Delaware State Housing Authority DSHA FY 2014 Budget

Delaware State Housing Authority DSHA FY 2014 Budget Joint Finance Committee Hearing February 5, 2013 Delaware State Housing Authority 18 The Green Dover, DE 19901 (302) 739 -4263 (888) 363 -8808 www. DEState. Housing. com

Outline • DSHA At a Glance • FY 14 Budget Request - HDF Base Budget - State Rental Assistance Program

DSHA Core Businesses Homeownership Rental Key Activities: • Homebuyer Mortgages • Rental Housing Development • Second Mortgage Assistance • Multi-Family Site Preservation • Foreclosure Mitigation • Rental Subsidies • Home Rehabilitation • Asset Management

DSHA New Initiatives ü State Rental Assistance Program ü Home Again ü Loans for Heroes ü Wilmington Senior Tax Assistance Program ü Housing Needs for People with Disabilities ü Community Impact Study ü Delaware. Housing. Search. org

DSHA New Efficiencies ü Organizational consolidation ü saved $260, 000 in salary ü Debt restructuring ü Saved $1. 7 million in interest payments ü Program leverage ü 500 new homeownership loans ü New mortgage financing structure ü Saves on cost of issuance

Housing Market Review: Building Permits Delaware Building Permits – 2002 - 2012 10, 000 8, 582 8, 000 6, 000 4, 000 8, 529 7, 786 6, 331 6, 678 4, 943 3, 346 2, 000 3, 121 2, 955 3, 150 3, 582 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: U. S. Census Bureau, Cen. Stats Database

Housing Market Review: Home Sales Delaware Home Sales: 2005 -2012 16, 000 15, 751 14, 000 13, 647 12, 000 12, 011 10, 000 8, 000 9, 625 8, 533 8, 314 8, 247 8, 111 2008 2009 2010 2011 6, 000 4, 000 2, 000 0 2005 2006 2007 2012 Source: County Board/Associations of REALTORS©

Housing Market Review: Mortgage Delinquencies Loans Past Due or In Foreclosure, All Loans: U. S. and DE (Percent of All Loans) 16 14 US DE DE 12. 10 12 10 U. S. 11. 71 8 6 4 2 0 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 07 08 08 09 09 10 10 11 11 12 12 12 Source: Mortgage Bankers Association, National Delinquency Survey

Housing Market Review: Foreclosure Filings Delaware Foreclosure Filings, 2002 -2012 7000 6, 157 6, 457 5000 5, 112 4, 488 4000 3, 853 3000 2, 288 2, 121 2, 204 2, 121 2, 175 1, 276 1000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Housing Market Review: Foreclosure Filings 2012 Delaware Foreclosure Filings, 2012 450 400 426 350 300 250 200 196 150 126 100 99 50 0 172 10 Jan 11 21 43 61 70 41 Feb March April May June July Aug Sept Oct Nov Dec Source: Lexis Nexis Database, compiled by Counties, AG, and DSHA

Housing Market Review: Rental Market Changes 2000 - 2010 2000 Median Gross Rent Median Family Income Cost-burdened Renters* % of Renters Costburdened $639 2010 Increase $952 49% $55, 257 $68, 746 24% 28, 128 45, 264 61% 34% 51% 50% * Cost burdened is defined as spending 30% or more of household income on rent Source: U. S. Census Bureau, 2000 Census and 2010 American Community Survey

Housing Market Review: Cost-Burdened Households Percent of Delaware Renter Households Cost-burdened by Income 100% Cost-burdened 80% 71% 72% Severely Cost-burdened 60% 44% 40% 20% 6% 0% Extremely Low Very Low Income (30 Low Income (50 -80% Income (<30% AMI) -50% AMI) >80% of AMI Cost-Burdened is defined as spending 30% or more of household income on rent Severely Cost-Burdened level is 50% of income Source: HUD 2005 -2009 CHAS Data, compiled by DSHA

FY 14 Budget Request HDF Base Budget $4, 070, 000 Affordable Rental Housing Program $6, 000 State Rental Assistance Program $3, 000 Total DSHA Budget $13, 070, 000

Housing Development Fund FY 12 Production Report

Housing Development Fund FY 12 Unit Production Rental Housing Rehabilitation/Preservation New Construction Rental / Security Deposit Assistance 264 Units 76 Units 448 Units Homeownership Rehabilitation Acquisition/Rehabilitation New Construction Pre-Purchase Counseling 285 Units 16 Units 27 Units 425 Units

Housing Development Fund FY 12 Leverage HDF Investment Leverage Ratio is 4. 8 to 1 Other (Federal, Donations, Contributions) : $2. 3 M L e v e r a g e Federal HOME Grants: $14. 1 M Total Leverage: $48. 8 M Tax Credit Equity: $32. 4 M State Resources (HDF): $ 10. 2 M 16

Housing Development Fund FY 14 Budget Request $4, 070, 000 Base Budget

Housing Development Fund $4, 070, 000 Affordable Rental Housing ü Rehabilitation of existing units ü Creation of new units Affordable Homeownership ü New units ü Owner-occupied rehabilitation ü Housing counseling

Before Carvel Gardens Laurel, DE 100 Family Units After

The Cascades at Milford 76 Family Units Community Building Solar Panels New Construction

Hampton Circle Seaford, DE 35 Senior Units New Construction Ms. Erethia Smith, Resident

Before Manlove Manor Wilmington, DE 40 Senior Units New Community Building Rehab in Process

State Rental Assistance Program FY 13 Production Report $3, 000 FY 2013 Budget

Introduction The purpose of the State Rental Assistance Program (SRAP) is to assist low-income individuals who are eligible to receive supportive services and require affordable housing to live safely and independently in the community.

Program Goals ü Provide rental subsidies to program participants who require, and have access to continuing home- and community-based services ü Establish partnerships with state agencies and community service providers ü Move individuals out of state-run long-term care facilities and into home- and community-based care programs ü Transition program participants to financial selfsufficiency or to other affordable housing resources

Populations Served ü Clients exiting state-supported and privately run long-term care facilities ü Youth aging out of foster care ü Families for whom the lack of affordable housing is a barrier to reunification ü Individuals at-risk of requiring services from or being admitted to a state-supported institution ü DSAMH clients identified as target populations in the USDOJ Settlement with the State of Delaware

SRAP Production Finance Report SRAP Production and Pipeline (as of 12/31/2012): Applications Pending Vouchers Issued Applications Pending Funds Reserved (1) Vouchers Issued 67 $569, 500 107 Units Leased Total Funds Reserved (1) Units Leased Funds Encumbered (2) Application, Vouchers and Units Total Funds Reserved and Encumbered $909, 500 178 $1, 428, 928 352 $2, 907, 928 (1) Based on annual estimate of $8, 500 per Voucher (2) Based on actual expenditures

SRAP Production Vouchers Issued SRAP Vouchers by Agency DHSS-DSAAPD/DMMA 57 DHSS-DDDS 16 DHSS-DSAMH 134 DSCYF-Youth 41 DSCYF-Families 37 TOTAL 285 ü 19 Participants have transitioned to other permanent housing ü 9 participants have been terminated from the program due to violations

DPC Settlement Agreement SRAP is a key tool in the State’s effort to implement the DOJ Settlement on the Delaware Psychiatric Center (DPC) ü DSAMH has transferred additional funding to the SRAP program to ensure Settlement housing goals are met ü July 2012 goal was to provide 100 additional new housing vouchers (SRAP provided 75) ü July 2013 goal is to provide 200 additional new housing vouchers (SRAP target is 150) ü Settlement housing target for FY 14 is 550.

DPC Settlement Agreement SRAP is starting to show a cost avoidance benefit – especially with people covered by the Settlement Agreement ü 135* SRAP vouchers issued to DSAMH clients exiting DPC or at -risk of admission to DPC. ü Average length of stay at DPC for these clients is 60 -days at a cost of $36, 180 per client or $4, 848, 120 for all 135 clients. ü The cost to provide SRAP rental housing assistance to the same cohort of 135 is $974, 565**. ü Cost avoidance for this one sub-population of SRAP in the first of their participation in the SRAP program is $3, 873, 555. *Including SRAP vouchers funded by DSAMH **Actual cost of rents ($7219) for DSAMH clients used

SRAP FY 14 Budget Request $3, 000 To continue the program and continue to provide housing to 350 current and new SRAP program participants.

SRAP Program Participants… In Their Own Words

FY 14 Budget Request HDF Base Budget $4, 070, 000 Affordable Rental Housing Program $6, 000 State Rental Assistance Program $3, 000 Total DSHA Budget $13, 070, 000

Contact Information Anas Ben Addi, Director Delaware State Housing Authority 18 The Green Dover, Delaware 19901 Telephone: 739 -4263 Fax: 739 -6122 Toll Free: 888 -363 -8808 E-mail: Anas@destatehousing. com Thank you!