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
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.
HACEPs Successful Revitalization Record HACEP has a successful track record of revitalizing distressed neighborhoods. Paisano Green Community (2009-2012) 4000 East Paisano Drive 79905 $15 million Alamito Community HOPE VI (2005-2010) 509 South St. Vrain (Segundo Barrio) $58 million Kennedy Brothers HOPE VI (1995-2000) 400 South Zaragoza 79907 $38 million Eastside Crossings (2013-2015) 12019 Sarah H. Circle 79938 $22 million funded in part by 9% tax credits.
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 firstname.lastname@example.org | (915) 849-3702 | www.hacep.org