Delaware
State Housing Authority
FY ’15 Joint Committee
On Capital Improvement
Public Hearing
Delaware State Housing Authority
February
2014
18 The11,
Green
Dover, DE 19901
(302) 739-4263 ■ (888) 363-8808
Visit us at www.destatehousing.com
DSHA Presentation
Presentation Summary –
• Core Businesses
• Accomplishments and Highlights
• Delaware Housing Market Overview
• State Budget Production Reports
• FY 15 Budget Request
DSHA Mission
Our mission is to efficiently provide, and to assist
others to provide quality, affordable housing
opportunities and appropriate supportive services
to low- and moderate-income Delawareans
DSHA
Core Businesses
Homeownership
• Homebuyer Mortgages
• Second Mortgage Assistance
• Foreclosure Mitigation
• Home Rehabilitation
Rental
• Rental Housing Development
• Multi-Family Site Preservation
• Rental Subsidies
• Asset Management
DSHA
Accomplishments and
Highlights
• First-Time Homebuyer Tax Credit
• Mortgage Financing Partnerships
• Bond Restructuring ($2.5 M savings)
• $5M in New Rental Subsidies
Delaware Housing
Market Overview
Housing Market Review:
Building Permits
Delaware Building Permits, 2003 – 2013
10,000
8,582
8,000
8,529
7,786
6,678
6,000
4,943
4,000
3,901
3,346
3,121
2,955
3,150
2009
2010
2011
4,693
2,000
0
2003
2004
2005
2006
2007
2008
2012
2013
Source: U.S. Census Bureau, CenStats Database
Housing Market Review:
Home Sales
Delaware Home Sales, 2005 – 2013
18,000
16,000
15,751
14,000
13,647
12,000
12,011
10,000
10,795
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
2013
Source: County Board/Associations of REALTORS©
Housing Market Review:
Home Prices
Median Home Prices, 2000 – 2013
Kent
New Castle
Sussex
Median Home Price ($000s)
350
300
250
200
150
100
50
0
2000
2002
2004
2006
2008
2010
2012
Source: County Board/Associations of REALTORS©
Housing Market Review:
Mortgage Delinquencies
Loans Past Due (30+ days) or In Foreclosure
(% of all loans)
US
16
DE
14
DE
10.82
12
10
US
9.75
8
6
4
2
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2008
2009
2010
2011
2012
2013
Source: Mortgage Bankers Association, National Delinquency Survey
Housing Market Review:
Foreclosure Filings
Delaware Foreclosure Filings, 2003-2013
7000
6000
6,157
6,457
5000
5,112
4,488
4000
3,853
3000
2000
2,592
2,204 2,121 2,175 2,288
1000
1,276
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Housing Market Review:
Sheriff Sales
Source: Lexis Nexis Database, compiled by Counties, AG, and DSHA
FY15 Bond Bill Request
DSHA Budget
Affordable Rental Housing Program
$6,000,000
Downtown Development Districts Grant
$7,000,000
Total DSHA Bond Bill Request
$13,000,000
Affordable Rental
Housing Program
FY13 Production Report
$4,000,000 (FY 13 Bond Bill)
ARHP
FY13 Production
Affordable Rental Housing
 3 multi-family rental housing sites
 216 units
 Housing for 600 people
 Nearly $2 million in HUD rental subsidy preserved
Affordable Rental Housing
Program
FY13 Funding Leverage
ARHP FY13 Funding Summary:
ARHP Dollars Allocated
$5.3 million
Low Income Housing Tax Credits
$16.4 million
Private Loans
$11.8 million
Other (Federal, Donations, Contributions)
$17.0 million
Total
$50.5 million
HDF Leveraged Amount
(8.5 : 1 ratio)
$45.2 million
Economic Activity Created
(7:1 ratio)
$ 37.1 million
Jobs Created or retained
259
Affordable Rental Housing
Program (ARHP)
FY15 Bond Bill Request
$6,000,000
Rental Housing Needs
• Rents Increasingly Unaffordable in Past Decade
Median rent in DE increased 50% from 2000 to
2012, median renter household income only 15%.
• Demand for New Affordable Rental Housing
39,850 Delaware renter households are costburdened. Of these, 19,695 are severely costburdened.
• Preservation and Rehab Needs
47% of sites are over 15 years old or since last rehab
44% of sites in fair/poor physical condition
26% with total reserves below $50,000
Affordable Rental Housing
Program (ARHP)
Affordable Rental Housing
 Rehabilitation of existing units
 Creation of new units
 4-6 sites, 300 – 350 units
 Continue leveraging public/private
resources
Stoneybrook Apartments
Before Renovation
During Construction
Walnut Street Apartments
Under Construction
Heron Run
Before Renovation
During Construction
Heron Run Completed
Heron Run
Solar Panel Installation
FY15 Bond Bill Request
DSHA Budget
Affordable Rental Housing Program
$6,000,000
Downtown Development Districts Grant
$7,000,000
Total DSHA Bond Bill Request
$13,000,000
Downtown Development
District Grants
$7,000,000
Downtown Development
Districts
1.
Applications made by jurisdictions to
Office of State Planning
•
Areas in high need
•
Plan for designated area
•
Jurisdiction incentives
2.
Review by Cabinet Committee on State
Planning Issues
3.
Designation by the Governor
Downtown Development
District Grants
1. Request for $7 million in Bond Bill
•
•
Grants for development investments
made within DDD
Up to 20% of hard costs
2. Administered by DSHA
•
•
•
•
Adoption of rules, regulations
Application process
Allocation of grants
Monitoring for compliance
Downtown Development
District Grants
Eligibility Requirements
•
•
•
Must be compliant with DDD plan
Residential, commercial, mixed use
Minimums (1st year, subject to change):
•
•
•
Threshold of $25,000 for single residential or
mixed-use building
Threshold of $100,000 for multi-family
residential, commercial or industrial
Limitations (1st year, subject to change):
•
•
$250,000 within 5 year period for investments
of $5 million or less
5% of investment up to $500,000 for
investments over $5 million
FY15 Bond Bill Request
DSHA Budget
Affordable Rental Housing Program
$6,000,000
Downtown Development Districts Grant
$7,000,000
Total DSHA Bond Bill Request
$13,000,000
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: Anas@destatehousing.com
Thank you!