Financing Affordable and Workforce Housing in Location-Efficient Areas September 26, 2011 Northside BeltLine Trail, completed April 2010
Atlanta BeltLine Overview
WHAT IS THE ATLANTA BELTLINE? Key Elements Trails 33 of Network Trails Parks 1300 + new acres Jobs & Economic Development 30k jobs Transit 22-mile loop Affordable & Workforce Housing 5,600 Units Historic Preservation Public Art & Streetscapes Environmental Clean-up 1100 + acres
Anticipated Funding Sources
Source: TAD Redevelopment Plan, Nov 2005
TAX ALLOCATION DISTRICT How does the BeltLine TAD work? When the TAD was adopted in 2005, the City, County, and Public Schools agreed to forego tax revenue generated in the TAD at the time of adoption for the next 25 years. As new development happens because of the BeltLine, additional tax revenue is generated. This additional tax revenue helps pay for the BeltLine. After 25 years, the City, County and Public Schools receive all tax revenue, which is higher than it would have been without the BeltLine. Tax Revenue 3 2 1 2005 2030
Affordable Housing Trust Fund
City Council established the BeltLine Affordable Housing Advisory Board (“BAHAB”)
BeltLine TAD authorizing legislation requires 15% of net bond proceeds capitalize the BeltLine Affordable Housing Trust Fund (“BAHTF”)
5,600 unit goal established by City Council
State Tax Allocation District restrictions: capital expenses within the Tax Allocation District (“TAD”)
BAHAB GUIDING PRINCIPLES
Facilitate housing near jobs for working families who are otherwise priced out of the in-town housing market
Serve as a catalyst for the revitalization of communities around the BeltLine
Help mitigate involuntary economic displacement
Other key principles:
BAHTF POLICY FRAMEWORK - OUTLINE
Major BAHTF components: Down payment assistance, Grants to develop & preserve affordable housing, and Funds for property acquisition for future affordable housing.
Affordability Target: AMI for Rental and Owner Occupied
Location: Based on housing need/market conditions, Near existing/planned transit, and Equitable distribution of units throughout the Beltline
Sustainability:Community Land Trust, and Specified periods of minimum affordability for rental and owner occupied units and longer occupancy requirements where subsidies are utilized.
Mitigate economic displacement: Possible tools include: Inclusionary zoning, CLTs, Preservation of existing subsidized housing, local/state Housing Trust Fund with dedicated funding, Educational Campaign, property tax reform, etc.
Affordable Housing Trust Fund Financing
15% of TAD bond proceeds dedicated to the BeltLine Affordable Housing Trust Fund
Incentive gap financing (other developer equity and sources of financing needed)
Early application in the process (fully funded financial plan not necessary)
More than just financial incentives
Master planning prepares communities for land use and zoning densities
Parking requirement relief (in process)
Transit, parks, trails
Trust Fund Status (As of 7/25/2011)
Affordable Housing Trust Fund Financing Key Learning Challenges
Coordinating with other key resources – especially HOPE VI / Choice Neighborhoods and LIHTC;
Convincing Banks to provide Mixed Income Housing Financing
Building housing in more affluent areas of the TAD where little or no affordable housing currently exists
Facilitating long-term affordability
Mitigating displacement in areas outside of the TAD
Spending bond proceeds in a down market
A Solution to Long-Term Affordability: Community Land Trust(CLT)
CLT’s and the BeltLine: Atlanta Land Trust Collaborative (ALTC): A New Vision for CLTs in Atlanta ALTC Goals:
Create favorable climate for CLT development.
Nurture formation of at least two neighborhood-based, resident-controlled CLTs within the next three years.
Perform stewardshipfunctions of a CLT in neighborhoods where local capacity does not exist to carry out these functions.
A Smart Way to Develop
Extends the impact of public investment.
Helps limit the impacts of gentrification.
Deepens the opportunity for community engagement.
Promotes neighborhood stability
Solution to Building Housing in Affluent Areas: Property Acquisition Strategy
Property Acquisition Strategy for Affordable Housing
Create affordable housing in the following locations:
higher land price areas – especially in north and east Atlanta
near transit implementation
Must spend time-sensitive dollars before subsequent bond issuance; incentives intended to promote development, not as effective given current market conditions.
Take advantage of falling land costs
Property Acquisition Strategy for Affordable Housing Location principles: Required:Near transit: within ¼ mile of BeltLine ROW or MARTA station Preferred:
Within historically strong markets to promote equitable distribution of affordable housing: block groups with median household incomes greater than 60% of AMI (in green).
Acquisitions allowed outside green for (a) properties along a BeltLine segment for imminent transit implementation, or (b) mixed-income developments with a significant market rate component;
Acquisitions that do not displace residential tenants
Consider taxable (vs. tax-exempt) bonds;
Establish inclusionary zoning or flexible zoning codes to permit higher densities that support affordable housing;
Focus on land banking and property acquisition
QUESTIONS? Contact Info: http://www.livealongthebeltline.com/ www.beltline.org Atlanta Beltline Inc.: 404.614.8300