Invest Atlanta's Housing Strategy 2015

8/9/2019 Invest Atlanta's Housing Strategy 2015

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Housing StrategyFor the City of tlanta

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Table of Contents

Overview p 3Executive Summary p 5Atlanta’s Demographics p 39Atlanta’s Housing Characteristics p 47Atlanta’s Housing Policies and Programs p 75Innovative Housing Policies andPrograms in Other Cities p 97

Community Engagement Process p 108Housing Strategy and Tools for Atanta p 117Appendix p 177

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Housing Strategy for the City of Atlanta

The ne ed for a Housing StrategyIt has been 8 years sinc e the City of Atlanta had a comprehensive Housing Str ategy. Sinc e then Atlant a’shousing market its communities and its citizens have faced the Great Recession a nd foreclosur e crisis whilepowerful d emographic forces have continued to play out ac ross the City an d Region. Today in Atlanta:

• A growing number of families are paying an unsustainable share of their inco me for housing.• The combined costs of housing an d transportation are rising for many families as well.• The areas in the City with the most jobs have the least a mount of affordable housing.• Too many neighborhoods have high concentrations of vacant blighted properties.• The City’s primary housing resources have be en effective but are now largely de pleted.

The benefits of a Housing Strategy

Atlanta’s new Housing Strategy will help ensur e that Atlanta remains a vibrant City of o pportunity thatretains its residents an d attr acts new ones b ased on a high quality of lif e. It will e xpand the supply andimprove the quality of all types of housing for families acr oss the City with a p articular focus on lower-and middle-income working families p aying more than they can reasonably afford for their rent ormortgage. The Housing Strategy focuses on en hancing the qu ality of place with t ransit orienteddevelopment and a broad mix of housing choice in rental an d ownership creating livable an d walkableneighborhoods for families seniors an d students. Innovative approaches such as micro units and communityland trus ts will b e ex plore d to create af fordable housing options.


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• Create ne w financial resources , a nd improve e xisting on es, to help the City ach ieve its housinggoals.

• Make Atlanta one of the nation’s most enviro nmentally sustainable cities.Metrics for the Housing Strategy: How We Will Measure Progress

• Grow Atlanta’s population by 10 percent (42,000) by 2020.• Reduce the number of Atlanta low- and moderate-inco me households with pa ying more than 30

percent of their income for housing by 10 percent (7,500) b y 2020.• Reduce the number of vacant structures by 20 percent (1,500) by 2 020.• Produce or rehabilitate 1 0,000 residential units for a range of incomes, d oubling the current rate

of production, in redeveloping communities an d job-rich a reas by 2020.• Generate 100 million in new investment to support p art of the costs of these units by 2 020.• Ensure that at least 1 0,000 new and rehabilitated units meet nationally recognized sustainability

and energy efficient criteria by 2020.

Policies for Imple menting the Housing Strategy

• New issuance of the highly successful Housing Opportunity Bonds

• More h ousing dollars thr ough the highly succ essful Tax Allocation Districts• Greater City capacity to ac quire an d rehabilitate vacant, blighted properties• Tax incentives for afford able housing dev elopment• New zoning ince ntives an d requirements based on proven models in other cities

Paying for the Housing Strategy

The Housing Strategy calls for 100 million in new investment by 2 020. Much of that funding would comethr ough tax incentives to the private sector a nd contributions fro m the private sector in exchange forexpanded development opportunities. The Housing Strategy also a nticipates that the City will invest alimited a mount of a dditional funds – ref lecting the critical importance of higher qu ality, more af fordablehousing to Atlanta’s future . The sourc es an d uses o f those funds will b e carefully d etermined to ensur e thatany City investment achieves the maximum pubic benefit.


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xecutive Summary

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The Project Team: HR A Advisors and Enterprise Community Partners

HR A Advisors, Inc.•Industry-leading real estate, economic d evelopment, and public policy consulting

fir m.

•Recent experience working with Invest Atlanta and Atlanta Downtown ImprovementDistrict.

•Has advised on housing strategies in Austin, Los Angeles, Nassau County, Washington,DC, a nd other cities.

Enterprise Community Partners, Inc.

•Leading provider of capital and expertise for workforce housing and thriving

communities ac ross the U.S.•Opened Atlanta office in 1 994 and has been active on a wide range of housing issues

and initiatives.

•Has advised on housing strategies in Baltimore, Cleveland, New York City, Seattle,and other cities.

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The Assignment: A H ousing Strategy for the City of Atlanta

• Analyzed housing conditions trends and needs in the City.

• Reviewed past and present housing policies and programs.

• Identified best practices in other cities that could benefit Atlanta.

• Identified and interviewed housing stakeholders thr oughout the City.

• Conducted community engagement activities to gather citizens’ insights on housing needs.

• Developed a strategic plan for maximizing the effectiveness of Atlanta’s housingresources.

• Developed an implementation plan to guide the deployment of those resources.

The team developed Atlanta’s Housing Strategy thr ough the following steps:

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Why a housing strategy?

• Quality of life• Good housing stock leads to strong neighborhoods

• Connectivity among economy, education,community

• Building and renovating housing creates andmaintains jobs

• Strong housing stock can lead to strongcommunities with improved educational

opportunities• Build an inclusive City instead of displacing long

term residents• Diversity of housing types throughout the City

allows seniors to age in place as they downsizeand hedges against displacement throughgentrification

•

Eliminate concentrated poverty• Concentrations of poverty often lead to negativeoutcomes for communities, schools, housing stock,and quality of life

• Judicious use of resources• Funding sources are dwindling• Scattered shot approaches do not make a lasting

impact

Good HousingStock

High Quality

of Life

Less Crime

StrongCommunity

Parentalinvolvement in

Schools

HigherPerforming

Schools

New Residents

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Atlanta’s Housing Strategy must b e set within a larger context ofdemographic changes.

• The City’s p opulation growth has s lowed while its share of the region’s populationhas declined.

• The number of Atlanta residents who spend more than 30 of their income onhousing has incr eased significantly since 2 000.

• The lowest cost h ousing is concentrated in the places with t he fewest jobs.

0

5

10

15

-

250,000

500,000

1990 2000 2010P

T

Population Atlant a's Population as a of the MSA's

Atlanta Population as a Share of the region’s Population

Sourc e: ESRI Online

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The nu mber of “c ost burden ed” househ olds remains high an d has ev en

grown in certain inc ome brack ets.*

Atlanta residents who spe nd more than 30 % of their income on housing

(2005 vs. 2012)

Source : 2005 5-Yr ACS vs. 2012 5- yr A CS

* “Cost bur den ed” refers d efin ed a s in dividu als p ayin g more th an 3 0 % of th eir inc ome on hous in g.

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Less than

$20,000

$20,000 to

$34,999

$35,000 to

$49,000

$50,000 to

$74,999

$75,000 or mor e

Owner s 2005

Renters 2005

Owner s 2012

Renters 2012

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Areas of Atlanta with the most jobs have the least a ffordable housing.

Sourc e: Policy Map, 2011 5-yr ACS

Jobs p er tr act

Map of Atlanta’s Employment, 2010

Sourc e: Atlanta Regional Commission

Share of Homes Affordable to FamiliesEarning below 80 AMI

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0

2

4

6

8

10

12

14

16

2000 2012

Rent al

For Sale

Atlanta’s H ousing Str ategy must also be set within a larger context ofmarket conditions.

• The City’s residential vacancy rate remains high, d espite recent improvements inhome construction.

• Over the last twenty ye ars, housing prices h ave grown faster than incomes.

• The majority of Atlanta’s housing units are more than 30 years o ld.Atlanta Housing Vacancy Rates Over Time

Source: Censu s 20 00 and The Department of Planning and Community Development Census Report, 2010

2010

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The Housing Strategy reflects the input o f 32 local housing industrystakeholders representing a wide range of perspectives.

Stakeholders:

• Housing Public Agencies

• Housing Advocacy Nonprofits

• Housing Nonprofit and For Profit Developers

• Transportation Agencies and Community Groups

• Foundations

• Lending Institutions

• Public Education Agencies an d Institutions

• Public and Private Economic Development Organizations

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Stakeholders expressed common themes about opportunities andchallenges to a successful Housing Strategy.

OpportunitiesExisting programs have worked.

• Hope VI mixed inco me model – mixedincome rental an d o wnership opportunities.

• Housing Opportunity Bond - availablefunding to subsidize affor dable housing dev elopment

• Former Housing Task Force – task force ofhousing development and community stakeholdersinfor ming and imple menting policy an d program.

• Tax Allocation Districts - flexible sourc e offunds av ailable for the inclusion of workforc e housingin d istinct ge ographic locations.

• Invest Atlanta Down PaymentAssistance and mortgage assistance progra ms –for w orkforce homeownership opportunities.• Interagency Coordination enhance with aone stop shop housing resource portal.

• Strategic Alignment – build upon collaborativeplanning to include APS.

ChallengesNew issues have e merged.

• Limited resources – public sourc es are scarce;Housing Finance Auth ority needs sustainable fundingsources

• Permanence of affordability – loss ofaffor dable housing units post-rest riction period of 10– 15 ye ars

• Concentrated poverty – ost affordablehousing a nd distress located south of I-20

• Age of housing stock – majority of units m orethan 3 0 years old.

• Current zoning – does not promote thedevelopment of diverse housing opportunities

• Location of jobs – job centers in the north whilemost af fordable housing is d eveloped in the south

• Voluntary Inclusionary Zoning – asopposed to mandatory inclusionary zo ning limitseffectiveness of pro moting workforce housing

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The Housing Strategy also reflects extensive community engagementmeetings in e ach quadrant of the City to g ather residents’ feedback

Coordination: Invest Atlanta and Enterprise Community PartnersPolling and Meeting Assistance: Atlanta Regional Commission

Council Districts 4 11 12Atlant a Technical CollegeNov. 21 st 6-8 PM

Council Districts 1 2 5The Trolley BarnNov. 14 th 6-8 PM

Council Districts 3 9 10Adamsville Recreation CenterNov. 13 th 6-8 PM

Council Districts 6 7 8Peachtree Christian ChurchNov. 19 th 6-8 PM

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Community residents expressed common themes a bout priorities an dkey issues for Atlanta’s Housing Strategy.

Priorities• Address issues that impact q uality of life alongside housing

• Support more multi-family high-rise housing

• Address blight

• Provide housing for all age groups, especially young familiesKey Iss ues

• The dual goals of creating more housing options for young families and desiring abalance of ownership an d rental

• Connectivity between the housing, economic development, an d educational strategies

• The inclusion of other neighborhood infrastructure sidewalks, bike paths, etc.)

• The necessity of continued community representation in the strategy process an dimplementation

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Boston,Massachusetts

Best practices and case studies in peer cities informed the HousingStrategy.

Inclusionary Zoning

Ongoing financing for Housing Trust Fund

Citywide affordable housing strategy

Key information consolidated and accessible

Mandatory

No Yes

No Yes

Room to Improve Strength

None

Homeownership initiativesGeographically-targeted affordable housing

initiatives

No Yes

Seattle,Washington

Montgomery County,Maryland

Washington,District of Columbia

Austin,Texas

Atlanta,Georgia

Voluntar y

What innovative practices are these areas using to a ddress their affordable housingchallenges?

Sourc e: HR A Analysis

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One example is Housing Trust Funds, which vary in form across thecountry.

Seattle:(~ 145 million)• Homeowner levy (~ 65/yr. per

household)

Austin:

(~ 8.8 million)• General fund allocations• Tax increments from

development on City-owned land

Washington, D.C.(~ 320 million):

• 15% of recordation andreal es tate transfer taxes

Montgomery County:(~ 105 million)

• Condo conversion sales fees• General fund• Property tax revenues

Boston:( 81.5 million)

• Fee (PSF)commercialdevelopmentslarger than100,000 SF

Source: HR&A Analysis

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Atlanta’s Housing Strategy Goals: Set through community andstakeholder engagement and analysis of data and best practices.

1. Attr act new residents to the City and retain current ones.

2. Reduce the number of Atlanta residents who spend a disproportionately highpercentage of their inc ome on housing.

3. Rehabilitate and remove vacant and blighted units.4. Create a broad mix of housing choices thr oughout the City to serve a diverse

population and workf orce.

5. Create new financial resources and improve existing ones to help the City achieve

its housing goals.

6. Make Atlanta one of the nation’s m ost environmentally sustainable cities.

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Atlanta’s Housing Str ategy Metrics: Specific milestones that mark successin achieving the Goals.

• Grow Atlanta’s population by 10 percent (42,000) by 2020.

• Reduce the number of Atlanta low and moderate-income households with payingmore than 30 percent of their income for housing by 10 per cent (7,500) by 2 020.

• Reduce the number of vacant and blighted structures b y 20 percent (1,500) by2020.

• Produce or rehabilitate 10,000 residential u nits for a range of incomes, d oublingcurrent rate of production, in redeveloping communities an d job-rich ar eas by 2020.

• Generate 100 million in new funding to support part of the costs of these units by2020.

• Ensur e that at least 1 0,000 new and rehabilitated units meet nationally recognizedsustainability and energy efficient criteria by 2020.

*

* Range of inco mes is defined as between 50% and 120% of area median inco me.

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In recent y ears, Atlanta has en acted several initiatives to makehousing more affordable for residents.

• Established a Housing Opportunity BondFund, a Homeless Opportunity Fund,and the Atlanta BeltLine AffordableHousing Trust Fund

• Used Tax Allocation District s tofacilitate the development of mixedinco me communities

• Used Lease Purchase Bonds to createhousing choices in high cost areas

• Redeveloped public housing as mixedinco me communities

• Created a housing subcabinet toimprove inter-agency coordination

• Establish ment of Project Based RentalAssistance PBRA) that is sometimescombined with capital investments

Successful Development Funded to DateNovare Skyhouse Lofts at

Reynoldstown Crossing

Adamsville Green SeniorApts.

West Highlands Master-Planned Community

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Existing tools have worked, b ut a re now limited by economic realities.

Invest Atlanta Tools

Tax Exempt Bonds

Housing Opportunity Bonds

HOME Investment Partnership

BeltLine Affordable Housing Trust Fund

Homelessness Opportunity Fund

Lease Purchase Bonds

Economic Realities

Conventional taxable rates have b eenlower than Tax Exempt Bond Rates

93% Expended; 40mm remains to be

issued. Requires Council approvalFederal funding decreased by 40%since 2010

100% Allocated

99.9% Expended

Some success in pr oviding workforcehousing choice in h igher cost areas

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There are a dditional tools that could be used to create workforcehousing in Atlanta

Federal TaxCredits

Tax ExemptBonds

MandatoryInclusionary

ZoningOther federal

programs

Tax abatements Density bonuses Grants Low interest/Forgivable debt

Tax LienAcquisitions Conservatorship Eminent Domain

CommunityLand Trusts

Blue = signific ant use in AtlantaGreen = sparse use in Atlant aGrey = not used in Atlant a

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National funding models for workforce housing are under-utilized inAtlanta.

Allocations

• General fund• Dedicated

millage• Tax increment• State Trust

Fund• Funds From

PartnerOrganizations

• Foundations• Gr ants

Fees

• Condoconversionsales fees

• Commercialdevelopmentfees

• I mpact fees• of

Recordationfee

• F ee in Lieu ofInclusionaryZoning

Levies

• Homeownerlevy

• Per un it levy

Taxes

• Real EstateTransfer Tax

• S ales taxes• Car Rental

Tax• Hotel Tax

Public/PrivatePartnerships

• Loan Funds

Highlighte d items ar e curr ently used in Atlant a.

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Tools other cities are using to create workforce housing could beimplemented in Atlanta, b ut some tools are more difficult than others.

Tool Imple mentation ActionsTax Lien Acquisitions Moderate Land Ban k has the po wer it needs to ac quire tax d elinquent properties; need agr eement with Tax C ommissioner.

Conserv atorsh ip Moderate Need a loc al conserv ator ship law. Potent ially may n eed state le gistation.

Dedicated Millage Moderate Need sign off fro m Mayor and C ouncil.

Funds fro m Partner Organizations Moderate Need agreements with partner organizations.

Commercial development fees Moderate Progr am would need to b e created; how large would dev elopment need to b e to b e impacted. Do n't want to discour age large d evelop ments.

Per Unit Levy Moderate Refer endum pro bably ne eded to fund a hous ing trus t fund. Used in several municipalities.

Car Rental Tax Moderate Was used previous ly to fund per manent supportive housing. I f all future revenues a re not current ly al loc ate d there may b e eno ugh money tosupport a new bond issue.

Condo conversion sales fees Moderate May o nly ne ed local legislation. Curre ntly not m any conversions, but p otent ially more in the future so it's d iff icul t to d eter mine impact.

Community Land Trusts Moderate CLTs nee d mechanism to fund the mselves an d ac quire pro perty.

Mandatory Inclusionary Zoning Difficult Would cre ate the most workforce hous ing of a ll tools. L egal needs to rev ie w pro gra m components to ensure workforc e housing is not considered ataking. Other jurisdic tions have used de nsity b onuses greater than workforc e require ments to ensure le gal compliance.

Fee in Lieu of Inclus ionary Zonin g Diff icul t Only works in the case of mandatory inclusionary zo ning.

State Trust Fund Diff icult Doesn't exist. Would need state legislation.

Impact fees Diff icul t Impact fees could be incre ase d ho wever le gal w ould ne ed to d eter mine what por tion if any could b e used for hous ing initiatives.

of Recordation fee Diff icul t Fee is collecte d by cou nty. May ne ed state legislation to allo w city to charge a n a dditional fee.

Homeowner Levy Difficult Refer endum pro bably ne eded to fund a housing trus t fund. May b e difficult to p ersuade ho meowners, but used in several municipalities.

Transf er Tax Diff icult Might require state legislation to al low city to ch arge additional fee.

Sales Tax Extremely Diff icul t Probably not viable giv en Atlant a's curre nt sales tax rate.

Hotel Tax Extremely Diff icul t Would re quire s tate le gislation to ch ange uses . Pro bably n ot viable.

Eminent Domain Extre mely Difficult Requires state le gislation to ch ange law fro m 20 ye ar pu blic u se of land ac quire d.

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The following existing and new tools can best help Atlanta ac hieve itshousing goals.

Policy Tool DescriptionExisting policy tools to be en hanced

The Housing OpportunityBond Fund

Funds the development and preserv ation of workforce housing

Tax Allocation Dist ricts Contributes local tax revenues to local projects

The FC/CoA Land Bank Acquires and holds blighted property for redevelopment

The Zoning Code Facilitates more dense development around key urban amenitiesNew policy tools to be created

Inclusionary Zoning Would link workfor ce housing development with market rate development

Expanded Tax Abatements Would provide a long term operating subsidy to fill the gap left by affor dable units

Priority Purchasing of TaxLiens

Would help mitigate blight b y purchasing tax liens to str ategically rehabilitate units an dbuildings

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New policy tools to be created:

5. Inclusionary Zoning

6. Expanded Tax Abatements

7. Priority Purchasing of Tax Liens

Existing policy tools to be enhanced:1. The Housing Opportunity Bond Fund

2. Tax Allocation Districts

3. The FC/CoA Land Bank

4. The Zoning Code

Policy Tool Legislative Actions Required Challenges to ImplementationExisting policy tools to be e nhanced

The Housing OpportunityBond Fund

Council legislation approving issuance the secondseries of the Housing Opportunity Bond Fund

Altern ative sourc e for d ebt servicecoverage needed

Tax Allocation Districts Statewide Amendment to the RedevelopmentPowers Law to allow for p orting of funds an deconomic development uses

Need statewide bu y-in/vote foramendments; ne ed to convince theAtlant a Pu blic Sc hools to p articipatein the City’s four ne west T ADs

The FC/CoA Land Bank Funding needed to secure properties. Could comefrom Council approving Housing Opp. Bond

Must work with the Fulton County TaxCommissioner to sec ure tax liens;Need to improve proc essing time

The Zoning Code Council approval Resident concerns about the impact ofincre ased density

New policy tools to be created

Inclusionary Zoning Inclusionary zoning legislation (local and/or state) Pote ntial opposition fro mdevelopment community

Expanded Tax Abate ments Council legislation offering a city-wide taxabatement for meeting certain housing goals

Loss of property tax revenue willneed to be offset; ensur e that on lyproperties incre asing tax revenues by400 are eligible for abatement

Priority Purchasing of TaxLiens

Amendment to Memorandum of Understandingwith Fulton County Tax Commissioner

Potential opposition to selling taxliens to Land Bank instead of pr ivateentities by Tax Commissioner

The following existing and new tools can best help Atlanta ac hieve itshousing goals.

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Each Housing Strategy Tool addresses multiple Strategy Goals.

A B C D E FStrategy ToolsHousing OpportunityBond Fund

X X X X X X

Tax Allocation Districts X X X X X X

Tax Liens X X X X X

FC / Co A Land Bank X X X X XZoning Code X X XInclusionary Zoning X X X X XTax Abatements X X X X X X

Tool Recommendations

AAttr act new residents to the City andretain current o nes.

BReduce the number of Atlanta residentswho spend a disproportionately highpercentage of their incomes o n housing.

C Rehabilitate and remove vacant andblighted units.

DCreate a broad mix of housing choicesthroughout the City to serve a d iversepopulation and workforce.

E

Create new financial resourc es, an d

improve existing on es, to help the Cityachieve its housing goals.

FMake Atlanta one of the nation’s mostsustainable cities.

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A number of different entities play an important role in Atlanta’shousing landscape.

City of Atlanta’sHousing Agencies

City of At lanta: Offic e ofHousing

Distributes funding for ho usingdevelopment preserv ation

Invest AtlantaProvides financing for affor dable

housing development homeownership

Atlanta Housing AuthorityAcquires , manages and develops

affor dable housing

Public S ector

Georgia Department ofCommunity Affairs

Distributes Low-Inc ome Housing Tax Cre ditsand offers down pay ment assistance

United States Department ofHousing Urban DevelopmentAdminister s feder al a id to local ho using

agencies that manage an d finance ho usingfor low income fa milies

MARTA and Atlanta Beltline, Inc.

Make land av ailable for deve lopment

City of Atlanta / Fulton CountyLand Bank Authority

Banks land for future deve lopment

Private/Non-Profit

Enterpr ise Co mmunity PartnersProvides ca pacity b uilding for no n-pr ofits,

funding for workforce housing andconsul ting ser vices

Foundations/BanksProvides funding for w orkforce

development and /or p lace-b asedneighborhood revitalization

NeighborworksProvides ca pacity bui lding for no n-pr ofits,

funding for workforce housing andconsulting ser vices

CDCs/CHDOAcquires, ow ns, oper ates , and develo p

neighborhood base d workforce housingprojects

DevelopersAcquires , owns, manages and develops

workforce housing

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Atlanta’s housing agencies can improve coordination in several ways.

• Be inclusive with other agencies that impact housing development and policiessuch as MARTA Atlanta Public Schools Department of Community Affairs

• Align Housing Subcabinet agencies’ annual goals and initiatives

• Create a consolidated annual report that tracks how many housing units havebeen created an d preserved thro ughout the City

• Ensure that the Housing Subcabinet’s annual goals are reflected in City’scomprehensive and consolidated plans

• Deploy reserve funding to support City’s housing goals• Create a one-stop-shop website where developers and residents can easily

access housing resources and data from different a gencies• Establish a common a pplication that developers can use to apply for funding

from multiple agencies

Actions that would support inter-agency coordination include:

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The following e xisting tools, new tools and tactics can best helpAtlanta achieve its housing goals.

Existing Policy Tools to be Enhanced Description

The Housing Opportunity Bond Fund Funds the development and preserv ation of workforce housing

Tax Allocation Districts Contributes local tax revenues to local projects

The FC/CoA Land Bank Acquires and holds blighted property for redevelopment

The Zoning Code Facilitates more dense development around key urban amenities

New Policy Tools to be Created Description

Inclusionary Zoning Would link workfor ce housing development with market rate development

Expanded Tax Abate ments Would provide a long-ter m operating subsidy to fill the gap left by affordableunits

New Tactics for Housing/Vacant Properties New Tactics for Neighborhoods Community Development

Targeted Workforce Housing Initiative Neighborhood Agenda at the State Legislature

Vacant Property Registration Syste m Database Concentration of Housing Dollars and Code Enforce ment

Vacant Property Receivership/ Conservatorship Synergize Community and Economic DevelopmentFor-profit and Non-profit DeveloperCollaboratio Enhance Neighborhood Gate ways

Promote Purchase Rehab Lending Improve Pedestrian Mobility

Implement the Use of a Smart Rehab Code Collaboration with Public and Private UtilitiesEnlist and Train Realtors, Builders, andDevelopers Community Engagement

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Each Housing Strategy tool addresses multiple Neighborhood Factorsidentified in the S CI Report.

A B C D E F GNeighborhood FactorsCrime X X X XCommute X X X X XHousing Costs X X X X X X XCommunity Commerce X XCommunity Identity X X X X X XCurb Appeal X X X XAge of Housing Stock X X X X X XVacancy X X XCode Violations X X X XBlight X X X XRetail/Commercial Business X X X XPublic Education X XTrans portation Options X X X X XGreen Space X XSidewalks XAppreciation/Depreciation X X X X X XPublic Subsidy & Incentives X X X X XPer mit Issuance X XDistr ess ed Assets X X XReal Estate Trans action Value X XPopul ation Growth X X X X X X XOwner Occupancy X X XRacial Diversity XEducational Attain ment X

Tool RecommendationsA Housing Opportunity Bond FundB Tax Allocation DistrictsC Tax LiensD FCCALBAE Zoning Code

F Inclusionary ZoningG Tax Abatements

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Additional policies and potential resources needed to implement theHousing Strategy.Funding Needed to Imple ment the Housing Strategy• New issuance of the succ essful Housing Opportunity Bonds

• Funding to incr ease LBA capacity to ac quire and rehabilitate vacant, blightedproperties

• Creation of Housing Trust Fund from a variety of sources payment in lieu of, d edicated

millage, per un it levy)

Policies for Implementing the Housing Strategy

• Changes to TAD Policies to require developers to create workforce housing

• Priority tax lien purchase for the LBA

• Tax incentives for affordable housing development

• New zoning incentives an d requirements b ased on pr oven models in o ther cities

• Inclusionary Housing policy that requires all new residential d evelopments to haveaffordable/workforce housing component

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The Housing Opportunity Bond Fund Imple mentation components

Key actions

• Is sue second series of b ond ( 40 million)• Expand fund usage to pur chase an d rehabilitate vacant

properties; cover soft d evelopment, infr astruc tur e an ddemolition costs; support o wner occu pied rehabilitation;acquire financially distressed pro perties; an d support landassemblage

• Combine fund dollars with pr ivate foundation d ollars tosupport TOD development

City leadership responsible Invest Atlanta

Required agency coordinationInvest Atlanta, Office of Housing, Atlanta Housing Authority,Fulton County / City of Atlanta Land Bank (FCCALBA)

Imple mentation challenges Alternative sourc e for d ebt service needed

Legislative action required City Council to a uthorize the issuance of the second series o fbonds

Metrics to track o utcome• Number of workforce housing units produced• Number of vacant and blighted properties• Nu mber of cost-burdened Atlanta residents

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Tax Allocation Districts Imple mentation components

Key actions

• Consider additional ways to use BeltLine s AffordableHousing Trust Fund, including land ac quisition a ndmaster d evelopment alongside infrastructur einvestments

• Use TADs to subsidize green d evelopment• Close out an y TADs that a re no longer needed to

allow for the creation of TADs in n ew ar eas

• Ability to port funds from one TAD to another• Garn er Atlanta Pu blic Sc hools p articipation in thecity’s newest TADs

City leadership responsible Invest Atlanta

Required agency coordination Fulton County and Atlanta Public Schools

Imple mentation challenges Need to convinc e the Atlanta Public Sc hools toparticipate in the City’s four newest T ADs

Legislative action required Revise redevelopment laws to facilitate implementationof T AD strategy

Metrics to track o utcome• Number of affordable units created• Amount of BeltLine Trust Funds used by d evelopers

• Number of green d evelopments built in TADs35


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Tax LiensImple mentation components

Key actions

• Give the City of Atlanta a pr iority position topurch ase tax liens from the Fulton County Ta xCommissioner

• Place foreclosed property in the City of Atlanta/FCCALBA to facilitate its redevelopment

City leadership responsible City of Atlanta / FCCALBA

Required agency coordination • Fulton County Tax Commissioner• City of Atlanta / FCCALBA

Imple mentation challenges• O pposition to selling tax liens to the Land Bank

Authority instead of pr ivate companies• Need funding to purchase the tax liens

Legislative action required None

Metrics to track o utcome• Number of vacant an d blighted parcels• Nu mber of code compliance violations

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The Fulton County/City of Atlanta Land Bank Imple mentation components

Key actions

• Pr ovide a dditional funding for land ac quisition a nd pro pertymaintenance

• Alter In-Rem framework so the city can assume o wnership ofabandoned properties an d place them in the land bank

• Give the City the right of firs t refus al before the FultonCounty Tax Commissioner sells pr operty tax liens

• I mprove communication with Housing Subcabinet to facilitateworkforc e h ousing initiatives.

• Publicize benefits that could help potential bu yers rehabilitate properties such as the 203k lending program

City leadership responsible City of At lanta

Required agency coordination Fulton County Tax Commissioner and FCCALBA

Imple mentation challenges Work with the Fulton County Tax Commissioner to secur e tax

liensLegislative action required Council legislation authorizing issuance of Housing OpportunityBond Fund to pr ovide capital for ac quisition of liens

Metrics to track o utcome

• Number of vacant and blighted parcels• Nu mber of code compliance violations• I ncrease in pro perty taxes / home values in ar eas where the

FCCALBA maintains and sells property

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Inclusionary Zoning Imple mentation components

Key action

• Enact inclusionary zoning legislation that requires a llmulti-family developers building more than 20 unitsof housing to either include workforc e units, b uildthem off-site or p ay a n in-lieu fee.

• Coordinate with the re-write of the City’s zoningordinance

City leadership responsible Department of Planning and Community Development

Required agency coordination • Invest Atlanta• Atlanta City Council

Imple mentation challenges • Push b ack from private developers• Legal issues

Legislative action required Inclusionary zoning legislation l ocal and/or state)

Metrics to track o utcome Number of af fordable units created in census tr acts withabove ave rage median incomes

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Tax Abatement Imple mentation components

Key actions

• Pass city council legislation to provide a 50 taxabatement for 15 years for developers who make atleast 20 of their units affordable

• New development must increase property tax receiptsby at least 4 00 in o rder to qualify for taxabatement

City leadership responsibleInvest Atlanta

Required agency coordination Department of Planning & Community Development

Imple mentation challenges• Reduction in property tax revenue for those projects• Abatement approved by Fulton County Development

Authority with no affordability requirement

Legislative action requiredLegislation offering a city-wide tax abatement outsideof

Metrics to track o utcome

• Nu mber of affordable units created in areas thatprevious lacked af fordable units

• Percentage of market rate developments that includeaffordable units

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Absent of adequate financial resources, IA and the City have takenseveral steps to begin implementation of the Housing Strategy.

•

Changes have been made to TAD policies to include a workforce housing requirement• COA has applied and received a technical assistance scholarship from Center for

Community Progress to evaluate current policy and procedures to address blightedproperties

• IA working with Office of Planning to enhance Density Bonus ordinance

• IA working with LBA to acquire tax delinquent multifamily property• COA is working with a local developer and non-profit to complete a place based

strategy to address vacant land and blighted properties in the Mechanicsvilleneighborhood and Pittsburgh

• COA & IA have participated in two (2) workshops conducted by Enterprise focused on

Transit Oriented Development (TOD) and Inclusionary Housing• IA is working on strategy to strengthen the use of Lease Purchase Bonds to incentivize

affordable workforce housing

• IA is developing a rezoning proposal to be submitted to the Office of Planning andconsidered as part of the evaluation and rewrite of the current zoning ordinance

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tlanta’s Demographics

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Overview of City of Atlanta’s Demographics (2012)

Source: 2008-2012 ACS

Total Population: + 425,000Number of Households: 179,000

Median Household Inco me: 46,000Median Home Value: 219,000

Median Rent: 931

Population living in poverty: 23%

US Born: 92%Foreign Born: 8%

African American: 54%White: 39%Hispanic: 5%

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The City’s p opulation gr owth has slowed while its share of the region’spopulation has declined.

Sourc e: ESRI Online

0

2

4

6

8

10

12

14

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

1990 2000 2010

P

T

Population Atlant a's Population as a of the MSA's

Atlanta Population as a Share of the Metropolitan Statistical Ar ea’s Population

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More than 30% of Atlanta households earn less than 25,000 a year.

Source: U.S. Ce nsus (2012 5-YR ACS)

Household Income Distribution

14%

18%

21%

15%

9%

11%

13%

0%

5%

10%

15%

20%

25%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

< 10,000 10,000 -24,999

25,000 -49,999

50,000 -74,999

75,000 -99,999

100,000 -149,999

> 150,000

PN

Income Brackets

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After increasing significantly from 1990 through 2007, Atlantaresidents’ median income has recently decreased.

Source: Neighborho od Nexus

Change in Median Income

0

5,00010,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

1990 2000 2007 2012

M

+59%

-3%

+34%

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Since 2 000, the number of higher income households has increasedwhile the number of low-income households has fallen.


Income Distribution, Change from 2000 to 2012

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

< 10,000 10,000 -24,999

25,000 -49,999

50,000 -74,999

75,000 -99,999

100,000 -149,999

> 150,000

N

2000 Income 2012 Income

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The City now has more young professionals and fewer children; alsoseniors ages 55-64 are the fastest growing population.

-9 -8

+5+2

+33 +4

+0


Age Trends Over Time

0

20000

40000

60000

80000

100000

120000

140000

2000 2012

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The demographic trends signal an Atlanta population with fewerchildren, more empty nesters and more singles.

Ramifications:

• More one an d two be droom rental an d ownership units

• Greater d evelopment focus on urban living areas (walkable, d ense, transit acc ess)

• Greater need for diversity of unit types in neighborhoods (ability to age in place)

• A focus on af fordable workforce housing units as 52% of population e arns lessthan 50,000

• Greater mix of uses in an ar ea (residential, commercial, retail)

• Potential residential uses for surplus school property

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tlanta’s Housing Characteristics

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Atlanta has a d iverse housing stock

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The City has more than 227,000 housing units.

Occupancy Characteristics Unit Mix

Source: U.S. Census (2013 1-YR ACS)

Vacant

19

OwnerOccupied

35

RenterOccupied

46

1-unit,detached

41

1-unit,attached

5

2-4 units7

5-19 units19

20 ormore units

28

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A majority of households consist of individuals who either live alone orwith non-family members.

Total Households: 179,000

56

24

4

16

Household Type

Nonfamily households

Married-couple family

Male householder, no wife

present, f amilyFemale householder, nohusband pres ent, family


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The City’s av erage household size has decreased over the past twodecades.

Source: U.S. Census 1 990 Decennial 2000 Decennial 2012 5-YR ACS

Change in Average Household Size

2.39

2.3

2.2

2.05

2.1

2.15

2.2

2.25

2.3

2.35

2.4

2.45

1990 2000 2012

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Vacancy and declining household size speak to new challenges.

• 1 9 of units in the City are vacant which means there are many existingopportunities to redevelop, rehab, lease, o r purch ase units in n eighborhoods.However underlying causes of the vacancy must be addressed.

• Declining household size may mean less single family homeownership as singlesand couples without children may choose to live in multif amily units.

• If fewer households have school a ge children, what ar e the ramifications for theneighborhood schools a nd the value of the housing stock

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As of 2012, Atlanta’s median home value was 219,900.


Distribution of Home Values

46% of home values are < 200,000

18%

28%

17% 17%14%

6%

-

5,000

10,000

15,000

20,000

25,000

30,000

Less than100,000

100,000 to199,999

200,000 to299,999

300,000 to499,999

500,000 to999,999

1,000,000 ormore

O

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As of 2012, Atlanta’s median monthly rent was 931.

4%5% 7%

17%

28%29%

11%

0

5,000

10,000

15,000

20,000

25,000

30,000

Less than200

200 - 299 300 - 499 500 - 749 750 - 999 1,000 -1,499

1,500 ormore

T

Monthly Rent

* Monthly rents listed a bove cover a ll occu pied rental units in Atlanta.Source: U.S. Census (2012 5-YR ACS)

Distribution of Monthly Rents* 40% of units are ≥ 1000

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Affordable housing is d efined as housing that requires no more than30% of a family’s income.

Housing options affordable to an Atlanta familyearning 54,000* a year:

Purchasing a home for160,500

Renting a home for1,350 a month

* 80% of Atlanta’s Area Median Income for 2013.Source: HR&A Analysis

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There is a growing divide between market and affordable ratesespecially for families.

Area MedianIncome % STUDIO

1BEDROOMS

2BEDROOMS

3BEDROOMS

50% $ 563 $ 604 $ 725 $ 837

60% $ 676 $ 725 $ 870 $ 1,005

80% $ 901 $ 965 $ 1,158 $ 1,339

MARKET* $ 955 $ 1,029 $ 1,470 $ 1,985

New Old 4 th Ward Units**

$1,130 $ 1,240 $ 1,890 $ 2,455

:;.5,+ .5* ?.+*@ 1/ ./ .A*5.B* 5.,* 1C 0&D24E+CD::F5>G*+ >/ 7H@ 2,- I.5@ 5*J*G, H18*+, E5>G*@ 6.5, >/ K1-*6>./ L1=+* ./@ 4## M15,- NA*/=*D

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Affordable Housing Income Limits for the Atlanta MSA.

2014 INCOMELIMIT

1PERSON

2PERSONS

3PERSONS

4PERSONS

5PERSONS

30% $ 13,550 $ 15,450 $ 17,400 $ 19,300 $ 20,850

50% $ 22,550 $ 25,800 $ 29,000 $ 32,200 $ 34,800

60% $ 27,060 $ 30,960 $ 34,800 $ 38,640 $ 41,760

80% $ 36,050 $ 41,200 $ 46,350 $ 51,500 $ 55,650

100% $ 45,100 $ 51,600 $ 58,000 $ 64,400 $ 69,600

115% $ 53,400 $ 61,000 $ 68,650 $ 76,250 $ 80,000

120% $ 55,700 $ 63,650 $ 71,600 $ 79,550 $ 83,500

140% $ 63,100 $ 72,100 $ 81,100 $ 90,100 $ 97,300

HOMEOWNERSHIP

RENT

AL

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Affordable Workforce Housing Policy, which is based on family size, has to includeworking families across the spectrum of Area Median Income but cannot afford to buyor rent in many parts of the city.

$44,000 $75,000 $65,000

100% 140% 140%

$931 Median Rent; $219,000 Median Home Value as of 2012

HouseholdIncome

Max Home PriceThey Can Afford

% of AreaMedian Income

Max Rent TheyCan Afford

$132,000

$1,100

$23,000

50%

$575 $1,875 $1,625

$225,000 $195,000$69,000

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The number of cost b urdened residents has increased.

Atlanta residents who spend more than 30 of their income on housing* (2000 vs. 2012)

Source: 2000 Census vs. 2012 5-yr ACS*Homeowners statistic on ly includes those with mortgages.

17,495

37,994

24,649

48,027

-

10,000

20,000

30,000

40,000

50,000

60,000

2000 2012

41

40

53

Renters Homeowners

29

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Over the last twenty years, housing prices have gr own faster thanincomes.

Comparison of Atlanta’s Median Income, Rents, and Home Values

Sources : 1990 Decennial Census; 2000 Decennial Census ; 2007 1-yr ACS; 2011 5-yr ACS

-

50,000

100,000

150,000

200,000

250,000

300,000

1990 2000 2007 2011

Median Annual Inco me

Median Annual Rent

Median Home Value

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The recent u pward trend in h ome prices could further increase thenumber of cost-burdened households.

Atlanta Homes’ Median Sales Prices

0

50,000

100,000

150,000

200,000

250,000

300,000

J J J J J J J J J J J J J J J J J J J J J J J J J J J

M

Sourc e: Zillow.com

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Rising rents may also force households to spend a g reater share oftheir incomes on housing.

0

200

400

600

800

1,000

1,200

1,400

1,600

F A J A O D F A J A O D F A J A O D F A J

L

Atlanta’s Median Listed Rents*

Sourc e: Zillow.com

*Listed rents reflect pr operties on the market.

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The majority of Atlanta’s housing units are more than 30 years old.

Atlanta Residences by Age58 of units were built before 1980


13

7

13 14

108

10

23

0.40

10,000

20,000

30,000

40,000

50,000

60,000

1939 orearlier

1940 to1949

1950 to1959

1960 to1969

1970 to1979

1980 to1989

1990 to1999

2000 to2009

2010 orlater

Year Built

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The number of units lacking complete plumbing or kitchen facilities haschanged little.

Number of Deficient Housing Units

Sourc e: U.S. Census 2 012 5-YR ACS)

-

200400600800

1,0001,2001,4001,6001,8002,000

Lacking complete plu mbing facilities Lacking complete kitchen facilities

2000 2012

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The number of “over-crowded”* units has fallen b y 60 .

Number of Overcrowded Housing Units

7,400 fe wer ov er-crowded units in2012 than 2000


*The U.S. C ensus def ines overcrowded units a s those that have more than on e person per habitable room (not includinga living room or k itchen).

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2000 2012

N

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New housing production has outpaced population growth in the pastdecade.

Change in the Number of Housing Units Households (2000 to 2012)


-

5,00010,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Incr ease in Housing Units Incr ease in Households

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New housing development has b een concentrated in the multi-familysector.

Atlanta Residences by Type Largegrowthin MF

Slightgrowth in

SF-Attached


0

5

10

15

20

2530

35

40

45

50

1 - u nit,detached

1 - u nit ,attached

2 units 3 or 4 units 5 to 9 units 10 to 19 units 20 or moreunits

P

2000 2012

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0

2 000

4 000

6 000

8 000

10 000

12 000

2005 2006 2007 2008 2009 2010 2011 2012

T

After falling during the recession new housing pr oduction is picking upagain.

Annual New Privately-Owned Residential Building Permits

Sourc e: U.S. Census

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Most new housing production has been in NE, SW, and Buckhead.

Source: Neighborho od Nexus

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Atlanta -Dekalb

Buckhead CBD Atlanta NE Atlanta NW Atlanta SE Atlanta SW Atlanta

Atlanta Su per-Districts

Change in Number of Total Housing Units 2000 to 2010)

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Atlanta’s residential vacancy rates have b een rising.

0

2

4

6

8

10

12

14

16

2000 2012

Atlanta Residential Vacancy Rate Over Time

Rent al

For Sale

Source: City of Atlanta De partment of Planning and Community Development

72

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The high vacancy rates for owner-occupied housing have been drivenin part by the foreclosure crisis.

• Atlanta homeowners in all incomelevels and neighborhoods wereaffected.

• Between 2006 and 2009, ~ 49,000foreclosure n otices were issued in theCity of Atlanta.

Source: 2011 Consolidated PlanThe d arker the color the gr eater the p erce ntage of forec losure filings.

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City of A tlanta’s neigh borhoods an d current vac anc y conc erns

§ 242 ne ighborho ods

§ 160,207 total parc els

§ 143,888 residential parc els

§ 98 of residential parc els aresingle family (1- 2 u nits )

§ 9 ,664 v ac ant lots

§ 7 ,974 v ac ant struc tur es

– 3,850 “blighted struc tures ” (poor/deteriorated) (2.4 of total)

Source : 2 013 C ity of A tlanta S trate gic C ommuni ty Inv est ment Re port

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Subsidized housing is clustered near the City center a nd the west.

HUD-Subsidized HUD-Insured HUD-Operatedand LIHTC properties

Sourc e; Policy Map U.S. Department of Housingand Urban Development’s LIHTC Database whichwas last revise d as of Au gust 1 7 2012.

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Households with vouchers are concentrated in southern neighborhoods.

Percent of Householdsreceiving Section 8Vouchers as of 2009 byCensus Tract

Sourc e; Policy Map U.S. Department of Housingand Urban Development’s LIHTC Database whichwas last revise d as of Au gust 1 7 2012.

76

StfitfHUDbididiti“dt”


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Seventy-five percent of HUD-subsidized units are in “adequate” or“good” condition.

Source: HUD REAC Report 2001-2011

32

43

16

10

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

90 or Higher (Good) 89 - 60 (Adequate) Less than 60 (Failing) Unavailable Data

T

Physical Condition of Units O wned, Subsidized, or Insured by HUD

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Areas of Atlanta with the most jobs have the least a ffordable housing.

Sourc e: Policy Map, 2011 5-yr ACS

Jobs p er tr actMap of Atlanta’s Employment, 2010


Share of Homes Affordable to FamiliesEarning below 80 AMI

78

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In the future, job growth will be in some of the City’s least affordableneighborhoods.


Employment Trends in Atlanta, 2010 and 2040 Projections

* Centr al Business D istr ict

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Atlanta -DeKalb

Buckhead CBD Atlanta * NE Atlanta NW Atlanta SE Atlanta SW Atlanta

N

Number of Jobs (2010) Estimated Number of Jobs (2040)

62

55612

4552

52

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tlanta’s H ousing Policies and Programs

80

Overthepastd ecadeAtlantahasreleasedanumberofplansthat


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Over the past d ecade, Atlanta has released a number of plans thatproposed various affordable housing initiatives.

Key recent af fordable housing plans for the City of Atlanta include:

• A Vision for Housing in Atlanta 2002)

• New Century Economic Development Plan 2004 / 2005)

• Affordable Workforce Housing Implementation Task Force 2006)

• Consolidated Development Plan 2011)

• BeltLine Affordable Housing Study 2012)

• Transit-Oriented Development Implementation Strategy Assistance 2013)

• Strategic Community Investment Report 2013)

81

Inrecenty earsAtlantahasen actedseveralinitiativestomake


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In recent y ears, Atlanta has en acted several initiatives to makehousing more affordable for residents.• Established a Housing Opportunity

Bond Fund, a Homeless OpportunityFund, and the Atlanta BeltLineAffordable Housing Trust Fund

• Used Tax Allocation District s tofacilitate the development of mixed

inco me communities• Used Lease Purchase Bonds to create

housing choices in high cost areas

• Redeveloped public housing as mixedinco me communities

• Created a housing subcabinet toimprove inter-agency coordination

• Establishment of Project Based RentalAssistance PBRA) that is sometimescombined with capital investments

Successful Development Funded to Date

Novare Skyhouse Lofts atReynoldstown Crossing

Adamsville Green SeniorApts.

West Highlands Master-Planned Community

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Four Citywide strategic initiatives ar e currently underway.

Homelessness StrategyMayor’s Office on Innovation

Strategic Community Investment Re portOffice of Housing

Linking these initiatives together will e nhance their ef fectiveness.

Housing StrategyInvest Atlanta

Transit Oriented DevelopmentStrategy

Office of Planning

83

AnumberofdifferententitiesplayanimportantroleinAtlanta’s


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A number of different entities play an important role in Atlantashousing landscape.

City of Atlanta’sHousing Agencies

City of At lanta: Offic e ofHousing

Distributes funding for ho usingdevelopment preserv ation

Invest AtlantaProvides financing for affor dable

housing development homeownership

Atlanta Housing AuthorityAcquires , manages and develops

affor dable housing

Public S ector

Georgia Department ofCommunity Affairs

Distributes Low-Inc ome Housing Tax Cre ditsand offers down pay ment assistance

United States Department ofHousing Urban DevelopmentAdminister s feder al a id to local ho using

agencies that manage an d finance ho usingfor low income fa milies

MARTA and Atlanta Beltline, Inc.Make land av ailable for deve lopment

City of Atlanta / Fulton CountyLand Bank Authority

Banks land for future deve lopment

Private/Non-Profit

Enterpr ise Co mmunity PartnersProvides ca pacity b uilding for no n-pr ofits,

funding for workforce housing andconsul ting ser vices

Foundations/BanksProvides funding for w orkforce

development and /or p lace-b asedneighborhood revitalization

NeighborworksProvides ca pacity bui lding for no n-pr ofits,

funding for workforce housing andconsulting ser vices

CDCs/CHDOAcquires, ow ns, oper ates , and develo pneighborhood base d workforce housing

projects

DevelopersAcquires , owns, manages and develops

workforce housing

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Theseentitiessupportthedevelopmentofaffordablehousingin


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These entities support the development of affordable housing insimilar yet unique ways

Builds andOperates

Affordable Housing

FinancesHousing

Development

FinancesHomeownership

FacilitatesDevelopment

Atlanta Housing Authority X X X X

Invest Atlanta X X XOffice of Housing X X

Department of Planning XLand Bank Authority X

MARTA XCommunity Land Trusts X X

Georgia Department ofCommunity Affairs X X

Atlanta Beltline X X X

Centr al Atlanta Progress X

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Therearemanydifferentp ublicfundingstreamsthatsupportthe


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There are many different p ublic funding streams that support thedevelopment of affordable housing:

• Community Development Block Grants• HOME Funds

• Neighborhood Stabilization Program

• Low Income Housing Tax Credits

• Tax Exempt Bonds• Housing Opportunity Bonds

• Choice Neighborhoods

• HUD’s Financing Programs, including Section 8

• Housing Opportunities for Persons with AIDS HOPWA)

• Tax Allocation Districts

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These funding streams run through many different en tities.

Section 8 / PBRAChoice Neighborhoods

Down Payment Assistance

Low-Income Housing Tax CreditsState Home Funds

Down Payment AssistanceMortgage Program

HOME Safe Program

Housing Opportunity BondsTax Exempt Bonds

Down Payment AssistanceBeltLine Affordable Housing Trust Fund

Vine City Trust FundOME Funds

Community DevelopmentBlock Grants

Neighborhood Stabilization Funds

CITY OF ATLANTAOFFICE OF HOUSING

INVEST ATLANTA

ATLANTA HOUSINGAUTHORITY

GEORGIA DEPARTMENT OFCOMMUNITY AFFAIRS

87

TheAtlantaHousingAuthority(AHA)acquiresleasesandoperates


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The Atlanta Housing Authority (AHA) acquires, leases and operateshousing for low-income families. Key AHA initiatives include:Housing Choice Voucher Program: Families use

housing choice vouchers to secur e apartments orhomes for no more than 30 of their income. In2012, 9,277 families used their vouchers to secur ehousing and many more are currently on the waitlist.

Project-Based Rental Assistance Program: Thisprogram helps developers if they agree to rent apercentage of their units to families e arning up to80 of AMI.

Supportive Housing: This program uses PBRAagreements to pr ovide supportive housing for at-riskpopulations.

AHA-Owned Properties: AHA owns 11 senior-highrise communities a nd 2 small family communities.

Down-Payment Assistance: Low- and moderate-inc ome, first-time homebuyers are eligible for downpayment assistance.

Beginning in the late 1990s, theAHA demolished 30 distressedpublic housing projects and

replaced them with 16 mixed-income communities.

Centennial Place:A Mixed-Inco me Community

Source: AHA 2012 Annual Report

88

Therewereapproximately21000unitssubsidizedthroughAtlanta


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There were approximately 21,000 units subsidized through AtlantaHousing Authority (AHA) programs as of 2011.

Source: AHA Report; 2011 CDP; HUD Picture of Subsidized Housing, HUD LIHTC Database

-

2,000

4,000

6,000

8,000

10,000

12,000

Public Housing* Project-B ase dSubsidies**

LIHTC*** Tenant Vouchers DownpaymentAssistance

T

47

1219

* AHA-Owned Residential Communities and Mixed-Inco me Communities (AHA 2012)** AHA-Sponsored Mixed-Inco me and PBRA Mixed-Inco me Developments (AHA 2012)*** LIHTC units as recorded in A HA 2012 Report.Note that acc ording to HUD’s LIHTC database there are a pproximately 20,000 LIHTC pro perties in Atlanta, this includesthe 2,000 LIHTC units in the a bove gr aph.

AHA Subsidized Housing Units

21

1

89

InFY2012theAtlantaHousingAuthorityservedapproximately


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In FY 2012 the Atlanta Housing Authority served approximately21 000 families.

Program Households ServedAHA-Owned ResidentialProperties

1 943

Supportive Housing for At-Risk

Populations

546

Housing Choice Vouchers 9 277

Project-Based Rental Assistance 4 087

Mixed-Income Communities 4 853

Total 20 706

Source: AHA 2012 Annual Report

90

InvestAtlantatheCity’seconomicd evelopmentenginesupportsthe


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Invest Atlanta, the Citys economic d evelopment engine, supports thedevelopment of affordable housing primarily through bond financing.

Invest Atlanta’s Urban Residential Finance Authority (UFRA) i ssuestax-free bonds to fund below-market interest rate loans to developaffordable rental housing an d support affordable homeownership.

1.2 billion inbonds

15,000 units ofhousing

~ 8,250 unitsaffordable for familiesearning 60% of AMI

Source: 2011 Consolidated Plan

91

Inparticular,theURFA-administeredHousingOpportunityBondFund


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In particular, the URFAadministered Housing Opportunity Bond Fundhas facilitated the development of affordable housing by:

• Supporting the development of single and multi-family affordablehousing units by providing gapfinancing to housing developers an dCommunity Housing DevelopmentOrganizations (up to 25,000 per

unit, 1.1 million cap per project)

• Facilitating homeownership byoffering second-mortgage financing tohomeowners

19.8 million in HousingOpportunity Bonds

2,072 units ofworkforce housing

Source: 2011 Consolidated Plan

Columbia at Sylvan Hills:A Transit Oriented Development

92

InvestAtlantaalsoadministerstheCity’s10TaxAllocationDistricts,


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Invest Atlanta also administers the Citys 10 Tax Allocation Districts,which have produced more than 1,800 affordable housing units.

The Lofts at Reynoldstown Crossing providesaffordable home ownership along the Atlanta

BeltLine. 15 of all the BeltLine TAD’s bondissuances will be set aside for affordablehousing, which is expected to create 5,600affordable units. Eighty-six workf orce unitshave been produced to date.

Sourc es: 2 011 Consolidated Plan, Eastside TAD Annual Continuing Disclosure Re port 20 13, an d Intervie w with Atlanta BeltLine.

Tribute Lofts is a new condominiumdevelopment located in the Eastside T AD. 29

of the units a re affordable. The Eastside TADis considered to be on e of the most effectivein terms of producing affordable housing. Asof 2011, 559 new affordable units havebeen created.

The Lofts at Reynoldstown Crossing Tribute Lofts Condominiu ms

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TheCityofAtlanta’sOfficeofPlanningoverseesitsUrbanEnterprise


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The City of Atlantas Office of Planning oversees its Urban EnterpriseZones.• Developments in Urban Enterprise Zones

can qu alify for a 1 0-year property taxabatement.

• Residential projects in UEZs are requiredto have:• 2 0 of rental units affordable to

families earning 60 of AMI• 20 of homeownership units with

prices no more than 2.2x AMI

• Projects in Economic Development Priority

Areas a re automatically eligible for theUEZ program

Sourc e: Off ice of Plannin g’s Urban Enter prise Zone Program Guide

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The Office of Housing oversees the development of community


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gp ydevelopment plans an d millions of d ollars in federal funding.Funds include:

• HOME funds help non-profit and for-profitdevelopers create and rehabilitate unitsaffordable to families earning 80 of AMI.This funding also facilitates home o wnershipthro ugh Invest Atlanta’s down payment

assistance program.• The Neighborhood Stabilization Program

helps to combat blight b y helping the City ofAtlanta purchase abandoned, bank-ownedforeclosed properties.

• Community Development Block Grantssupport the rehabilitation of e lderlyresidents’ units an d the development of newaffordable units.

Retreat at Edgewood

Colu mbia at MLK Senior Housing

Sourc e: Office of Ho using’s we bsite

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Given Atlanta’s anticipated growth, there has been emphasis on


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pg, pdesignating land for affordable housing development in the future.

The City of Atlanta / Fulton County Land Bank Authority helps transformblighted, non-tax revenue producing property into pr oductive sites containingaffordable and/or market rate housing, pu blic space, or commercial tenants. Italso allows nonprofits to bank ac quired land for future development.

City of Atlantaobtains land

Developers buildprojects, returningland to productive

use

Land BankAuthority holdsland puts out

an RFP fordevelopment

Sourc e: Intervie ws and Atlanta Land Bank mission statement

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The Atlanta Land Trust Collaborative helps low to moderate income


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phouseholds buy homes at below market rate prices.

CLTs use pu blic a nd

private subsidies to make homesaffordable for low to

moderate incomefamilies

Homeowners agreeto limit their f inancialgain when they sell

their homes

Homes remainaffordable for

perpetuity

The Collaborative was launched in 2008 and now supports three affordablehomeownership projects in two Atlanta BeltLine neighborhoods and providestechnic al as sistance to non profits.

Source: 2011 Consolidated Development Plan

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Eitigtlh kdbtliitdb iliti


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Existing tools have worked, b ut a re now limited by economic realities.

Invest Atlanta Tools

Tax Exempt Bonds

Housing Opportunity Bonds

HOME Investment Partnership

BeltLine Affordable Housing Trust Fund

Homelessness Opportunity Fund

Lease Purchase Bonds

Economic Realities

Conventional taxable rates have b eenlower than Tax Exempt Bond Rates

93% Expended; 40mm remains to beissued. Requires Council approval

Federal funding decreased by 40%since 2010

100% Allocated

99.9% Expended

Some success in pr oviding workforcehousing choice in h igher cost areas

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There are a dditional tools that could be used to create workforce


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housing in Atlanta

Federal TaxCredits

Tax ExemptBonds

MandatoryInclusionary

ZoningOther federal

programs

Tax abatements Density bonuses Grants Low interest/Forgivable debt

Tax LienAcquisitions Conservatorship Eminent Domain CommunityLand Trusts

Blue = signific ant use in AtlantaGreen = sparse use in Atlant aGrey = not used in Atlant a

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National funding models for workforce housing are under-utilized in


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g gAtlanta.

Allocations

• General fund• Dedicated

millage• Tax increment• State Trust

Fund• Funds From

PartnerOrganizations

• Foundations• Gr ants

Fees

• Condoconversionsales fees

• Commercialdevelopmentfees

• I mpact fees• of

Recordationfee

• F ee in Lieu ofInclusionaryZoning

Levies

• Homeownerlevy

• Per un it levy

Taxes

• Real EstateTransfer Tax

• S ales taxes• Car Rental

Tax• Hotel Tax

Public/PrivatePartnerships

• Loan Funds

Highlighte d items ar e curr ently used in Atlant a.

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Tools other cities are using to create workforce housing could be


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implemented in Atlanta, b ut some tools are more difficult than others.

Tool Imple mentation ActionsTax Lien Acquisitions Moderate Land Ban k has the po wer it needs to ac quire tax d elinquent properties; need agr eement with Tax C ommissioner.

Conserv atorsh ip Moderate Need a loc al conserv ator ship law. Potent ially may n eed state le gistation.

Dedicated Millage Moderate Need sign off fro m Mayor and C ouncil.

Funds fro m Partner Organizations Moderate Need agreements with partner organizations.

Commercial development fees Moderate Progr am would need to b e created; how large would dev elopment need to b e to b e impacted. Do n't want to discour age large d evelop ments.

Per Unit Levy Moderate Refer endum pro bably ne eded to fund a hous ing trus t fund. Used in several municipalities.

Car Rental Tax ModerateWas used previous ly to fund per manent supportive housing. I f all future revenues a re not current ly al loc ate d there may b e eno ugh money tosupport a new bond issue.

Condo conversion sales fees Moderate May o nly ne ed local legislation. Curre ntly not m any conversions, but p otent ially more in the future so it's d iff icul t to d eter mine impact.

Community Land Trusts Moderate CLTs nee d mechanism to fund the mselves an d ac quire pro perty.

Mandatory Inclusionary Zoning Difficult Would cre ate the most workforce hous ing of a ll tools. L egal needs to rev ie w pro gra m components to ensure workforc e housing is not considered ataking. Other jurisdic tions have used de nsity b onuses greater than workforc e require ments to ensure le gal compliance.

Fee in Lieu of Inclus ionary Zonin g Diff icul t Only works in the case of mandatory inclusionary zo ning.

State Trust Fund Diff icult Doesn't exist. Would need state legislation.

Impact fees Diff icul t Impact fees could be incre ase d ho wever le gal w ould ne ed to d eter mine what por tion if any could b e used for hous ing initiatives.

of Recordation fee Diff icul t Fee is collecte d by cou nty. May ne ed state legislation to allo w city to charge a n a dditional fee.

Homeowner Levy Difficult Refer endum pro bably ne eded to fund a housing trus t fund. May b e difficult to p ersuade ho meowners, but used in several municipalities.

Transf er Tax Diff icult Might require state legislation to al low city to ch arge additional fee.

Sales Tax Extremely Diff icul t Probably not viable giv en Atlant a's curre nt sales tax rate.

Hotel Tax Extremely Diff icul t Would re quire s tate le gislation to ch ange uses . Pro bably n ot viable.

Eminent Domain Extre mely Difficult Requires state le gislation to ch ange law fro m 20 ye ar pu blic u se of land ac quire d.

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Innovative Housing Policies and Programs in Other ities

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CaseStudies


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Case Studies

Seattle

Austin

Boston

Washington DCMontgomery County

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Whataf fordablehousingchallengesarethesefiveareasfacing?


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What af fordable housing challenges are these five areas facing?

High or increasing land values

Income Disparity

Unemployment rate above national average

Vacancy rate

Foreclosure rate

Yes

Low High

Seattle,Washington



Austin,Texas

Atlanta,Georgia

No

Yeso

Highow

Highow oderate

Housing prices h a risen faster than incomes


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What innovative pr actices ar e these ar eas using to a ddress their


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affordable housing challenges?

Inclusionary Zoning

Ongoing financing for Housing Trust Fund

Citywide affordable housing strategy

Key information consolidated and accessible

Mandatory

No Yes

No Yes

Room to Improve Strength

None

Homeownership initiativesGeographically-targeted affordable housing

initiatives

No Yes

Seattle,Washington



Austin,Texas

Atlanta,Georgia

Voluntar y


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HousingTrustFundsvaryinform


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Housing Trust Funds vary in form.

Seattle:

(~ 145 million)• Homeowner levy (~ 65/yr. per

household)

Austin:(~ 8.8 million)

• General fund allocations• Tax increments fromdevelopment on City-owned land

Washington, D.C.(~ 320 million):

• 15% of recordation andreal es tate transfer taxes

Montgomery County:(~ 105 million)

• Condo conversion sales fees• General fund• Property tax revenues

Boston:( 81.5 million)

• Fee (PSF)commercialdevelopmentslarger than

100,000 SF


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Seattle’s Housing Levy has helped fund over 1 0,000 affordable


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apartments.

• Since 1981, Seattle voters have approved one bondand four levies to finance the creation of affordablehousing.

• The 2009 Housing Levy will raise 145 million overseven years. It will produce or preserve 1,850

affordable homes and assist another 3,420 households.• On average, Seattle households pay 65 a year to

support the levy.

• Key initiatives include:

• Rental Housing & Preservation• Operating & Maintenance Fund• Rental Assistance, Homebuyer Assistance• Acquisition & Opportunity Loan Fund


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Austin waives development fees and offers faster development


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reviews to stimulate affordable housing development.

Austin’s Safe Mixed-Income, Accessible,Reasonably Priced, Transit-Oriented(SMART) program:

• Jointly administered by the AustinHousing Finance Corporation (AHFC)and the Neighborhood Housing andCommunity Development Department

• Incentivizes affordable housingthro ugh waivers of development feesand faster d evelopment reviews onan increasing scale based on the

percentage of affordable housingprovided.

• All housing units must als o meet AustinEnergy Green Building Program(GBP) minimum standards.

Southwest Trails: Aus tin’s Firs t S. M.A.R.T Development


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Boston’s Middle Income Housing Initiative is d esigned to boost


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homeownership and property values.

Goals:

1. Increase the number of middle-incomehomebuyers in B oston

2. Support property values in high-foreclosure neighborhoods

3. Generate business for local contr actors and builders

Over the next two years Boston e xpects tosell on e million square feet of vacant landto developers at below-market prices to

help create between 200 to 300 newhomes.

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Montgomery County’s Workforce Housing Program helps moderate


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income families rent and purchase affordable homes.

• The Workforce Housing Program wascreated in 2 006 to provide affordablehousing for the county’s p ublicemployees and other moderate inco meworkers.

• Developments with more than 35residential units must set as ide at least10 of units for households earningbetween 70 and 120 of AMI.

• While a pplications a re selected atrandom, pr iority points a re given to first

responders and City and countyemployees.

• A 20-year and 99-year resale pricecontrol for rental units helps to preserv eaffordability.

The Village at King Farm

The Village at King Far m offers 49 unitsof workforce housing close to retailcenters an d a m etro station.

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D.C.’s Tenant Opportunity to Purchase Act (TOPA) helped preservefffdblhb d


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1,000 units of affordable housing between 2002 and 2008.

•Under T OPA, o wners looking to sell their

buildings must give the tenants’ as sociationthe opportunity to purchase a propertybefore it is sold to a thir d party.

•Tenants can either turn their property intoa resident-owned cooperative, p artnerwith a third-party management companyand become partial property owners, orchoose a third-party to buy their b uildingand rent it to them under a contractguaranteeing improvements an d stablerent.

•Low-inco me tenants can receive funds fromD.C.’s H ousing Production Trust Fund tohelp pur chase an d renovate theirbuildings.

TOPA helped a tenant association inWa s h i n g t o n D. C .’s L o g a n C i r c l eneighborhood purchase their building at1417 N. St. N W in 2006. The tenantsreceived a loan from D.C.’s Departmentof Housing and Community Developmentto help them purch ase the property.

Norwood Cooperative: A TOPA Property


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Baltimore’s Vacants to Value Initiative aims to reduce the number ofblihdi


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vacant, blighted properties.

Photo Credits: City of Balti more

1200 Block of Jefferson Stre et: Befor e

1200 Block of Jefferson Street: After

Vacants t o Values combats blight by:

1) Streamlining the disposition of city-ownedproperties

2) Streamlining code enforcement to helprehabilitate scattered vacants in strongneighborhoods

3) Establishing Community DevelopmentClusters with d evelopers on high-v acancyblocks

4) Targeting homebuyer incentives

5) Supporting large-scale re development indistressed areas

6) Demolishing and maintaining severelydistressed blocks


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ommunity Engagement Process

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The team talked to numerous community members an d stakeholders


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eteataedtoueousco utyebesa dstaeodes

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Stakeholders expressed common themes about opportunities andhllflHiS


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challenges to a successful Housing Strategy.

OpportunitiesExisting programs have worked.• Hope VI mixed inco me model – mixed

income rental an d o wnership opportunities.• Housing Opportunity Bond - available

funding to subsidize affor dable housing dev elopment• Former Housing Task Force – task force of

housing development and community stakeholdersinfor ming and imple menting policy an d program.

• Tax Allocation Districts - flexible sourc e offunds av ailable for the inclusion of workforc e housingin d istinct ge ographic locations.

• Invest Atlanta Down PaymentAssistance and mortgage assistance progra ms –for w orkforce homeownership opportunities.

• Interagency Coordination enhance with aone stop shop housing resource portal.• Strategic Alignment – build upon collaborative

planning to include APS.

ChallengesNew issues have e merged.• Limited resources – public sourc es are scarce;

Housing Finance Auth ority need sustainable fundingsources

• Perman

Invest Atlanta's Housing Strategy 2015

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Transcript of Invest Atlanta's Housing Strategy 2015