How to Plan for and finance affordable housing in your community Infrastructure Conference October 28 2016 Presenter Isidoro Hernandez Deputy Director of Programs What is MFA MFA provides ID: 589947
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Affordable housing:How to Plan for and finance affordable housing in your community
Infrastructure Conference, October 28, 2016
Presenter:
Isidoro Hernandez, Deputy Director of ProgramsSlide2
What is MFA?
MFA provides
financing
for
low to moderate income
people.Created by the NM Legislature in 1975 to “help alleviate the shortage of adequate housing and to encourage and provide financing for the acquisition, construction, rehabilitation and improvement of residential housing for persons of low or moderate-income within the state.” Created as “public body corporate, separate and apart from the state”—MFA is not a state agency.MFA became the state government’s designated housing agency in 1997– all of NM’s state and federal housing programs are now administered by MFA.MFA is a Housing Finance Agency (HFA)—each state in the US has one or more.
2Slide3
MFA provides
financing and resources
,
to our partners
$189M
in loans to 1,400 homebuyers$7.4M in down payment assistance LendersProperty OwnersDevelopersHomeless ProvidersService Providers
$6.9M
in rehabilitation and energy-efficiency improvements for 1,191 HHs
$1.3M
in shelter, transitional housing & operating costs for 7,747 individuals experiencing homelessness
$1.87M
in rental assistance & related services for 429 special needs individuals
and rental assistance to prevent homelessness for 549 individuals
$28M
in rental assistance for 5,297 apartments
$82M
to construct or rehabilitate 900 rental homes
In partnership with local governments & ….
In 2015, MFA funded:
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What is affordable housing?
HUD defines housing as affordable if a household pays
30% or less of its income for rent and utilities.
100% Area Median Income (AMI) $51,500
(
Lincoln County)Monthly income $4,29130% of monthly income = $1,287 affordable housing cost60% AMI $31,140 family of 4 (Lincoln County) Monthly income $2,595 30% of monthly income =
$
778
affordable housing cost
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The range of housing needs
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Who can MFA assist?
Extremely to Very Low Income
Low to Moderate Income
30% 40% 50% 60% 70% 80% 90% 110% 120% Area Median Income Area Median Income6Slide7
Constitutional Amendment 4 – Passed in General Election of 2006, created the Affordable Housing Act (Section 6-27-3 NMSA 1978),Exempts affordable housing from the anti-donation clause of the New Mexico State Constitution.
Affordable Housing Act
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Eligible to Donate:The State of New Mexico
CountiesMunicipalities
School Districts
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Eligible DonationsDonate or pay for
land for affordable housing construction,Donate or pay for an
existing building or conversion or renovation into affordable housing,Provide or pay the costs of
infrastructure
necessary to support affordable housing projects,
Provide or pay for the cost of acquisition, development, construction, financing, operating or owning affordable housing.9Slide10
Compliance with AH ActMFA reviews and approves:
Affordable Housing Plan
Affordable Housing OrdinanceAnnual Reporting – Contributions
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Elements of Affordable Housing Plan
Community & Housing ProfileHousing Needs Assessment
Land Use & Policy Review
Goals, Policies & Quantifiable Objectives
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Community & Housing ProfileDemographics
Trends
Cost of HousingRelationship between income & cost of housing
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Housing Needs Assessment Percentage of cost burdened households (paying more than 30% of income towards housing).
Rental vacancy rates lower than 5%
Waitlist for existing subsidized properties
Chuska
Apartments Gallup
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Housing Needs Assessment Quantify housing need by unit type and size.
Common housing needs throughout the state:
Rental housingRehabilitation
Chaco River II,
Shiprock
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Land Use & Policy Review Assess zoning and subdivision regulations.
Is affordable or medium density allowed by right or is an addition process required?
Special Use Permits and PUDs add constraints.
Sawmill Village,
Abq
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Land Use & Policy Review What is the availability of land, water & infrastructure? Can existing systems accommodate growth?
Assess non-governmental constraints such as environmental, public perceptions, capacity & financing.
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Goals, Policies & Quantifiable Objectives
What are the housing needs?
What are the production goals?
What is the community going to donate?
Who is going to implement the plan?
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Financial IncentivesLand Use/Zoning/Subdivision Regulations
Affordable Housing Programs
Tools to keep housing affordableIncentive & Program Options
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GRANT FUNDSLand Donations
Provide loans with favorable terms
Waive feesFinancial Incentives
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Create a Housing Trust Fund
Grant Funds
Donate land
Streamline permitting process
Active role in master planning infrastructure & zoning
Affordable Housing Programs20Slide21
Deed restrictions with affordability periodsLand Use Restriction Agreements (LURA)
Tools to keep housing affordable
Santa Fe Habitat
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AHA Community Plans & Ordinances
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AHA COMMUNITY PLANS AND ORDINANCES
AS OF JUNE 2016Slide23
AHA Contributions
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Eunice Workforce Housing (1)
Partnership between Eastern Regional Hsg Authority (ERHA) & Tierra del Sol (TDS)
16 Units
8 – 1 BDRM & 8 – 2 BDRM
5 Units to 60% AMI ($564 & $670 Rents)
Educational, Law Enforcement/Fire Fighter, Health Care, Active member of Armed Forces11 Units for 120% AMI ($625 & $699 Rents)24Slide25
Eunice Workforce Housing (2)
Costs and Sources
Total Development Costs: $2.3M
Sources:
Lea County Grant: $1,000,000
MFA - Housing Trust Fund Loan: $702,187MFA - Governor’s Innovations in Housing Grant: $696,00625Slide26
Questions
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