Public Housing Redevelopment Presentation
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1 Public Housing Redevelopment Leah Powell, Neighborhood Resources Director Amy Jacobson, Housing and Redevelopment Manager Neil Calfee, Calfee Development Advisors PHAC Work Session July 12, 2021 Agenda 2 • Introductions • Public Housing at a Glance • Redevelopment Needs • Recap Progress • Developer Selection • Financing Redevelopment of Public Housing • Timeline Chandler Housing Mission Statement Work together with our community partners to maintain safe, decent and affordable housing for low-income individuals and families within our community. 3 Chandler Public Housing at a Glance 4 o4 Family Multi-family sites: o 163 units (one to five bedrooms) o1 Senior Multi-family site: o 37 units (32 one- and 34 two-bedrooms) oSingle-family scattered sites: o 103 homes (mix of two- to five-bedrooms) 5 Proximity to Services and Amenities Locations: Site 1: 130 N. Hamilton Site 2: 210 N. McQueen Site 3: 73 S. Hamilton Site 4: 660 S. Palm Ln Site 5: 127 N. Kingston Trails End: Vacant Land Chandler Blvd Pecos Road Frye Road Chandler High Boys & Girls Club McQueen Road Arizona Ave Chandler Public Library Willis Jr. High San Marcos Elementary Salvation Army Walmart Frye Elementary ICAN & Valleywise Health 4 1 3 5 2 TRAILS END Defining the Problem Infrastructure Challenges in Public Housing • Chandler’s aging units - Built in 1972 • Major Capital Needs $22M in next 20 years • Significant Plumbing and Electrical Systems • Replacement Repair/Maintenance costs increasing • Properties are aging- reaching end of useful life 6 7 Interior Unit Public Housing Capital Needs *Based on 2020 data Public Housing Capital Needs by Site Short-Term Needs Long-Term Needs Site 1: 130 N. Hamilton Site 2: 210 N. McQueen Site 3: 73 S. Hamilton Site 4: 660 S. Palm Lane Site 5: 127 N. Kingston $2,061,229 $1,456,105 $2,0108,044 $743,527 $1,044,625 $3,587,516 $4,416,566 $2,442,284 $2,286,382 $2,083,311 Chandler Housing (20-Year Estimate) $22M Capital Needs* Chandler Housing (20-Year Estimate) $14M Capital Funds* ($7.5M Deficit) Public Housing Financial Trend HUD Revenue and Expenses Overall Portfolio Strategy • Improve physical conditions • Opportunities for Public/Private Development • Secure improved access to affordable housing • Reposition the portfolio for long term success • Leverage Current Land Inventory • Create Mixed-Use & Mixed-Income, Including Market Rate Housing • Increase Housing Choice • Earn Development Fees • Increase Senior Housing Inventory 10 How Do We Meet Our Objectives? Reposition Public Housing Through Rental Assistance Demonstration (RAD) Unit is taken out of the Federal Public Housing inventory and converted from Public Housing (Section 9) to Section 8 assistance Preserve affordable housing availability, using a project-based unit or Housing Choice Voucher Benefits of Conversions Avondale Public Housing Site BEFORE Avondale Public Housing Site AFTER • June 2019: RAD Consultant for Site Feasibility and Development Structure • Oct. 7, 2019: PHAC RAD Work Session • June 2020: Completed Capital Needs Assessment (CNA) • Oct. 2020: Submitted Public Housing Five-Year Plan • Oct. & Dec. 2020: Conducted Public Housing Resident Initial Meetings • Sept 2020: Issued RFQE • Dec. 2020: Issued RFP for RAD Developer(s) 14 Recap of Progress Request for Proposal • Located at 1032 E. Trails End • Vacant Land (3.48 acres) • New Construction • Family or Senior Housing • Resident Community Center • Amenities City-Owned Vacant Land Trails End Request for Proposal Public Housing | Site 3 • Located at 73 S. Hamilton • Family and/or Senior Housing Project • Currently 40 units (one to five bedroom units) • 7.42 acres + additional land • Demo/New Construction or Rehab • Housing Youth Center Site Selection For Phase I Vacant City-Owned Land • Preferred Family Site as First Phase • Reduced Relocation Costs • Move Public Housing Residents onsite • Comply with General Plan and Area Plan • Create Synergy and Resident Involvement Benefits the City | Trails End Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships About Gorman & Company • 35 years of Affordable Housing and Community Development Experience • 400+ people with a wide variety of experience • Vertically integrated: Development, Architecture, Construction, Asset/Property Management • Works closely with local governments and community groups to help communities meet their development, planning, economic and social goals Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Gracie’s Village | Tempe Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Gracie’s Village | Tempe Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Lofts at McKinley Senior Housing |Phoenix Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Madison Heights RAD Conversion BEFORE AFTER Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Monroe Gardens RAD Conversion BEFORE AFTER Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Heritage at Surprise RAD Conversion BEFORE AFTER Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Escobedo at Verde Vista RAD Conversion BEFORE AFTER Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships River at Eastline Village RAD Conversion BEFORE AFTER Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Affordable Housing Financial Components • Rental Assistance Demonstration (RAD) • Low Income Housing Tax Credit (LIHTC) • Layered Approach (public and private funds) • Long-Term Ground Lease Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Example of RAD Project Financing| Soluna, Phoenix SOURCES First Mortgage $5,500,000 Low Income Housing Tax Credit $5,049,162 (LIHTC) Equity Deferred Developer Fee $231,557 Soft Funds $4,500,000 TOTAL $15,280,719 USES Acquisition $0 Hard Costs $10,465,156 Soft Costs $4,378,133 Reserves $437,430 TOTAL $15,280,719 Revitalizing Communities Through Innovative Housing Partnerships Revitalizing Communities Through Innovative Housing Partnerships Additional Benefits | Trails End 26 Request for Direction • Submit Rental Assistance Demonstration Application to HUD • Negotiate a Development Agreement with Gorman & Company to develop proposed projects for Trails End and Site 3 sites • Pursue land assemblage for highest and best use RAD Conversion Next Steps in a RAD Conversion Application CHAP Financing Plan Submission PHA Significant Amendment RAD Conversion Commitment Closing Construction 27 Questions?