The Dollar$ and Sense
of Affordable Housing
in Arlington
2015
This module will help you...
Appreciate the public-private partnership that creates/preserves affordable units in Arlington
Understand the major cost componentsLearn how the community benefitsAnswer questions and counter
misunderstandings
Updated June 3, 2015
Myths you may hear
• The County pays a lot of money for affordable housing.
• It’s charity: the people who live in it don’t work or contribute.
• The market can be trusted to solve the problem.
• Affordable housing providers don’t pay taxes.
Q1Why does Arlington County
pay [fill in a large number here]for an affordable* unit?
*a committed affordable unit, or CAF
AIt doesn’t!
CAFs are privatelydeveloped and owned.
A County LOAN contribution leverages other $$.
A note about partnership
• Other area jurisdictions have at least some public housing.
• Arlington’s public-private partnership model has become today’s “best practice.”
County dollars are loan dollars. . . from AHIF, the County’s revolving
Affordable Housing Investment Fund
Less than a of each AHIF dollar is from the County general revenue fund
Source Affordable Housing Implementation Framework Draft 2.0, 2/19/15
AHIF loan dollars
• County has allocated $161M+ since FY08
• to create/preserve/renovate 2,517 units• averaging $64k in County funds per unit
for past 8 years• collecting $69M in timely loan repayments
and payoffs and• $31M in developer contributions
Leveraging public loan dollarsDevelopers generally leverage $34 for every County loan $1Typical funding sources for Typical funding sources for
tax credit projects in Arlington acquisition projects in Arlington
Source Affordable Housing Implementation Framework Draft 2.0, 2/19/15
Leveraging public dollarsLand banking/contribution by developers
The Serrano, purchased by AHC in 2014 for $62M, preserves 280 affordable/workforce/market-rate units
Property can be subdivided to add mixed-use, mixed-income, or affordable units
Leveraging public dollarsLand banking/contribution by developers
The Springs, a 27-unit property purchased by APAH in 1997
Provides land on the urban fringe near Ballston for a new, 104-unitmixed-use development
Q2Why do committed
affordable unitscost so much?
ALand!!
. . . and they are built to County and State codes and requirements.
CAF costs are comparable tonew market-rate units.
Major cost drivers
• Land values• Building standards/required materials• Undergrounding of parking/utilities• Green/sustainable building practices• Retail space set-asides
Land prices add to costs
2009 APAH preserved Buchanan Gardens, paying $12M for 111 units
~$108k per unit
Land prices add to costs
2011 AHC preserved Arbor Heightsfrom market-rate uptick, paying $35M for 198 apartments in 8 buildings on 8.5 acres
~$177k per unit
Quality materials, like brick and glass• help developers compete when
seeking tax credits• comply with standards desired by
the community (as expressed in the Neighborhoods Form-Based Code)
• help make buildings distinctive more attractive streetscapes
Quality materials add costs
but make attractive neighbors
Parking adds to costs
Undergrounding parking costs• Average $35k per space• Can cost much more depending on
site conditions
“Greening” adds costs
Virginia gives EarthCraft* points towards tax-credit awards
*Energy, water, and resourceefficiency standards geared for the SE
Arlington’s Neighborhoods Form-Based Code requires EarthCraft or LEED**
**Re-uses materials or uses recycled,green, and low- or no-emission products;
practices ecological balance in energy use.
Retail set-asides . . .
Required by County for street-front properties, retail space requires• additional parking spaces • higher ceilings and retail “fixtures” • staff to handle retail leasing and
management
Q3Sure, those living in committed-
affordable units benefit.
But what about the rest of us?
ACAFs provide benefits to the
wider community.
Community benefits
Job creation, short- and long-term
ResidenceConstruction
jobsLong-term
jobs
Arlington Mill 341 26
The Jordan 258 19
Residential New Construction Economic Impact Calculator http://housingvirginia.org/Res-New-Cons-Econ-Imp-Calc.aspx
Community benefits
Housing for employees in key sectors
A large majorityof CAF householdsare workinghouseholds
Source Housing Division, Arlington County CPHD, Feb 2015
Community benefits
Lower environmental impact/ greater efficiency
• EarthCraft/LEED building standards • SmartCards are provided for many CAF
residents • Access to public transit keeps more cars
off the road
Community benefits
Sidewalks and streetscapes
Attract businesses,foot traffic, buzz . . .
and more businesses
Invite walking,contemplation,sense of place
Ellen’s Trace
Accessibility/inclusion
CAFS provide housing for persons with special needs
Permanent supportive housing (PSH) and barrier-free units
. . . help integrate persons with disabilities and the elderly into the
community
Accessibility/inclusion
Permanent Supportive Housing (PSH)• 197 CAFs leased by persons with
disabilities and youth aging out of foster care
• PSH program provides case management, rental assistance, and other support services
• 81% of PSH tenants served since 2004 program launch have remained in permanent housing
Education benefits
• Montessori school @ The Jordan serves 24 kids ages 35 (1/3 residents of affordable housing, 2/3 local community)
• vPoint at Clarendon construction preserved/renovated
education buildinghousing early childhood
programs for 170+ children
Education benefits
• Greenbrier Learning Center provides afterschool enrichment at APAH properties.
• AHC community centers offer afterschool, tutoring, teen, ESL, and stay-in-school programs.
Education benefits
• Since 2008, all 61 teens in AHC’s program have graduated high school and 80%+ have gone to college.
Education benefits
• In 2014, 92% of elementary students in AHC after-school programs improved reading level by one grade and/or read at/above grade level.
• Summer camps prevent “learning loss.” • Student stability helps neighborhood
schools.
Preservation/renovation
Retaining neighborhood feel/ renewing local landmarks
Some examples . . .
Preservation/renovation
vPoint at Clarendon
vPoin
Preservation/renovation
Colonial Village, Wesley Housing
Preservation/renovation
Buchanan Gardens, APAH
Housing that“fits” families
Preservation/renovation
The Gates, AHC
Preservation/renovation
The Larkspur, CPDC
Stability benefits
Affordable, family-size apartments allow stable communities without overcrowding.
• Average annual turnover in Arlington CAFs 20%
• Nationwide turnover rates hover around 50%*
Relatively low turnover for CAF tenants suggest they contribute to community stability.**
*Multifamily Executive, Feb 2013
**Arlington County Housing Division, August 2014
Economic benefits
Dollars flow back into ArlingtonNonprofits not exempt from taxes and fees
• AHC properties paid $2.6M in real estate taxes in 2014.
• APAH properties paid $1.9M in real estate taxes in 2014.
Dollars flow back into Arlington• APAH has paid $797K for permits, tap,
and inspection fees (PTI) for The Springs, a 98-unit property under construction in Ballston
• AHC paid $723k in PTI for The Shell, a recently-opened 83-unit building on Columbia Pike
Economic benefits
To summarize . . .
Arlington does not develop and own affordable housing.
It lends to private developerswho leverage additional non-County
funds (3 or 4 to 1) to build and who repay their loans on time.
To summarize . . .
Affordable housing costs no more to build than market-rate units for land, design, materials, and labor . . .
. . . and its developerspay their share of taxes and fees.
To summarize . . .
Affordable housing benefits the community, not just its tenants, through Attractive new buildings or
renewed/renovated properties
Job creation and convenient, stabilizing housing for workers in vital economic sectors
Long-term tenancy as well as resident services programs, helping stabilize neighborhoods and schools
Targeted efforts to support student success . . . and skills for further education and employment
Reliable and supportive housing for persons with disabilities
Taxes and fees to County coffers
Please visit our website
AllianceforHousingSolutions.org
for more on these and other topics in housing affordability.