Item 2A: Affordable Housing Update — original pdf

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Mueller Development Mueller Redevelopment Muell RMMA Plan Implementation Advisory Commission Affordable Housing Update November 9, 2021 Housing Goal Vision Mueller will be an interactive, mixed-use, mixed- income community that will be a model for responsible urban development, offering a compact pedestrian-oriented alternative to the land- consumptive and automobile-dependent development patterns that could influence the form and pattern of growth within Austin. Goal Redevelopment must offer a wide range of housing choices in order to create a new community of socially and economically diverse residents. 2 | RMMA PIAC November 2021 Overall Approach & Roles Initial Program Design & Strategy • • City of Austin & Catellus Frances Ferguson & consultants Development Implementation • • • • Catellus/AH Builders – product & pricing PIAC/CDC – community oversight Catellus/AH Builders/Program Admin – marketing & outreach City of Austin – affordable housing funding to support tax credit projects Long Term Strategy & Implementation • Mueller Foundation – nonprofit governing body • Mueller Foundation/Program Administrator – resale program • Program Administrator – operations and management Affordability Stewardship • • • Program Administrator – education and credit counseling Lenders/Program Administrator – screening buyers City of Austin/Program Administrator – monitoring compliance 3 | RMMA PIAC November 2021 Affordable Housing Plan & Requirements • Located on city-owned land • City selected Catellus as the master developer • Master Development Agreement (MDA) regulates the redevelopment • MDA requires 25% affordable housing: o For sale requirement = 80% MFI o For rent requirement = 60% MFI • Mueller is a certified S.M.A.R.T. Housing development • Catellus is delivering on commitment to go above and beyond 4 | RMMA PIAC November 2021 Affordable Housing Above and Beyond • Longer-term affordability beyond one year using fixed-appreciation model • Added some new and resale workforce housing at 120% MFI • Self-sustaining model to monitor and enforce compliance with affordability restrictions and provide post-ownership support, i.e., “stewardship” • Market-rate rental properties have a minimum of 10% affordable units, with the majority delivering 15% affordable units • Long-term affordability from 40 to 99 years for all rental developments • Predominantly affordable rental developments have reached deeper affordability: some units serve 30-50% MFI or below • Affordable homes integrated throughout the master development Austin Habitat for Humanity row homes 5 | RMMA PIAC November 2021 MFI Level: New Homes, Apartments Median Family Income MDA Requirement Current MFI For Sale For Rent Requirement <= 80% MFI <= 60% MFI <50% to 80% <30% to 60% Over and Above (a broader qualification in addition to what is required in the MDA) For Sale For Rent up to 120% up to 80% MFI of Home Buyers MFI of Affordable Renters 19% 5% 9% 21% 46% <=50% MFI 50-60% MFI 60-70% MFI 70-80% MFI 80-120% MFI 1% 9% 26% <=30% MFI 30-50% MFI 50-60% MFI 60-80% MFI 64% 9 | RMMA PIAC November 2021 Product/Design – For Rent Wildflower Terrace AMLI @ Mueller Sync @ Mueller AMLI @ Aldrich Aldrich 51 Mosaic @ Mueller The Jordan AMLI Branch Park (coming soon) Ryan Companies Project (coming soon) 11 | RMMA PIAC November 2021 Renting Opportunities Number of Apartment Units Community Market Affordable Total % Affordable Years Affordable Mosaic Sync Wildflower Terrace AMLI Mueller Aldrich 51 AMLI Aldrich Overture The Jordan AMLI Branch Park Ryan Co. Project 397 256 30 237 36 270 171 0 345 274 44 45 171 42 204 48 30 132 61 51 828 441 301 201 279 240 318 201 132 406 325 10% 15% 85% 15% 85% 15% 15% 100% 15% 15% 29.1% 50 50 99 50 99 50 50 40 50 50 TOTAL* 2,016 2,844 *Does not include more apartments yet-to-be announced 12 | RMMA PIAC November 2021 Development Status – Product / Design Garden Homes Yard Homes Row Homes Mueller House Condos 7 | RMMA PIAC November 2021 Current Status - Ownership 696 families served to date: Current Status/Affordability Period • 568 original new homes (536 in program) o Includes 45 workforce homes at 120% o 32 released to market • 128 resales 536 affordable new and resale homes currently in program as of June 1, 2021 Column1 TOTAL Yard Home Row Home Mueller Home Garden Home ALL 536 60 309 103 64 GROUP 1 100 41 34 13 12 GROUP 2 436 19 275 90 52 6 | RMMA PIAC November 2021 MFI Level: Resale Homes • 132 total resales • 32 total homes released to market for the continued preservation of affordable properties MFI of Home Buyers MFI of Resale Buyers 19% 5% 9% 46% <=50% MFI 50-60% MFI 60-70% MFI 70-80% MFI 80-120% MFI 21% 51% 4% 6% 13% 26% <=50% MFI 50-60% MFI 60-70% MFI 70-80% MFI 80-120% MFI 10 | RMMA PIAC November 2021 Current Status – Ownership Number of Ownership Units Home Type Affordable Current Status/Affordability Period (80%) Workforce (120%) Market TOTAL Mueller House 109 Garden Court Shop Garden Town Green Paseo Row Cottage Other Yard Other Row Condo 2 TOTAL 58 23 84 52 14 11 809 585 76 1,821 0 0 70 120 24 50 17 63 308 21 673 0 0 0 27 0 32 0 0 0 0 58 23 154 256 76 96 28 872 893 97 1 This figure includes all homes built, plus homes planned in Section 11 2 This figure does not include the Parkside condos by Pearlstone 59 2,553 1 = 26.4% affordable at 80% MFI = 28.7% affordable, including 120% MFI 8 | RMMA PIAC November 2021 Mueller Foundation Purpose: The Mueller Foundation is a 501C-3 non-profit corporation created by Catellus to support and fund long-term community goals for Mueller with an emphasis on affordable housing Board Members and Staff: Suzanna Caballero Rob Repass Kerry Tate Matt Whelan Jim Walker Greg Weaver Leslie Wingo Frances Ferguson Executive Director 13 | RMMA PIAC November 2021 Transition Update 2018 - 2020 • No one vendor met all our needs through “expression of interest” • HousingWorks hired to help navigate additional planning and the transition process • Multiple Mueller Foundation board planning sessions • National experts consulted • Developed 10-year forecasts and projections for current and future planning purposes 2021 • Hired new executive director and full-time operations manager; hiring home ownership manager • Community Wheelhouse as a valuable partner continues to manage waiting list, new sales and resales Implemented new affirmative marketing policy • • Added homebuyer education partner • Shifting to Restrictive Covenant • • Moving loan servicing to national firm Listening sessions with affordable owners on operating policies 14 | RMMA PIAC November 2021 • • • • • Outreach Updated marketing materials: Infographic: road to ownership o Resource guide o FAQs o Emails, calls to interest lists and stakeholder groups Targeted advertising spend on social media, radio, newspapers Encourage attendance to Zoom information sessions, visit website To date: o o o o Six live (Zoom) information sessions Average 66 participants per session Nearly 300 organizations contacted Participants have scored the sessions an average of 4.5 out of 5.0 for being informative An example of the information session promotion the Mueller Team has shared 15 | RMMA PIAC November 2021 2020 Audit Report “In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Mueller Foundation as of December 31, 2020 and 2019, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.” • • Financial statement disclosures are neutral, consistent and clear Encountered no significant difficulties in dealing with management relating to the performance of the audit • No uncorrected and/or corrected misstatements identified by us as result of audit procedures were material, either individually or in the aggregate • Full audit report available at: https://muellerfoundation.org/about/audited-financial-statements/ 16 | RMMA PIAC November 2021 Thank you. Q&A 17 | RMMA PIAC November 2021