Harrisonburg Redevelopment and Housing Authority Using Tax Credits to Create Supportive Housing

Harrisonburg RHA Learning Goals Understand role of nonprofit/government developer and benefits of engaging in developing PSH units Challenges in developing Permanent Supportive Housing and successful strategies used in addressing these challenges Trends and issues in partnering with your local redevelopment and housing authorities

Harrisonburg Redevelopment and Housing Authority- WHY? Address need in local community Persons w/ Disabilities Unstable housing status Medical Vulnerable 2013 Point in Time count Chronically Homeless (47 unaccompanied adults identified with disabilities with 17 being veterans”)

Harrisonburg Redevelopment and Housing Authority-WHY? Key Element within our community’s Ten Year Plan to End Homelessness HRHA Lead Agency in CoC Partnership with Harrisonburg Rockingham Community Service Board and Valley Associates of Independent Living

Challenges and Community Concerns with PSH Economy of Scale-need for a smaller scale project Project Basing NIMBY issues “Property available elsewhere” “Safety of Children” “Tipping point with the number of subsidized units in the Northeast” “Reduce Property Values”

Economy of Scale Issues Point in Time count numbers did not indicate need for larger scale housing project(60 units normal) Project size limits ability to fund operating and service expenses Overall construction and soft costs higher due to less units

Economy of Scale Strategies Use of LIHTC :$2,650,000 Use of Housing Trust Funds: $750,000 Use of HOME Funds: $342,000 Use of PSH Funds $58,000 HRHA Sellers note: $300,000 Total Project $4,100, Use of Project Basing to assist in the subsidy assistance Plan to apply for a HUD service coordinator grant to assist tenants in accessing services

“Addressing NIMBYISM” Provided exhibits of lease, tenant handbook, and described the array of services to be provided onsite Well Design Affordable Housing does not decrease property values Price Effects of Apartments on Nearby Single- Family Detached Residential Homes (Working draft) by Arthur C. Nelson and Mitch Moody. Blacksburg, VA: Virginia Tech University. Discrimination by income type is illegal in seven states Fair Housing Legislation introduced in 2013 General Assembly illegal to restrict housing from people who pay with non –traditional funds

Project Basing/ Partnering with Your Local Redevelopment and Housing Authority June 25, 2014 HUD publishes HERA Final Rule Clarification of commencement of construction Initial term 15 years Expansion of Davis-Bacon wage rates to projects meeting the definition of “existing” housing under the PBV program

Project Basing/ Partnering with Your Local Redevelopment and Housing Authority Housing Authorities are still under the budget impacts of sequester/ potential of sequester returning (Ryan/Murray 2 year budget deal) Reduction/recapture of reserved funds RAD: Rental Assistance Demonstration Long-term impact to LIHTC