draft public presentation december 17, 2020
TRANSCRIPT
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Deer Creek Townes
Villages of Apex Community
Apex PeakFest
DRAFT Public Presentation
Apex DRAFT Affordable Housing Plan
December 17, 2020
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Meeting Instructions:
• The event is being recorded and will be posted at apexnc.org/affordablehousing.
• Questions and comments can be submitted anytime during the event. Use the chat box located next to the live stream.
• You may also call in a question. Dial 919-300-5265, enter meeting code 9161, and press *2 to leave a voicemail. Voicemails are limited to 2 minutes.
• Questions and comments will be visible to the hosts only. All comments will be anonymous and read or summarized by the moderator.
• If time does not allow all submitted questions to be discussed, a summary of questions and responses will be posted on the plan website.
• A comment form is also available online for additional comments on the draft plan. You can see it on the meeting screen or can complete it at publicinput.com/AHPcomments.
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AGENDAPlan Purpose and Process
Housing Needs Assessment
Vision & GoalsQ&A
Recommendations
Action PlanQ&A
Next Steps
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PLAN PURPOSE AND PROCESS
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“Affordable housing” incorporates many distinct but related issues:
Housing Supply
Housing Stability
Gentrification
Homeownership
Housing Quality
Access to Opportunity
Aging in Place
Supportive Housing
RacialEquity
Rental Affordability
Housing Diversity
Apex Affordable Housing Plan Update | 6HR&A Advisors, Inc.
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HR&A Advisors, Inc. Apex Affordable Housing Plan Update | 7
The Town of Apex already plays a central role in the housing market through regulation and public investments.
The town influences the regulatory environmentin which developers make investment decisions
The town deploys public fundsfor infrastructure, amenities, and development
Regulatory Approachese.g. zoning, review and approval
processes
Information Dissemination
e.g. public outreach, design guidebooks, developer
engagement
Infrastructure Approachese.g. parks and amenities, public
transit, streetscape improvements
Monetary Approachese.g. public land, loans, tax
abatement, grants
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HR&A Advisors, Inc. Apex Affordable Housing Plan Update | 8
The programs and policies recommended in the Apex Affordable Housing Plan fall into two main categories, aligned with the Town’s role.
Use municipal regulations and zoning authority to indirectly improve affordability by increasing the supply of housing, or to directly incentivize the production of affordable units.e.g. zoning & development processes, affordable housing incentive zoningLand Use
Provide below-market rate loans, grants, or other public resources to close the gap between what a household can afford to pay and the costs to develop and operate housing.e.g. gap financing for new construction, down payment assistance, public land sale
Subsidy
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HR&A Advisors, Inc. Apex Affordable Housing Plan Update | 9
The draft plan offers tools for the Town to use to help address the affordable housing issues identified in Apex.
The plan does: The plan does not:
• Propose a specific affordable housing development project
• Identify specific locations for affordable housing in Apex
• Identify the affordable housing needs in Apex through a housing needs assessment and stakeholder and public engagement
• Propose land use and subsidy tools the Town can use to address the affordable housing needs identified
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The Draft Affordable Housing Plan has been developed over a span of approximately 8 months.
Apex Affordable Housing Plan Update | 10HR&A Advisors, Inc.
May June July Aug Sept Oct Nov Dec Jan
Affordable Housing Plan Kickoff
Housing Needs Assessment
Recommendations
Affordable Housing Plan Drafting and Development
Update with Preliminary Recommendations
Plan Presented for Adoption
Stakeholder Engagement
Steering Committee Meeting
21 3 5
Planning Board and Town Council Updates
4 21
Public Presentation
Public Survey
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Stakeholder input has been gathered and used throughout plan development.
• Contacted 25 and spoke with 10 housing developers, social service providers, and realtors
• Gained insight about housing needs, trends, and the regulatory and development environment in Apex
• Contacted 25 community leaders and were connected to 11 individuals known to be impacted by housing issues
• Spoke in depth to 7 individuals who shared important insights about their personal experiences
• 1,200 online participants
• Broad range of sentiments about housing issues in Apex, but agreement that issues exist
Survey Stakeholder Interviews Individual Outreach
• Regularly updated page about the Plan on Town website• Affordable housing fact sheet • Utility bill mailers• Email distribution list
Outreach Methods
• Flyers and handouts at key locations, including schools, churches, and non-profits
• Public-facing housing needs assessment• Public-facing report and presentation
Apex Affordable Housing Plan Update | 11HR&A Advisors, Inc.
Presentation & Hearings
• Virtual public presentation
• Q&A and comment form
• 2 public hearings
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HOUSING NEEDS ASSESSMENT
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The Housing Needs Assessment identifies those issues that are most pressing for Apex, including determining who is and is not served by Apex’s housing market.
Can people who work in
Apex afford to live here?
Through the engagement process we heard…
People in Apex need supportive services
Young people aren’t
choosing to live in Apex
Housing diversity is a concern: too
many large homes
Affordable housing
should be built near
transit
Some residents are being displaced
How can Apex be a welcoming
community for all?
Seniors struggle to
find housing to age in place
Apex Affordable Housing Plan Update | 13HR&A Advisors, Inc.
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Apex Affordable Housing Plan Update | 14
Cost burden for Apex residents is increasing for renters at all income levels, and for homeowners at lower income levels.
Cost-Burdened Homeowner Households Cost-Burdened Renter Households
3,150Total cost-burdened* households earning less than $75,000
700Extremely cost-
burdened households
HR&A Advisors, Inc.Source: ACS 5-Year Estimates (2018)
*A cost-burdened household pays more than 30% or more of their income in rent or mortgage.
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Apex Affordable Housing Plan Update | 15HR&A Advisors, Inc.
Apex is losing moderate-income households, particularly among homeowners, and gaining higher income renters and homeowners.
Source: ACS 5-Year Estimates (2018)
0
100
200
300
400
500
600
700
800
900
1,000
Less than$20K
$20K to$34,999
$35K to$49,999
$50K to$74,999
$75K to$99,999
$100K to$149,999
$150K ormore
Change in Income Distribution - Renters
2010 2018
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Less than$20K
$20K to$34,999
$35K to$49,999
$50K to$74,999
$75K to$99,999
$100K to$149,999
$150K ormore
Change in Income Distribution - Homeowners
2010 2018
-605Homeowner HHs earning $50K to
$75K
+1201Renter HHs earning above $75K
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Apex Affordable Housing Plan Update | 16
Apex has a rental housing gap of units affordable to households earning less than $40,000.
HR&A Advisors, Inc.Source: ACS 5-Year Public Use Microdata Samples (2018)
Current Rental Housing Gap, 2018
- 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Less than $100K
Less than $80K
Less than $60K
Less than $50K
Less than $40K
Less than $30K
Supply Need
-1.3K unitsMaximum Affordable Rent: Less than $750
-650 unitsMaximum Affordable Rent: Less than $1,000
+350 units
+800 units
+950 units
+700 units
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Apex Affordable Housing Plan Update | 17
Over the next decade, Apex is projected to add 1,900 jobs with incomes below $75,000, which will contribute to the Town’s affordable housing need.
HR&A Advisors, Inc.Source: EMSI, ACS 5-Year Estimates (2018)
83%of Apex Job Growth, 2020-2030
+900 Jobs under $35K
E.g. Grocery Cashier
+650 Jobs from $35-50K
E.g. Firefighters
+350 Jobs from $50-75K
E.g. Registered Nurses
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Based on the Housing Needs Assessment, the team identified key areas of need for Apex:HOMEOWNERSHIP• Apex is rapidly losing affordable entry-point homes or “starter homes” for new owners including young families.
• Market pressures appear to be displacing moderate-income families, including homeowners.
RENTAL AFFORDABILITY• Apex does not have a proportional share of the region’s subsidized rental housing, and new development of LIHTC units has been
limited. Barriers to affordable housing development include high land costs and limited access to transit.
• Apex has a gap of 2,000 rental units affordable to households earning less than $40,000, and this gap is projected to grow as rents rise and the number of low-income workers and renters grows.
DIVERSITY• Apex is not attracting young adults, which may be due in part to a lack of housing in walkable, high-amenity nodes.
• Apex's population is increasingly white. The lack of diversity is likely due to a combination of factors including historical segregation patterns, perceptions, and affordability challenges.
TOWN CAPACITY• The Town lacks a Housing Manager to manage housing programs and oversee implementation of the Affordable Housing Plan
• Apex’s development review and approval processes lack clear guidelines and can pose barriers to new housing development.
• Most of the supportive housing and services in Apex is provided through small programs run by religious organizations or nonprofits.
Apex Affordable Housing Plan Update | 18HR&A Advisors, Inc.
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VISION AND GOALS
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Apex Affordable Housing Plan Update | 20
The Town and Steering Committee developed a shared vision and goals based on public input and an analysis of Apex’s housing needs.
HR&A Advisors, Inc.
Vision: Apex welcomes people of diverse backgrounds, and supports opportunities for affordable, safe, sanitary, and quality housing that meets the needs of people of all incomes, ages, and abilities. To fulfill this vision, Apex will:
Welcome, attract, and retain a diverse population.
Meet the housing needs of a diverse population, including providing housing that is affordable to people with moderate and low incomes.
Connect affordable housing development with transit service, transportation infrastructure, and amenities.
Partner regionally to meet the needs of vulnerable populations.
Raise community awareness of affordable housing needs, solutions, and broader impacts.
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QUESTIONS?
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RECOMMENDATIONS
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Fourteen recommendations in three key areas are proposed to address the Plan vision and goals:
BUILD THE TOWN’S CAPACITY
• Town Staff Capacity
• Housing Advisory Board
Apex Affordable Housing Plan Update | 23HR&A Advisors, Inc.
ADVANCE ADVOCACY & PUBLIC EDUCATION
• Annual Housing Report and Dashboard
• Diversity & Racial Equity Initiatives
• Affordable Housing Advocacy Partners
IMPLEMENT PROGRAMS & POLICIES
• Affordable Housing Incentive Zoning
• “Soft Density” By-Right Zoning
• Transit-Oriented Development Density
• Accessory Apartments
• Low Income Housing Tax Credit (LIHTC) Gap Financing
• Public Land Acquisition and Sale
• Owner-Occupied Rehabilitation Assistance
• Down Payment Assistance & Homeownership Counseling
• Emergency Rental Assistance & Supportive Services
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RECOMMENDATIONS: BUILDING THE TOWN’S CAPACITY
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Apex Affordable Housing Plan Update | 25
Increase Town Staff Capacity
HR&A Advisors, Inc.
• Align staff roles & capacity with plan implementation needs
• Hire a Housing Manager to manage the administration of the Affordable Housing Fund and proposed Housing Advisory Board
Town of Apex Planning & Community Development Department
How it works:
Zoning Compliance
Supervisor4 Staff
Ensures that all development and
land use is compliant with Town ordinances
Current Planning
Manager7 Staff
Oversees the plan review process and advises property
owners and developers
Long-Range Planning
Manager4 Staff
Plans for the Town's future and
oversees the implementation of long-range plans
Housing ManagerStaff (TBD)
Oversees affordable
housing programs and the Housing Advisory Board
Recommendations:
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Apex Affordable Housing Plan Update | 26
Housing Advisory Board
HR&A Advisors, Inc.
• Form a public Board or Committee
• Leverage Apex’s committed base of housing advocates and professionals
• Role:• Advise Town Council on
housing priorities and funding allocations
• Communicate with the public about affordable housing
How it works: Recommendations:
MEMBERSHIP
TOWN STAFF ROLE
RESPONSIBILITY
8-10 council-appointed members, representing the following groups:
• Affordable housing providers (recipients of Town funds)• Real estate professionals & lenders• At-large community members & affordable housing residents • Regional representatives• Town Council member (nonvoting)
1. Provide Town Council with policy and funding recommendations2. Assist in the creation of an Annual Housing Report3. Advise on Housing Advocacy efforts
1. Administrative support and technical assistance for board activity2. Provide information about related Town initiatives, policies, and programs
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RECOMMENDATIONS: ADVANCING ADVOCACY & PUBLIC EDUCATION
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Apex Affordable Housing Plan Update | 28
Annual Housing Report & Dashboard
HR&A Advisors, Inc.
• Develop a report and housing dashboard to track and report metrics associated with affordable housing needs, programs, and expenditures
• Communicate with residents about the importance of affordable housing and the Town’s actions
How it works: Recommendations:
Annual Housing Reports should include:
Metrics to diagnose affordabilitye.g. entry price point, rates of housing cost burden by tenure
Key Performance Indicators for programse.g. households served by income band, units produced or preserved
The online dashboard can be updated more frequently, including data such as assistance provided through Apex Cares.
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Apex Affordable Housing Plan Update | 29
Diversity & Racial Equity Initiatives
HR&A Advisors, Inc.
Diversity:
• Develop and deploy a welcoming message to attract and retain a diverse population
• Engage with residents to understand current messaging and barriers
• Remove or reduce barriers to attracting a diverse population
Equity:
• Set racial equity goals for new programs
• Reduce racial disparities through the use of Town funds
How it works: Recommendations:
Diversity initiatives are marketing and
partnership efforts that emphasize a Town’s
values and messaging, with the goal of becoming more
welcoming of different races, ethnicities, religions,
sexual orientations, gender identities, incomes,
and other groups
Racial equity initiatives acknowledge the history and intentional design of many racial inequities and set racial equity goals for
new programs with the intentional of reducing
disparities in the way the Town supports affordable
housing
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Apex Affordable Housing Plan Update | 30
Affordable Housing Advocacy Partners
HR&A Advisors, Inc.
• Work with Housing Advisory Board members and other organizations to develop an advocacy and education plan
• Develop public-facing informational materials to explain the Town’s affordable housing plan
• Integrate advocacy efforts into Annual Housing Report
How it works: Recommendations:
The Town can partner with community groups to support advocacy efforts:
Tours of affordable housing
developments
Publication of individual
affordable housing stories
“Explainers” and fact sheets for proposed and
existing programs
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RECOMMENDATIONS: IMPLEMENTING PROGRAMS & POLICIES
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HR&A Advisors, Inc.
Land use sets the future development pattern of different areas of Apex through the Land Use Map.
Apex Affordable Housing Plan Update| 32
Apex 2045 Land Use Map• The Land Use Map (pictured) lays out the desired
future development pattern, including the density of residential development in different areas
• Land use also guides future development through tools like incentive zoning and overlay districts
• Zoning designations more specifically define and regulate what kinds of uses are allowed on specific parcels
• Zoning designations also set the design and development guidelines of those uses on each parcel, such as setbacks and parking requirements
Source: Town of Apex
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Apex Affordable Housing Plan Update | 33
Affordable Housing Incentive Zoning
HR&A Advisors, Inc.
• Develop an incentive zoning condition, specifying target affordability and available incentives
• Ensure that program design provides adequate incentives to encourage affordable housing development
How it works: Recommendations:
Long-term affordability of a
portion of units through rent or price
reduction or an equivalent fee
DEVELOPEROFFERS
AFFORDABILITY
TOWNOFFERSINCENTIVES
Increased density
Reduced parking requirements or
setbacks
Incentive zoning conditions encourage developers to provide a public good, such as affordable housing units, as part of a proposed development, in exchange for incentives that compensate
for the loss of revenue.
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Apex Affordable Housing Plan Update | 34
“Soft Density” By-Right Zoning
HR&A Advisors, Inc.
• Amend zoning to allow soft density development in areas suitable for increased density, with a focus on neighborhoods in and around the Town Center
• Engage with developers and residents in downtown-adjacent neighborhoods to evaluate opportunities and barriers to increasing the development of “soft density” housing
How it works: Recommendations:
“Soft Density” or “Missing Middle” Housing
Detached Single Family
Home
Townhome Duplex Triplex or Quad
Mid-rise Apartment
Increasing Density
“Soft Density” refers to attached single family housing such as townhomes, duplexes, and triplexes which can accommodate more households and provide smaller units for residents.
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Apex Affordable Housing Plan Update | 35
Transit-Oriented Development Density
HR&A Advisors, Inc.
• Identify areas suitable for increased density based on planned transit improvements and Future Land Use Map
• Revise Future Land Use Map to show higher residential density in transit-adjacent areas
• Conduct public engagement to explain TOD
• Ensure that proposed TOD developments are subject to the incentive zoning condition
How it works: Recommendations:
Transit-Oriented Development (TOD) is…
CONNECTED& ACCESSIBLE
FOCUSED& COMPACT
MIXED-USE
Encouraging development of multifamily development near employment centers and transit helps create denser urban nodes and reduces the need for renters to rely on
personal vehicles.
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Apex Affordable Housing Plan Update | 36
Accessory Apartments
HR&A Advisors, Inc.
• Work with homeowners, HOAs, and developers to reduce barriers and encourage development
• Create a menu of designs based on the building code and the local building stock
• Conduct a pilot program to develop 5 affordable units by offering $50,000 low-cost construction loans
How it works: Recommendations:
01 Design AssistanceDevelop a menu of potential designs or patterns for construction to reduce architecture costs to residents
03 Financial AssistancePilot a program to provide low-cost loans for the construction of
accessory apartments
02 Regulatory AssistanceSimplify the permitting process for
accessory apartments to make it easier and intuitive to get permits, or
changing other requirements that may limit feasibility
Accessory apartments are small secondary units built as part of or adjacent to single family homes.
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Apex Affordable Housing Plan Update | 37
Low Income Housing Tax Credit (LIHTC) Gap Financing
HR&A Advisors, Inc.
• Provide gap funding for LIHTC developments that also receive support from Wake County
• Coordinate with the County to negotiate funding agreements
• Town funds should compensate for the higher cost of land in Apex
• Dedicate Apex Affordable Housing Funds annually to support LIHTC
How it works: Recommendations:
4% LIHTC Project
Total Project Costs: $38.9M
200 New Construction Units:216 unitsAverage 60% AMI
Wake County Loan $3.0M
Permanent Loan $24.2M
LIHTC Equity $9.3M
Deferred Developer Fee $0.4M
Apex Loan $2.0M
Soft Costs $7.3M
Construction Costs $27.3M
Wake Land Costs $2.3M
Apex Land Premium $2.0M
PROJECT COSTS FUNDING SOURCES
LIHTC is a federal program administered through the state and the primary tool for the development of new affordable rental units. Local governments frequently provide low-cost loans
to LIHTC developers to close the financial “gap”.
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Apex Affordable Housing Plan Update | 38
Public Land Acquisition & Sale
HR&A Advisors, Inc.
• Develop a land acquisition and disposition policy that ensures suitable sites are identified and designated for affordable housing
• Work with County to identify suitable County-Owned sites for affordable housing
• Release an RFP for development of priority sites
How it works: Recommendations:
In North Carolina, local governments can provide land to developers through a competitive process at reduced prices in exchange for affordable housing.
Determine feasibility by size, shape, and constraints
Prioritize based on land use and road access
Filter for opp-ortunity areas
Setting of affordable housing goals and release of RFP
Selection of a parcel of public land
Proposal or bid submission
Public private partnership established
Development
The public land process begins with assessing the feasibility of parcels and
ends with disposition of these parcels for sale.
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Apex Affordable Housing Plan Update | 39
Owner-Occupied Rehabilitation Assistance
HR&A Advisors, Inc.
• Adopt & provide funding for the proposed Apex Cares program
• Identify opportunities to align Apex Cares with Wake County rehabilitation program
• Conduct outreach to potential Apex Cares participants
• LEARN MORE AT: https://www.rttriangle.org/
How it works: Recommendations:
01 Participants Determine EligibilityParticipants must be owner-occupants of single family homes, and earn below 65% AMI (roughly $61,000)
03 Complete ProjectsProjects can include repair or
replacement of roofing, electrical systems, plumbing, and any other items
determined eligible by the Town
02 Town Assigns ContractorsThe Town partners with a nonprofit
housing provider and provides them with grants of up to $15,000 to make
repairs for homeowners
The Town has proposed a program, Apex Cares, to provide rehabilitation assistance to income-qualified homeowners.
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Apex Affordable Housing Plan Update | 40
Down Payment Assistance & Homeownership Counseling
HR&A Advisors, Inc.
• Provide funding for Down Payment Assistance to nonprofit operators of local programs
• Layer funding with State and County programs to maximize available funding and help Apex residents build wealth
• Pair with tools that increase the supply of moderately-priced housing, including soft density zoning
How it works: Recommendations:
Down Payment Assistance reduces the up-front costs of homeownership through grants or forgivable loans
$242,000 Affordable mortgage for
a household making $56,000 annually
$280,000Home Purchase Price
$25,000 DPA
Total Purchase Price
$13,000 from household
Homebuyer counseling provides prospective first-time homebuyers with assistance in planning for buying a home and budgeting for the full costs of homeownership
$56,000 is 60% of the household Area Median Income (AMI) in Apex. This assumes FHA financing based on a 5% down payment from the household with a 30-year, fixed rate mortgage.
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Apex Affordable Housing Plan Update | 41
Emergency Rental Assistance & Supportive Services
HR&A Advisors, Inc.
• Provide grant funding to nonprofits serving vulnerable populations in Apex:
• Those in need of supportive services
• Households facing homelessness
• Award funds through a competitive process
• Work with nonprofit partners to monitor ongoing need
How it works: Recommendations:
01Allocate funds to serve vulnerable populations and set criteria to select awardees
03Award funds to nonprofits with
highest-scoring proposals. Monitor impacts of implementation and
ongoing need.
02Issue an RFP and score responses based on
scoring criteria such as based on demonstrated need and organization capacity
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ACTION PLAN
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Apex Affordable Housing Plan Update | 43
The Draft Plan recommends timing for each recommendation and shows how they will address the vision and goals.
HR&A Advisors, Inc.
Action Timing
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BUILD THE TOWN’S CAPACITY To ensure the successful implementation of the Affordable Housing Plan, Apex needs to build its capacity to oversee new housing programs.
Town Staff Capacity Near-term
Housing Advisory Board Near-term
ADVANCE ADVOCACY AND PUBLIC EDUCATION Building awareness and understanding about Affordable Housing in Apex will be critical to the success of the Plan.
Annual Housing Report Mid-term
Diversity & Racial Equity Initiatives Mid-term
Affordable Housing Advocacy Partners Mid-term
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Apex Affordable Housing Plan Update | 44
The recommended programs and policies in the Draft Plan address the vision and goals established by the Steering Committee.
HR&A Advisors, Inc.
Action Timing
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IMPLEMENT PROGRAMS AND POLICIES Apex will provide funding for new programs and make policy changes to meet its affordable housing goals.
Affordable Housing Incentive Zoning Near-term
Owner-Occupied Rehabilitation (OOR) Assistance Near-term
Low Income Housing Tax Credit (LIHTC) Gap Financing Near-term
Support for Homeownership Mid-term
Transit Oriented Development Density Mid-term
“Soft Density” Zoning By-Right Mid-term
Public Land Acquisition & Sale Long-term
Accessory Apartments Long-term
Emergency Rental Assistance and Supportive Services Long-term
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HR&A Advisors, Inc. Apex Affordable Housing Plan Update | 45
The Town recently created the Apex Affordable Housing Fund, which will generate $1 million annually for affordable housing programs.
ERA & Supportive Services $50,000
Homeownership $200,000
Owner-Occupied Rehabilitation
$200,000
LIHTC Gap Financing$500,000
$1,000,000
ANNUAL FUNDING
1 development every 2 to 4 years, depending on tax credit type, size, and amount of County financing, or an average of 50 units per year
POTENTIAL ALLOCATION
ANTICIPATED IMPACTS
12 to 15 units per year
3-5 units per year
Varies by program
Pilot program of 1 unit per year
Accessory Apartments $50,000• Determined by Apex’s
Town Council
• Recommended by the Housing Advisory Board
• Reevaluated each year
The allocation of these funds will be:
Sample Apex Affordable Housing Fund Allocation and Impacts
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QUESTIONS?
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NEXT STEPS
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Next Steps in Planning Process
Apex Affordable Housing Plan Update | 48
Town Presentations
September
Goals, Tools & Recommendations
September-October
Draft Plan
November
HR&A Advisors, Inc.
Revise Draft Plan based on public feedback2
Town Presentations
December
Adopt Plan
January
1 December 28th - Written comments requested via https://www.publicinput.com/AHPcomments
January 11th at 4:30 - Planning Board public hearing and possible recommendation to Town Council3
January 26th at 6:00 pm - Town Council public hearing and possible adoption of the Plan4
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THANK YOU!