2010 ULI Fall Meeting Presentation October 15, 2010 11:00 am to 12:15 pm

1. Best Practices in Workforce
and Mixed-Income
Housing
Friday,
October 15
11:00 a.m. – 12:15 p.m.

2. FINANCIAL PARTNERS
RBS Citizens Bank
NH Community Loan Fund
Bowdoin Charitable Trust for
Housing Creation
NH Housing Finance Authority
PNC Bank
Town of Hanover
Grafton County
DEVELOPERS

3. BACKGROUND
• Regional housing shortage
• High-cost town
• Sustained advocacy effort for work
force housing
• Town meeting vote
• Donated land

8. PROGRAM CONSTRAINTS
• 50% Affordable up to 100% of AMI
• Mix of for sale and rental homes
PROJECT TIMELINE
• Town Meeting votes – 2001 + 2002
• Site plan application – Fall, 2005
• Site plan approval – January, 2007
• Construction start – September, 2007
• Delivery of first buildings – November, 2008…

9. Total units Planned: 120
• Rentals – 61 units(all complete)
• Affordable Rental: 46 (LIHTC)
• Market rentals: 15 (all workforce- no
restrictions)
• Condos – 59 units (36 complete)
• Market above workforce: 23
• Market workforce: (no restrictions): 22
• Income-restricted workforce: 14

25. LESSONS LEARNED
1. Workforce Housing Works
– Public Acceptance
– Market Acceptance
– Successful Public Policy
2. Resist Complexity
3. Beware and Be Vigilant when
Ignoring #2 - Deviations from the
norm require extreme preparation

26. 4. Mission-based lenders can play a key role
5. Perceived quality critical in overcoming
market skepticism
6. Don’t try to save on affordable unit finishes
7. Do be strategic about location/view
decisions
8. Affordable rental development experience
does not equate to affordable for sale
experience
***

27. 2010 ULI FALL MEETING AND
URBAN LAND EXPO
October 15, 2010
Best Practices In Workforce And
Mixed-Income Housing

28. RENAISSANCE SQUARE
ENTERPRISE HOMES
• Create homeownership and rental
opportunities for families from all walks of life
• Develop affordable workforce and market-
rate housing
– Affordable at 30-60% area median income
– Workforce homeownership at 60-120% area
median income
– Market-rate homeownership
• Created over 5,000 homeownership and

29. RENAISSANCE SQUARE

30. DEVELOPMENT OVERVIEW
• 18 Acres
• Former failed FHA Section 8: 300+ units
• HUD/County Property Control
• Community Charette led by Baltimore County
and Design Collective
• Pattern Book
• RFQ/RFP Issued by Baltimore County 2006
• Contract Awarded 2007
• Contract Signed October 2008
RENAISSANCE SQUARE

31. RENAISSANCE SQUARE

32. RENAISSANCE
SQUARE
DEVELOPMENT
• 196 units
– 81 senior LIHTC
– 115 Ownership
• 65 Renaissance Credit
• 50 Market

33. RENAISSANCE SQUARE
SITE PLAN

34. RENAISSANCE
SQUARE
FINANCING
• Susquehanna Bank
• Maryland DHCD
• Baltimore County
• Enterprise Green
Communities
• Enterprise
Community
Investment, Inc.
LIHTC
Total Development Cost: $11,715,000
81 Senior Apartments

35. RENAISSANCE
SQUARE
WORKFORCE
OWNERSHIP
• 115 Homes
– 65 Renaissance Credit
• (60%-115% AMI)
– 50 Market
• Four Housing Types
– Townhouse 1400 s.f.
– Cottage 1500
s.f.
– Manor 1900 s.f.

36. RENAISSANCE
SQUARE
WORKFORCE
OWNERSHIP
• County Contributions
– Land
– $4 million Infrastructure
• Developer
Contributions
– $2.1 Million Renaissance
Credit

37. RENAISSANCE SQUARE
WORKFORCE OWNERSHIP
Construction Financing
Susquehanna Bank Revolving Line $3,000,000
Baltimore County $4,131,802
Developer Equity $2,100,000
Total Development Costs
$27,472,973

38. RENAISSANCE SQUARE
INCOME STRATIFICATION
• 10 HOMES 60-70% AMI
• 10 HOMES 71-80% AMI
• 15 HOMES 81-90% AMI
• 15 HOMES 91-100% AMI
• 7 HOMES 101-107% AMI
• 8 HOMES 108-115% AMI

39. RENAISSANCE
SQUARE
DEED RESTRICTIONS
• 15-year re-sale
restriction to
affordable buyer
• Year 1-5
– Down Payment
– Equity/Improvement
s
• Year 6-15
– Down Payment
– Equity/Improvement

40. RENAISSANCE SQUARE
Renaissance Credit Permanent Financing
70-80% AMI*
Sale Price $225,500
Estimated Closing Costs $ 15,575
Total Needed to Close $241,075
Cash Down $ 2,255
First Mortgage $166,503
Renaissance Credit Second Mortgage $ 72,317
*Income: Family Size of 4 = $64,000
(Presumed Interest Rate: 4.75%/30 years, no mortgage insurance)

41. RENAISSANCE SQUARE
BUYER PROFILE
• 26 CONTRACTS
• 19 SETTLEMENTS
LOW HIGH MEDIAN
INCOME $39,000 $200,000 $67,000
HH SIZE 1 4 2.6
EMPLOYER PUBLIC = 62%
PRIVATE = 38%

42. RENAISSANCE SQUARE
2005
• Land Costs
• Construction Costs
• Skyrocketing Pricing
2010
• Market, Market, Market!
• Credit Scores/Eligibility
• Financing
WORKFORCE HOUSING CHALLENGES