Best Practices in Workforce
and Mixed-Income
Housing
Friday,
October 15
11:00 a.m. – 12:15 p.m.
FINANCIAL PARTNERS
RBS Citizens Bank
NH Community Loan Fund
Bowdoin Charitable Trust for
Housing Creation
NH Housing Finan...
BACKGROUND
• Regional housing shortage
• High-cost town
• Sustained advocacy effort for work
force housing
• Town meeting ...
PROGRAM CONSTRAINTS
• 50% Affordable up to 100% of AMI
• Mix of for sale and rental homes
PROJECT TIMELINE
• Town Meeting ...
Total units Planned: 120
• Rentals – 61 units(all complete)
• Affordable Rental: 46 (LIHTC)
• Market rentals: 15 (all work...
LESSONS LEARNED
1. Workforce Housing Works
– Public Acceptance
– Market Acceptance
– Successful Public Policy
2. Resist Co...
4. Mission-based lenders can play a key role
5. Perceived quality critical in overcoming
market skepticism
6. Don’t try to...
2010 ULI FALL MEETING AND
URBAN LAND EXPO
October 15, 2010
Best Practices In Workforce And
Mixed-Income Housing
RENAISSANCE SQUARE
ENTERPRISE HOMES
• Create homeownership and rental
opportunities for families from all walks of life
• ...
RENAISSANCE SQUARE
DEVELOPMENT OVERVIEW
• 18 Acres
• Former failed FHA Section 8: 300+ units
• HUD/County Property Control
• Community Charet...
RENAISSANCE SQUARE
RENAISSANCE
SQUARE
DEVELOPMENT
• 196 units
– 81 senior LIHTC
– 115 Ownership
• 65 Renaissance Credit
• 50 Market
RENAISSANCE SQUARE
SITE PLAN
RENAISSANCE
SQUARE
FINANCING
• Susquehanna Bank
• Maryland DHCD
• Baltimore County
• Enterprise Green
Communities
• Enterp...
RENAISSANCE
SQUARE
WORKFORCE
OWNERSHIP
• 115 Homes
– 65 Renaissance Credit
• (60%-115% AMI)
– 50 Market
• Four Housing Typ...
RENAISSANCE
SQUARE
WORKFORCE
OWNERSHIP
• County Contributions
– Land
– $4 million Infrastructure
• Developer
Contributions...
RENAISSANCE SQUARE
WORKFORCE OWNERSHIP
Construction Financing
Susquehanna Bank Revolving Line $3,000,000
Baltimore County ...
RENAISSANCE SQUARE
INCOME STRATIFICATION
• 10 HOMES 60-70% AMI
• 10 HOMES 71-80% AMI
• 15 HOMES 81-90% AMI
• 15 HOMES 91-1...
RENAISSANCE
SQUARE
DEED RESTRICTIONS
• 15-year re-sale
restriction to
affordable buyer
• Year 1-5
– Down Payment
– Equity/...
RENAISSANCE SQUARE
Renaissance Credit Permanent Financing
70-80% AMI*
Sale Price $225,500
Estimated Closing Costs $ 15,575...
RENAISSANCE SQUARE
BUYER PROFILE
• 26 CONTRACTS
• 19 SETTLEMENTS
LOW HIGH MEDIAN
INCOME $39,000 $200,000 $67,000
HH SIZE 1...
RENAISSANCE SQUARE
2005
• Land Costs
• Construction Costs
• Skyrocketing Pricing
2010
• Market, Market, Market!
• Credit S...
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
Best Practices in Workforce and Mixed Income Housing
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Best Practices in Workforce and Mixed Income Housing

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

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Best Practices in Workforce and Mixed Income Housing

  1. 1. Best Practices in Workforce and Mixed-Income Housing Friday, October 15 11:00 a.m. – 12:15 p.m.
  2. 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. 3. BACKGROUND • Regional housing shortage • High-cost town • Sustained advocacy effort for work force housing • Town meeting vote • Donated land
  4. 4. 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…
  5. 5. 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
  6. 6. 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
  7. 7. 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 ***
  8. 8. 2010 ULI FALL MEETING AND URBAN LAND EXPO October 15, 2010 Best Practices In Workforce And Mixed-Income Housing
  9. 9. 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
  10. 10. RENAISSANCE SQUARE
  11. 11. 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
  12. 12. RENAISSANCE SQUARE
  13. 13. RENAISSANCE SQUARE DEVELOPMENT • 196 units – 81 senior LIHTC – 115 Ownership • 65 Renaissance Credit • 50 Market
  14. 14. RENAISSANCE SQUARE SITE PLAN
  15. 15. 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
  16. 16. 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.
  17. 17. RENAISSANCE SQUARE WORKFORCE OWNERSHIP • County Contributions – Land – $4 million Infrastructure • Developer Contributions – $2.1 Million Renaissance Credit
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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)
  22. 22. 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%
  23. 23. RENAISSANCE SQUARE 2005 • Land Costs • Construction Costs • Skyrocketing Pricing 2010 • Market, Market, Market! • Credit Scores/Eligibility • Financing WORKFORCE HOUSING CHALLENGES
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