Upper Valley MEND and the SHARE Community Land Trust

Affordable Housing In the Upper Valley:At the Crossroads

Meadowlark Update 2013

What it will take to make it happen

Alpine Heights10 homes, 2001

Aldea Village10 Homes, 2006

Cornerstone Adult Family HomeSix resident units + Manager apartment: 2011

Assumed asset management responsibilities for eight homes in 2011 when local Habitat chapter closed

UV MENDand

Affordable Housing in the Upper Valley

Keeping Leavenworth Livable for Working Families

“These working families are critically important to the success of any community, as they are the lifeblood of our workforce. There is no question that affordable housing is important in any community, but it has never been more important to Leavenworth than right now.”- Leavenworth Mayor Cheri Farivar

Change in Population, Housing Units, and Housing Unit Status:

Cities in Chelan County, 2000-2010

Change in Population, Housing Units, and Housing Unit Status:

School Districts in Chelan County, 2000-2010

On 11/17/12, there were 173 Residential Properties Listed for Sale in Leavenworth, Peshastin, Dryden, Lake Wenatchee, and Steven’s Pass

Single Family Median List Prices (152)• $397,000 in Leavenworth (Range: $89,000-$2.0m)

• $349,000 in Peshastin/Dryden (Range: $125,000-$1.1m)

Condo Median List Prices (21)• $299,900 (Range: $119,000-349,000)

Properties $250,000 or less (43)• 34 Single Family • 8 3-Bedroom (7 are in Plain)• 9 2-Bedroom • 17 1 or No Bedrooms (1 room cabins) • 9 Condos, Median $165,900

Home Sales in the Upper Valley

Meadowlark Site Plan

Meadowlark Site Plan and Home Types

Revenue from Home Sales

Numbers Taken from the Meadowlark Pro Forma

97% OF MEND’S MEADOWLARK COSTS ARE COMMITTED – WE HAVE 3% TO GO

MEADOWLARK PROJECT COST & COMMITTED REVENUES:

PROJECT COST:Land and Predevelopment $1,074,801Site Development $2,766,882Construction (@ $95-100 s/f) $8,808,349Interest Reserve $375,000Selling Costs $331,300TOTAL PROJECT COST $13,356,332

COMMITTED REVENUES:Community Support to Date $542,102City of Leavenworth $234,000County of Chelan $20,000SHOP (HUD) $450,000Habitat for Humanity $450,000Affordable Home Sales $5,200,000Near Market Home Sales $6,065,000TOTAL COMMITTED REVENUES $12,961,102

UNFUNDED GAP $395,230

Opportunities...

... and RisksProject Management Partner with large contractor

Construction Cost 15% contingency on infrastructure, 15% on homesAbsorption/Price Points Flexible build out (4-5 years)Project Financing Will know soon enough to secure bank back-up

90% likelihood 70% likelihood 50% likelihood Totals

$150,000 $150,000CDBG (community development block grant) $750,000 $750,000City of Leavenworth 20-60 Fund $20,000 $20,000Chelan County 20-60 Fund $70,000 $70,000Other grants, foundations & corporate giving $100,000 $100,000 $200,000HTF (Housing Trust Fund) $500,000 $500,000Additional Community Capital Raise $175,000 $175,000 $350,000Site Plan Change adding 5 more lots (net value) $250,000 $250,000

Save $5 per square foot on building cost $335,000 $335,000Save another $5 per square foot $335,000 $335,000Save 25% of the contingency $195,000 $195,000Save another 25% of the contingency $195,000 $195,000Rayfield donation of work $100,000 $100,000 $200,000

$340,000 $2,305,000 $705,000 $3,550,000

Cover gap $340,000 $205,230 $545,230Bring down affordable house prices $2,099,770 $705,000 $2,804,770Reduction per affordable house $69,992 $23,500 $93,492

ADDITIONAL REVENUE USE:

TOTAL POTENTIAL ADDITIONAL REVENUES

Potential Reductions in Costs:

Critical Community Capital Raise

POTENTIAL SOURCES OF ADDITIONAL REVENUES:

Economic Impact of MeadowlarkThe investment of public funds for Meadowlark’s infrastructure will leverage a multi-year, public, private, non-profit effort for 100 residences, the majority of which are affordable housing, with over $21,000,000 in value of direct construction and investment.

The estimated local impact from construction of 100 homes include the private and public benefits of:• $21.1 million in local income• $2.2 million in taxes and other revenue for local governments• 324 local jobs

After construction, the annually-recurring impacts include:• $3.1 million in local income• $743,000 in taxes and other revenue for local governments• 53 local jobs. These recurring benefits come from new home-occupiers paying taxes and becoming consumers in the local economy year after year. Other ongoing impacts include the effect of increased property taxes, based on the difference between the value of raw land and the value of a completed housing unit on a finished lot.

Source: The Local Impact of Home Building in a Typical Metro Area: Income, Jobs, and Taxes Generated: June, 2009, available at http://www.nahb.org/generic.aspx?sectionID=784&genericContentID=35601

Economic Impact of Meadowlark51 Homes, 6 Lots

Excise tax on $11.2m sales $56,000

Sales tax on $11.5m construction $207,000

Hookups/Permits $624,000

Property Tax (Annual 3X) $265,200

TOTAL $1,152,200

• $13,000,000 in economic activity through the local market.

• Generating:

Go-Forward Timeline

ITEM STATUS NOTES

Site Planning and Engineering 60%

Planned Development Preliminary Approval

80% In negotiations with city on ‘application complete’.

CDBG Application 1/31/2013 Successfully submitted.

Final Site Engineering 2/1/2013 -5/1/2013

Construction Financing 2/1/2013 –5/30/2013

Working on ‘socially responsible’ investment pool.

Final Contractor Bids/Selection 5/1/2013 –7/1/2013

Infrastructure only.

Infrastructure Construction Begins 8/1/2013

Final Contractor Bids/Selection 9/1/2013 –11/1/2013

Home builder(s).

Phase I Home Permits 1/1/2014

Home Construction Begins 7/1/2014

The MEND Board believes we should move forward, provided that we raise $150,000 of our $540,000 capital drive in order to finish pre-development.

The Board mandated on November 22 to make the decision whether or not to go forward by the end of December, dependent upon raising the $150,000. The reason for this mandate is to protect the financial integrity of all other MEND ministries.

AND NOW FOR THE RESULTS As of December 31st we exceeded our goal of $150,000 in donations. See attached list of donors Forty community leaders & donors we presented to unanimously recommended to proceed with Meadowlark, building homes and community.

Part of our mission is to make sure the community is with us, as it has been for all of our MEND ministries. We have and are now continuing to reach out to the community to ensure the necessary moral support and financial backing for

Meadowlark.

Providing affordable homes for our families and employees is critical to our community.