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  • 1. Long-Term Project Sustainability:
    The New Wave of Preservation
    NHC/MacArthur Foundation Partners in Innovation Conference May 17, 2010
    Bill Rumpf, President
    Mercy Housing Northwest
  • 2. Federally-assisted stock built during peak period of late 1960s to mid-1970s.
    Interventions aimed at preventing for-profit owner opt-outs, market-rate conversation
    Success = Long-term affordability restriction
    Preservation Classic
  • 3. Production spurred by 1986 LIHTC and 1990 HOME Program
    In Washington State-largely nonprofit, 40-50 year affordability restrictions
    Units in operation 20 years+ by 2016:
    Seattle: 45% of 11,000 units
    Washington state: 40% of 37,000 units
    Preservation-Next Generation
  • 4. Reserve shortfall in at least 1/3 of buildings
    Portland HDC Study
    Underwriting assumptions
    Reserve deposits of $250 to $300. Need=$700/yr
    Assumed 2-3% increase in rent, but actuals less
    Asset Management capacity has evolved later than development.
    What is the Challenge?
  • 5. Asset/Property Management Affinity Group
    Operations Dashboard
    Capital Needs Assessment format exchange
    Lender refinance panels
    Bed Bugs
    20-25 active participants
    Portfolio Preservation Planning Grants
    6groups with 500 units+ each
    Operations, Finance and Physical Needs
    Seattle/WA State MacArthur Project
  • 6. Multifamily Weatherization
    800 units in 2009. ARRA helped
    Statewide Web-Based Reporting
    Single electronic report for local, HTF, tax credits
    Will enable real-time data analysis
    Recapitalization Guide
    Seattle/WA State MacArthur Project
  • 7. Trade-off with resources that otherwise can be used for new units.
    Frog in Boiling Water Problem
    Housing capital sources are down
    Avoiding perverse incentive to be a low-reserve project.
    Public Policy/Political Challenge
  • 8. Develop hybrid staff teams
    Break the 2nd-time Funding Taboo
    Set cap on resources for existing projects
    Competition. Best practice thresholds.
    Develop $25-30K solution w/o Tax Credit
    Portfolio Flexibility—post Y15
    Recapitalization Strategy Ideas
  • 9. The End