FY 2014 BUDGET PUBLIC HEARING Tuesday, November 27, 2012

Report
Delaware
State Housing Authority
DSHA FY 2014 Budget
Joint Finance Committee Hearing
February 5, 2013
Delaware State Housing Authority
18 The Green  Dover, DE 19901
(302) 739-4263  (888) 363-8808
www.DEStateHousing.com
Outline
• DSHA At a Glance
• FY14 Budget Request
- HDF Base Budget
- State Rental Assistance Program
DSHA
Core Businesses
Homeownership
Rental
Key Activities:
Key Activities:
• Homebuyer Mortgages
• Rental Housing Development
• Second Mortgage Assistance
• Multi-Family Site Preservation
• Foreclosure Mitigation
• Rental Subsidies
• Home Rehabilitation
• Asset Management
DSHA
New Initiatives
 State Rental Assistance Program
 Home Again
 Loans for Heroes
 Wilmington Senior Tax Assistance Program
 Housing Needs for People with Disabilities
 Community Impact Study
 DelawareHousingSearch.org
DSHA
New Efficiencies
 Organizational consolidation

saved $260,000 in salary
 Debt restructuring

Saved $1.7 million in interest payments
 Program leverage

500 new homeownership loans
 New mortgage financing structure

Saves on cost of issuance
Housing Market Review:
Building Permits
Delaware Building Permits – 2002 - 2012
10,000
8,582
8,000
8,529
7,786
6,000
4,000
6,331
6,678
4,943
3,346
2,000
3,121
2,955
3,150
3,582
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: U.S. Census Bureau, CenStats Database
Housing Market Review:
Home Sales
Delaware Home Sales: 2005-2012
16,000
15,751
14,000
13,647
12,000
12,011
10,000
9,625
8,000
8,533
8,314
8,247
8,111
2008
2009
2010
2011
6,000
4,000
2,000
0
2005
2006
2007
2012
Source: County Board/Associations of REALTORS©
Housing Market Review:
Mortgage Delinquencies
Loans Past Due or In Foreclosure, All Loans:
U.S. and DE (Percent of All Loans)
16
14
US
DE
DE
12.10
12
10
U.S.
11.71
8
6
4
2
0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12
Source: Mortgage Bankers Association, National Delinquency Survey
Housing Market Review:
Foreclosure Filings
Delaware Foreclosure Filings, 2002-2012
7000
6000
6,157
6,457
5000
5,112
4,488
4000
3,853
3000
2000
2,288
2,121 2,204 2,121 2,175
1000
1,276
0
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Housing Market Review:
Foreclosure Filings 2012
Delaware Foreclosure Filings, 2012
450
400
426
350
300
250
200
196
172
150
126
100
99
50
10
0
Jan
11
21
43
61
Feb March April May June
70
41
July
Aug
Sept
Oct
Nov
Dec
Source: Lexis Nexis Database, compiled by Counties, AG, and DSHA
Housing Market Review: Rental
Market Changes 2000 - 2010
2000
Median Gross Rent
Median Family
Income
Cost-burdened
Renters*
% of Renters Costburdened
$639
2010
Increase
$952
49%
$55,257 $68,746
24%
28,128
45,264
61%
34%
51%
50%
* Cost burdened is defined as spending 30% or more of household income on rent
Source: U.S. Census Bureau, 2000 Census and 2010 American Community Survey
Housing Market Review:
Cost-Burdened Households
Percent of Delaware Renter Households
Cost-burdened by Income
100%
Cost-burdened
80%
71%
72%
Severely Cost-burdened
60%
44%
40%
20%
6%
0%
Extremely Low
Income (<30% AMI)
Very Low Income Low Income (50-80%
(30-50% AMI)
AMI)
>80% of AMI
Cost-Burdened is defined as spending 30% or more of household income on rent
Severely Cost-Burdened level is 50% of income
Source: HUD 2005-2009 CHAS Data, compiled by DSHA
FY14 Budget Request
HDF Base Budget
$4,070,000
Affordable Rental
Housing Program
$6,000,000
State Rental Assistance
Program
$3,000,000
Total DSHA Budget
$13,070,000
Housing
Development Fund
FY12 Production Report
Housing Development Fund
FY12 Unit Production
Rental Housing
Rehabilitation/Preservation
New Construction
Rental / Security Deposit Assistance
264 Units
76 Units
448 Units
Homeownership
Rehabilitation
Acquisition/Rehabilitation
285 Units
16 Units
New Construction
Pre-Purchase Counseling
27 Units
425 Units
Housing Development Fund
FY12 Leverage
HDF Investment Leverage Ratio is 4.8 to 1
Other (Federal, Donations, Contributions) : $2.3 M
L
e
v
e
r
a
g
e
Federal HOME Grants: $14.1 M
Total Leverage: $48.8 M
Tax Credit Equity: $32.4 M
State Resources (HDF): $ 10.2 M
16
Housing Development Fund
FY14 Budget Request
$4,070,000 Base Budget
Housing Development Fund
$4,070,000
Affordable Rental Housing
 Rehabilitation of existing units
 Creation of new units
Affordable Homeownership
 New units
 Owner-occupied rehabilitation
 Housing counseling
Before
Carvel Gardens
Laurel, DE
100 Family Units
After
The Cascades at Milford
76 Family Units
Community Building
Solar Panels
New Construction
Hampton Circle
Seaford, DE
35 Senior Units
New Construction
Ms. Erethia Smith,
Resident
Before
Manlove Manor
Wilmington, DE
40 Senior Units
New Community Building
Rehab in Process
State Rental Assistance
Program
FY 13 Production Report
$3,000,000 FY 2013 Budget
Introduction
The purpose of the State Rental Assistance
Program (SRAP) is to assist low-income
individuals who are eligible to receive
supportive services and require affordable
housing to live safely and independently in
the community.
Program Goals
 Provide rental subsidies to program participants
who require, and have access to continuing home- and
community-based services
 Establish partnerships with state agencies and
community service providers
 Move individuals out of state-run long-term care
facilities and into home- and community-based care
programs
 Transition program participants to financial selfsufficiency or to other affordable housing resources
Populations Served
 Clients exiting state-supported and privately run
long-term care facilities
 Youth aging out of foster care
 Families for whom the lack of affordable housing
is a barrier to reunification
 Individuals at-risk of requiring services from or
being admitted to a state-supported institution
 DSAMH clients identified as target populations in
the USDOJ Settlement with the State of Delaware
SRAP Production
Finance Report
SRAP Production and Pipeline (as of 12/31/2012):
Applications
Pending
Vouchers Issued
Applications
Pending
Funds
Reserved
(1)
Vouchers
Issued
67
$569,500
107
Units Leased
Total
Funds Reserved
(1)
Units
Leased
Funds
Encumbered
(2)
Application,
Vouchers
and Units
Total Funds
Reserved and
Encumbered
$909,500
178
$1,428,928
352
$2,907,928
(1) Based on annual estimate of $8,500 per Voucher
(2) Based on actual expenditures
SRAP Production
Vouchers Issued
SRAP Vouchers by Agency
DHSS-DSAAPD/DMMA
57
DHSS-DDDS
16
DHSS-DSAMH
134
DSCYF-Youth
41
DSCYF-Families
37
TOTAL
285
 19 Participants have transitioned to other permanent housing

9 participants have been terminated from the program due to violations
DPC Settlement Agreement
SRAP is a key tool in the State’s effort to implement the
DOJ Settlement on the Delaware Psychiatric Center (DPC)

DSAMH has transferred additional funding to the SRAP program
to ensure Settlement housing goals are met

July 2012 goal was to provide 100 additional new housing
vouchers (SRAP provided 75)

July 2013 goal is to provide 200 additional new housing vouchers
(SRAP target is 150)

Settlement housing target for FY14 is 550.
DPC Settlement Agreement
SRAP is starting to show a cost avoidance benefit –
especially with people covered by the Settlement
Agreement

135* SRAP vouchers issued to DSAMH clients exiting DPC or
at-risk of admission to DPC.

Average length of stay at DPC for these clients is 60-days at a
cost of $36,180 per client or $4,848,120 for all 135 clients.

The cost to provide SRAP rental housing assistance to the same
cohort of 135 is $974,565**.

Cost avoidance for this one sub-population of SRAP in the first of
their participation in the SRAP program is $3,873,555.
*Including SRAP vouchers funded by DSAMH
**Actual cost of rents ($7219) for DSAMH clients used
SRAP
FY14 Budget Request
$3,000,000
To continue the program and continue to provide housing to
350 current and new SRAP program participants.
SRAP Program Participants…
In Their Own Words
FY14 Budget Request
HDF Base Budget
$4,070,000
Affordable Rental
Housing Program
$6,000,000
State Rental Assistance
Program
$3,000,000
Total DSHA Budget
$13,070,000
Contact Information
Anas Ben Addi, Director
Delaware State Housing Authority
18 The Green
Dover, Delaware 19901
Telephone: 739-4263  Fax: 739-6122
Toll Free: 888-363-8808
E-mail: [email protected]
Thank you!

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