The URL can be used to link to this page

Home My WebLink AboutWS4 - Update on the City's Study of Repositioning Public Housing UnitsCONSULTANT PRESENTATION TO FOLLOW: By: Tracey Rudy, Senior Program & Policy Advisor, Quadel WS4 1 r I '"r' LA CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240- 1 826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org sivilfro EMEM m9pomiri I- I �* ler � , 06 Air r - ' r F • • • chro1 1 aI 1 i 1 ek ` �;7� k��ti ,• �, � �- III r t'�'• ��Ir' 4 rid}�. �.x _f r � • v ^ti Y - t. uadeL Quadel Consulting & Training has been provided training, management and consulting services in affordable housing for 50 years. • Engaged by ICHA to assist in repositioning the City's Public Housing program ICHA Partnership * Toured Properties * Met with City & ICHA staff Qu adel mmli-WAO'n A UNESCO Crry of UTERATUR Benefits of Public Housing Repositioning LJ Nationally, helps the large & growing backlog of capital needs i n publ'ic housing LJ Facilitates the preservation of units by providing access to financing LJ Preserves the availability of affordable housing assistance & utilizes to reinvest in other affordable housing e Benefits of Section 8 Rental Assistance Conversions LJ Stabilizes project revenue ❑ Provides access to debt and equity to finance capital needs ❑ Simplifies program administration 7 dk Qu adel ®IWCITY A UNESCO CITY OF LMRATORF A Increase in availability of affords ble h,ousi ng and rental assistance AA zu Additional flexibility to mope to better housing and/or paces of opportunity 0 Rent calculations remain the same 4 Qu adel Public Housing Repositioning Options Home - Ownership ,~ Rental Assistance Demo (RAD) Section a Project -Based Rental Assistance Public Housing Property . k Section 18 Brno/Dispor' Prof ect-Ba sed Ufa u r-he r Streamlined I re# ror ��rlv�r�i�n Under Yalu ntary Conversion tenant pr-otecion vouchers must first be brad to rasid-ents as S-enant-lbased assi anc4 but may be pr*ct- based with te-a nt comper t. a QU 5det Situational Analysis ®l W CITY A UNESCO CITY OF LMRATURF ICHA Inventory $6 units of well -maintained Public Housing • Mix of single-family homes, condos, multiplex buildings, and multifamily developments • Over 90% occupancy of public dousing units over several years, indicating: Well -managed units Strong demand for affordable housing Qu ad @l ®IWCITY A UNESCO MY OF tPTERATURF • Single-family homes most desirable • Challenges rentingrerting some m ultiplex/mu Itifa mil units • The Chauncey • Less Appeallirg for Residents Elderly disabled units. with accessibility issues • Units are a financial burden for I H Currently paying condo fees and parking fees; * Increasing the per -unit cost to the agency and costs are rising Quad -el ® I WA CI A UNESCO CITY of UTERATURF • Declining Federal funding does not support long-term sustainability of the public housing portfolio * No expectation for this tread to charge Despite years of underfunding ICHA has built up some reserves U nr e tricted N et Position (U N P) for pu bI is hou sIng reserves was ,1 M for fiscal year end 0 4; $2.8M in available cash - M ust be u sed tc)wa rd 5 I CHA affn rd a ble housing in itiatives .s u b ject to H U D ru I es Buildings and land are valued at $8M • Ended FY 2024 with a net operating loss of $261,000 �. Qu adet Strategic Repositioning = MW CITY A uwsco crTw OF COTERATURE Three-phase approach enables fCHA to mcrxrrraizP potentialrevenue and reta i n opportunities for expansion of Hard units Sale of Units Conversion to Section 5 Units 1 units Restore -Rebuild Quad -el ®l W CITY A UNESCO CITY OF LMRATURF Generate revenue Sale of 5 units at Chauncey Proceeds estimated M+ from valuable at Fair ICI a r et Va I ue Serve cu r'`rert families with asset that do not tili7_e sale proceeds allorg tenant -based voucher best serve with other funding sources Replace units utilizing r ident ' needs to develop, rehabilitate or Fa it l th Authority acquire additional housing 1 Tenant Protection Voucher MA i f Qu ad @l mm I &WCITY A UNESCO CITY OF LMRATORF • Reposition balance of units to maximize rents and generate unrestricted revenue lb Utilize HUD R D Blend F Increase in unrestricted 73 units would receive revenue., 4 ,41 .92/month rents at 110% FM R Creates 73 Tenant Protection units would receive Vouchers (TPV) R D rents with the Boost (close to FMR) F i Qu adel m I iWA CITY A UNESCO CrTY OF UTERATURE AMP 1 (81 units) - Rent Boost on 130/10 Blend a5 PH Beat per Month $ 1-4140W.00 $ 12WMA0 S )co.omoo 5 -60r S 40,b $ zor00.0a i : Qu ad el = I IFWA CITY A UNESCO crrw OF LMRATORF Current Operations Post Repositioning Assist 86 families A Assist 86 families Project revenue $820K � $ Project revenue $1.39M $2M in cash for development 9 Qu adet ®IWCITY A UNESCO CITY OF OTFRATORF Increase 1 availability of affordable housing in I H jurisdiction Reprace Chauncey units with hard units Utilize 8 units of Fai rcloth Authority in a Restore Rebuild plan invest proceeds from the sale of The Chauncey Increase number of hard units • Yield increase in cash flow to the project (lang-term) • Utilize unrestricted excess cash to reinvest ;n capital reeds, develop additional units or other needs A i Qu ad el ® I &WA CITY A UNESCO MY OF 07FR TURF e ddi t i ona l unrestricted income ,,Streamlined p r t ions and management (operating one program) e Increase in affordable housing unit ,,Development/ Strategic Partnerships Qu adet Questions ? PRESENTATION CONCLUDED I r I CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240- 1 826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org