Delaware State Housing Authority DSHA FY 2014 Budget Joint Finance Committee Hearing February 5,...

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: Anas@destatehousing.com

Thank you!