Affordable to Whom:Rental 60% of Area Median (“AMI”) Income as the ceiling ($43K for a family of 4, 2010)Encourage development below 30% of AMI($21K for a family of 4, 2010)Owner Occupied100% of AMI ceiling ($71K, 2010)How should we sustain affordability:Promote and support Community Land Trusts - perpetual affordability through land-lease/shared-equity agreementsRental15 year minimum affordability period30 years for projects receiving significant BAHTF subsidyOwner OccupiedSubsidy must be repaid to BAHTF if unit sold within first 15 years of occupancyPortion of gain on sale must be repaid if unit sold within first 10 years of occupancy
Mulit-Family Rental Developer Incentive Note: $1.43 Million Reynoldstown Senior Conditional Commitment (HUD 202). $1.1 Million Adair Court Conditional Commitment (LIHTC)
2. Benefits of Community land Trusta. Are a proven vehicle for the development and preservation of affordable housing (approximately 240 nationwide). b. Create permanently affordable housing and protect and extend the impact of public subsidy.c.Provide community control of development.d.Balance between the multiple goals of asset-building for low and moderate-income families, preservation of affordable units over time, and the protection of neighborhood vitality.
1. Public policy issues (valuation and taxation, CLT’s in affordable housing policies/funding streams), key partnerships (LBA, City, ADA, banks), community education/engagement, funder education and engagement
HISTORY:The Transportation Investment Act (TIA) will put the future of Georgia’s transportation in the voters’ hands next summer. The law divides the state into 12 regions for the purpose of voting on a one percent sales tax to fund transportation projects in that region. All revenues collected in a region stay in that region. In the Atlanta region, 15 percent of funds are sent directly to local governments to fund local transportation projects, while 85 percent of funds support a list of regional projects created by local elected officials, known as Regional Roundtables.CURRENT:The Atlanta Regional Roundtable's Executive Committee has adopted a constrained list of projects, which the full Roundtable must finalize by October 15. The City of Atlanta submitted light rail transit projects to the TIA which included segments of the Atlanta BeltLine with direct on-street connections into midtown and downtown. The Roundtable appropriated $602 million to these projects on the constrained list. This money will help provide connectivity from the to employment, housing, education and entertainment centers in the City.
SSC2011_Kate Little PPT
Financing Affordable and Workforce Housing in Location-Efficient Areas <br />September 26, 2011 <br />Northside BeltLine Trail, completed April 2010<br />
Capital Costs</li></ul>Source: TAD Redevelopment Plan, Nov 2005 <br />
TAX ALLOCATION DISTRICT<br />How does the BeltLine TAD work?<br />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.<br />As new development happens because of the BeltLine, additional tax revenue is generated. This additional tax revenue helps pay for the BeltLine.<br />After 25 years, the City, County and Public Schools receive all tax revenue, which is higher than it would have been without the BeltLine.<br />Tax Revenue<br />3<br />2<br />1<br />2005<br />2030<br />
State Tax Allocation District restrictions: capital expenses within the Tax Allocation District (“TAD”)</li></li></ul><li>BAHAB GUIDING PRINCIPLES<br /><ul><li>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:</li></li></ul><li>BAHTF POLICY FRAMEWORK - OUTLINE<br /><ul><li>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. </li></li></ul><li>Affordable Housing Trust Fund Financing <br /><ul><li>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)
Mitigating displacement in areas outside of the TAD
Spending bond proceeds in a down market</li></li></ul><li>A Solution to Long-Term Affordability:<br />Community Land Trust(CLT)<br />
CLT’s and the BeltLine: Atlanta Land Trust Collaborative (ALTC):<br />A New Vision for CLTs in Atlanta<br />ALTC Goals:<br /><ul><li> 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.</li></ul>A Smart Way to Develop<br /><ul><li>Extends the impact of public investment.
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</li></li></ul><li>Property Acquisition Strategy for Affordable Housing<br />Location principles: <br />Required:Near transit: within ¼ mile of BeltLine ROW or MARTA station<br />Preferred:<br /><ul><li>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</li></li></ul><li>Additional Recommendations <br /><ul><li>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</li></li></ul><li>QUESTIONS?<br />Contact Info: <br />http://www.livealongthebeltline.com/<br />www.beltline.org<br />Atlanta Beltline Inc.: 404.614.8300<br />