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Affordable Housing 101:
Why is it so dang hard?
5/23/2019 1
Affordable Housing Week
May 15, 2019
5/23/2019 2
Need for Affordable Housing –
King County
Source: Regional Affordable Housing Task Force, “Final
Report and Recommendations for King County, WA”, 2018
5/23/2019 3
Need for Affordable Housing
Source: HUD Consolidated Planning/CHAS Data, 2011-2015
American Community Survey
5/23/2019 4
Need for Affordable Housing –
King County
5/23/2019 5
Acquisition Costs
Voda Apartments, Kirkland
$699,000 per unit
The Carillon, Kirkland
$534,000 per unit
Le Chateau, Bellevue
$584,000 per unit
5/23/2019 6
Construction Costs
5/23/2019 7
Affordability
21,315 30% AMI 50% AMI 80% AMI
Annual Income (family of 4) 38,745 55,350 88,560
Affordable Monthly Rent (2BR) 747 1,246 1,994
Utility Allowance 73 73 73
Operating Cost 550 550 550
Net Operating Income 124 623 1,371
Debt Coverage 16 81 179
Debt Service 108 542 1,192
Affordable Debt (4.5%, 30 yr) 21,315 106,970 235,255
5/23/2019 8
Building New Units
30% AMI 50% AMI 80% AMI
Total Development Cost 400,000 400,000 400,000
LIHTC – 9% 259,000
LIHTC – 4% 124,000
Debt 21,315 106,970 235,255
Gap 119,685 169,030 164,745
5/23/2019 9
Preserving Existing Units
30% AMI 50% AMI 80% AMI
Total Acquisition Cost 325,000 325,000 325,000
Debt 21,315 106,970 235,255
Gap 303,685 218,030 89,745
5/23/2019 10
Available Resources
• Washington State Housing Trust Fund
o $3MM per project
o 30% AMI priority
• King County
o TOD Funds
o Document Recording Fee
o Veterans and Human Services Levy
o HOME
• Local Funding
o ARCH
o City donations, fee waivers
5/23/2019 11
Local Resources
• ARCH Funding
o 15 cities, 2018 population: 501,215
o 2012-2017 average annual investment: $4.7 million
o Per capita annual investment: $9.38
• City of Seattle Office of Housing Funding
o 1 city, 2018 population: 730,400
o 2017 investment: $93.44 million
o Per capita 2017 investment: $127.93
5/23/2019 12
For More Information
Dan Landes
King County Housing Authority
600 Andover Park West
Tukwila, WA 98188
206-574-1242
DanielL@kcha.org
www.kcha.org

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KCHA - Eastside Housing Costs

  • 1. Affordable Housing 101: Why is it so dang hard? 5/23/2019 1 Affordable Housing Week May 15, 2019
  • 2. 5/23/2019 2 Need for Affordable Housing – King County Source: Regional Affordable Housing Task Force, “Final Report and Recommendations for King County, WA”, 2018
  • 3. 5/23/2019 3 Need for Affordable Housing Source: HUD Consolidated Planning/CHAS Data, 2011-2015 American Community Survey
  • 4. 5/23/2019 4 Need for Affordable Housing – King County
  • 5. 5/23/2019 5 Acquisition Costs Voda Apartments, Kirkland $699,000 per unit The Carillon, Kirkland $534,000 per unit Le Chateau, Bellevue $584,000 per unit
  • 7. 5/23/2019 7 Affordability 21,315 30% AMI 50% AMI 80% AMI Annual Income (family of 4) 38,745 55,350 88,560 Affordable Monthly Rent (2BR) 747 1,246 1,994 Utility Allowance 73 73 73 Operating Cost 550 550 550 Net Operating Income 124 623 1,371 Debt Coverage 16 81 179 Debt Service 108 542 1,192 Affordable Debt (4.5%, 30 yr) 21,315 106,970 235,255
  • 8. 5/23/2019 8 Building New Units 30% AMI 50% AMI 80% AMI Total Development Cost 400,000 400,000 400,000 LIHTC – 9% 259,000 LIHTC – 4% 124,000 Debt 21,315 106,970 235,255 Gap 119,685 169,030 164,745
  • 9. 5/23/2019 9 Preserving Existing Units 30% AMI 50% AMI 80% AMI Total Acquisition Cost 325,000 325,000 325,000 Debt 21,315 106,970 235,255 Gap 303,685 218,030 89,745
  • 10. 5/23/2019 10 Available Resources • Washington State Housing Trust Fund o $3MM per project o 30% AMI priority • King County o TOD Funds o Document Recording Fee o Veterans and Human Services Levy o HOME • Local Funding o ARCH o City donations, fee waivers
  • 11. 5/23/2019 11 Local Resources • ARCH Funding o 15 cities, 2018 population: 501,215 o 2012-2017 average annual investment: $4.7 million o Per capita annual investment: $9.38 • City of Seattle Office of Housing Funding o 1 city, 2018 population: 730,400 o 2017 investment: $93.44 million o Per capita 2017 investment: $127.93
  • 12. 5/23/2019 12 For More Information Dan Landes King County Housing Authority 600 Andover Park West Tukwila, WA 98188 206-574-1242 DanielL@kcha.org www.kcha.org