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Attainable Housing Developments City Council Workshop August 22, 2016 ---PAGE BREAK--- Road Map Today: Attainable Housing Developments September: Jeffco Affordable Housing Study Findings November: Best Practices City/Housing Authority October: Alternative Housing Options January 2017: Arvada Housing Assessment November: Relevant Data ---PAGE BREAK--- How did we get here? 2015 2015 •Citizen Survey Housing Affordability •2015: 26% rated very good/good, 23% extreme problem •2013 = 45% rated very good/good, 10% extreme problem •2011 = 43% rated very good/good, 9% extreme problem January 2016 •City Council Retreat •Demographic “White Paper” •Write a strategic result from future Housing Workshop Spring & Summer 2016 •Leadership Team assembled Attainable Housing Committee •Established tasks and milestones to inform City Council •Four attainable housing experts at LT Meeting •Adoption of 2015 Comprehensive Plan •Housing gap for low/moderate income •Goals related to workforce/senior housing ---PAGE BREAK--- What is Attainable Housing? • 30% of income criteria common definition of attainable housing – No more than 30% of a household’s income should be spent on housing/utilities to allow for such necessities as food, clothing, transportation, child care, taxes, student loans, and medical care. • 2015 Area Median Income (AMI) - $80,100 • Attainable Housing – Incomes <80% AMI – Little leftover to save or invest in the future ---PAGE BREAK--- Denver Metro AMI = $80,100 AMI % Single 2 people 4 people 30% $16,850 $19,250 $24,300 50% $28,050 $32,050 $40,050 80% $44,900 $51,300 $64,100 Source: HUD User 2016 Income Limits ---PAGE BREAK--- Comparison of Housing Costs Affordable vs. Market Rate: Rent - Family of 4 AMI Affordable Rents =Income*.30/ 12 Jefferson County Average Market Rate Rent Range (studio to 3 bedroom) Studio $1,060 1 BR $1,148 2 BR/2B $1,508 3 BR $1,808 30% $607.50 ($452.50) ($540.50) ($900.50) ($1200.50) 60% $1,001.25 ($58.75) ($146.75) ($506.75) ($806.75) 80% $1,602.50 $542.50 $454.50 $94.50 ($205.50) Sources: JRES 4th Quarter 2015, HUD User 2016 Income Limits ---PAGE BREAK--- Affordable For Sale Home Price Median Sales Price in Arvada Today: $379,000 Scenario based on 3% Down Payment + Closing Costs, 4% interest rate, 30-year fixed conventional loan, residual income AMI - Annual Income Approximate Allowable Payment (PITI) 30-43% of income Down Payment Qualifying Purchase Price # of homes (condo/SF) on the market as of 8/17/16** 50% - $40,050 $746 $3,750 $125,000 1 80% - $64,100 $1,750 $8,550 $285,000 16 100% - $80,100 $2,200 $10,800 $360,000 75 **317 total active listings on the market in Arvada as of 8/17/16. Source: Fairway Independent Mortgage Corp., www.recolorado.com, http://www.trulia.com/real_estate/Arvada-Colorado/ ---PAGE BREAK--- Who Makes This? ---PAGE BREAK--- What does it look like? Residences at Creekside (Senior) 1700 Pierce Street, Lakewood Metro West Housing Solutions 2 buildings, 4 stories, 4.8 acres, 201 units, 42 du/ac ---PAGE BREAK--- Interior 6 studios @ 500 SF at $400 148 one bedrooms @ 620 - 650 SF at $550 - $750 47 two bedrooms @ 795 - 820 SF at $784 - $965 ---PAGE BREAK--- Amenities ---PAGE BREAK--- Amenities ---PAGE BREAK--- Amenities ---PAGE BREAK--- Who lives here? Seniors 62+ Grandpa lives here. ---PAGE BREAK--- Neighborhood response • Modern architecture wasn’t initially loved by neighbors. • Site originally zoned for a building up to 10 stories. • Neighbors were appeased with 4 story buildings • People’s minds have changed. No complaints. • Residents love the buildings. - Brendalee Connors, Chief Real Estate Officer, Metro West Housing Solutions ---PAGE BREAK--- Resident review A four year resident stated that, this facility was the best she had lived in, out of the five where she had been. This facility was the only one she said felt like home. ---PAGE BREAK--- Public Safety Source: Trulia.com 2016 ---PAGE BREAK--- Interesting fact 2011 - Creekside West is Colorado’s first Leed Platinum (new construction) multi-family building 2011 - The only Colorado Renewable Energy Society Award Recipient for Multi-family ---PAGE BREAK--- What does it look like? Lamar Station Crossing (Workforce) 6150 W. 13th Avenue, Lakewood Metro West Housing Solutions 1 building, 4 stories, 2.41 acres, 110 units, 45.64 du/ac ---PAGE BREAK--- Rent in Area ---PAGE BREAK--- Interior $390- $1,470 (compare to $1000 to $2,300 for market rate in area) 530 -1020 SF 51 - 1 bedrooms 51 - 2 bedrooms 8 - 3 bedrooms 5 of these are live/work ---PAGE BREAK--- Live/work ---PAGE BREAK--- Amenities Our mission is to enable citizens to reach their full potential towards self-sufficiency by providing quality programs and services that help strengthen families and nurture neighborhood communities. ---PAGE BREAK--- Amenities ---PAGE BREAK--- Amenities ---PAGE BREAK--- Amenities playground? ---PAGE BREAK--- Who lives here? Families but everyone welcome! “A box holds objects the way my heart holds feelings of home.” ---PAGE BREAK--- Neighborhood response • Strong neighborhood opposition in the beginning. • City council hearing until 1:00 am. • A working group formed with neighbors as a mechanism to include community input in design & operational issues. • Over time, neighborhood turned around and strongly supported. • Many letters of support written in favor of the tax credit application for the 2nd phase. • Neighborhood is now comfortable with density near light rail. - Brendalee Connors, Chief Real Estate Officer, Metro West Housing Solutions ---PAGE BREAK--- Adjacent Property Values Lamar Station $329,674 $290,191 ---PAGE BREAK--- Public Safety Source: Trulia.com 2016 ---PAGE BREAK--- Interesting Fact Built in 2012 as the first newly constructed apartment along the rail line in Lakewood. • Land banking for 7 year • Former industrial site - clean-up completed • Catalyst for development Received numerous TOD awards ---PAGE BREAK--- What does it look like? Aria Apartments (Workforce) 2791 W 52nd Avenue, Denver Perry Rose & Urban Ventures 10 buildings, 72 units, part of 17 acre dev. ---PAGE BREAK--- Interior 712 -1059 SF range 36 - 1 bedroom @ $320 -$771 26 -2 bedroom @ $378 - $919 ---PAGE BREAK--- Amenities ---PAGE BREAK--- Who lives here? ---PAGE BREAK--- Neighborhood Response • Catalyst for development in Chaffee Park. • Strong partnership with Regis University and Cultivate Health in creating a sustainable community farming program. • Market rate rent and for-sale properties joining the neighborhood. - Matthew Wedell, CAM, Rose Companies Management - Denver, LLC ---PAGE BREAK--- Interesting Fact ULI Colorado 2015 Impact Award Winner • Catalyst for redevelopment of 17 acre site • First time many of the 72 families have had a decent, safe, affordable place to live • Serves as model for affordable and sustainable • Participated in Pilot Sustainable Neighborhoods program ---PAGE BREAK--- Public Safety Not at property but adjacent to in the single family homes Source: Trulia.com 2016 ---PAGE BREAK--- Resident Reviews ---PAGE BREAK--- What does it look like? University Station Apartments (Senior) 1881 Buchtel Blvd, Denver, CO Mile High Developments 1 building, 6 story, 60 units, .54 acre, 111 du/ac ---PAGE BREAK--- Interior 45 - 1 bedrooms 15 - 2 bedrooms No 3 bedrooms (senior market) 553 SF - 800 SF $450 - $900 per month (30% or 60% dependent) ---PAGE BREAK--- Amenities ---PAGE BREAK--- Amenities ---PAGE BREAK--- Who lives here? Seniors 55 + ---PAGE BREAK--- Interesting Fact This is, a 5 story Prescient structure on top of a 1 story concrete podium. Prescient is a local Arvada business. ---PAGE BREAK--- Public Safety Source: Trulia.com 2016 ---PAGE BREAK--- What does it look like? Garden Court at Yale Station (Workforce) 5155 E Yale Ave. Denver 5151 E Yale Cir, Denver, CO Mile High Developments 1 building, 4 stories, 66 units, 1.5 acres, 44 du/ac ---PAGE BREAK--- Interior Rents range from $601 to $1,450 for 1 to 3 bedrooms, square footage of 591 - 941. ---PAGE BREAK--- Amenities ---PAGE BREAK--- Amenities ---PAGE BREAK--- Who lives here? Workforce, etc. ---PAGE BREAK--- Interesting Fact • Construction in compliance Enterprise Green Community Criteria • Enterprise Green Communities: • Provides funds and technical expertise to build, rehabilitate and operate affordable housing more efficiently ---PAGE BREAK--- Public Safety Source: Trulia.com 2016 Crime that is adjacent is RTD parking lot with vehicle theft of unlocked vehicles ---PAGE BREAK--- What does it look like? Yale Station Apartments (Senior) 5307 E Yale Ave, Denver, CO Mile High Developments 1 building, 5 stories, .49 acre, 50 units, 100 du/ac ---PAGE BREAK--- Interiors 35 - 1 bedrooms 15 - 2 bedrooms Rents range from $600 to $1,200 at 40% to 60% AMI ---PAGE BREAK--- Amenities ---PAGE BREAK--- Who lives here? 55+ ---PAGE BREAK--- Property Values University Hills Neighborhood • Increased 10.6% past 12 months • Forecast increase 4.3% next year, compared to Denver at 4.3% Yale Station ---PAGE BREAK--- Public Safety Source: Trulia.com 2016 ---PAGE BREAK--- Interesting Fact First Affordable TOD for qualified people 55 years and older in Denver, when it opened in July 2011 ---PAGE BREAK--- Common Elements Financing/Operations • Financing partners are critical – 9% LITC, land, federal/state funds, other partners • Partnerships with experienced affordable housing developers are critical • Housing Choice Vouchers utilized at all properties • Energy Efficient - LEED certifications at most • Senior developments require less parking and allow for more units (no 3 bedrooms) ---PAGE BREAK--- Common Elements Quality • Caring, involved on-site management • Quality but not luxury (arch, interior, amenities) • Market-rate amenities • Well maintained sites ---PAGE BREAK--- Common Elements Good Neighbor • Activities to create opportunities for internal/external neighbor interaction • Property values not adversely impacted • Pride in rental - great condition • Crime & code enforcement not an issue ---PAGE BREAK--- Common Elements Resident Services • Access to transit – Some provide RTD passes • Resource Coordinator to help with activities and resident needs – Classes: Money management, art, cooking, computer, etc. – Homework Club ---PAGE BREAK--- What’s next? September: Jeffco Affordable Housing Study Findings November: Relevant Data January 2017: Final Committee Presentation August: Attainable Housing Projects & Data October: Alternative Housing Options November: Best Practices City/Housing Authority