PowerPoint Presentation (Updated 2/10/2023)
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Affordable Housing Development Incentive Program City Council Workshop, February 14, 2023 Presentation Overview 2 • Community Need • Applicable Council-adopted Policies • Arizona Department of Housing (ADOH) Program • Incentive Program Overview & Process • Developer Pathways • Administrative Award Process (for ADOH awarded projects only) Housing Availability & Homelessness 3 • 22% increase in unsheltered homelessness in Maricopa County (2020-2022) 1 • 270,000 housing units needed statewide (ADOH) 2 • 143,998 units needed for 30% AMI households 3 • 68% increase in apartment rent since 2017 4 1 Source: www.azmag.gov 2 Source: https://housing.az.gov/sites/default/files/ADOH_FY2022_Annual_Report.pdf 3 Source: https://nlihc.org/housing-needs-by-state/arizona 4 Source: https://azmag.gov/Programs/Maps-and-Data/Land-Use-and-Real-Estate/Housing-Data-Explorer Affordable Housing Needs in Glendale 4 • 17.3% of residents are within poverty threshold – 43,186 persons – 14,995 households • Existing Affordable Units: – 9 developments, 779 units • 2 mixed-income (284 units), expire 2024 and 2031 • 7 100% affordable, expire 2034-2053 • Affordable Units in Process: – 7 developments, 1,306 units Applicable General Plan Policies 5 • HE-1.1 The City should partner with the private sector to achieve goals for safe, affordable housing and coordinate housing programs and services to ensure consistency with the current Consolidated Plan • HE-3.1 The City should create and implement incentives for the private development of affordable housing and special needs housing using mechanisms such as fee waivers or fee reductions, fast track permitting, and density increases or transfers. Applicable Consolidated Plan Goals 6 • Goal 1: Promote Access to Decent Affordable Housing. Glendale will work to promote access to affordable quality housing. • Goal 2: Increase Access to Homeless Services/Housing. Glendale will identify ways to partner with government, nonprofit, and private sector to offer additional emergency shelter, transitional housing, and permanent and supportive housing. ADOH Qualified Allocation Plan 7 • Developed based on public input • Approved by the Governor • Addresses all the following: – Application/award process – Award limits & set asides – Threshold eligibility – Selection criteria – Underwriting standards – Post-award requirements – Compliance monitoring ADOH Threshold Eligibility 8 • Applicant Experience • Principals (specific disqualifying criteria) • LIHTC Management Experience • Site Control • Market Need • Funding Sources • Incompatible Uses/Locations • Site, Zoning, Infrastructure ADOH Minimum Income Requirements 9 • Federal limits allow for mixed-income (must meet one of the following): – 20% of the units are rent restricted and occupied by households at 50% Area Median Income or less – 40% of the units are rent restricted and occupied by households at 60% Area Median Income or less • ADOH’s Qualified Allocation Plan encourages “targeting” of units to income levels lower than these federal limits 10 ADOH Mandates if Awarded • 30-year rent restriction • Declaration of Affirmative Land Use & Restrictive Covenants Agreement (LURA) • Annual physical inspection of project and review of resident records • IRS notification for noncompliance issues • Notification for change of management • Approval for change in ownership • Payment of compliance monitoring fees Incentive Program Overview 11 • Fee Waiver (new projects) • Rebate (if requested no later than 3 months after issuance of Certificate of Occupancy) • Applies only to fees shown on the Community Development Fee Schedule • Does not apply to Development Impact Fees • Must be compliant with all City regulations Incentive Program Process 12 • Applicant fee waiver/rebate request letter: – Project Narrative – Development Experience – Ownership Intention – Management Intention – Special Populations, Amenities, Services – Advancement of City Objectives (compliance with Consolidated Plan, General Plan, etc.) – ADOH Award Letter (if applicable) Developer Pathways 13 Administrative Award Process for ADOH Awarded Projects Only 14 Developer Submits Request Letter Community Services Staff Review & Validation with ADOH Staff Recommendation to City Manager City Manager Approves/Denies Approval/Denial Copy to: Applicant City Council Development Services Economic Development Budget & Finance Council Direction Requested 15 • City Code Chapter 2, Article I, Section 2-3, add (e): “Any of the community development fees may be waived or rebated by the city council as an incentive to attract the development of housing units that will be maintained as affordable for a period of no less than 30 years upon a finding that the waiver or rebate is in the best interests of the City of Glendale. The city council delegates its authority to the city manager to waive or rebate, in writing, 100% of community development fees for recipients of Arizona Department of Housing tax credit awards and to provide a copy of the waiver or rebate notice to the city council.”