HomeMy WebLinkAboutCOM 0657.001 2018-2020P / FC
SUBMITTED BY: ROY TAKEMOTO, MANAGING DIRECTOR COMM. 657
RES. 431-20
Comm. No.
&5-1, 1
Ref, To: T
Ref. Date JAN 0 7 2019
Overview
• Defining Affordable Housing
• Assessing Need
• Identifying Barriers to Affordable Housing
• Government's Role in Reducing Housing Costs
• Proposed Strategies
• Next Steps
-1-
Defining
Affordable
Housing
"Affordable" Housing Definition by
U.S. Housing and Urban
Development: Using no more than
30 percent of a household's income
for housing, including utilities.
-2-
Asset Limited, Income Constrained,, Employed (ALICE)
County
Total Households
% ALICE
% Poverty
% ALICE &
Poverty
Hawaii County
641201
36%
19%
55%
Honolulu
3071703
37%
9%
46%
Kauai
21,862
32%
11%
43%
Maui & Kalawao
521134
41%
10%
51%
2015 Average Single Adult Married Couple 1 Adult + 1 2 Adults + 2
Infant Toddler Infants Toddlers
Hawaii County $25,764 $37,584 $45,756 $71,472
Survival Budget includes housing, childcare, food, transportation, health care, miscellaneous expenses and taxes.
Source: United Way ALICE: A Study of Financial Hardship in Hawaii, 2017
-4-
DrA-
HSS
Adjusted Mean Income (AMI) and Wages
Income Limits by
30% of AMI
50% of AMI
60% of AMI
80% of AMI
100% of AMI
120% of AMI
140% of AMI
Family Size
Two-
Annual
Persons
cross
$18,840.00
$31,400.00
$37,680.00
$50,240.00
$62,800.00
$751360.00
$87,920.00
Household
Income
Monthly
$ 1,570.00
$ 2,616.67
$ 3,140.00
$ 4,186.67
$ 5,233.33
$ 6,280.00
$ 7,326.67
Hourly
$ 9.06
$ 15.10
$ 18.12
$ 24.15
$ 30.19
$ 36.23
$ 42.27
30% of
Income
$ 471.00
$ 785.00
$ 942.00
$ 17256.00
$ 19570.00
$ 104.00
$ 2,198.00
Affordable
Sales
Price (4%int
$1619100.00
'
$193)400.00
'
$257,800.00
$322,300.00
'
$386,700.00
$4519200.00
erest)
3/4 FT
FT
Minimum +
FT Minimum
FT Park
FT Fire
FT Police
FT Program
Minimum
PT Seasonal
Worker + PT
Caretaker +
Fighter + FT
Officer + PT
Manager + FT
Wage Work
Work
Worker
PT Worker
Retail Cashier
Office Clerk
Office Clerk
Source: HHFDC 2018 Income Limits by Family Size -6-
Slide f
RC4 Are these numbers available for 2019?
Robert H_ Command, 1/3/2020
AHI [@Hirota, Sharon] Do you want me to update based on 2019 numbers? OHCD calculated based on 4.S%
interest in 2019. This slide and slide #7 should be consistent using the same data
Alisa A. Hanselrnan, 113/2020
H S 5 Yes.
Hirota, Sharon, 1/6/2020
H2
Total Housing Units Needed,, 2020 through 2025
1,200
1,000
N
�= 800
ao
c
0 600
x
400
200
1.
4
HUD Income limits
Source: Housing Demand Survey and Hawaii Housing Model, 2019,and SMS Hawaii Housing Planning Study, 2019
Slide 8
AH2 Should we show the housing needs by AMI or income classification? (Slide 11 OR 12)?
Alisa A. Hanselman, 1/3/2020
Barriers to Housing
Infra- Construc- Financing Rent or
Land Permits tion
structure Sales
Price
-15-
County's Affordable Housing Toolbox
FINANCING & FUNDING STREAMS
• U.S.Housing & Urban Development
(HUD)
• CDBG
• CDBG 108 Loan Program
• HOME
• Housing Choice Vouchers ($18.5M)
• Veterans Affairs Supportive
Housing (VASH)
• National Housing Trust Fund
• Low Income Housing Tax Credits
(LI HTC)
• 1984 Tax Reform Act - Mortgage
Credit Certificate Program
• Low Income Housing Tax Credits
• Hula Mae Multi -Family Tax Bond
• Rental Housing Revolving Funds —
Equity Gap
• HHFDC Affordable Resale Programs
• HHFDC Dwelling Unit Revolving
Fund (including Regional
Infrastructure Loans)
• Capital Improvement Projects
• Tax Increment Financing,
Community Facility Districts,
Improvement Districts
• Shared Appreciation Equity Resale
Program
• Kamakoa Nui Workforce Housing
Project
• Affordable Rental Property Tax Class
-11-
No. of Units Awarded LIHTC/State Funding Award By Year
�!# Units Awarded Funding/YR r 9 Units Built/Rehab/YR
300
260
250
2.32
M
200
�i 150 - --------
ai ---------
122
-----
-_ - __ ---- 110
Q 100
fA
t 74
C 60 62
0 50
0
Z
0
2011 2012 2015 2016 2017 2018 2019
■ # Units Awarded Funding/YR 60 74 250 62 ?32 110 122
a I I Brits Built/R-hah/YR 60 %? 260 62 132 0
From 2011— 2019 — 920 Units have been funded.
2018 units will proceed now due to FUD clearance.
2012 $ 8,975,718
2015 $ 43,402,274
2016 $ 930,617
2017 $ 111,580,434
2018 $ 50,746,510
2019 $ 158,170,058
-23-
• Build Public Housing
• Lower Housing Costs
• Infrastructure
• Permits
• Land Use Planning
COUnty*0 S •Incentivize Rental Housing
•Affordable rental property tax class
Intervention • Accessory dwellings: cesspool conversion tax
credit and loans
Strategies • Vacation rental controls
• Landlord assurances— repair, contact
• Provide Household Support
• Rental subsidies
• Financial counseling (credit)
U9Z
• Strategic Planning
• Consolidated Plan integration
• Vibrant Hawaii Coalition coordination
• Housing Agency regular updates
• Pilot Projects
Next Steps ' Community Land Trusts
• Revolving Loan
• Ongoing Initiatives
• Financial Empowerment Center
• Infrastructure Financing Alternatives
• Building Permit Improvements
-26-
Mahalo
27_