HOME Conference Place Based Strategies IISlide17. Strategy Design: Targeting • Geographic targeting • Place‐based strategies concentrate & coordinate activities/resources for

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Place‐Based Strategies II

Implementing Development Approaches

What Are Place Based Strategies?

• Place‐Based Strategies involve: • Analysis of market conditions

• Comprehensive assessment of diverse social and economic issues facing a neighborhood or community

• Focus on target areas – market, jurisdiction, neighborhood – that has specific conditions to address

• Focused resources & leveraging

• Coordinated activities among partners

• Evaluation of impacts

Slide 2

Focus of P B Strategies Workshops

• P‐B1: focused on data & tools to analyze market conditions & needs

• This workshop: based on understanding of market conditions & needs, what strategies will work?

• Examine 10 common market conditions & relevant strategies

• Discuss several key elements of P‐B strategy design

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Implementing a Place ‐Based Approach: Process Steps

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Assess Market

Condit ions

• Review available supply/demand/unit condition data Collect info on related local needs such as employment, commercial growth etc. •

Determine Activi ty Types

• Rental or homeownership or both or neither? Address supply, quality or cost of units? Need to develop related commercial, services or public facilities? •

Select Best Funding Sources

• HOME, CDBG, NSP, HOPWA, SNAPS, Public Housing, Section 8, FHA, HOPE VI Programs at other agencies: LIHTC, CDFI, USDA, VA, other state/local programs •

Select Partners

• CHDOs, CBDOs, social services providers, housing authorities, developers, lenders, foundations

Implement Activi ties

• Targeting, capacity, marketing, administration, evaluation

Market Condition 1

• Condition: Steady decline in local population; excess supply of homeowner units, which are not selling

• Strategy development: • What else do we want to know?

• What strategies/activities are appropriate?

• What resources might be a good match for addressing strategy?

• What partners are needed?

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Market Condition 2

• Condition: Overbuilt homeowner market means slow sales but underlying local economy incrementally rebounding





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Market Condition 3

• Condition: Strong rental demand, but many substandard units; low vacancy rate for standard rental units, especially units for large families





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Market Condition 4

• Condition: Stable urban market but large number of vacant, abandoned, infill parcels, which are costly for city to maintain





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Market Condition 5

• Condition: Homeowner market strong but homes are unaffordable





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Market Condition 6

• Condition: Rental market supply adequate, but rents unaffordable





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Market Condition 7

• Condition: Single family neighborhood with significant proportion of units in foreclosure; no political desire for rental housing but limited demand for homeownership





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Market Condition 8

• Conditions: Shortage of housing for special needs and very low income households, especially with assisted services





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Market Condition 9

• Condition: Neighborhood with housing, but lacking commercial, services, jobs





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Market Condition 10

• Condition: Lack of housing near major employment or transportation hubs





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Other Market Conditions?

• What other conditions do you face?

• What strategies: • What else do we want to know?




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Using HOME in P‐ B Strategies

• HOME limited to 4 housing activities, but a core discretionary source for those activities as part of P‐B strategy

• HOME doesn’t require targeting other than income, but…

• Can use the ConPlan process to coordinate HOME with other activities in P‐B strategy – CPD is developing mapping tool fed by market and demographic data

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Uses of Other Resources

• When is it best to use: – CDBG

– NSP

– LIHTC

– HOPWA

– Section 8

– HOPE VI

– SNAPS Programs

– Section 8 tenant or project based assistance

– Public housing or HOPEVI

• Other? Slide 17

Strategy Design: Targeting

• Geographic targeting • Place‐based strategies concentrate & coordinate activities/resources for impact

• Spreading resources too thin doesn’t achieve impact

• What are your areas of strategic focus? – CDBG NRSAs/CRSAs?

– NSP Areas of Greatest Need?

– LIHTC QCTs?

– Empowerment zones?

– Other?

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Strategy Design: Capacity

• Jurisdiction staff skill needs: • Market conditions/needs analysis

• Strategy development

• Strategy administration

• Project selection/underwriting

• Monitoring/tracking/evaluating results

• Partners needed to implement activitie• Public/nonprofit subrecipients

• Developers – nonprofit, for‐profit, public

• Others – land banks, land trusts, CDFIs, PHAs

s:

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Strategy Design: Marketing

• Identification and outreach to potential participants & beneficiaries

• Potential partners in the outreach process?

• Affirmative marketing needed?

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Strategy Design: Administration

• What policies, procedures, standards & documents will you need for staff & partners?

• Written agreements?

• Performance standards?

• Assistance standards?

• Marketing & outreach procedures?

• Underwriting requirements?

• File & recordkeeping requirements?

• Monitoring strategy?

• Evaluation strategy?

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Strategy Design: Evaluation

• How should you evaluate the P‐B strategy?

• What are the intended impacts/outcomes?

• What are the measures?

• What is your data collection strategy?

• When and how do you report on outcomes?

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Implementing P B Strategies

• Analyze market conditions & needs

• Strategic planning • Use the ConPlan and other local planning efforts

• Assemble potential partners

• Identify strategies & resources

• Develop “action plan” to implement, coordinate & evaluate

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Wrap Up

• Times have changed. You cannot: • Keep expecting the same funding levels

• Keep giving money to non‐performers & ineffective partners

• Keep spreading the money around & expect better results

• In limited funding environments, you have to target & concentrate resources for impact

• Remember you can request TA

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PLACE‐BASED STRATEGIES Hyde/Jackson Squares: Boston, MA

Evelyn Friedman,

Chief of Housing, City of Boston

Jamaica Plain Neighborhood

Downtown Boston

Longwood Medical

Jamaica Plain Neighborhood

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Housing Market In Jamaica Plain HOUSE PRICES JP VS. NSP

AREAS 2007-2010

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2007 2008 2009 2010

Jamaica Plain NSP Neighborhoods

CONDO PRICES JP VS. NSP AREAS 2007-2010

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2007 2008 2009 2010

Jamaica Plain NSP Neighborhoods

Community Activism In Jamaica Plain

Blessed Sacrament Closes: 2004

Blessed Sacrament c. 1920

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Blessed Sacrament - Organizing For Affordable Housing: 2005

Blessed Sacrament – Mixed-Income, Mixed-Use Redevelopment

Blessed Sacrament – Affordable Homeownership

FORMER RECTORY & NEW CONSTRUCTION OF AFFORDABLE CONDOMINIUMS

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Blessed Sacrament – Coops & Commercial

Blessed Sacrament – Housing For The Homeless

FORMER CONVENT TO BE CONVERTED TO SRO HOUSING

Blessed Sacrament – Market-Rate Housing

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Publicly-Sponsored Investments: 2001-2011

BLESSED SACRAMENT JACKSON SQUAR

CITY-SPONSORED PROJECT HALF MILE

HOUSING: 800 Units In Construction/Complete

450 Units Underway

TDC: $308 million

E COMMERCIAL:

30 Projects In Construction/Complete

21 Projects Underway

TDC: $24 million

Jackson Square: Master Plan

Jackson Square: Current Projects

CENTRE-LAMARTINE

225 CENTRE STREET

JACKSON COMMONS Bromley Heath Public Housing

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Jackson Square: Centre-Lamartine

Jackson Square: 225 Centre Street

Jackson Square: Jackson Commons

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PLACED-BASED STRATEGIES IN BOSTON, MA

Evelyn Friedman, Chief of Housing, City of Boston

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CITY OF ONTARIO Downtown Revitalization The Vision, the Reality, and Lessons

Learned

• 35 miles east of downtown Los Angeles

• Population: 173,796

• Anticipated growth: Over 300,000 within the next 20 years

Where Is Ontario, CA

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• City established in 1891

• Median Age: 28 years

• 69.8% of Ontario residents are Hispanic

Demographics

• Median household income is $52,934

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Downtown Ontario

Downtown Prior to Project

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Downtown Prior to Project

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Vision

• Transform dying historic downtown into urban village – Issues

• Decades of Disinvestment

• Boarded‐Up Buildings

• Inadequate Public Infrastructure

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• Absentee Landlords

• Perception of Unsafe/Crime Area

• Development Code Issues

Vision

• Transform dying historic downtown into urban village – Solutions to Address Issues

• Focused resources to build upon existing community assets

• Created unique development codes

• Increased land densities

• Constructed new public infrastructure

• Acquired blighted land

• Reduced Development Impact Fees

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Planning/Implementation

• Planning – Increase density from 20 to 65 units per acre

– Created unique development code for downtown

– Acquired and consolidated parcels

– Maximize economic productivity and affordability for all segments of the population

– Joint use of community assets

– Incorporation of green building components, including installation of recycled water lines.

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Planning/Implementation

• Worked with Consultants on Marketing Analysis of Area

• Hired Architects for Initial Concept Designs

• RFQs

• Selected Developer

• Developed Ontario Town Square Concept with Developer

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Project Scope

• Ontario Town Square – Over a $200 million investment

– Create up to 637 new residential housing units with a range of types and affordability

– Construct 74,000 sq. ft. of new retail and a new 2.5‐acre community plaza

– Historic Preservation

– New public infrastructure

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ONTARIO TOWN SQUARE

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Ontario Town Square ‐ Progress

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Block Type of Development Status

A‐1 Mixed‐Use Up to 108 for‐sale condos over new retail

DDA approved in April 2011, allows option for development of site

A‐2 160 Moderate‐Income (120% of AMI) residential apartments

Completed in 2009 and fully‐leased. Provided $12.5 million subsidy for 55 year restrictions.

A‐3/A‐4 140 Market Rate For‐Sale Townhomes Completed in 2009 and fully leased. Converted from for‐sale to rental.


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B‐1 Community Plaza with two restaurants

Construction drawings underway and estimated construction start date is Summer 2012

B‐2 76‐Unit Affordable Senior Rental Housing (City Center Senior Apartments). Units restricted to extremely low and very low‐income seniors

Completed in 2010 and fully leased. Currently, 305 seniors on the waiting list. Provided $5.1 million subsidy, including HOME funds. Fifty‐five year affordability restrictions.

Senior Center – Substantial Rehabilitation

Completed in 2002

B‐3 City Hall Renovation Completion Scheduled for Summer 2010

B‐4 City Hall East Annex Completed in 2009


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C‐1 Mixed‐Use Residential Development 153‐unit and 30,000 sq. ft. of retail

DDA approved in April 2011. Estimated construction start date is Fall 2011.

C‐2 Ovitt Family Library – Reconstruction of Library Facility

Completed in 2007

C‐3/C‐4 University of La Verne Law School Completed in 1999

Public Improvements

Completed over $11 million in public infrastructure improvements

Completed in 2010

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Next Steps – Block C ‐1

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C-1 Site

Artist Rendering of Mixed Use Site lide 16

Next Steps – Block B ‐1 (Plaza)

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Plaza Site Plan

Current Site

Next Steps – Block B ‐1 (Historic Building Renovation)

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Bank of Italy Building

Artist Rendering

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Lessons Learned During Planning

• Issues Identified during Planning – Limited number of qualified developers

– Bankers reluctant to invest in downtown

– Developer inexperience with first‐time homebuyers

– Aggressive expectations

– Lender/Developer difficulties

Slide 19

Economic Downturn Impact

• Area hit with unprecedented declines in property values

• Apprx. 60% decline in home value

• Unprecedented foreclosures

• 5.7% of foreclosure filings nationwide in area

• MSA area unemployment rate soars to 14.6%

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Issues

• Problems Created by Economic Downturn – Restricted underwriting for new homeowners

– Plummeting property values

– Looming construction loan default

– Entitlements required owner‐occupant restrictions on Blocks A‐3/A‐4

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Lessons Learned

• Developer provided a guarantee and had a recourse loan. Effective

• Required adoption of Urgency Ordinance. Effective

• Obtained down payment assistance (Up to $80,000 silent seconds). Not Effective

• Increased subsidy for City Center Senior Apartments for more competitive LIHTC application. Not Effective

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Lessons Learned

• Settlement Agreement ‐ Restructured deal with developer for blocks A‐1, A‐2, A‐3/A‐4, and C‐1, and averted major litigation. Effective

• Got Lucky

– Both Developer and Lender had strong reasons to remain committed to project.

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Lessons Learned

– Got Lucky • Due to economic crisis, a number of LIHTC projects were unable to proceed and we were able to secure LIHTC from the State

• Strong rental market existed. A number of households moving into the projects had recently lost homes due to foreclosure crisis.

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Project After Completion –

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Project After Completion –Block A ‐2

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Project After Completion –Block A ‐2

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Project After CompletionBlock A ‐3/A‐ 4

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Project After Completion –Block A ‐3/A‐ 4

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Project After CompletionBlock A ‐3/A‐ 4

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Project After Completion –Block B ‐2

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Project After Completion –Block B ‐2

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CITY OF ONTARIO Downtown Revitalization The Vision, the Reality, and Lessons

Learned

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HOME Conference Place Based Strategies IISlide17. Strategy Design: Targeting • Geographic targeting • Place‐based strategies concentrate & coordinate activities/resources for