Opportunities and Challenges in Development Siting June 2016

 The National Housing Trust protects and improves existing affordable rental homes so that low income individuals and families can live in quality neighborhoods with access to opportunities.  NHT engages in public policy development and advocacy that is informed by practice and experience through on the ground real estate development, lending, and multifamily ownership. The National Housing Trust

 NHT supports fair housing and opposes discrimination and the perpetuation of segregation by race and income.  In pursuing fair housing opportunities for all, NHT works in partnership with civil rights advocates, community developers, and other housing preservation experts.  We believe in a balanced approach to fair housing, which:  Recognizes that a disproportionate amount of subsidized housing is located in areas of poverty;  Promotes access to high opportunity communities through mobility;  Ensures that residents who remain in neighborhoods currently experiencing distress and concentrated poverty benefits from investments that improve their housing and increase their access to opportunity. The National Housing Trust

Nationally, 43% of at-risk units with project-based rental assistance are located in neighborhoods with low poverty rates (Urban Institute) Preserving affordable units in opportunity areas allows families to stay in neighborhoods where market conditions have improved. Preservation promotes economic diversity in gentrifying neighborhoods and lets residents benefit from increased access to transit, jobs, and services. Preserving these units allows localities to retain and leverage the original federal investment. Preservation in High Opportunity Areas

 Preservation typically costs about 1/2 to 2/3 as much as new construction. (HUD)  Savings from rehabilitation are realized even when accounting for the full lifecycle of a property. (Center for Housing Policy)  Rehab is about 50% the cost of comparable new units. (MacArthur Foundation) Preservation = Less Cost

Preservation = No NIMBYism Preservation in high opportunity areas does not lead to NIMBYism because the property is already in your backyard.

Preservation = less cost, no NIMBY aftertaste

Friendship Court NHT preserved 150 Sec. 8 apartments in gentrifying Charlottesville, VA, including significant energy efficiency improvements. Virginia Housing Development Authority provided tax-exempt bonds and 9% LIHTC. Originally, this property was both vulnerable to market-rate conversion and in need of substantial renovation. Year 15 is approaching. NHT is working with the residents to design a redevelopment plan on this huge parcel of land.

NHT is working with organizations and state allocating agencies to strike a balance between areas of opportunity and preservation.  Urge HFAs to balance the provision of Housing Credits in high opportunity areas with the needs of minority households to have fair access to resources to improve their housing; (See  Ensure that resident needs and housing preferences are taken into consideration as the conversation moves forward;  Acknowledge that states and localities are in the best position to make regulatory and financing decisions about how to best balance housing investment in different types of communities. Continuing the Conversation

Ellen Lurie Hoffman National Housing Trust Washington, DC