D-01 - Staff Presentation NHCD- Housing Displacement Prevention Strategies Presentation to Planning Commission — original pdf

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NEIGHBORHOOD HOUSING and COMMUNITY DEVELOPMENT Housing Displacement Prevention Strategies City of Austin Planning Commission June 9, 2020 Nefertitti Jackmon Housing & Planning Policy Manager 1 D1 of 24A GROWING CITY with DIVERSE HOUSING NEEDS Austin is a fast-growing city, having expanded to nearly a million residents in just a few years. Some predict the region’s population could be 4 million people by 2050. accessible Such rapid growth has a serious impact growing upon gentrification, and affordable homes in neighborhoods that are healthy and safe. transportation, housing, Austin is committed to ensuring equitable access to affordable the housing opportunities that safe, stable homes provide. and 2 D2 of 24WHAT is AFFORDABLE HOUSING? Housing is defined as affordable if someone pays no more than 30 percent of monthly income for rent/mortgage and utilities, and no more than 45 percent of monthly income on housing and transportation costs. 3 D3 of 24WHO DOES NHCD SERVE? NHCD increases affordable housing supply, promotes and stable integrated, and diverse fosters equitable, communities. homeownership, for assistance Eligibility largely determined by Median Family Income (MFI), which is the annual income in which half the population makes more, and half the population makes less. is 2019 Austin Area Median Family Income (MFI)* • 30% MFI: $19,900 for 1-person household; $28,400 for a 4-person household 50% MFI: $33,150 for 1-person household; $47,300 for a 4-person household 80% MFI: $52,850 for 1-person household; $75,500 for a 4-person household • • *Per HUD effective June 2019 for the Austin-Round Rock-San Marcos Metropolitan Statistical Area (MSA)) 4 D4 of 24AUSTIN’S HOUSING – HISTORICAL CONTEXT Neighborhood Housing and Community Development will be honest in our communication about the history of past discrimination that led to unfair housing practices and policies as we work diligently, creatively and intentionally to cultivate a diverse and economically inclusive City by creating affordable housing opportunities and mitigating community member displacement. 5 D5 of 24600+ DISPLACEMENT MITIGATION STRATEGIES REVIEWED People’s Plan Anti- Displacement Task Force 6 D6 of 24DISPLACEMENT MITIGATION STRATEGIES REVIEW Displacement Mitigation Recommendations Narrowing Process (Records Tagged) 612 335 143 (Actionable Records) (Records prioritized) 103 15 (Records in NHCD’s control) (Short Term Recommended Strategies) 7 D7 of 24DISPLACEMENT MITIGATION STRATEGIES REVIEW Displacement Mitigation Recommendations Narrowing Process 8 D8 of 24LONG-TERM DISPLACEMENT MITIGATION STRATEGIES 9 D9 of 24FULFILLING the NHCD MISSION Our mission is to cultivate a diverse and economically inclusive City by creating affordable housing opportunities and mitigating community member displacement. 10 D10 of 24RESOURCES for RENTERS NHCD’s Resources for Renters website offers everything from housing searches to advice for dealing with landlords Tenant-Based Rental Assistance supports low-income families move from homelessness to self-sufficiency by providing rental subsidies and case management support services. Tenants’ Rights Assistance Program provides counseling and technical assistance to low-income renters on tenant-landlord issues, dispute mediation, and fair housing issues to resolve or minimize discriminatory housing practices. Local Rental Assistance provides rent, mortgage and utility assistance to meet urgent needs of eligible persons to prevent homelessness and to support independent living. Barrier Architectural Removal Program (Renters) repairs units that pose health and safety risks or are necessary to increase self-sufficiency and mobility of to moderate- income residents. low- 11 D11 of 24RESOURCES for HOMEBUYERS Down Payment Assistance Program assists first-time homebuyers with a 0% interest loan up to $40,000 for necessary down payment, eligible closing costs, and pre-paid expenses. The loan amount is dependent on financial need. Homebuyer Training puts first-time homebuyers on track for homeownership and financial empowerment Affordable Home Sales are possible through Austin Housing Finance Corporation by incentivizing both private and nonprofit developers through loans, fee waivers, density bonuses, and state low-income housing tax credits. Community Land Trusts keep homes affordable for low- households and keep the property in the hands of the community. to moderate-income The idea is simple. Low- and middle-income households purchase the house (the actual building), but pay a modest monthly fee to lease the underlying land. By taking the cost of the land out of the transaction (often the most expensive part of home ownership), homes are more affordable than those on the open real estate market. 12 D12 of 24RESOURCES for HOMEOWNERS Architectural Barrier Removal Program (Owners) repairs units that pose health and safety risks or are necessary to increase self-sufficiency and mobility of low- Eligible homeowners and renters can receive grants of up to $15,000 in home accessibility improvements. to moderate-income residents. Minor Home Repair Program provides eligible homeowners with assistance up to $5,000 a year for minor repairs for a life-threatening condition or a health and safety hazard. Home Rehabilitation Loan Program assists low-to- moderate income homeowners with loans for needed repairs to comply with city code and make the home safe, livable, and healthy. The program offers 0% interest loans ranging from $15,000 to $75,000 that are forgiven after a 20-year affordability period. year GO Repair Program provides provide up to $20,000 per improve accessibility and make repairs to address substandard housing conditions that pose health and safety risks. eligible homeowners to to 13 D13 of 24HOMELESS and SPECIAL NEEDS Homelessness is a key priority for the City of Austin, with an estimate of approximately 2,000 people experiencing homelessness on the street or in shelters. NHCD partners with Austin Public Health and several community organizations to fund and administer programs for Homeless & Special Needs populations. Permanent Supportive Housing (PSH) is the city’s investment homelessness by creating affordable housing units linked to support services that enable chronically homeless to live independently and participate in community life to reduce costly uses of public medical and social services. to address chronic Tenant Relocation Assistance Program supports vulnerable low-income households, the elderly, and persons with disabilities facing displacement. • Requires landlords to provide early notice to clients to community services/legal tenants • Refers assistance 14 D14 of 24CREATING and PRESERVING AFFORDABLE UNITS Incentive Programs encourage both non-profit and for-profit developers to create and preserve affordable rental and ownership housing for low- and moderate-income households and Austinites with disabilities. Affordability may also be promoted through Development Agreements which may produce affordable units and/or fees-in-lieu. Rental Housing Development Assistance Program expands the supply of affordable rental housing for low-income households and increases the availability of permanent supportive housing for persons experiencing homelessness or with special needs. Affordable Housing Bonus Programs allow developers to build more units than are allowed by a location’s base zoning if the developer agrees to set aside a portion of units for income-restricted affordable housing. Bonuses offset developers’ costs to build affordable housing without requiring city current or future expenditures. Examples include the Downtown Density Bonus Program, University Neighborhood Overlay (UNO), and proposed citywide Affordable Housing Bonus Program. 15 D15 of 24CREATING and PRESERVING AFFORDABLE UNITS Bond Financing through the Austin Housing Finance Corporation (AHFC) Private Activity Bonds to finance the development of affordable rental or ownership housing. • Rental Housing Development Assistance Program finance rental developments, repaid through rents collected once the property is operational. • Single-Family Mortgage Revenue Bonds make low-interest mortgages and down payment assistance, or offering mortgage tax credits for qualified buyers of as much as $2,000 per year. and Community Affairs Low-Income Housing Tax Credit Program is managed with the Texas Department of Housing to incentivize low-income housing by selling tax credits to banks and other investors, who in turn use those credits to lower their own tax bills. investment in 16 D16 of 24PRODUCTION NUMBERS 17 D17 of 24DISPLACEMENT PREVENTION GOALS 1. Prevent Displacement of Low- and Moderate- Income Homeowners and Renters 2. Increase Number of Income Restricted Affordable Housing Units 3. Increase Opportunities for Households to Reduce Utility Costs 4. Minimize the Displacement of Transit Riders 5. Improve NHCD’s Operations to Address Displacement Mitigation Demands 18 D18 of 2415 STRATEGIC PRIORITIES • • Implement a Preference Policy to prioritize new city-subsidized affordable units for income-qualified households that are appropriately sized to the unit and/or have ties to the city. Update: Preference policy notification sent to City Council in October Incorporate robust tenant protections for all rental properties receiving city support. Update: Tenant protections included in all new city-funded developments • Streamline the application process for affordable units. Update: Housing HUB affordable housing search tool ready to launch • Market NHCD-subsidized affordable units to people of color in gentrifying areas. Update: Outreach contracts to launch in 2020 • Engage directly with communities vulnerable to displacement and connect them with services. Update: Outreach contracts to launch in 2020 19 D19 of 2415 STRATEGIC PRIORITIES • Modify and expand home repair programs in gentrifying areas. Update: Begin discussions in 2020 • Support tenant organizing and engagement and provide legal and other assistance to tenants facing eviction or displacement. Update: $750,000 Tenant Stabilization Contract (Tenant Rental Assistance, Eviction Prevention & Relocation Services) was released. Responses received in May 2020. • Provide tenant relocation assistance and emergency rental assistance. Update: $750,000 Tenant Stabilization Contract (Tenant Rental Assistance, Eviction Prevention & Relocation Services) was released. Responses received in May 2020. • Proactively monitor affordable properties at risk of losing affordability to extend affordability periods. Update: Staff member hired to lead this effort. • Increase fair housing enforcement and education. Update: Coordination with regional group began in January 2020. 20 D20 of 2415 STRATEGIC PRIORITIES • Support capacity building for community development corporations. Update: Community Development Corporation (CDC) Capacity Building grants up to $50,000. 13 organizations were awarded $536,188 in grants. • Recalibrate, streamline, and expand density bonus programs to serve renters at or below 60% MFI. Update: Recommendations included in Land Development Code revision • Increase communities of color participation in NHCD's affordable housing investment recommendations and displacement mitigation activities. Update: New programs/contracts for FY19/20 • Land bank in gentrifying areas to acquire and develop affordable housing. Update: Property purchases underway to further Blueprint goals. • Support the creation of deeply affordable units at 20% and 30% MFI and below. Update: Housing Trust Funds identified to fund deeply affordable units 21 D21 of 24DISPLACEMENT MITIGATION PROGRAM ALLOCATIONS Summary Amount Tenant Stabilization Services: Tenant Rental Assistance, Eviction Prevention & Relocation Services (Source: HTF) Affirmative Marketing Campaign (Source: HTF) Capacity Building for Community Development Corporations (Source: HTF & HUD Funds) New Home Repair Program (Source: G.O. Bonds) Incentivize the creation of deeply affordable (30% and below median family income) units (Source: HTF) TOTAL $750K $200K $536K $2.7M $2M $6M 22 D22 of 24STAY INFORMED Keep up on issues of affordable housing and community development at www.austintexas.gov/housing  Click on “Subscribe to our Mailing List”  Add your name and email address The City’s e-newsletter to help Austinites keep up to speed on issues facing City of Austin and its communities. Sign up through www.austintexas.gov  Click on “I Need To”  Click on “E-mail Newsletters”  Choose Housing 23 D23 of 24QUESTIONS 24 D24 of 24