economic profile district 1 Representative Diana DeGette

Transcription

1 2018 economic profile district 1 Representative Diana DeGette

2 what is chfa? CHFA s mission is to strengthen Colorado by investing in affordable housing and community development. We offer loan programs and homebuyer education to support responsible homeownership. We provide loans and tax credits to developers of affordable rental housing, so all Coloradans may have access to a place to call home; and we help business owners access the capital they need to grow and support jobs. CHFA is self-funded. We are not a state agency. CHFA s operating revenues come from loan and investment income, program administration fees, loan servicing, and gains on sales of loans. CHFA receives no direct tax appropriations, and its net revenues are reinvested in its programs and used to support bond ratings. This document was designed and printed in-house without the use of state general fund dollars. CHFA s work revitalizes neighborhoods and creates jobs. Visit for more information. Pictured top to bottom: Molly Dubois, CHFA homeownership customer, Denver, Colorado Nancy Parra Escobedo and her children, residents at The Reserves at Steamboat Springs, CHFA rental housing customer, Steamboat Springs, Colorado David Wilcove and Duke (service dog) residents at Anthracite Place, CHFA rental housing customer, Crested Butte, Colorado Husmann Family, Smiling Aviation, CHFA business finance customer, Delta, Colorado

3 historic investment in district to 2017 homeownership households served 13,089 dollars invested mortgage credit certificates (MCC) issued $1.5 billion $231.3 million statewide homebuyer education households served 134,970 statewide homebuyer education investment $5.3 million affordable rental housing developments in portfolio 287 affordable units in portfolio 21,027 dollars invested $664.2 million federal LIHTC units supported 16,814 federal LIHTC awarded $126.7 million business businesses served 808 dollars invested $250.3 million jobs directly supported 10,252 economic impact total investment jobs indirectly supported fiscal impact homeownership $1.5 billion 9,703 $2.1 billion affordable rental housing $664.2 million 4,915 $1 billion business $250.3 million 1,878 $362 million

4 homeownership in district 1 Rosemary Polk Denver, Colorado Rosemary Polk is a CHFA homeownership customer. She entered CHFA s Home is Where My Story Starts sm contest in 2014 by submitting an essay detailing how homeownership has improved her or her family s lives. The following is an excerpt from her entry. I have lived in apartments or rental homes my entire adult life. I have always wanted to own something of my own but was afraid that it wouldn t work for me. Taking the (homebuyer) class at CHFA really opened my eyes as to how easy, scary, exciting, and altogether great it could be. I will be able to retire knowing that I can leave something to my daughter and granddaughter. I know that they will be safe and always have a place where they can come if they need. CHFA Participating Lender Prospect Mortgage Homebuyer Education Provider Colorado Housing Assistance Corporation top CHFA participating lenders 1 Fairway Independent Mortgage Corporation 2 Guild Mortgage Company 3 Citywide Home Loans 4 Universal Lending Corporation 5 American Financing Corporation homeownership at-a-glance CHFA customer median loan amount CHFA customer median annual income $258,893 $61,651 median home price in district annual income to afford median home $389,000 $98,300

5 rental housing in district 1 Platte Valley Homes Denver, Colorado Platte Valley Homes will preserve 68 permanently affordable units in the Curtis Park/Five Points neighborhoods. The sponsor, the Denver Housing Authority (DHA), will completely renovate the existing buildings, which were built in 1942, and will construct a new three-story building to serve seniors. The site is adjacent to the 30th and Downing and 38th and Blake light rail stations, high-frequency bus stops, and will be close to other amenities, such as retail, jobs, and cultural venues. According to the City of Denver s housing study, Housing Denver: A five-year plan, for the city s 27,000 households earning less than 30 percent of the Area Median Income, only 11,000 units of affordable housing are available, demonstrating an unmet demand for affordable rental housing. Pictured: Conceptual rendering of Platte Valley Homes, courtesy of Humphries Poli Architects Developer Denver Housing Authority Project Type Preservation, Family Number of Units 68 AMIs Served* 30 Percent: $20,160; 40 Percent: $26,880; 50 Percent: 33,600; 60 Percent: $40,320 Bedroom Mix 34 One-bedroom; 26 Two-bedroom; 8 Three-bedroom Estimated Completion/Placed-in-service (PIS) January 2019 Tax Credit Investor Enterprise Architect Humphries Poli Architects Construction Lender Citibank General Contractor Milender White Construction Company Total Development Costs $24,753,454 Economic Impact $33,084,326 LIHTC Type and Amount Allocated 4 Percent LIHTC: $802,000; State LIHTC: $595,000 *Reflects maximum income for a two-person household in the county served based on 2017 maximum rent and income limits

6 business finance in district 1 Denver Dumb Friends League Denver, Colorado Denver Dumb Friends League (DDFL), the largest community-based animal welfare organization in the Rocky Mountain region, is expanding its Denver location. The expansion consists of a substantial remodel, demolition, and addition to the existing 84,000 square-foot building that houses the organization s offices, behavior department, veterinary services, and animal shelter. The new facility will feature updated pet adoption centers, medical treatment rooms, behavior areas, and space for humane education. DDFL is an open-admission pet animal shelter that turns no pet away. In 2016, the organization received 22,133 pets at its two locations in Denver and Castle Rock. Of those pets, over 19,000 of those were either adopted, reunited with owners, or transferred to placement partners, resulting in an 89 percent overall placement rate for cats and dogs. Owner Denver Dumb Friends League Business Type Nonprofit Number of Employees 204 Year Established 1910 Purpose of Bond Issuance Substantial remodel of existing facility Product 501c3 Bonds Bond Issuance Amount $10,000,000 Economic Impact $19,281,130 Bank Partner Colorado Business Bank

7 CHFA s 2018 legislative priorities Tax Policy Preserve and strengthen tax-exempt Private Activity Bonds (PAB) and their ability to support affordable homeownership finance, mortgage credit certificates, rental housing finance, and manufacturing real estate and equipment finance. Support the Modernizing American Manufacturing Bonds Act S. 773 and H.R Expands the definition of manufacturing to include both tangible and intangible manufacturing production Eliminates the restrictions on functionally related and subordinate facilities Increases the maximum bond size limit from $10M to $30M Increases the capital expenditure limit from $20M to $40M Preserve and strengthen the 4 percent and 9 percent Low Income Housing Tax Credits (LIHTC) programs. Support the Affordable Housing Credit Improvement Act S. 548 and H.R Permanently fixes the 4 percent credit floor Allows for income averaging Allows bond-financed projects to be eligible for 30 percent basis boost Increases the 9 percent per capita cap by 50 percent, phased in over five years (S. 548) Appropriations Preserve U.S. Department of Housing and Urban Development (HUD) funding for: HOME and CDBG; Section 8 vouchers and project-based contract renewals; and Housing counseling funds. Banking and Financial Services Preserve HFAs ability to partner with the GSEs, FHA, and Ginnie Mae for purposes of supporting affordable homeownership and rental housing finance. Monitor GSE Reform legislation and support: A federal backstop to ensure liquidity in the housing finance market; A focus on providing access to affordable mortgages for creditworthy borrowers across all income levels, and a focus on serving rural and other underserved markets; and Maintaining a role for HFAs as affordable housing partners, thus allowing HFAs to maximize their investment potential and respond to their states unique affordable housing needs. Support Ginnie Mae Securitization of HFA Risk Share Multifamily Loans, and ensure continued access to the FHA-HFA Risk Sharing Federal Financing Bank Initiative (FFB) until this matter is resolved by Congress. Small Business and Economic Development Leverage CHFA s established partnerships and successful track record as a funds administrator by seeking opportunities that will increase access to capital for small- and medium-sized businesses and encourage investment in Colorado s underserved communities. Support CHFA s 2017 Capital Magnet Fund Award application. Support CHFA s application for New Markets Tax Credits in Support the Small Business Access to Capital Act of 2018 S Reauthorizes the State Small Business Credit Initiative (SSBCI) Allocates $500M to eligible participating states

8 We are proud to invest in Colorado s success. Economic impact assessments made by CHFA using IMPLAN. Visit for more information. With respect to its programs, services, activities, and employment practices, Colorado Housing and Finance Authority does not discriminate on the basis of race, color, religion, sex, age, national origin, disability, or any other protected classification under federal, state, or local law. Requests for reasonable accommodation, the provision of auxiliary aids, or any complaints alleging violation of this nondiscrimination policy should be directed to the Nondiscrimination Coordinator, , CHFA, 1981 Blake Street, Denver, Colorado , available weekdays 8:00am to 5:00pm. We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin. Cover pictured top to bottom: The Skonning Family, CHFA homeownership customers, Wellington, Colorado Emelinda Walker, resident of Meadows at Montbello, CHFA rental housing customer, Denver, Colorado Erron Vanderlugt, employee of TANCO Engineering, CHFA business finance customer, Loveland, Colorado denver 1981 Blake Street Denver, Colorado chfa (2432) chfa (2432) western slope 348 Main Street Grand Junction, Colorado /18.v1