1. U.I.R. Annual Summit Affordable Housing Presentation October 18, 2007

2. Recent Headlines in Utah “Report Shows Utah is on Verge of Housing Crisis” “Affordable Housing Tough for Cops”

3. More Recent Headlines “Want More than a Condo? Be prepared to Pay more than $200K” “Housing Markets Pricing Out Middle Class”

4. … and More Recent Headlines “Housing Affordability: Serious Disequilibrium” “Housing Dilemma: Utah’s Economy Booming, but Affordable Homes are Hard to Find”

9. What is Utah Housing? Created by State Legislature in 1975. Mission: Affordable Housing Opportunities; Low- Moderate Income. DCED to Independent Public Corp. No $$$ support from the State. Use Entrepreneurial techniques. Largest provider of Afford Hsg Finance.

10. UHC’s Major Programs Single Family finance: Low Interest rates Down Payment and Closing Costs Financed with Bonds and UHC funds Multi-Family finance Low Interest rates Provide affordable Equity and Debt Financed with Bonds and Tax Shelters

11. UHC Annual Budgets Lean staffing: 55 employees Use private sector: lender, builders etc. Operating Budget $3.9M/ yr Capital Budgets = $363M/ yr Single Family Bonds = $254M Housing Tax Credit = $ 44M Multi-Family bonds = $ 47M UHC Reserves = $ 18M

12. Who Needs Housing Help? Low-Income households Elderly Single Moms w/ kids New Families Mentally Ill Physically handicapped Native Americans

13. Who Needs Housing Help (cont’d) Homeless and near-homeless Teachers, Policemen, Fire Fighters, etc Renters First Time Homebuyers

14. What is Area Median Income? Wealthiest Poorest ½ above ½ below 100% of AMI

15. “Lower-Income” is NOT Homogeneous? Degrees. Moderate Income Low-Income Very-Low Income Poverty Near Homeless Homeless

16. Degrees of Lower Income 100%50%80% “Low-Income” (HUD) “Low-Income” (LIHTC) “Very-Low-Income” “Moderate Income” 60%32% Poverty 25% Near Homeless “ Homeless“ AMI

17. What is “Affordable” Housing Balance between “Cost” and “Income” Pay no more than 30% of Income for Housing costs (incl utilities, etc) Many are paying <60%: Unaffordable Rents and Selling Prices risen much faster (>18%) than Incomes (2-3%). Over time affordable housing becomes out of reach.

18. Example of Affordable Rent S.L. County avg rent 2bdrm = $766/mo Needed Income to be “Affordable” : $2,553/mo or $30,640/yr. This is $14.73 / hour wage. Avg Hourly Wage for Renters in Utah is $9.92 / hour. Average Renter must work 59.4 hrs / wk to “afford”, or need 1½ workers, OR pays 45% of wages on housing!

19. How Make Housing More Affordable? Reducing Costs, generally Zoning: Increase density; reduce land costs per Unit Reduce Fees; Ease regulatory requirements Assist with Down Payment/ Closing Cost Reduce Labor Costs in construction Reduce Debt / Interest Rates

20. Private Activity Bond Authority Federal Gov’t grants each state amount of Tax-Exempt bonding authority, on population. Total for 2007 = $256.2 Million 33% 42% 24%

21. Housing Tax Credits Complex tax shelters to raise Equity. Use only for affordable Rental projects. Created 1987 / per capita allocation. To date UHC has issued $750 M and financed 17,000 units in 350 projects. Also created State Tax Credits to work in tandem with Federal Credits.

22. Impact on Rents (2bdr) FAIR MARKET RENTS RENTS WITH FED’L TAX CR. RENTS WITH FED & STATE TAX CR. METRO: MO. RENTS $783$570$490 INCOME NEEDED $31,320$22,800$19,600 RURAL: MO. RENTS $632$445$380 INCOME NEEDED $25,280$17,800$15,200

23. UHC UHC Affordable Home Buying (Salt Lake County) Avg Price of homes in 2007= $153,500 Avg price Last Year = $134,500 (+14%) Avg price 10 years ago = $94,500 (+63%) Avg Buyers’ Income in 2007=80% AMI Income Last Year = 73% AMI Income 10 years ago = 65% AMI

24. Taking More Income to Buy

25. Burden Gets Heavier in Salt Lake County 26% 63%

26. Burden Gets Heavier Across State of Utah

27. What are they Buying? % of Homes were “New” in 2007=7% % “New” last year = 12% % “New” ten years ago = 25% % of Homes were Condos in ’07= 44% % Condos last year = 39% % Condos ten years ago = 10%

28. Financial Stability Council Housing Committee Recommendations: Resources: Increase Existing and Create New; i.e. Dedicated Trust Funds Strengthen Local Gov’t Commitment: HB295; Encourage development not obstruct Affordable Housing efforts. Education Campaign: Put a Face on Afford Hsg; Your Parents, your children, important Citizens, Econ and Social Benefits, etc.

29. Challenging Existing (mis)Perceptions of Aff. Hsg. It’s Attractive, well-built, and consistent with surrounding Architecture. Does not Negatively impact Property Values. Families are Responsible, hard- working and willing to maintain homes. Specify Income Ranges.

30. Auxiliary Benefits and Linkages Socio Economically Aff. Hsg links to Childhood and Family Development. Aff. Hsg links to Economic Development and Economic Impact Aff. Hsg links to Reduced Transportation and Energy Costs. Aff. Hsg links to Attracting and Retaining Entry – Mid level Employees