Delaware State Housing Authority FY 15 Joint Committee

Delaware State Housing Authority FY ’ 15 Joint Committee On Capital Improvement Public Hearing Delaware State Housing Authority February 2014 18 The 11, Green Dover, DE 19901 (302) 739 -4263 ■ (888) 363 -8808 Visit us at www. destatehousing. com

DSHA Presentation Summary – • Core Businesses • Accomplishments and Highlights • Delaware Housing Market Overview • State Budget Production Reports • FY 15 Budget Request

DSHA Mission Our mission is to efficiently provide, and to assist others to provide quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans

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

DSHA Accomplishments and Highlights • First-Time Homebuyer Tax Credit • Mortgage Financing Partnerships • Bond Restructuring ($2. 5 M savings) • $5 M in New Rental Subsidies

Delaware Housing Market Overview

Housing Market Review: Building Permits Delaware Building Permits, 2003 – 2013 10 000 8 582 8 529 7 786 6 678 6 000 4 943 4 000 3 901 3 346 3 121 2 955 3 150 2009 2010 2011 4, 693 2 000 0 2003 2004 2005 2006 2007 2008 2012 2013 Source: U. S. Census Bureau, Cen. Stats Database

Housing Market Review: Home Sales Delaware Home Sales, 2005 – 2013 18 000 16 000 15 751 14 000 13 647 12 000 12 011 10 795 10 000 9 625 8 000 8 533 8 314 8 247 8 111 2008 2009 2010 2011 6 000 4 000 2 000 0 2005 2006 2007 2012 2013 Source: County Board/Associations of REALTORS©

Housing Market Review: Home Prices Median Home Prices, 2000 – 2013 Kent Median Home Price ($000 s) 350 New Castle Sussex 300 250 200 150 100 50 0 2002 2004 2006 2008 2010 2012 Source: County Board/Associations of REALTORS©

Housing Market Review: Mortgage Delinquencies Loans Past Due (30+ days) or In Foreclosure (% of all loans) US 16 DE 14 DE 10. 82 12 10 US 9. 75 8 6 4 2 0 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 2008 2009 2010 2011 2012 2013 Source: Mortgage Bankers Association, National Delinquency Survey

Housing Market Review: Foreclosure Filings Delaware Foreclosure Filings, 2003 -2013 7000 6 157 6 457 5000 5 112 4 488 4000 3 853 3000 2 592 2 204 2 121 2 175 2 288 1 276 1000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Housing Market Review: Sheriff Sales Source: Lexis Nexis Database, compiled by Counties, AG, and DSHA

FY 15 Bond Bill Request DSHA Budget Affordable Rental Housing Program $6, 000 Downtown Development Districts Grant $7, 000 Total DSHA Bond Bill Request $13, 000

Affordable Rental Housing Program FY 13 Production Report $4, 000 (FY 13 Bond Bill)

ARHP FY 13 Production Affordable Rental Housing ü 3 multi-family rental housing sites ü 216 units ü Housing for 600 people ü Nearly $2 million in HUD rental subsidy preserved

Affordable Rental Housing Program FY 13 Funding Leverage ARHP FY 13 Funding Summary: ARHP Dollars Allocated $5. 3 million Low Income Housing Tax Credits $16. 4 million Private Loans $11. 8 million Other (Federal, Donations, Contributions) $17. 0 million Total $50. 5 million üHDF Leveraged Amount (8. 5 : 1 ratio) $45. 2 million üEconomic Activity Created (7: 1 ratio) $ 37. 1 million üJobs Created or retained 259

Affordable Rental Housing Program (ARHP) FY 15 Bond Bill Request $6, 000

Rental Housing Needs • Rents Increasingly Unaffordable in Past Decade Median rent in DE increased 50% from 2000 to 2012, median renter household income only 15%. • Demand for New Affordable Rental Housing 39, 850 Delaware renter households are costburdened. Of these, 19, 695 are severely costburdened. • Preservation and Rehab Needs 47% of sites are over 15 years old or since last rehab 44% of sites in fair/poor physical condition 26% with total reserves below $50, 000

Affordable Rental Housing Program (ARHP) Affordable Rental Housing ü Rehabilitation of existing units ü Creation of new units ü 4 -6 sites, 300 – 350 units ü Continue leveraging public/private resources

Stoneybrook Apartments Before Renovation During Construction

Walnut Street Apartments Under Construction

Heron Run Before Renovation During Construction

Heron Run Completed

Heron Run Solar Panel Installation

FY 15 Bond Bill Request DSHA Budget Affordable Rental Housing Program $6, 000 Downtown Development Districts Grant $7, 000 Total DSHA Bond Bill Request $13, 000

Downtown Development District Grants $7, 000

Downtown Development Districts 1. Applications made by jurisdictions to Office of State Planning • Areas in high need • Plan for designated area • Jurisdiction incentives 2. Review by Cabinet Committee on State Planning Issues 3. Designation by the Governor

Downtown Development District Grants 1. Request for $7 million in Bond Bill • • Grants for development investments made within DDD Up to 20% of hard costs 2. Administered by DSHA • • Adoption of rules, regulations Application process Allocation of grants Monitoring for compliance

Downtown Development District Grants Eligibility Requirements Must be compliant with DDD plan Residential, commercial, mixed use Minimums (1 st year, subject to change): • • • Threshold of $25, 000 for single residential or mixed-use building Threshold of $100, 000 for multi-family residential, commercial or industrial Limitations (1 st year, subject to change): • • • $250, 000 within 5 year period for investments of $5 million or less 5% of investment up to $500, 000 for investments over $5 million

FY 15 Bond Bill Request DSHA Budget Affordable Rental Housing Program $6, 000 Downtown Development Districts Grant $7, 000 Total DSHA Bond Bill Request $13, 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!