Town Hall Meeting

Cincinnati Metropolitan Housing Authority Green Township Compliance Update Thursday, March 7, 2013 6-7:30 p.m.

Agenda

History Compliance Update Compliance Progress Cost Comparisons FAQs Surveys Questions

HISTORY

History
How did we get here?
HUDs Fair Housing/Equal Opportunity (FHEO) Green Township investigation (October 7, 2009) FHEO findings (February 10, 2011) Lawsuit filed by Green Township (August 1, 2011) Lawsuit settled between HUD, Green Township and CMHA (January 26, 2012) Agreed upon 32 asset management (public housing) units for families

History (contd)
Asset Management (Public Housing)
Portfolio of properties that are owned and managed by CMHA CMHA maintains the properties, screens residents for eligibility and enforces the lease

History (contd)
Housing Choice Voucher (Section 8)
Program for assisting low-income families Participants choose any housing that meets the requirements of the program Vouchers are administered by CMHA, but:
Residents maintain the property Private landlords enforce the lease

Residents go where private landlords make housing available; fair housing laws prevent CMHA from dictating where voucher holders can live

COMPLIANCE UPDATE

Compliance Update
VCA signed - June 2011 CMHA responsibilities
Option A
Develop new multi-family housing in Green Township (financial) March 31, 2013 Report progress to HUD
Site control (options)

Option B
Acquire 32 units in Green Township for rehab
Scattered sites All in one location

Compliance Update (contd)

When does Option A and/or B have to be completed?
Option A
Demonstrate site control to HUD by March 31, 2013 Financial submission June 30, 2013 Fully leased by June 30,2016

Option B
Fully acquired and rehabbed by June 30, 2015 Fully leased by June 30,2016

COMPLIANCE PROGRESS

Compliance Progress
What have we been doing?
Looked into new construction/acquisition-rehab and demo on Audro Ave.
Cost to purchase (owner wanted $800K above appraised value)

Looked to purchase a multi-family along Cheviot Rd. (Village Square)

Owners never responded to request

Looked to purchase land on Harrison Ave. (next to Lowes)

No transportation Other purchaser

Compliance Progress (contd)

What have we been doing?
Looked to purchase property off West Fork in Mt. Airy Forest
No transportation

Looked to purchase land along North Bend Rd. near Clark gas station
Land was not feasible for construction

Looked into purchasing the Green Valley Apartments (Harrison Rd. near Rybolt Rd.)
Rehab costs were potentially quite high

COST COMPARISON
Multi-family acquisition/rehab vs. New construction

Cost Comparison Multi Family 32 Rehab

Per unit costs - $93K
Land purchase Architecture Fees Permit Fees Environmental Testing

Total Development Cost $3M

**All numbers based on projections and subject to property condition

Cost Comparison Multi Family 32 New Construction

Per unit costs - $207K
Land purchase Architecture Fees Permit Fees Environmental Testing

Total Development Cost $6.6M

**All numbers based on projections and subject to property condition

Cost Comparison Multi Family 50 New Construction

Per unit costs - $190K
Land purchase Architecture Fees Permit Fees Environmental Testing

Total Development Cost $9.5M

**All numbers based on projections and subject to property condition

Cost Comparison

FREQUENTLY ASKED QUESTIONS

Frequently Asked Questions

Will the addition of asset management and affordable housing lower property values?
There is little empirical evidence that subsidized housing depresses neighborhood property values. NYU Law & Economics, 2005 Stronger support for [affordable housing] provides an opportunity to address a number of Americas most pressing problems: supplying decent (places to live) for the growing number of low-income households, revitalizing communities hard hit by the foreclosure crisis, and reducing the nations carbon footprint with more compact residential redevelopment. Harvard University, Joint Center for Housing Studies, 2011

See Fact Sheet for additional information.

Frequently Asked Questions

Will this concentrate public housing on the Westside?

Frequently Asked Questions

How does the concentration of asset management, HCV properties and affordable housing compare to the rest of Hamilton County?

7%

12.6%

93%

87.4%

Frequently Asked Questions

Where do the clients come from?
Housing study 90,000 households in Hamilton County have a housing problem
Hamilton County as whole
3 mile radius Family Church Overall support group Employment

Frequently Asked Questions

What is the most successful housing model for people of low income?
Smaller multi-family mixed income communities Multi-family in affluent areas:
Access to transportation, grocery stores, amenities Clients are able to mimic existing surroundings and learn a new standard of living

No longer the most successful asset management model

Frequently Asked Questions

If the Green Township Trustees agree to sell to CMHA, would they be entitled to more control of final details?
Number of Units: Yes if financially feasible Design of Building: Yes if financially feasible Green Space: Yes Buffers: Yes

Frequently Asked Questions

If CMHA purchases a property not owned by Green Township, would Green Township Trustees be entitled to more control of final details?
CMHA plans to work in partnership with Green Township Trustees and the community at large to make this a successful collaboration regardless of the lands previous owner.

Frequently Asked Questions

Since the agreement between Green Township, CMHA and HUD specifically stated that Green Township would receive 32 units, why are the numbers of 50 to 80 being discussed?
No intentions of 80 units 50 units has been discussed by CMHA because of the financial makeup (mixed finance) of Option A.
32 asset management units 18 affordable housing units

Frequently Asked Questions

Is there really a compelling reason to increase the number of units from 32 to 50?
There would still only be 32 units of asset management (public housing) Opportunity to improve a blighted area Create local jobs during construction (short term)

Frequently Asked Questions

What is the difference between the 32 asset management units and 18 affordable housing?
Asset management units are subsidized by HUDs operating subsidy Affordable housing units receive a one-time tax credit during construction, but receive no ongoing rental subsidies

Frequently Asked Questions

What kind of housing mix would your scattered site Option B include?
Multi-family homes (2, 4, 6 or 8): Yes 16+ units in an existing apartment complex: Possibly Newly constructed 2, 4, 6 or 8 unit apartments: Possibly

Frequently Asked Questions

When does CMHA plan to make a formal offer to purchase the Green Township property?
Not until the other parcels are under contract and the CMHA board has approved the VCA development option they feel is best for all parties involved.

Frequently Asked Questions

Has CMHA made any offers on the other sites?
Yes

SURVEY COLLECTION

QUESTION COLLECTION

SPEAKERS