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Home My WebLink AboutWS.5 Public Housing - Bloomberg Harvard Item: WS-5 PRESENTATION TO FOLLOW: By: Naomi Mehta, Bloomberg Harvard City Leadership Initiative � r `t CITY OF IOWA CITY 410 East Washington Strcct Iowa City. Iowa 52240- 1826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org Expanding Access to Affordable Housing Iowa City Naomi Mehta Bloomberg Harvard City Leadership Initiative Introduction :The Need for Affordable Housing Production Total Population = 75,000 Projected Growth of 10,000 people by 2030 20% of the 22% Homeowners Populations earns A—J and 61% Renters less than $30,000 are Cost Burdened annually .00 Overcrowding across households, Urgent Need for Moving farther Affordable Housing away from your 1385 Low Income desired 973 Low Income Households neighborhood Households waiting for waiting for Public Housing Choice Housing Units Vouchers Only 6% households receive subsidies from ICHA Iowa City: Expanding Access to Affordable Housing 3 Introduction : An Overview of the ICHA City of Iowa City I i F`u9` mango jzxol Neighborhood and Development Services Department I i i I Iowa wsoN i williemtlwy Iowa City i %M ' 3 1 i I i i Iowa City Housing Authority (ICHA) ! l i - w I ; f„ NOM Eyli... I 1 Johnson County °_ ® I ------. �• xn 2 Washington County ® 2 The Iowa city Housing i r Authori does not provide assistan e"in 7 Iowa Count 3lctor,Iowa ,.ns,, _..._..._..._..._..._..._... ,wG,ow 3 y i awwie?x uwmu Iowa City: Expanding Access to Affordable Housing 4 Introduction : Affordable Housing under the ICHA Provision of Affordable housing by the ICHA Federally Assisted Programs City- Owned Affordable Housing L=�osing Services IF Public Housing Housing Vouchers Family Self Sufficiency Services Subsidized Unit Rental Payment Supportive Services Subsidized Unit Provision Assistance Assistance Provision 1 1 1 1 86 Households 1595 Households 0 192 Households 21 Households 1702 Households Iowa City : expanding Access to Affordable Housing Introduction : Challenges faced in Affordable Housing Production 20% of our Households Urgent Need for Increasing Production of Affordable are in Poverty Housing Decreasing Federal Average Loss = 1702 Revenue $192,123 /year Households 1681 Federally Assisted 86 Public Housing Expenditure Exceeds receive Programs Revenue (4 years) (Last 4years) federal assistance from ICHA 94%Staff Time to Section 8 Housing manage units and Choice Voucher comply with complex Operational Hurdles Program regulations and procedures 21 City Owned 6% Staff Time Affordable Housing Iowa City: Expanding Access to Affordable Housing Introduction : How can the ICHA overcome barriers? Financial + Operational hurdles I Increased Demand for Affordable housing Il J HUD Repositioning of Public Housing Increase Revenue for Achieve OperationalActively Develop and Serve more than 1702 Affordable Housing Sustainability Diversify Housing Households Stock Iowa City: Expanding Access to Affordable Housing 7 Introduction : Understanding Terminology How do different provisions for affordable housing under the ICHA work? • City-Owned Affordable Housing • Public Housing • Section 8 Housing Choice Voucher Program Iowa City: Expanding Access to Affordable Housing 8 Introduction :What is City Owned Affordable Housing? 7allow ICHA manages the properties 21 City Owned units owned by the city ICHA allocates available units to Total Rent of Units= 80% Rent Revenue utilized by ICHA eligible tenants of Fair Market Rent Tenant Pays Rent for operation and maintenance in need of housing Unit Allocation Unit Rent Operational Revenue Iowa City: Expanding Access to Affordable Housing Introduction :What is the Public Housing Program? US Department of Housing and Urban Development (HUD) HUD Provides Operational Revenue Capital Funds and Operating Subsidy ICHA operate and manages city owned properties under r City Owned Public Housing the Public Housing Program Units(86) Allocates housing to Total Rent= 30% of applicants using Public Housing Adjusted Tenant Income a preference Tenants criteria Unit Rent Public Housing Waitlist Unit Allocation Iowa City: ExpandingAccess to Affordable Housing 10 Introduction :Differentiating City-Owned Subsidized Units Public Housing Program - 86 Units City— Owned Affordable Housing —21 Units Ownership City—owned Units that are a part of the City—owned Units Public Housing Program • Federal Funding from the US Rental Revenue Funding Source Department of Housing and Urban Affordable Housing Grants like HOME Development(HUD). and ARPA • Received Annually to Operate and Maintain the Units Rent • Rent =30% of the Tenants adjusted Rent =80% Fair Market Rent Income Iowa City: Expanding Access to Affordable Housing 11 Introduction :What is a Voucher? ( Housing Choice Voucher Program) Section 8 Housing Choice Vouchers • Vouchersubsid Tenant Based Housing Vouchersubsid y Project Based Vouchers y attached to a unit Choice Vouchers attached to a at a location household • It keeps a unit Since the voucher perpetually A follows the tenant, subsidized, O they can get allowing tenants subsidized housing withoutvouchers A in any location to afford it. using their voucher. EE ,— ► n ,— ► O UUI :DO - B B Iowa City: Expanding Access to Affordable Housing Introduction : What is the Housing Choice Voucher Program? US Department of Housing and Urban Development (HUD) r 1595 Vouchers Housing Authority Any Private Landlord Owned Unit Rent Part 1 Federal Aid for each Voucher = Housing or Cit Owned Housing administers vouchers � g Y g Total Unit Rent—Tenant Rent with Rent "Y" + Unit Rent Part 2 Unit Rent Part 1 Total Rent Landlord Distributed amongst Receives Convert to Tenant Rent= 30% of Adjusted Project g Voucher Holding Income Based applicants using a Preference Tenant Vouchers Criteria Unit Rent Part 2 Voucher Waithst Unit Allocation Iowa City: Expanding Access to Affordable Housing Introduction : Differentiating Federally Assisted Housing Programs Public Housing Program - 86 Units Housing Choice Vouchers • City Owned units that are a part of Federally Assistance in the form of rental Principle the Federal Public Housing Program subsidies through Section 8 that is provided to eligible households for use in both private /publicly owned units. • Federal Funding from the US Federal Funding from the US Department Funding Source Department of Housing and Urban of Housing and Urban Development(HUD) Development(HUD) received received Annually in the for of Rental Annually to Operate and Maintain subsidies. the Units. Historical increase in federal funds. • Historical decline in federal funds. Rent Paid • Rent=30% of the Tenants adjusted Rent=30% of the Tenants adjusted Income Income + Housing Subsidy paid by ICHA Rent Set Rent =30% of the Tenants adjusted Rent = Up to 110% Fair Market Rent Income Iowa City: Expanding Access to Affordable Housing 14 Introduction : Looking at Federal Funding Trends across Programs Public Housing Funding Has Dropped While Section 8 Funding Has Responded to Cover Rising Needs Percent change in funding since 2000, adjusted for inflation 50% Section 8 programs 450/. 40 30 20 — Public Housing Program 10Section 8 Housing Choice 0 Voucher Program -10 Public housing --17% -20 -30 -40 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Note:"Public Housing"includes capital and operating funds."Section 8 programs"includes outlays forthe Housing Choice Voucher and Project-Based Rental Assistance programs. The graph reflects annual budget authorityfor public housing and(to avoid distortions from one-time recissions of funds and otherfactors)annual outlays for Section 8.Public housing funding for 2009 includes supplemental capital funds provided in economic recovery legislation. Source:Office of Management and Budget Public Use Database,Department of Treasury expenditure data,and annual appropriations legislation CENTER ON BUDGET AND POLICY PRIORITIES I CBPP.ORG Iowa City: Expanding Access to Affordable Housing 15 Introduction : Comparing Revenue sources across Programs Public Housing Program Section 8 Housing Choice Voucher Program Revenue Revenue Rent Collection = (Rent=30 %of Tenant Income) HUD Capital Funds + HUD Operating Subsidy HUD subsidy paid to landlord + Rent Collection (Rent=30 %of Tenant Admin Fee per unit Leverage Private Income) paid (HUD) Capital Iowa City: Expanding Access to Affordable Housing 16 Introduction : Recognizing Revenue Gaps between Programs Public Housing Program Section 8 Housing Choice Voucher Platform 86 Units Revenue =$776,384 86 Units Potential Revenue = Up to$1.5 Million Rent Collection = Federal Subsidies=426,782 (Rent=30 %of Tenant Income) Rent Revenue = 294,900 HUD subsidy paid to landlord Admin Fee per unit Interest on Reserve = 54,900 paid (HUD) Private Capital Iowa City: Expanding Access to Affordable Housing 17 Introduction : Responding to Public Housing Program Barriers Public Housing Program across USA HUD _j Lower Revenue Uncertain , Declining Federal funding 1 Higher Federal Revenue Higher Expenditure Repositioning Public Access to Private Capital for Housingfulfilling Upgradation / Revenue unable to meet unit Rehabilitation maintenance demands Increased Ability to assist Households Historical narratives of J discrimination against Public housing Iowa City: Expanding Access to Affordable Housing 18 Introduction : What is repositioning ? What is Repositioning of the Public Housing Program? • Understanding Repositioning • What changes? • What remains the same? Iowa City : Expanding Access to Affordable Housing 19 Introduction : What is repositioning ? Changing Platforms Public Housing Program Section 8 Housing Choice Voucher Program HUD HUD O S O Federal funds to Operate Housing Federal aid as Voucher Subsidy EICHA ICHA Public Housing Unit O V / � ? O Tenant Based Voucher Project Basedu er Public Housing Tenant v Iowa City: Expanding Access to Affordable Housing Repositioning : What changes? Section 8 Housing Choice Voucher Public Housing Program Program $776,384 Revenue Up to $1.5 Million 01 Unstable DecliningFederal funds and Federal Funds Stable Increasing Federal Funds, Better Budget Uncertainty Budget planning Lower Rent Revenue and Operations in Rent Revenue and Loss Higher Rent Revenue and Sustainable Loss finances .10 Iowa City: Expanding Access to Affordable Housing Repositioning : What changes? Section 8 Rental Assistance Program Public Housing Program Access to Private Capital Major dependence on Public Funds Avenues to leverage Private and Public Equity .10 Insufficient funds for acquiring new Capacity to Serve Increased capacity to expand affordable affordable units unit portfolio and serve more households Number of Households served 86 Households 1 00 TT HUUJC IUIUJ 1 Iowa City: Expanding Access to Affordable Housing Repositioning : What remains the same? Different Operating Platform Section 8 Rental Assistance Program Public Housing Program Same Mission Who we serve Serving Low Income Households 0 Serving Low Income Households What Tenants pay in rent Tenant pays 30% of adjusted Income 0 Tenant pays 30% of adjusted Income Where Tenants reside Tenants occupy city owned units and Tenants occupy city owned units have the flexibility to move with their subsidy Iowa City: Expanding Access to Affordable Housing Iowa City : Considering Repositioning Why should Iowa City Housing Authority consider Repositioning their Public Housing? Iowa City : Expanding Access to Affordable Housing 24 Iowa City : Need to Switch to a Stable Federal Funding Platform HUD Funding for ICHA 300,000 250,000 200,000 150,000 100,000 50,000 • Fluctuating Availability of funding from HUD over the 0 years 2020 2021 2022 2023 2024 • Average Funding across 5 Operating subsidy HUD ■ Capitalfunds years :$426,782 Iowa City: ExpandingAccess to Affordable Housing 25 Iowa City : Opportunity to Increment revenue City Revenue Breakdown 350,000 300,000 250,000 200,000 150,000 100,000 — 50,000 — Major revenue comesfrom HUD in the form of Operating Subsidy and Capital Funds, Rents collected ° — 2021 2022 2023 by the city are not as high. • Most of our tenants pay 30%of 0 Operating subsidy HUD 0 Rents collected Interest received 0Other misc 0Capital funds their adjusted income. Iowa City: Expanding Access to Affordable Housing 26 Iowa City : Need to have more Stable Rent Revenue Revenue Projections PHA Rent Received in Public Housing Program $950,000.00 $900,000.00 $850.000.00 0 Tenant Rent $800,000.00 5750,000.00 $700,000.00 — 2022 2023 2024 •HUD projected revenue PHA •Current PHA revenue • Rent Received on Section 8 Platform Rent shortfall 120000 100000 4644 Tenant Rent 80000 61016 60000 . Federal Rent 40000 23965 Subsidy 20000 ° Revenue Shortfalls are observed due to non payment zozl zozz zoz3 P Y • Rentshortfall of rents • Whereas a Section 8 Platform would give more stable and guaranteed rents Iowa City: Expanding Access to Affordable Housing 27 Iowa City : Need to Operate without loss Revenue-Expense 1200000 — 1000000 800000 600000 400000 200000 • Creating avenues of access to private capital and othergrants is necessary to o increase revenue and operate in net 2021 2022 2023 profit.This money can be used to acquire ■Total Revenue ■Total Expenses new units. Iowa City: Expanding Access to Affordable Housing 28 Iowa City : Urgently Develop / Acquire more Units Available Units v/s Units Needed 500 450 437 400 350 300 260 250 200 150 120 100 fil 48 44 5 1 50 24 3 0 4 , _ . , 1 • Average waiting time for selected 0-BR 1-BR 2-BR 3-BR 4-BR 5/ applicants =5.7 years for 973 ■Existing units ■Units Required households in our top preference criteria Iowa City: Expanding Access to Affordable Housing 29 Iowa city: Need to reposition 22% Homeowners Projected Growth of 20% of the population Overcrowding across 1,595 86 Units in public and 61% Renters are 10,000 people in make less than households and Vouchers with a housing with a cost burdened ten years $30,000 annually moving to less 10,000- 9,000- desired household waitlist household waitlist, neighborhoods 1000 households in Preference categories PHA—Expenditure Operational Dwindling Capital High costs in Overburdened Aspiration to Exceeds Revenue challenges in Reserve maintaining and partner entities independently and maintaing PH Units upgrading units providing supportive profitablyown, services develop and build affordable housing Fluctuating HUD Low Additional Revenue Average Revenue Highest Potential Current Loss$192,123 subsidy of Average revenue of Average$20-80k $776,384 Revenue after $450,000 $300,000 annually ( Repositioning Upto$290/Per Unit (Through Interest Average $1.5 Million Month) Received/ Fraud Expenditure$966,486 Recovery) (Across 2021-23) (Across 2021-23) Iowa City: Expanding Access to Affordable Housing Repositioning : A Way forward Which Repositioning Pathway should ICHA adopt? • Understanding HUD Pathways • Choosing a Path— Model of Analysis • RAD , Section 18 and Section 22 • Choosing a Streamlined Voluntary Conversion ( Section 22) Iowa City: Expanding Access to Affordable Housing 31 Repositioning : HUD Pathways RAD— Rental Assistance Demonstration Program RAD/Section 18 Blend Public Housing HUD Repositioning Section 8 Rental Program Pathways Assistance Program ( Housing Choice Section 22— Voucher) Streamlined Voluntary Conversion Section 18— Demolition / Disposition / Preservation Iowa City: Expanding Access to Affordable Housing 32 Repositioning : HUD Pathways RAD—Rental Assistance Conversion to Project based Demonstration Vouchers or Project Based Rental Program Assistance Modernization Requirement ( Repairs RAD/Section 18 / Reconstruction) Utilizing Private and Public Equity for Blend O Improvements HUD Repositioning Pathways Section 22— Streamlined Voluntary Conversion Section 18— Demolition / Disposition / Preservation J Iowa City: Expanding Access to Affordable Housing 33 Repositioning : HUD Pathways RAD—Rental Assistance Demonstration Program J rRAD/Section 18 Blend HUD Repositioning Pathways Section 22— Streamlined Voluntary � Units are either preserved affordably or leveraged to invest in Conversion i other affordable properties Converting Section 18— Units to Tenant 0 Demolition / or Project Based Disposition / Voucher Based Preservation Assistance. U U i Iowa City: Expanding Access to Affordable Housing 34 Repositioning :Choosing a Path for the city — Model of Analysis Key Suitability to Existing Rental Voucher Applicability to City Portfolio Intent Portfolio Revenue 1EFlexibility and Needs E • Assessing Organizational Ownership Faircloth Capacity Public Housing structure and Operations Models Program Closeout HUD Repositioning Pathways Utilizing Existing TransitionalFuture Proceed • Financial Obligations Funds Funds Impact on various Accessto Procedural hurdle • Aligning with City Goals Entities Capital Contribution to future goals Iowa City: Expanding Access to Affordable Housing 35 Repositioning : Choosing a Path for the city Applicability to City Portfolio RAD—Rental RAD/Section 18 Section 18— Section 22— and Needs Assistance Blend Demolition / Streamlined Demonstration Disposition / Voluntary Program Preservation Conversion Key Intent L Suitability to Existing Portfolio • • Rental Revenue • • • Voucher Flexibility and Tenant Rights • • Iowa City: Expanding Access to Affordable Housing 36 a � m .a `i Repositioning : Potential Revenue Projections for 2024 _ Rents _ Admin Fee _ HUD Funding $ 1,550,232 ---------------------------------------------------------------------------------------- -- $ 980,459 $ 898,521 -------------------------------------------------- -- ----------------------- - Higher Revenue in Rent for Section 18/ 22 Public Housing RAD Sec18/22 Iowa City: Expanding Access to Affordable Housing 38 Repositioning : Potential Revenue — Expense Projections Revenue-Expense Projections 1800000 1600000 1400000 1200000 1000000 --------------- --------------------- ------------- - ------ 800000 600000 400000 200000 0 18 / PHA RAD SECrION 18/22 venue with Section ZZ Revenue Expense Average If! Iowa City: Expanding Access to Affordable Housing Repositioning : Choosing a Path for the city — Eliminating RAD RAD—Rental Key Suitability to Existing Rental Voucher Assistance Applicability to City Portfolio Intent Portfolio Revenue Flexibility Demonstration and Needs J Program RAD/Section 18 Assessing Organizational Ownership Faircloth Capacity Public Housing Blend structure and Operations Models Program Closeout Section 22— Utilizing ExistingTransitional Future Proceeds Streamlined Financial Obligations Funds LFunds Voluntary Conversion Impact on various Access to Procedural hurdle Section 18— Aligning with City Goals Entities LCapital Demolition / Disposition / Preservation Contribution to future goals Iowa City: Expanding Access to Affordable Housing 40 Repositioning : Choosing a Path for the city Assessing Organizational Section 18—Demolition /Disposition / Section 22—Streamlined Voluntary structure and Operations Preservation Conversion Ownership Models Faircloth Capacity Public Housing Program Closeout • • Iowa City: Expanding Access to Affordable Housing 41 Repositioning : Ownership Models ICHA Section 18 Section 22 ICHA Affiliate or ICHA Other Entity ICHA ICHA Iowa City : Expanding Access to Affordable mousing Repositioning : Choosing a Path for the city Section 18—Demolition /Disposition / Section 22—Streamlined Voluntary Conversion • Financial Obligations Preservation Utilizing Existing Funds Transitional Funds • Future Proceeds Iowa City: Expanding Access to Affordable Housing 43 Repositioning : Choosing a Path for the city • Aligning with City Goals Section 18—Demolition /Disposition / Section 22—Streamlined Voluntary Conversion Preservation Impact on various • Entities Access to Capital lo Procedural Hurdle • • Contribution to future • goals Iowa City: Expanding Access to Affordable Housing 44 Repositioning : Procedural Hurdle - Qualifying parameters ICHA Section 18 Qualifications Section 22 Qualifications • Health/safety concerns No Requirements for less than • Physical Obsolescence 250 units • Infeasible Operation • Scattered sites • Inefficient management • Less than 50 units Iowa City: Expanding Access to Affordable Housing 45 Repositioning : Portfolio Distribution • City Portfolio of Public Housing Units Section 18 Qualifying Categories ,mOE 101M Health/safety concerns m Physical Obsolescence 302 • Infeasible Operation zoo O 1m Scattered sites Inefficient management E300 11 C0 i % Less than 50 units r 0 00 „m i 0,0,0000p I <uo sco coo O ,soo ,no0 % 0000 O O O O ,3m O ,moo O 0 ,ece 0000 O O O 00 O 1. mao • 80 %qualifies for scattered sites— 20% less than 50 ICHA's Public Housing Unit Locations Iowa City: Expanding Access to Affordable Housing 46 Repositioning : Procedural hurdles ICHA F 0 1 Section 18 Section 22 O ICHA ICHAJ O Iowa City: Expanding Access to Affordable Housing 47 Repositioning : Choosing a Path for the city- Eliminating Section 18 Key Suitability to Existing Rental Voucher Applicability to City Portfolio Intent Portfolio Revenue Flexibility and Needs • Assessing Organizational Ownership Faircloth Capacity Public Housing structure and Operations Models Program Closeout Section 22— Utilizing Existing Transitional Future Proceeds Streamlined Financial Obligations Funds Funds Voluntary Conversion Section 18— Impact on various Access to Procedural Demolition / Aligning with City Goals Entities Capital hurdles Disposition / Preservation Contribution to future goals Iowa City: Expanding Access to Affordable Housing 48 Repositioning : Choosing a Path for the city- Adopting a Streamlined Voluntary Conversion Public Housing Streamlined Voluntary Program HUD Repositioning Conversion or Section 22 Iowa City: Expanding Access to Affordable Housing 49 Repositioning : Section 22 — Streamlined Voluntary Conversion What does a Streamlined Voluntary Conversion mean for the ICHA? Iowa City : Expanding Access to Affordable Housing 50 Repositioning : What is Streamlined voluntary Conversion? (SVC) O V Section 22—StreamlinedVoluntary Conversion 86 Public 86 Public Housing Housing Units Tenants are given 86 move out of New Federal Housing Federal Choice Vouchers each Assistance 86 Units to be operated as City Owned Affordable Housing Iowa City : Expanding Access to Affordable Housing 51 Repositioning by SVC: What does this mean for our Public Housing units ? Public Housing Current City Portfolio Public Housing City Owned Affordable Units + Repositioning 0 through 28 Units 86 Units Streamlined Voluntary Conversion 86 Units 0 Units Housing Choice ESE + E Vouchers 1595 86 Vouchers Vouchers Iowa City: Expanding Access to Affordable Housing 52 Repositioning by SVC: : What does this mean for Public Housing tenants? Public Housing tenants City Owned Affordable Housing O 0 ��\ //� a �/I Iv Remain in the converted units Every Public Housing Tenant receives a Voucher /O U� �U 1 UU Any Priv=UnitIf Tenants provide consent,Tenant Accepting Based Vouchers can be converted to Project Based Vouchers / Iowa City : Expanding Access to Affordable Housing 53 Repositioning by SVC: How is Rent Paid ? Who pays it? Repositioned Units— Part Repositioned Units—Part of City Portfolio of City Portfolio ell', 0 - 0 � Pnvate Landlord ICHA 30% of Adjusted Total Rent— Rent 30% of Adjusted Total Rent— Rent Income Tenant Paid Income Tenant Paid EB ICHA uses HUD HUD Subsidy Subsidy Iowa City: Expanding Access to Affordable Housing Repositioning by SVC: Does Tenant Rent change? Public Housing Public Housing tenants Before tenants After Repositioning Repositioning 0 0 v / V Rent Paid = 30% of Rent Paid = 30% of Adjusted Income Adjusted Income Iowa City : Expanding Access to Affordable Housing 55 Repositioning by SVC: Does ICHA's Rental Revenue change? Repositioned Units—Part Public Housing of City Portfolio L;J ICHA J-7 30% of Adjusted 30% of Adjusted Total Rent— Rent Income Income Tenant Paid O HUD O V O O 0 Iowa City: Expanding Access to Affordable Housing Repositioning by SVC : ICHA's way forward Streamlined Voluntary Conversion /Section 22 Higher Revenue for operations and 86 new Housing Choice Vouchers 86 Units operated under city- development owned affordable housing 0 S Iowa City: Expanding Access to Affordable Housing 57 Repositioning by SVC How does Streamlined Voluntary Conversion help expand access to affordable housing? • Leveraging Capital and Investment • Development Initiatives using Data Analysis Iowa City: Expanding Access to Affordable Housing 58 Repositioning by SVC: Leveraging Assets for Capital Current City Portfolio of 1 1 /�!) $ 200,000 units J [w' Average Valuation $ 21.4 Million City Holdings Valuation of After 21 Existing Units 86 Repositioned 107 Assets Repositioning Units $0.5 Million/ Rental Revenue Profit year (Revenue—Avg. Expenses) 86 Iowa City: Expanding Access to Affordable Housing Repositioning by SVC: Leveraging Assets for Capital Leverage for$7-10 Million Loan or Revenue Bonds $ 21. Million Current City Portfolio of 107 Valuation units C Debt Rental Revenue Profit $0.5 million/ year (Revenue—Avg. Expenses) 86 � non Invest In Land/ Repay Property Acquisition or Development Iowa City : Expanding Access to Affordable Housing Repositioning by SVC: Leveraging Assets for City- led Affordable Housing Production $ 21.4 Million Leverage for$7-10 Current City Portfolio of 107 / l Valuation Million Loan or units SLI^Ur Revenue Bonds $0.5 Million / Rental Revenue Profit year (Revenue—Avg. Expenses) 86 Low-Income Housing Tax Credits Private Loans and ICHA Affiliate : Non—Profit / Investment Invest In Land / LLC / LLP/ Developer Property Acquisition Federal /State Tax or Development exemptions and Grants Iowa City: Expanding Access to Affordable Housing Expanding Affordable Housing What are the various Development frameworks to help Expand, Improve and Develop Affordable Housing? • Combining Market Driven approaches with Socio-Economic , Citizen driven and Climate Action Indexes Iowa City: Expanding Access to Affordable Housing Expanding Affordable Housing : Portfolio Improvement and Expansion Holistic Growth of Affordable Housing Strengthening Environments of our Expanding our portfolio in strategic Existing Portfolio locations 00 j Identifying Strengths,Challenges and Investing and Implementing through an deficiencies Equity lens Iowa City: Expanding Access to Affordable Housing 63 Expanding Affordable Housing : Some development frameworks Market Driven • Identifying Potential Development Zones through Density/Vacancy/Availability Analysis E: Citizen demand Driven Climate Action Driven Socio-Economic Index Driven • Retrofitting Existing Properties and Energy Retrofits and Rehab Neighborhood specific investment Conversion to varied requirement types strategies • Student driven climate positive • Community Engagement Driven landscaping drives Strategic Property Development and Acquisition • Waitlist Analysis Driven Heat Analysis driven investment • Expanding Voucher Accepting Markets Iowa City: Expanding Access to Affordable Housing 64 Expanding Affordable Housing : Understanding Citizen Demand Ci Public Housing Waitlist Analysis Unit Type Demand Available Units v/s Unit Demand 500 — 45 450 — 400 350 504 00 _ A high demand for �0 450 1 or 2 bed unit sso 400 10° ba 4a Average waiting o — ° 358 time for selected 1 bed 2 bed 3 ba- 4 bed 5+betl 0 bed 344 applicants =5.7 years for 973 Waitlist Characteristics 254 households in our Oso top preference 400 244 criteria 350 300 150 --. 250 214 200 188 fil iso 48 44 0 24 l0 00 50 B , 5 , _ I 0 1 Elderly Disabilities Families 0-BR 1-8R 2-6R 3-BR 4-BR 5/ ■Existing Units ■Units Required Iowa City: Expanding Access to Affordable Housing Expanding Affordable Housing : Understanding Citizen Demand + Market Availability Number of Vacant 1 bed Units ( 2018-22) Number of Vacant 2 bed Units ( 2018-22) 10302 o 1. \ 0 i ^p O „m ,300 0� g� m° O O0 soo O 0 O �0 0 0' O i — O wo O 0 0 O 00 00 00 00 Unit Numbers 00 Unit Numbers O _ <15 <7 14-30 ■8-26 ■ 30-56 ■27-79 ■ >56 ■>80 Data Source: Census20221 PolicyMap Data Source:Census 20221 PolicyMap Invest Unit Acquisition in the North and Western Regions of our Undertake new development for 1 and 2 bed units in areas with lower jurisdiction concentration 0 ICHA's Public Housing Unit Locations Iowa City: Expanding Access to Affordable Housing 66 Expanding Affordable Housing : Understanding Citizen Demand + Market Affordability Percent of Rental 1-Bed Units Affordable for a household earning Percent of Rental 2-Bed Units Affordable for a household earning < 30% AMI ( 2018 -2022) < 30% AM 1 ( 2018 -2022) a� 3\ .aa 0 ,ce :ao 0 ,ao ce 0 „ce 0 „ 00 ,o o°o wo �0 00 „m o0 o m „� o 000$ o o �o 00 0 0 O 00 0 0 o o „� 0 �o —o O O O O Percentof O O PercentofO O Units O O lace 000 O O Affordable Units O 00 Affordable 00 OO 00 -1 <0.14% 0 _ <0.16% ce 0 0.14% -1 0.17-15% 0.15-12.75% �o ■ 15-38.5% woa ■ 12.7-35.04% N >38.5% ■ >35.05% Data Source:Census 2022/US Departmentof Housing and Urban Data Source:Census 2022/US Departmentof Housing and Urban Development(HUD) I PolicyMap Development(HUD) I PolicyMap Expand Affordability in diverse markets through increasing affordable housing development and encouraging rental markets for vouchers Q ICHA's Public Housing Unit Locations Iowa City: Expanding Access to Affordable Housing 67 Expanding Affordable Housing : Understanding Citizen demand + Rental Market Distribution Public Housing Waitlist Demographics Ratio of Black or African American Renters to Non- Hispanic White vov Renters (2016-2020) 4000 \ \ 9000 2000 1106 E0o 0 Sao 1000 50 29 16 ■ E3� 0 — — — O Native Am -:'an African Nffd a White IntllA, Amencar Na!PI <m wo 00 0,� m X01 00,00 O ° O � O Housing Choice Voucher Waitlist Demographics ° wo O O \ 8000 O O 7600 — 000 1 6000 --- 00 Ratio 5000 00 4600 ,moo -1 >2.3 2000 – 1389 I 2.3-3.8 1000 38 44 18 . .11 >3.8 0 Nnve Am Aslan Afrtcan Nahve HaIPI White Datasource: American Community survey 2016-20201 PolicyMap Ind/Al American 80% our Waitlist in both federal programs as well as current Expanding affordable housing opportunities in diverse markets and participants are non-white populations census tracts to address the varying ratio of renters Q ICHA's Public Housing Unit Locations Iowa City: Expanding Access to Affordable Housing 68 Expanding Affordable Housing : Understanding Voucher Distribution Number of Households using vouchers across different Census Tracts 301 � Portfolio Expansion 3@ 200 1 W 23W 1100 .... OW 12M 13W dpp 500 600 11. Rental Markets of the northern and western region are potential markets for '0,00 expansion Number of Households using ,eoz vouchers / <89 l 89-113 ■ 114167 Increasing Landlord ((( ■ ,168 participation in the Housing 0 Insufficient data Choice Voucher Program in Data Source:US Departmentof Housing and Urban Development(HUD) areas with lower participants Subsidized Households 2023 Data l PolicyMap Iowa City: Expanding Access to Affordable Housing 69 Expanding Affordable Housing : Expanding Voucher Accepting Markets TA Three Pronged Pb Increasing Landlord participation in the Housing Choice Voucher Wldbrd Duties Tenant Woes ' CNA DuKez seleninga ons, Frooitleanumle . peLLyminepartklpmrt Program zu mto,mmlon to icx ¢nglbinty mpnning pursue n Foy Security Del TmmR Eeue°nm ry a' lanaiora . Appave Unl[lanelora emg rds O11 ea Rent on Pme or ontl ienonry His main Unit.Id Musical Entad Melw°enUse Sol SoMake monthlymobs,Tenant Fdlbn .,IyWit theles- "ordervaud-r I"LANDLORDS LEADING CHANGE" nEmbracing Voucher partnerships city Hosing Aurorty alandlord Contact Leading Charger 0.exeadng Choice Yeaehee Program? g5tepr*3loneRaTror.1,Xauning AamdryNna¢ramexdaC.E.vome Launching the Landlords Education nlylMnlhaM d/me u5 Wynxwnlg add Hon Wwbpm.m Mar-in9enhomBol gof,benablaa Initiative •: onaMa uuMte units edw Imame'tu-holmmtrc Bale,fanmrvantlahomabre noun by FT/Irg Ra-n aM Sekn your lenam r mIMIM1.M1 renmlcd[. e•Does my ban c""i fy? •: landlord com pmn 2page:nA ony an W ame and son Dark spanner/single mthly lom /dame v bvaea M Tenant n'/'C Units Mw ubpmre Mating Hecbimt madr,sntl°........ •unm Mva no c°Mltlow endsrgerirg M°IM add abet, •: RevWn RRA •unm she mmmtledrt mmpdal to ether D-10,unanlnda are cask aXnminn Rent Reaadpded- unit nsa-n HUD X°ming ouoliry SWnlonar l mpenim r •: e,„and andKIKA,a WOHl—,. .Landlord e -rt, en Landlord Survey ran and cxsencde HAP crown Deez ICHA pre Voucher Holders'rremol Constr 11holly cents HIM sour •.T unama normal xA and monthly Son mnt�e�ndr,and zaana�t'. hiamry? reMv a hdml a P+ candard • -do" atluy Mome upplytherpre- -yne redM1-mnna amnnnms rn _ XArcrdishonh m cny SNe grel.mtkurepeeti°ora M1°m mhr,"D eesentlal Inks Mm Reme he It. Meek relertrcza •IYpueatbr Annual Reaemrble ren[ aM-nml M1lamry ter slllxiandl no ligme 'p'cR'he11 r Launching Incentive Programs and children la your�emm.�iry.ia,a Tract specific Interventions rs Explorationsfor Education Initiative Flyers Iowa City: Expanding Access to Affordable Housing 70 Expanding Affordable Housing : Using Social Vulnerability and Climate Action Driven Frameworks Social Vulnerability Levels(2020) Census Tracts with Emergency Relief Services & Temporary Shelters (2019) 302 ,vo ° ° „m o „m o mo a� o m �o am ,„ o 0 0 0 0 0 ° 0 0 0 0 0 0 ' o o „m o Vulnerability � O ° level 0 O Areas with O oo° 0 O O temporary 000 °o O shelters, ---- °p Very low -- °o community food °O °o and housing Low services, [I Moderate 1 emergency and other relief ■ High funds Data Source:Centre for Disease Control and prevention PolicyMap Data Source:County Business Patterns PolicyMap Social Vulnerability refers to populations vulnerable to health Expand new affordable development in areas vulnerability and problems resulting from disasters, climate change and extreme strengthen housing support in areas with higher vulnerability weather. It considers household income, household age, disability , minority status, housing and transport access Q ICHA's Public Housing Unit Locations Iowa City: Expanding Access to Affordable Housing 71 Expanding Affordable Housing : Using Social Index Driven Frameworks — Access to Infrastructure Census Tracts with a higher number of households earning below Elementary School Proficiency Index (2015) 30% AMI with lower access to large supermarkets (2019) I , - - � loo w o f � o 0 0 00 °°° 0 0 000 0 11. O 0 OHO - 00 O 0 °o J O „w 0 O , „m, . 0 mo m° .0 0 o e 00 0 0 schools 0 0 00 1 >2a Highlighted Tracts 0 29-40 with lower access 41-55 tolarge ■ 56-65 supermarkets ■ >66 Data Source:United States Department of Agriculture(USDA) PolicyMap Data Source:US housing and Urban Development Department Furthering Fair Housing,School Proficiency Index I PolicyMap Expanding Affordable housing production in areas with higher accessibility to social and educational infrastructure and expanding equitable access to it across all census tracts Q ICHA's Public Housing Unit Locations Iowa City: Expanding Access to Affordable Housing 72 Expanding Affordable Housing : Using Social Index Driven Frameworks — Evaluating Patterns Over Half of Public Housing Units Are in High-Poverty Neighborhoods Share of all public housing units 53% 22% Findings in National 19% Surveys 6% Under10% 10-19.9% 20-29.9% 30% or higher Neighborhood poverty rate Note:High-poverty neighborhoods are Census tracts with a poverty rate of 30%or more. Source:CBPP analysis of the 2014-2018 American Community Survey and Department of Housing and Urban Development Enterprise Geospatial Information System data on the location of public housing buildings as of August 2020. CENTER ON BUDGET AND POLICY PRIORITIES I CBPP.ORG Iowa City: Expanding Access to Affordable Housing 73 Expanding Affordable Housing : Using Social Index Driven Frameworks — Evaluating Patterns Poverty Rate 2012-16 —_ Census Tracts with Emergency Relief Services & Temporary Shelters (2019) y - Developing Mixed °° Income Neighborhoods :Encourage the _ � 0 0 establishment of mixed ° • oincome neighborhoods „m ° by increasing affordable 000 housing development in =, W 0000 ° w° f ° low-poverty areas ° ° o o „m ° ° p 0 0 Investing in Social 0 °0°o Support in underserved Incarceration Rates for Children of .— oo neighborhoods: Households with Low income °o Identifying the barriers faced by communities and continueto address supportive D ICHA's Public Housing Unit Locations services and community ° ❑ Areas with temporary shelters,community food and housing development programs services,emergency and other relief funds through CDBG and Aid D - D agencies. (Left)Map Source:Census Data,The Opportunity Atlas map Opportunity Insights group (Right)Data Source:County Business Patterns I PolicyMap Iowa City: Expanding Access to Affordable Housing 74 Expanding Affordable Housing : Using an Economic Mobility Driven Index • The"Opportunity Atlas" argues that Neighborhoods play an important role in determining a child's 25cn 50cn 75tH 100tH economic outcomes.It was developed in a collaboration between US Census Bureau and percentile percentile percentile percentile Economists at the Opportunity Insights group. of Income of Income of Income of Income distribution distribution distribution „ distribution • It uses the tax data of 20 million Americans to create an economic mobility index. The index represents how likely a child born in a low- income family would have better economic outcomes then their parents based on where they live (Mean " Percentile Rank in National Income distribution) " It helps us identify gaps in local characteristics so that aar� we can direct investment and policy changes which are neighborhoods specific and can help end 0 �E� intergenerational poverty cycles. Child born in Households with --'L-----------'L---------- Low-Income (25tH Percentile of V1 National Income Distribution) Iowa City: Expanding Access to Affordable Housing 75 Expanding Affordable Housing : Using an Economic Mobility Index — Evaluating Patterns Household Income at Age 35 for M �� Children of Low-Income Parents `SIDk 3'k . Cities within the state of Iowa provide greater opportunities to upward mobility as - compared to many other - ' states in the country. A y • Nationwide Average of owl— �— �� Upward Economic Mobility 7 ; = 42.8 • Statewide Average of Upward NEE AD LE11—IS 'IN He. 7 ' ^ Economic Mobility nm.m° .min 7 „° affil Ed � = 48.38 { ry r ask °°AL<aa °. Johnson County Average of a9•., - Upward Economic Mobility SAN h - 48.03 Houzlon ` I Banamas United S'a'es A OPPORTUNITY Census ,'..::: INSIGHTS NOpportunityAtlas.mg I Dt,,, eE by Darkhorse Analytic I C Mapbm00,AnUkNStMap Iowa City: Expanding Access to Affordable Housing Expanding Affordable Housing : Using an Economic Mobility Index — Evaluating Patterns Household Income at Age 35 for Children of Low-Income Parents �1„ 2i' 3a. 3I 3ak 36, „ 4 >s.1 • There are multiple characteristics like household 0302 income, demographic character, school quality, ° employment rates etc.that vary across 303 neighborhoods resulting in differences in economic outcomes 00 0me O Er 2300 W O ra-A 10500 0 O 0 ,na0 m a00 000 5W 600 O 15W 000$ 00 O 0 O 1 O O ,700 0 ,mm O 0 O 000 O Oo O O ^O I 0 ICHA's Public Housing Unit Locations 0a """�°b"'0° •OPP�TUNITY C8nSU5 ....SIGHTS oon��nnaso. JD...I.,Id b,D.Ad. Iowa City: Expanding Access to Affordable Housing 77 Expanding Affordable Housing : Using an Economic Mobility Index + Market Rent Patterns Household Income at Age 35 for Median Rent 2012-16 Children of Low-Income Parents - - - �� ..�al� o a »W 0 m°o ° 00�° �o °o ° o°1. o 0 00 00 0 0 »W o 0 \,tea ° ° ,opo ° °' 0O ° 00 ° OO ° O° 0 00 °° ,moo ��s„n CenSOS 'OPPORTUNITY .::1:INS16H- Map Source:The Opportunity Atlas map Opportunity Insightsgroup+US Census Bureau • Investing in "Opportunity Bargain Tracts” —Census Tracts with lower median rents observing higher economic mobility for children of households with lower income. J 0 ICHA's Public Housing Unit Locations Iowa City: Expanding Access to Affordable Housing 78 Expanding Affordable Housing : Using an Economic Mobility Index + Market Availability Household Income at Age 35 for Children of Low-Income Parents . . Number of Vacant Units for Sale(2022) .�le� - o ,oe o ,00 Sao 0 z3m11w 0 .eo .m 00 0 0Op �a �o O0 ,:m ,30o O 00 ,o ,<000 I ,O ,.W0 Op O 0 Op O 0 O ". 0 O „W p 1— O O .ma p O O 00 O O _ ,_—� O0 00 Unit Numbers _ 0 O 00 00 00 ,m. O ,aaoo a, 0 L > 85 85-112 X211915 ;•!OPPORTUNITY _ ��.. 113-228 :::INSIGHTS - Rarymnm. >229 Map Source:The Opportunity Atlas map Opportunity Insights group+US Data Source:Census, 2022 PolicyMap Census Bureau • Acquire units and undertake rehabilitation Measures in areas with higher availability and higher economic mobility 0 ICHA's Public Housing Unit Locations Iowa City: Expanding Access to Affordable Housing 79 Expanding Affordable Housing : Using an Economic Mobility Index + Citizen demand and Market Availability Household Income at Age 35 for Children of Low-Income Parents Number of Vacant 1 bed units (2018-2022) Ina law 0 ,3. i i weana .eo 0 0 ° 000$ 0° an 000 0 o ° 1 ° o 0 mo 11 0 0 0 0 ,� °000 O °000 00 00 °O 00 Unit Numbers m O O <15 14-30 Len� ,,;OPPORTUNITY 30-56 P5 •;;;INSIGHTS �:wmMm:asloMm�,moa,wno, >56 Map Source:The Opportunity Atlas map Opportunity Insights group+US Data Source:Census,2022 PolicyMap Census Bureau • Acquire specific unit types based on waitlist requirements in areas of higher economic mobility Q ICHA's Public Housing Unit Locations Iowa City: Expanding Access to Affordable Housing 80 Expanding Affordable Housing : Ongoing Efforts of the ICHA � pp ^ ^a= NEW Energy Efficiency Incentive $25,000 7 Improving a rental property? 1( •i s�ll�1� 'yam The City of Iowa City is seeking five properties for a pilot p!E[�.. '�� program that offers no cost electrification and energy --� --', efficiency upgrades to single-family and duplex residences. In return,participating landlords agree to accept Housing iChoi"Voucher at the residence for five years.- , .r EnglErla prop rdy imprwemerrfi irrelade: i • Attic Insulation,with air sealing and ve itilaflon �I i� I� • New exterior doors and windows as needed i • Air source heat pump water heater • Air source heat pump HVAC '4 f _ _ J Ekcmc stove or induction range Q • Electrical service panel upgrade •c••tiicmhe p,w•ne.x•an x•..•==•cr•d rowq cam.va.:x.a am.n. t7NO yna,.wa•m. --- - _ _ $arch Gardner Rachel Carter ACTIONfP- sg.rdner....-.ty.or, roorterebwa<ily.org se sa s 31c-887d162 319487d065 • City owns 5 Affordable Units at Hotel City Supports other affordable housing The City provides energy upgradation Chauncey in the Downtown district providers and navigators to meet the opportunities for landlords participating overwhelming demands of our in the housing choice voucher program community Li � Iowa City: Expanding Access to Affordable Housing 81 Expanding Affordable Housing : A holistic way forward Repositioning of the Public Housing Program using Streamlined Voluntary Conversion Financial Sustainability and Growth Operational Growth Undertaking Innovative approaches to Equitable Development • Implementing Asset Management and Exploring pathways to set up Affiliate Using Equity Analysis and Data driven Expense Reduction Strategies organizations to leverage private decision making to support future equity development of affordable housing. • Establishing Rent Accountability Systems Increasing Staff Capacity for well Expanding capacity to initiate distributed caseloads innovative ideas like net-zero • Reducing Utility and Energy Costs affordable housing, Landlord incentive through Climate Positive Retrofitting Setting up a Development Board and programs etc. by applying to the Real estate wing to actively develop second cycle of the pro-housing grant. • Encouraging Low-Maintenance Native new housing species Plantations for Climate benefits and cost efficiency. • Exploring pathways to leverage a portfolio with high valuation. Iowa City: Expanding Access to Affordable Housing 82 Expanding Affordable Housing : A holistic way forward ICHA as a manager and operator of Repositioning of the Public Housing ICHA as an active developer and federally assisted affordable Program using Streamlined provider of affordable housing housing programs Voluntary Conversion Iowa City : Expanding Access to Affordable Housing 83 Thank You ! Iowa City: Expanding Access to Affordable Housing 84 PRESENTATION CONCLUDED � r CITY OF IOWA CITY 410 East Washington Strcct Iowa City. Iowa 52240- 1826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org