Delaware State Housing Authority

FY ’15 Joint CommitteeOn Capital Improvement

Public Hearing

February 11, 2014Delaware State Housing Authority

18 The GreenDover, DE 19901

(302) 739-4263 ■ (888) 363-8808

Visit us at www.destatehousing.com

DSHA Presentation

Presentation Summary –

• Core Businesses

• Accomplishments and Highlights

• Delaware Housing Market Overview

• State Budget Production Reports

• FY 15 Budget Request

DSHA Mission

Our mission is to efficiently provide, and to assist others to provide quality, affordable housing

opportunities and appropriate supportive services to low- and moderate-income Delawareans

DSHA Core Businesses

Homeownership• Homebuyer Mortgages• Second Mortgage Assistance• Foreclosure Mitigation• Home Rehabilitation Rental• Rental Housing Development• Multi-Family Site Preservation• Rental Subsidies• Asset Management

DSHA Accomplishments and Highlights

• First-Time Homebuyer Tax Credit

• Mortgage Financing Partnerships

• Bond Restructuring ($2.5 M savings)

• $5M in New Rental Subsidies

Delaware Housing Market Overview

Housing Market Review: Building Permits

Source: U.S. Census Bureau, CenStats Database

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

2,000

4,000

6,000

8,000

10,000

7,786

8,582 8,529

6,678

4,943

3,346 3,121 2,955 3,150

3,9014,693

Delaware Building Permits, 2003 – 2013

2005 2006 2007 2008 2009 2010 2011 2012 20130

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

15,751

13,647

12,011

8,533 8,314 8,247 8,111

9,62510,795

Delaware Home Sales, 2005 – 2013

Housing Market Review: Home Sales

Source: County Board/Associations of REALTORS©

Housing Market Review: Home Prices

Source: County Board/Associations of REALTORS©

2000 2002 2004 2006 2008 2010 20120

50

100

150

200

250

300

350

Median Home Prices, 2000 – 2013

Kent New Castle Sussex

Med

ian

Hom

e Pr

ice

($00

0s)

Housing Market Review: Mortgage

Delinquencies

Source: Mortgage Bankers Association, National Delinquency Survey

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q32008 2009 2010 2011 2012 2013

02468

10121416

US9.75

DE10.82

Loans Past Due (30+ days) or In Foreclosure (% of all loans)

US DE

Housing Market Review: Foreclosure Filings

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

1000

2000

3000

4000

5000

6000

7000

2,204 2,121 2,175 2,288

3,853

4,488

6,1576,457

5,112

1,276

2,592

Delaware Foreclosure Filings, 2003-2013

Housing Market Review: Sheriff Sales

Source: Lexis Nexis Database, compiled by Counties, AG, and DSHA

FY15 Bond Bill Request

DSHA Budget

Affordable Rental Housing Program $6,000,000

Downtown Development Districts Grant $7,000,000

Total DSHA Bond Bill Request $13,000,000

Affordable Rental Housing ProgramFY13 Production

Report$4,000,000 (FY 13 Bond

Bill)

ARHPFY13 Production

Affordable Rental Housing

3 multi-family rental housing sites

216 units

Housing for 600 people

Nearly $2 million in HUD rental subsidy preserved

Affordable Rental Housing Program

FY13 Funding LeverageARHP FY13 Funding Summary:

HDF Leveraged Amount $45.2 million

(8.5 : 1 ratio)

Economic Activity Created $ 37.1 million

(7:1 ratio)

Jobs Created or retained 259

ARHP Dollars Allocated $5.3 million

Low Income Housing Tax Credits $16.4 million

Private Loans $11.8 million

Other (Federal, Donations, Contributions) $17.0 million

Total $50.5 million

Affordable Rental Housing Program (ARHP)FY15 Bond Bill Request

$6,000,000

Rental Housing Needs

• Rents Increasingly Unaffordable in Past Decade

Median rent in DE increased 50% from 2000 to 2012, median renter household income only 15%.

• Demand for New Affordable Rental Housing 39,850 Delaware renter households are cost-burdened. Of these, 19,695 are severely cost-burdened.

• Preservation and Rehab Needs47% of sites are over 15 years old or since last rehab44% of sites in fair/poor physical condition26% with total reserves below $50,000

Affordable Rental Housing Program (ARHP)

Affordable Rental Housing

Rehabilitation of existing units

Creation of new units

4-6 sites, 300 – 350 units

Continue leveraging public/private

resources

Stoneybrook Apartments

Before Renovation

During Construction

Walnut Street Apartments

Under Construction

Heron Run

Before Renovation

During Construction

Heron Run Completed

Heron RunSolar Panel Installation

FY15 Bond Bill Request

DSHA Budget

Affordable Rental Housing Program $6,000,000

Downtown Development Districts Grant $7,000,000

Total DSHA Bond Bill Request $13,000,000

Downtown Development District Grants

$7,000,000

Downtown Development Districts

1. Applications made by jurisdictions to Office of State Planning

• Areas in high need• Plan for designated area• Jurisdiction incentives

2. Review by Cabinet Committee on State Planning Issues

3. Designation by the Governor

Downtown Development District Grants

1. Request for $7 million in Bond Bill• Grants for development investments

made within DDD• Up to 20% of hard costs

2. Administered by DSHA• Adoption of rules, regulations• Application process• Allocation of grants• Monitoring for compliance

Downtown Development District Grants

Eligibility Requirements• Must be compliant with DDD plan• Residential, commercial, mixed use• Minimums (1st year, subject to change):

• Threshold of $25,000 for single residential or mixed-use building

• Threshold of $100,000 for multi-family residential, commercial or industrial

• Limitations (1st year, subject to change):• $250,000 within 5 year period for investments

of $5 million or less• 5% of investment up to $500,000 for

investments over $5 million

FY15 Bond Bill Request

DSHA Budget

Affordable Rental Housing Program $6,000,000

Downtown Development Districts Grant $7,000,000

Total DSHA Bond Bill Request $13,000,000

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!