Bill Rumpf, Mercy Housing Northwest

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Bill Rumpf, Mercy Housing Northwest

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

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