delaware state housing authority dsha fy 2014 budget joint finance committee hearing february 5,...
TRANSCRIPT
Delaware State Housing Authority
DSHA FY 2014 Budget
Joint Finance Committee Hearing
February 5, 2013
Delaware State Housing Authority18 The Green Dover, DE 19901(302) 739-4263 (888) 363-8808
www.DEStateHousing.com
Outline
• DSHA At a Glance
• FY14 Budget Request
- HDF Base Budget- State Rental Assistance Program
DSHA Core Businesses
Homeownership
Key Activities:
• Homebuyer Mortgages
• Second Mortgage Assistance
• Foreclosure Mitigation
• Home Rehabilitation
Rental
Key Activities:
• Rental Housing Development
• Multi-Family Site Preservation
• Rental Subsidies
• Asset Management
DSHA New Initiatives
State Rental Assistance Program
Home Again
Loans for Heroes
Wilmington Senior Tax Assistance Program
Housing Needs for People with Disabilities
Community Impact Study
DelawareHousingSearch.org
DSHA New Efficiencies
Organizational consolidation saved $260,000 in salary
Debt restructuring Saved $1.7 million in interest payments
Program leverage 500 new homeownership loans
New mortgage financing structure Saves on cost of issuance
Housing Market Review: Building Permits
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
2,000
4,000
6,000
8,000
10,000
6,331
7,786
8,582 8,529
6,678
4,943
3,346 3,121 2,955 3,1503,582
Delaware Building Permits – 2002 - 2012
Source: U.S. Census Bureau, CenStats Database
Housing Market Review: Home Sales
2005 2006 2007 2008 2009 2010 2011 20120
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000 15,751
13,647
12,011
8,533 8,314 8,247 8,1119,625
Delaware Home Sales: 2005-2012
Source: County Board/Associations of REALTORS©
Housing Market Review: Mortgage
Delinquencies
Q4 07
Q1 08
Q2 08
Q3 08
Q4 08
Q1 09
Q2 09
Q3 09
Q4 09
Q1 10
Q2 10
Q3 10
Q4 10
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Q2 12
Q3 12
0
2
4
6
8
10
12
14
16
U.S.11.71
DE12.10
Loans Past Due or In Foreclosure, All Loans: U.S. and DE (Percent of All Loans)
US DE
Source: Mortgage Bankers Association, National Delinquency Survey
Housing Market Review: Foreclosure Filings
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
1000
2000
3000
4000
5000
6000
7000
2,121 2,204 2,121 2,175 2,288
3,853
4,488
6,1576,457
5,112
1,276
Delaware Foreclosure Filings, 2002-2012
Housing Market Review: Foreclosure Filings 2012
Jan Feb March April May June July Aug Sept Oct Nov Dec0
50
100
150
200
250
300
350
400
450
426
10 11 2143
6141
7099
126
196172
Delaware Foreclosure Filings, 2012
Source: Lexis Nexis Database, compiled by Counties, AG, and DSHA
Housing Market Review: Rental Market Changes 2000
- 2010
2000 2010 Increase
Median Gross Rent $639 $952 49%Median Family Income $55,257 $68,746 24%
Cost-burdened Renters* 28,128 45,264 61%
% of Renters Cost-burdened 34% 51% 50%
Source: U.S. Census Bureau, 2000 Census and 2010 American Community Survey
* Cost burdened is defined as spending 30% or more of household income on rent
Housing Market Review: Cost-Burdened
Households
Extremely Low Income (<30%
AMI)
Very Low Income (30-50% AMI)
Low Income (50-80% AMI)
>80% of AMI0%
20%
40%
60%
80%
100%
Percent of Delaware Renter Households Cost-burdened by Income
Cost-burdenedSeverely Cost-burdened
71% 72%
44%
6%
Source: HUD 2005-2009 CHAS Data, compiled by DSHA
Cost-Burdened is defined as spending 30% or more of household income on rentSeverely Cost-Burdened level is 50% of income
FY14 Budget Request
HDF Base Budget $4,070,000
Affordable Rental Housing Program
$6,000,000
State Rental Assistance Program
$3,000,000
Total DSHA Budget $13,070,000
Housing Development Fund
FY12 Production Report
Housing Development Fund FY12 Unit Production
Rental Housing
Homeownership
Rehabilitation/Preservation 264 Units
New Construction 76 Units
Rental / Security Deposit Assistance 448 Units
Rehabilitation 285 Units
Acquisition/Rehabilitation 16 Units
New Construction 27 Units
Pre-Purchase Counseling 425 Units
16
Leverage
State Resources (HDF): $ 10.2 M
Federal HOME Grants: $14.1 M
Other (Federal, Donations, Contributions) : $2.3 M
Tax Credit Equity: $32.4 M
Total Leverage: $48.8 M
HDF Investment Leverage Ratio is 4.8 to 1
Housing Development Fund FY12 Leverage
Housing Development Fund
FY14 Budget Request$4,070,000 Base Budget
Housing Development Fund
$4,070,000
Affordable Rental Housing Rehabilitation of existing units Creation of new units
Affordable Homeownership New units Owner-occupied rehabilitation Housing counseling
Carvel GardensLaurel, DE
100 Family Units
Before
After
The Cascades at Milford76 Family Units
Community Building
Solar Panels
New Construction
Hampton CircleSeaford, DE
35 Senior Units
New Construction
Ms. Erethia Smith, Resident
Manlove ManorWilmington, DE
40 Senior Units New Community Building
Before
Rehab in Process
State Rental Assistance Program
FY 13 Production Report
$3,000,000 FY 2013 Budget
Introduction
The purpose of the State Rental Assistance Program (SRAP) is to assist low-income
individuals who are eligible to receive supportive services and require affordable housing to live safely and independently in
the community.
Program GoalsProvide rental subsidies to program participants
who require, and have access to continuing home- and community-based services
Establish partnerships with state agencies and community service providers
Move individuals out of state-run long-term care facilities and into home- and community-based care programs
Transition program participants to financial self-sufficiency or to other affordable housing resources
Populations Served
Clients exiting state-supported and privately run long-term care facilities
Youth aging out of foster care
Families for whom the lack of affordable housing is a barrier to reunification
Individuals at-risk of requiring services from or being admitted to a state-supported institution
DSAMH clients identified as target populations in the USDOJ Settlement with the State of Delaware
SRAP Production Finance Report
Applications Pending Vouchers Issued Units Leased Total
Applications Pending
Funds Reserved
(1)
Vouchers Issued
Funds Reserved
(1)
Units Leased
Funds Encumbered
(2)
Application, Vouchers and Units
Total Funds Reserved and Encumbered
67 $569,500 107 $909,500 178 $1,428,928 352 $2,907,928
SRAP Production and Pipeline (as of 12/31/2012):
(1) Based on annual estimate of $8,500 per Voucher(2) Based on actual expenditures
SRAP ProductionVouchers Issued
SRAP Vouchers by Agency
DHSS-DSAAPD/DMMA 57
DHSS-DDDS 16
DHSS-DSAMH 134
DSCYF-Youth 41
DSCYF-Families 37
TOTAL 285
19 Participants have transitioned to other permanent housing 9 participants have been terminated from the program due to violations
DPC Settlement Agreement
SRAP is a key tool in the State’s effort to implement the DOJ Settlement on the Delaware Psychiatric Center (DPC)
DSAMH has transferred additional funding to the SRAP program to ensure Settlement housing goals are met
July 2012 goal was to provide 100 additional new housing vouchers (SRAP provided 75)
July 2013 goal is to provide 200 additional new housing vouchers (SRAP target is 150)
Settlement housing target for FY14 is 550.
DPC Settlement Agreement
SRAP is starting to show a cost avoidance benefit – especially with people covered by the Settlement Agreement
135* SRAP vouchers issued to DSAMH clients exiting DPC or at-risk of admission to DPC.
Average length of stay at DPC for these clients is 60-days at a cost of $36,180 per client or $4,848,120 for all 135 clients.
The cost to provide SRAP rental housing assistance to the same cohort of 135 is $974,565**.
Cost avoidance for this one sub-population of SRAP in the first of their participation in the SRAP program is $3,873,555.
*Including SRAP vouchers funded by DSAMH**Actual cost of rents ($7219) for DSAMH clients used
$3,000,000To continue the program and continue to provide housing to
350 current and new SRAP program participants.
SRAPFY14 Budget
Request
SRAP Program Participants… In Their Own
Words
FY14 Budget Request
HDF Base Budget $4,070,000
Affordable Rental Housing Program
$6,000,000
State Rental Assistance Program
$3,000,000
Total DSHA Budget $13,070,000
Contact Information
Anas Ben Addi, DirectorDelaware State Housing Authority
18 The Green Dover, Delaware 19901
Telephone: 739-4263 Fax: 739-6122Toll Free: 888-363-8808
E-mail: [email protected]
Thank you!