Good morning! Thank you for allowing me the opportunity to tell you a bit about our work around Seniors as it specifically relates to transit. My name is Cheryl Gladstone – I am the Senior Housing Program Director at Enterprise Community Partners. About Enterprise: we are one of the leading providers of capital for the development and preservation of affordable housing and communities across the country. We have been around for nearly 30 years, and over that time, have deployed over $11b in capital that had led to the creation or preservation of 280,000 units of affordable housing. We’ve long been in the senior housing space, deploying over $1.7 billion in capital that has led to the creation or preservation of over 30,000 units of senior housing. I’m here today to talk to you about one of the many ways that Enterprise is creatively deploying capital to address the issue of seniors and transit. I’m going to start today with a little background behind our TOD Fund – why we created it, a little about how it works, and what we have been able to do with it to date. More importantly, I will tell you about our vision for the fund and why we’re now thinking about a senior emphasis on our fund.
First of all, when most people think about TOD and Seniors, they think, great, well if I develop housing for seniors right next to the bus line, or the light rail, then the transportation burden for seniors is reduced. One of the key things to think about, is that it’s about ACCESS, not just PROXIMITY. You could have a light rail right next to a senior housing complex, but HOW does a senior access that transit? There could be a 6-lane highway So it’s not just proximity, but design and access that provides seniors with SAFE, ACCESSIBLE, HEALTHY, transportation options. That’s where our role as housing providers comes in – we have the power to help housing providers provide the access and design that will help seniors.
In 2004, Enterprise set the standard for green affordable housing with our Green Communities Criteria, with the goal of all our affordable housing to be green by 2013. In 2011, we added Universal Design to the criteria, which is basically the equivalent to LEED Silver. In 2012, we will be developing universal design specs as an add-on to the criteria. We recently realized that our GCC has many universal-design components built into the criteria, and now we’d like to help developers of senior properties and beyond, think about ways to specifically enhance accessibility. The Universal Design GCC add-on will have construction-document ready language about the types of products and specifications that help developers develop or rehab their properties to meet the needs of an aging population.
FasTracks is a twelve-year, $6.5 billion 1 (originally $4.7 billion) public transportation expansion plan for the Denver-Aurora and Boulder metropolitan areas in Colorado , developed by the Regional Transportation District . The plan calls for six light rail , diesel commuter rail, and electric commuter rail lines with a combined length of 119 miles (192 km) to be opened between 2013 and 2016 to provide commuters an alternative to the region's congested roads and highways. In early 2007, not long after FasTracks was approved by Denver voters, Enterprise and the Center for Transit Oriented Development published a comprehensive study around the benefits and challenges of the large transit infrastructure improvement project in the Denver Region, particularly as they relate to our lower-income and underrepresented populations. Enterprise and the Center for Transit Oriented Development published a comprehensive study around the benefits and challenges of the large transit infrastructure improvement project in the Denver Region, particularly as they relate to our lower-income and underrepresented populations. What the study, and others, showed us is that despite all of the great many benefits that an improved public transit system brings, it also poses many potential threats to the most vulnerable amongst us – low-income families, minorities, and senior citizens – the very people who rely most on public transportation. ***Infrastructure projects of this magnitude have the potential to create significant market and gentrification pressures such that these vulnerable populations cannot afford to live near, and therefore enjoy the benefits of, transit. ****Families who already live in close proximity to transit stations can be forced out due to higher rents or property taxes, and households who would like to relocate to these areas often cannot afford to. If we do not pay attention to these issues, we risk pushing these families further away from urban and job centers, isolating them from community services, education, healthcare, and social interaction.
We have also learned that low-income familes, both her and nationally, spend on average 60% of their gross income on housing and transit alone, leaving very little for their many other needs. When they have access to transit, however, they are four times more likely to utilize it than their wealthier neighbors, increasing and stabilizing RTD’s ridership. They depend on transit for their livelihoods – getting to school, to work, to the store, to the doctor, to anywhere they might need to go. But it isn’t just low-income households that stand to benefit a great deal from improved transit – we all do. By concentrating growth near transit and ensuring that the benefits of transit are distributed equitably, we will decrease traffic congestion, enhance our air quality, and improve our overall health as a community!
This chart gives you a good idea of some of the risks. About 75% of the federally assisted housing units in the Denver region are already located within ½ mile of current and future transit stations, including many designated as senior housing. A great many of these units are at risk of losing their affordability in the very near future if something isn’t done to protect them. “ To be ready for the needs of a rapidly expanding older population, planners and policymakers must work now to ensure that both existing and emerging TOD communities benefit people of all ages.” - AARP Public Policy Institute, 2009 Source: “Preserving Affordability and Access in Livable Communities: Subsidized Housing Opportunities Near Transit and the 50+ Population,” AARP Public Policy Institute, Reconnecting America, and the National Housing Trust, September 2009
Armed with this information, Enterprise and our partners at the Urban Land Conservancy, the City of Denver, the Colorado Housing Finance Authority, as well as several local and national foundations and community lenders, created the TOD Fund, the first of its kind in the country. The TOD Fund ultimately provides the Urban Land Conservancy with patient, low-interest capital with which to buy and hold property (both vacant and improved) in close proximity to light rail and high frequency bus stations. These properties are then preserved for affordable housing, ensuring that its residents have access to jobs, education, healthcare, and other community services without having to rely on an automobile.
I bet most of you can look at the photo at the top right there and think of a property or two in your jurisdiction that looks just like it. These are exactly the kinds of properties that we look to acquire and subsequently enhance through renovation and densification. This particular property, known as the Jody Apartments, was a pre-cursor to the TOD Fund’s creation. This property, located adjacent to the future Sheridan Light Rail Station, is a low-density, 62 unit property in need of considerable repair. When NEWSED Community Development Corp. discovered it in 2007 it was not income restricted, but was inherently affordable to its residents. In order to purchase and preserve the property, NEWSED assembled a unusual first mortgage from ECLF, the Land Conservancy purchased the land and leases it back to them, and the City and State contributed some HUD grant money. Needing all these sources and unusual terms in order to preserve this property convinced Enterprise and our partners of the need for a one stop, 100% LTV source for affordable TOD acquisitions. Ultimately the Jody will be redeveloped into a higher density development, retaining and likely increasing the number of affordable homes. Zoning recently put in place allows about 3 times the density of the current property.
The TOD Fund has been active now for about 15 months, and with the four transactions already closed and one that will close this month, the TOD Fund will have preserved or created over 240 affordable homes for residents throughout Denver. In addition, the Mile High Vista site – on Colfax & Irving – will include a public library a local foods mercado once complete.
Now for the exciting part! Let’s talk about the future of the TOD Fund. The fund has accomplished a great deal already, but the transit build-out is happening RIGHT NOW and it affects families and neighborhoods beyond just the City of Denver. If we want to have the impact that we desire, we need to pick up and expand our efforts! We would like take the fund from a $15 million Denver-centric fund to a $30 million regional fund. We want to add new partners, and we want to make sure that we are serving our rapidly growing senior population with a mix of uses. We’ve already begun discussions with the Area Agency on Aging on this very topic.
To clarify what we mean when we say affordable housing, the TOD Fund specifically targets households earning between 30% and 60% of the Area Median Income. In Denver, that means individuals earning between roughly $16K and $33K and families of four earning between $23K and $47K. In Boulder, for example, where the AMI is higher, these income levels are adjusted accordingly. In this case, we are talking about rental housing, so the monthly rent on these units is capped, ensuring that residents are not over-burdened with housing costs. I should note that the TOD Fund is also able to finance affordable for-sale products as well, serving households up to 95% of AMI, but market conditions are such that these types of developments do not make sense at this time.
We view DRCOG as a critical partner in this effort. We believe that our efforts with this fund are directly aligned with the goals and policies that DRCOG has laid out in its MetroVision Plan. You recognize that affordable housing near transit is already in short supply and that many of the households in our region are burdened with unaffordable housing and transportation costs. These problems will only be exacerbated unless we do something about them right away!
Several of DRCOG’s goals can be addressed directly by the TOD Fund. - The TOD Fund focuses on dense multi-family housing, which will increase density with each new property - By definition, nearly all eligible TOD Fund sites will be in Urban Centers. We would consider making this a pre-requisite going forward. - The low-income and minority households that we serve are far more likely to utilize public transit and far less likely to own cars, which will directly impact both greenhouse gas emissions and vehicle miles traveled.
And the TOD Fund is a GREAT example of the kinds of resources and investments that DRCOG references in its Urban Center and Community Design Policies.
In addition to meeting many of DRCOG’s goals and policies, building low-income housing in transit corridors can have a significant positive economic impact on our region. The Nat’l Association of Home Builders completed a study in June of last year, finding that an average year’s worth of low income housing tax credit development in the region, provides both immediate and ongoing economic benefit to the region in terms of local income, government revenues, and job creation.
SSC2011_Cheryl Gladstone PPT
Transit-Oriented Development (TOD) and Seniors in Low-Income Housing Cheryl Gladstone Program Director, Senior Housing
Seniors and Transit: Access, Not Just Proximity
Enterprise Green Communities Criteria and Universal Design
Denver TOD Fund: Background <ul><li>Low-Income, Minority, and Senior Community Members are at risk of: </li></ul><ul><li>Degradation of existing bus lines </li></ul><ul><li>Increased housing cost from speculation </li></ul><ul><li>Tenant displacement from gentrification pressures </li></ul><ul><li>Isolation from community </li></ul>
TOD Fund: Background <ul><li>Low income families spend 60% of income on housing and transportation </li></ul><ul><li>They are more likely to utilize transit regularly, increasing & stabilizing ridership for RTD </li></ul><ul><li>Transit access improves access to education, jobs, food, healthcare and community services </li></ul><ul><li>TOD encourages smart/compact growth, decreases traffic congestion and enhances air quality </li></ul><ul><li>Increases community health through walking, bicycling, and interaction </li></ul>
Federally Assisted Housing in the Denver Region TOD Communities Need to Benefit People of All Ages Total units 9,759 Units within a half mile of quality transit 7,300 <ul><ul><li>Elderly designated units </li></ul></ul>1,329 <ul><ul><li>Units with contracts expiring by 2014 </li></ul></ul>4,382
The TOD Fund: Structure <ul><li>Goal: Preserve and create over 1,000 units of affordable housing units near transit through property acquisition and land banking </li></ul><ul><li>$15 million, 10 year fund, 3.5% fixed interest rate to Urban Land Conservancy </li></ul><ul><li>Prevent gentrification pressures from displacing current residents </li></ul><ul><li>Ensure access to jobs, education, community services, healthcare </li></ul>
<ul><li>Located less than 300 feet from future light rail station </li></ul><ul><li>ULC has 99 year land lease to nonprofit owner </li></ul><ul><li>52 of 62 apartments now permanently affordable, 12 at 30% AMI and below </li></ul><ul><li>62 units adjacent to Sheridan Station </li></ul><ul><li>NEWSED, ULC, Enterprise, City, Colorado Division of Housing </li></ul>Jody Apartments (The Beginning)
The TOD Fund: Efforts to Date <ul><li>Dahlia Apartments (36 apt homes) - Apr. 2010 </li></ul><ul><ul><li>$1,000,000 </li></ul></ul><ul><ul><li>Health & Safety Rehabilitation completed by ULC </li></ul></ul><ul><li>Yale Station (1.20 acres land) – July 2010 </li></ul><ul><ul><li>$1,192,500 </li></ul></ul><ul><ul><li>ULC working with RTD/Developers on area development plan </li></ul></ul><ul><li>Mile High Vista (2.15 acres land) – March 2011 </li></ul><ul><ul><li>$2,115,000 </li></ul></ul><ul><ul><li>70 new apts, 28K SF public library, 14K SF supportive retail </li></ul></ul><ul><li>Evans Station (0.96 acres land) – June 2011 </li></ul><ul><ul><li>$1,078,110 </li></ul></ul><ul><ul><li>50 new apts financed with 9% LIHTC </li></ul></ul>
The TOD Fund: Future <ul><li>Our goals for expanding the TOD Fund: </li></ul><ul><ul><li>Increase fund to $30 million or more </li></ul></ul><ul><ul><li>Additional borrowers </li></ul></ul><ul><ul><li>Larger geographic scope </li></ul></ul><ul><ul><li>Added focus on senior population </li></ul></ul><ul><ul><ul><li>Area Agency on Aging </li></ul></ul></ul><ul><ul><li>Mixed-Use/Mixed-Income properties </li></ul></ul>
<ul><li>30% Area Median Income </li></ul><ul><li>Denver MSA: </li></ul><ul><ul><li>$16,440 for individual </li></ul></ul><ul><ul><li>$23,460 for family of 4 </li></ul></ul><ul><ul><li>Max 1BR Rent: $440 </li></ul></ul><ul><ul><li>Max 3BR Rent: $610 </li></ul></ul><ul><li>Boulder MSA: </li></ul><ul><ul><li>$19,440 for individual </li></ul></ul><ul><ul><li>$27,750 for family of 4 </li></ul></ul><ul><ul><li>Max 1BR Rent: $520 </li></ul></ul><ul><ul><li>Max 3BR Rent: $721 </li></ul></ul><ul><li>60% Area Median Income </li></ul><ul><li>Denver MSA: </li></ul><ul><ul><li>$32,880 for individual </li></ul></ul><ul><ul><li>$46,920 for family of 4 </li></ul></ul><ul><ul><li>Max 1BR Rent: $880 </li></ul></ul><ul><ul><li>Max 3BR Rent: $1220 </li></ul></ul><ul><li>Boulder MSA: </li></ul><ul><ul><li>$38,880 for individual </li></ul></ul><ul><ul><li>$55,500 for family of 4 </li></ul></ul><ul><ul><li>Max 1BR Rent: $1041 </li></ul></ul><ul><ul><li>Max 3BR Rent: $1443 </li></ul></ul>Affordable Housing Defined
Alignment with Metro Vision <ul><li>“ Affordable housing in compact, mixed-use, transit- and pedestrian-friendly neighborhoods is currently in short supply.” </li></ul><ul><ul><li>Yet, the population in proximity to transit will climb 344% by 2030, with 40% of that growth from low-income households. </li></ul></ul><ul><li>“ The average working family in the Denver region spends 59 percent of its income on housing and transportation costs combined, whereas 45 percent is considered an affordable level for these costs.” </li></ul><ul><ul><li>This is amplified the further away from transit you get. We must be careful not to push these vulnerable populations further and further from urban centers, jobs, and amenities. </li></ul></ul>
<ul><li>Goal </li></ul><ul><li>10% increase in region-wide density </li></ul><ul><li>Locating 50% of all new housing in Urban Centers </li></ul><ul><li>60% decrease in GHG & other emissions </li></ul><ul><li>10% decrease in VMT per capita </li></ul><ul><li>TOD Fund Application </li></ul><ul><li>Focus on dense multi-family housing </li></ul><ul><li>Nearly all eligible sites are in Urban Centers </li></ul><ul><li>L-I households are 4x more likely to use transit </li></ul><ul><li>L-I households own fewer cars and drive less </li></ul>Metro Vision 2035 Goals
Metro Vision 2035 Policies <ul><li>Urban Center Policy #1: “DRCOG will take a proactive role in identifying opportunities, providing resources, and directing investment toward programs and infrastructure that help local governments and the private sector develop successful urban centers.” </li></ul><ul><li>Community Design Policy #3: “Allow and encourage a diversity of housing types and a mix of housing densities… Locate housing to maximize access to employment, services, shopping, etc. Increase access to, and availability of, affordable rental and for-sale units that meet the region’s present and future housing demands.” </li></ul>
<ul><li>One-Year Impact </li></ul><ul><li>$57.6M in local income </li></ul><ul><li>$5.0M in gov’t revenue </li></ul><ul><li>732 local jobs </li></ul><ul><li>Ongoing Annual Impact </li></ul><ul><li>$16.7M in local income </li></ul><ul><li>$2.3M in gov’t revenue </li></ul><ul><li>192 local jobs </li></ul>Economic Impact “ The Economic Impact of Low Income Housing Tax Credit Development Along Transit Corridors in Metro Denver:” (June 2010 study by National Association of Home Builders)