Housing Residents– Individuals– Persons with Physical & Developmental Disabilities

Consolidated Plan• Goal Description: Ensuring adequate rental housing

opportunities for low-income families and individuals through the provision and sustainability of decent housing by encouraging the following type of projects:– Rental Housing Rehabilitation– Rental Housing Construction– Rental/Owner Housing Code Enforcement– Homelessness Prevention: TBRA Security Deposits

Area Median Income LimitsHousehold

Size

Income Limit

30% AMI 60% AMI 80% AMI

1 $12,400 $24,780 $33,000

2 $14,150 $28,320 $37,700

3 $15,900 $31,860 $42,400

4 $17,650 $35,340 $47,100

5 $19,100 $38,220 $50,900

6 $20,500 $41,040 $54,650

7 $21,900 $43,860 $58,450

8 $23,300 $46,680 $62,200

ExamplesIndividual working full-time making $12/hour earns $24,960 annually/$2,080 monthly: > 60% AMI

Single Mother with 2 children making $15/hour earns $31,200 annually/$2,600 monthly: >60% AMI

Family of 4 with 2 working adults making $12/hr earns $49,920 annually/$4,160 monthly: Over 80% AMI

Elderly individually receiving average Social Security benefit of $1,341/mo: 30% – 60% AMI

2013 Comprehensive Housing Affordability Strategy• 34,080 Households: 18,435 or 54% LMI• 13,720 Family/Children Households: 4,670 or 34% LMI• 22,230 Renter Households: 16,365 or 74% LMI• 3,415 Elderly Households: 1,075 or 31% LMI

– 445 LMI Renters– 630 LMI Owners

Fair Housing Requirements• Prohibits discrimination in housing and lending based on

several protected classes– Race Religion– Color Sex– National Origin Familial Status– Handicap (Disability)

• Exemptions include:– Owner-occupied buildings with no more than 4 units– Single-family housing sold or rented without broker– Housing operated by organizations and private clubs that limit

occupancy to members– Elderly (age 55 & older) housing developments

Current Conditions• Survey conducted in June/July 2016 of 94

apartment complexes in College Station

Rental Type Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 5 Bedrooms

Average Reported Rent – 2013

$622 $761 $933 $1,429 $2,135 $3,265

Average Reported Rent – 2016

$1,026 $828 $1,079 $1,567 $2,467 $3,360

HUD 2017 Fair Market Rent

$624 $699 $845 $1,230 $1,489 N/A

ExamplesIndividual working full-time making $12/hour earns $24,960 annually/$2,080 monthly: $624 housing exp

Single Mother with 2 children making $15/hour earns $31,200 annually/$2,600 monthly: $780 housing exp

Working family of 4 with 2 working adults making $12/hr earns $49,920 annually/$4,160, monthly:$1,248 housing exp.

Elderly individually receiving average Social Security benefit of $1,341/mo: $402 housing exp

Current Conditions

Examples:– Individual: $624 housing expense– Single Mom: $780 housing expense– Family of 4: $1,248 housing expense– Elderly individual: $402 housing expense

Rental Type Efficiency 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms 5 Bedrooms

Average Reported Rent – 2013

$622 $761 $933 $1,429 $2,135 $3,265

Average Reported Rent – 2016

$1,026 $828 $1,079 $1,567 $2,467 $3,360

HUD 2017 Fair Market Rent

$624 $699 $845 $1,230 $1,489 N/A

Current Condition• Affordable & Workforce Housing Inventory

Complex Restriction Source of Funding/Year

Total Units

LMI Units

Vacancy Rate

Waiting List

Heritage LMI LIHTC – 1999 96 96 0% 39

Haven LMI/Homeless LIHTC – 2000 24 24 4% 6

Santour Court LMI LIHTC – 2007 16 16 6.25% 12

Southgate Village LMI Project-based Section 8 – 1970 200 199 2.5% 68

Villas of Rock Prairie LMI/Elderly LIHTC – 1994 132 92 0% -

Terrace Pines LMI/Elderly LIHTC – 2004 100 80 0% 163

LULAC Oak Hill (Section 202) LMI/Elderly Section 202 50 50 3% 9

Windsor Pointe Transitioned to student property LIHTC – 1994 192 0 N/A N/A

Housing Choice Voucher Program• Program funded by U. S. Department of Housing and

Urban Development• Provide rental assistance payments for households at

or below 60% of area median income (AMI)• Minimum of 75% reserved for households below 30%

of AMI• Authorized to issue up to 1,901 vouchers each month

for the 7 county region• Average approximately 1,602 or 84% of this number

due to high rental costs

RFI Background • Current conditions and rental inventory support increased

efforts in expanding affordable housing opportunities for all LMI populations• Inquiries beginning in June regarding potential support of tax

credit applications for College Station• Tax credit allocation process changed preferences, thereby

increasing interest in CS developments• Late adoption by Governor of tax credit process • High cost for developer to respond to RFP/submit application• Decision to release Request for Information

Purpose• To solicit information from firms interested and

qualified to develop an affordable elderly or family development within the City.

Responses• 7 proposals received

Developer Name Site Location Type Pre-App

Full App

JES Dev Co. Double Mountain Rd. Senior X XMGroup Highway 6 S. Senior XThe Property Group

Sebesta Rd.

Senior or

Family

X

DMA Dev. Co/BVAHC Not Specified SeniorHuntJon Not Specified SeniorBlackrock Builders Not Specified Senior

Basic Tax Credit Process• 9% Tax Credits allocated by Texas Department of

Housing and Community Affairs – funds from HUD• Competitive Process – Region 8• Qualified Allocation Plan (QAP) sets parameters and

point structure• Tax Credit award – generates capital for

construction

Urban Counties:

• Bell• Bosque• Brazos• Burleson• Coryell

• Lampasas• McLennan• Robertson

Rural Counties:

• Bosque• Falls• Freestone• Grimes• Hamilton• Hill• Leon• Limestone

• Madison• Milam• Mills• San Saba• Washington

Map of State Service Regions

Basic Tax Credit Process• Pre-application Information – Due January 9th

– Development Name & Proposed Entity Name & Type– Target Population– Development Address, City, Zip, County, Region &

designation– Census Tract– # of Low Income/# Market Rate/# of Total Units– Notifications to Public Officials– Self Score

Basic Tax Credit Process• Full Application – Due March 1st

– Administrative– Development Site– Development Activities– Finance– Organization– Third Party– Community Input

Basic Tax Credit ProcessTimeline

January 9th: Pre-applications due March 1st: Application dueMarch – June: Public Hearings, ChallengesJuly: Final Recommendations by TDHCA BoardSpring 2018: Construction begins

JES Proposed DevelopmentJohn Guttman

Staff Recommendation

• Staff recommends that Council adopt a resolution of support for the JES Development Co., Inc. HTC application for the 2017 competitive 9% housing tax credit application process to maximize the opportunity for an award in College Station.• Strengthen the application by providing CDBG funds

CDBG Funding Available

• The FY 2017 Annual Action Plan and budget allocated $889,687 in CDBG funds for supporting development partners interested in development affordable/workforce housing. • HOME funding also a possibility

Future Efforts• Planning a community discussion regarding affordable

housing with hopes of developing new partnerships expand affordable housing opportunities in College Station• Staff is continues to research available funding mechanisms

to expand affordable housing opportunities:– CDBG/HOME Funds– HTC: 9% or 4%– Section 108 Loans– Others

• Information will be presented to Council at a future date for consideration

Questions

Elderly Developments Permitted

Complex Total Units LMI Units

Methodist Retirement Communities – Phase 1 72 Independent Living24 Assisted Living18 Memory Support

0

Methodist Retirement Communities – Phase 2 96 Independent Living 0