Presentation on theme: "ABOUT HACEP Largest in Texas / 14th largest in U.S. 2X safer than safest large U.S. city HUD High Performer status."— Presentation transcript:
ABOUT HACEP Largest in Texas / 14th largest in U.S. 2X safer than safest large U.S. city HUD High Performer status
HACEP – A SAFE, VIBRANT EL PASO Safety net for vulnerable citizens $91 million annually into the local economy $30 million to Housing Choice Voucher Program landlords
ABOUT HACEP Portfolio Size: – 6,100 Public Housing units: 84% built prior to 1980 – 495 Section 8 New Construction units – 5,600 Housing Choice Vouchers, including 170 HUD-VASH – 1,300 Tax Credit and Non-Subsidized Units 430 employees HACEP serves 40,000 low-income El Pasoans, or 6 percent of the Citys population.
THE CITY OF EL PASO Population of 650,000 (Census 2010) Demographics: – 81% Hispanic – 14% White – 3.4% Black – 1.2% Asian Poverty Rate = 24.1% Median Family Income 2014 = $44,800 – 80% AMI (Family of Four): $40,150 – 50% AMI (Family of Four): $25,100 – 30% AMI (Family of Four): $15,050
ABOUT THE CITY OF EL PASO Safest large U.S. city - 4 consecutive years Workforce Education Gap - 98 th out of 100 largest metro areas Suburban Poverty Rate - 2 nd Highest in U.S. (36.3%)
HACEPS UNIQUE CAPABILITIES Largest city entity that provides safe, decent, and affordable housing to families earning less than 30% of area median income 73% of public housing families considered extremely low income Other developers can rent their affordable units to only a fraction of these families
HACEPS UNIQUE CAPABILITIES Supporting HACEP supports private industry partnerships needed to reconstruct El Pasos affordable housing properties Affordable housing constructed at a cost in line with private developers Funds will be invested in the citys urban core
Our residents: - 17,000 individuals -7,800 children -2,000 seniors -1,600 disabled 5,600 Able Bodied Individuals 3,003 of whom are employed
50% Number of residents who live in public housing for less than 5 years.
13,500 Number of families waiting for public housing. -10,800 extremely low income -2,300 eldery
1941 El Pasos public housing stock is rapidly aging. Many of these properties have pervasive, costly-to-remove asbestos. Our oldest property was built in 1941.
$16 Million Federal funding for public housing continues to decrease annually. Since 2008, Congress and HUD have underfunded HACEP by $16 million ($16,086,876).
Federal Funding Baseline vs. Actual Appropriation $11.9 Million Funding Shortfall in Last Two Years Alone.
$55 Million HACEP communities require a capital investment of $80 million over the next five years. Federal funds projected at only $25 million, a shortfall of $55 million.
Machuca: 49 out of 122 units (40%) offline due to asbestos.
Tays: 11 out of 359 units (3%) offline due to structural damage and asbestos.
Kathy White: Crumbling walls.
Eisenhower: Rotting ductwork behind asbestos walls and ceilings.
WHAT IS RAD? The Rental Assistance Demonstration (RAD) converts Section 9 Public Housing to Section 8 Multi Family in an attempt to address the $26 billion backlog in capital improvements across the U.S. HUD provided 60,000 out of 1.3 million total public housing units on a first come, first served basis. It guarantees sustainable federal revenue for 40 years. It transfers ownership of public housing assets to the local PHA, which can then leverage those assets to raise significant capital. PHAs must use that capital to rehabilitate their units to acceptable standards.
A BETTER, MORE STABLE FUTURE In December 2013, HUD approved our application to convert 6,100 housing units through RAD. HACEP is the largest PHA in the U.S. to engage in RAD as we now have over 10% of the federal allotment.
WE CAN DO IT. AFTER ALL… WEVE DONE IT BEFORE!
HACEPs Successful Revitalization Record HACEP has a successful track record of revitalizing distressed neighborhoods. Paisano Green Community ( ) 4000 East Paisano Drive $15 million Alamito Community HOPE VI ( ) 509 South St. Vrain (Segundo Barrio) $58 million Kennedy Brothers HOPE VI ( ) 400 South Zaragoza $38 million Eastside Crossings ( ) Sarah H. Circle $22 million funded in part by 9% tax credits.
Paisano Transformation (2010)
Paisano Transformation (2013)
Alamito Transformation (2005)
Alamito Transformation (2010)
Eastside Crossings Groundbreaking (July 2013)
Eastside Crossings First Pour (September 2013)
Eastside Crossings (February 2014)
Eastside Crossings Clubhouse (Rendering)
RAD TIMELINE HUD Approval to Convert to RAD: December 16, 2013 First Tranche: Rehabilitation of 2,053 units – January 2015 to January 2017 Second Tranche: Conversion without rehabilitation of 301 units – April 2014 (Alamito, Paisano Green, Montwood) Third Tranche: Rehabilitation of 2,794 units – January 2017 to January 2019
BENEFITS TO EL PASO No cost to local taxpayers Over 1,000 jobs 6,346 revitalized public housing units Vibrant, mixed-income and mixed-use neighborhoods New residences will feature green energy efficiency Aligned with strategic housing objectives outlined in Plan El Paso 2012
$1 BILLION ECONOMIC IMPACT A successful RAD initiative is dependent on a strong partnership between HACEP and the City of El Paso to secure 9% Low Income Housing Tax Credits (LIHTC) from the Texas Department of Housing and Community Affairs (TDHCA). This commitment will ensure a $500 million infusion of capital into El Paso, at no cost to local taxpayers, that will translate into more than $1 billion of economic impact and create 1,000+ jobs.
Thank you for supporting HACEP in this critical opportunity to revitalize local public housing while bringing $500 million of investment to El Paso! Gerald Cichon - Chief Executive Officer | (915) |