Delaware State Housing Authority

FY ’15 Budget Public Hearing

November 26, 2013

Delaware State Housing Authority18 The Green

Dover, DE 19901(302) 739-4263 ■ (888) 363-8808

Visit us at www.destatehousing.com

DSHA Presentation

Presentation Summary –

• Core Businesses

• Accomplishments and Highlights

• State Budget Production Reports

• FY 15 Budget Request

DSHA Core Businesses

HomeownershipKey Activities:• Homebuyer Mortgages• Second Mortgage Assistance• Foreclosure Mitigation• Home Rehabilitation Challenges• Low Demand - economic

uncertainty• Underwriting Criteria – harder

for homebuyers to get loans• Foreclosure– job loss

RentalKey Activities:• Rental Housing Development• Multi-Family Site Preservation• Rental Subsidies• Asset Management Challenges• Increased Demand• Stricter Permanent Lending

Underwriting Criteria• Preservation of Affordable

Rental Housing

DSHA Accomplishments and Highlights

Fiscal Year 2013 Benchmarks –

• 708 mortgages financed

• 1,100 families received foreclosure counseling

• 100 homeowners saved with direct assistance

• 153 foreclosed/vacant homes brought back online

• 325 affordable rental units built or renovated

• 400 SRAP vouchers issued

DSHA Accomplishments and Highlights

New Initiatives –

• First-time homebuyer tax credit

• New “Home Again” program

• Foreclosure prevention and recovery

• Manufactured housing assistance

• $5 million in new rental subsidies

FY15 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

FY13 Production Report$4,070,000 Base Budget

$6,000,000 ARHP (Bond Bill)

Housing Development FundFY13 Unit Production

Rental Housing

Homeownership

Rehabilitation/Preservation 175 UnitsNew Construction 70 UnitsRental / Security Deposit 914 Units

Rehabilitation 15 UnitsAcquisition/Rehabilitation 7 UnitsNew Construction 16 UnitsPre-Purchase Counseling 570 Units

Housing Development FundFY13 Funding Leverage

HDF FY13 Funding Summary:

HDF Leveraged Amount $ 54.5 million

(6.5 : 1 ratio)

Economic Activity Created $ 58.8 million

(7:1 ratio)

Jobs Created or retained 294

HDF Dollars Allocated $8.4 millionLow Income Housing Tax Credits $18.9 millionPrivate Loans $12.2 millionOther (Federal, Donations, Contributions) $23.4 millionTotal $62.9 million

Housing Development Fund

FY15 Budget Request$4,070,000 Base Budget$6,000,000 Bond Bill

Housing Development FundBase Budget Request $4,070,000

1. Affordable Rental Housing Rehabilitation of existing units Creation of new units

2. Affordable Homeownership New units Owner-occupied rehabilitation Housing counseling

Affordable Rental Housing Program

$6,000,000 Need for an ongoing rental housing

investment program funded by the state

FY15 outcomes from $6 million: Leverage Federal tax credit programs Preservation and new construction of

shovel-ready projects 3-4 sites (200-300 units) Leverage $24 million in other funds Economic impact of $42 million 225 Delaware jobs

Stoneybrook Project Financing Leverage

13

Leverage

State Resources (HDF): $ 480,000

Federal HOME Grants: $1.8 MSeller Mortgage/Developer Fee: $2 M

Private Investments: $10.8 M

Tax Credit Equity: $9.5 M

Total Leverage: $24.1 M

Stoneybrook Apartments

Before Renovation

During Construction

CascadesForeclosed Development

During Construction

Completed Construction

Buford Manlove ManorBefore

After Renovation

Heron Run

Before Renovation

During Construction

Heron Run Completed

Heron RunSolar Panel Installation

State Rental Assistance Program

Production Report$3,000,000 FY14 Budget$1,900,000 FY14 DSAMH

Budget

SRAP Status Report(as of November 1)

SRAP Vouchers Issued/Leased by Agency

DHSS-DSAAPD 35 7.5%

DHSS-DMMA 53 11.4%

DHSS-DDDS 35 7.5%

DHSS-DSAMH 252 54.2%

DSCYF-Youth 52 11.2%

DSCYF-Families 38 8.2%

TOTAL 465 100%

SRAP Production Report

Applications Pending Vouchers Issued Units Leased Total

Applications Pending

(#)

Funds Reserved

($)

Vouchers Issued

(#)

Funds Reserved

($)Units Leased

(#)Funds

Encumbered($)

Application, Vouchers and Units

(#)

Total Funds Reserved

and Encumbered

($)

34 $289,000 124 $1,054,000 341 $2,688,785 499 $4,031,785

SRAP Production and Pipeline (as of 11/1/2013):

Program Recognition

2011 Honorable Mention in Governor’s Team Excellence Awards

2012 National Association of Housing and Redevelopment Officials (NAHRO) National Award of Merit

2013 National Council of State Housing Finance Agencies (NCSHA) National Annual Award for Program Excellence

State Rental Assistance ProgramSRAP DOE Pilot Program

MOU with DOE and DSCYF to create 100 vouchers

Vouchers will cover one 12-month period

School homeless coordinators to make eligibility determination, referral, and provide services

According to DOE, there are 3,000 homeless families with at least one child in school

High cost to transport homeless students

Students with stable housing perform better in school

SRAPFY 15 Request

$3,000,000

DSHA request for $3 million in FY15 to maintain vouchers issued in FY13 and FY14

SRAP program expansion to meet needs of DHSS/DOJ Settlement $1.9 million allocated to the SRAP program by

DHSS/DSAMH to maintain issued vouchers Funding for additional vouchers to comply

with the Settlement if made available

FY15 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!