economic profile district 3 Representative Scott Tipton

Transcription

1 2018 economic profile district 3 Representative Scott Tipton

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 20,053 dollars invested mortgage credit certificates (MCC) issued $1.8 billion $276.3 million statewide homebuyer education households served 134,970 statewide homebuyer education investment $5.3 million affordable rental housing developments in portfolio 152 affordable units in portfolio 6,760 dollars invested $171.7 million federal LIHTC units supported 6,040 federal LIHTC awarded $47.1 million business businesses served 1,807 dollars invested $295.4 million jobs directly supported 14,887 economic impact total investment jobs indirectly supported fiscal impact homeownership $1.8 billion 12,388 $2.4 billion affordable rental housing $171.7 million 1,300 $265.7 million business $295.4 million 2,125 $429.5 million

4 homeownership in district 3 The Sotos Rifle, Colorado Erik and Jeanmary Soto moved to Colorado in 2015 and began renting, but owning a home was always a dream they shared, explained Erik. We wanted to settle down and be a family here, he said. The couple used a CHFA loan to purchase their home in Rifle. Erik described the feeling of becoming new homeowners: We both couldn t really believe it until we got here and opened the door. It s our first house! We actually own something that s ours. We strived for it and we earned it. We are now happier in many aspects of our lives. CHFA Participating Lender Fairway Independent Mortgage Corporation Homebuyer Education Provider Denver Housing Authority Online top CHFA participating lenders 1 Guild Mortgage Company 2 Bay Equity LLC 3 Freedom Financial Services 4 Cornerstone Home Lending Company 5 Fairway Independent Mortgage Corporation homeownership at-a-glance CHFA customer median loan amount CHFA customer median annual income $160,601 $49,221 median home price in district annual income to afford median home $238,000 $60,150

5 rental housing in district 3 Anthracite Place Crested Butte, Colorado Anthracite Place is the first project supported by CHFA with Low Income Housing Tax Credits (LIHTC) in Crested Butte. The property serves workforce families and individuals like David Wilcove. I was working here for many years, contributing to the local economy, working for resorts and property management companies. We are the gears that make this town tick the floor sweepers, bed makers, dish washers but we can t afford the rents around here, said David. I was shacking up with friends, temporarily renting. It was tough. Now, I m really grateful to have this place to live. I m directly across from the bus stop, supermarket, post office, art center, and parks. There s so much convenience and it s been really helpful. Jennifer Kermode, Executive Director of the Gunnison Valley Housing Authority, adds, Anthracite Place is a model public-private partnership. Even local citizens are pointing to it saying, look at this success and asking for more projects like it in the area. Developer Gunnison Valley Regional Housing Authority Project Type New Construction, Family Number of Units 30 AMIs Served* 50 Percent: $28,350; 60 Percent: $34,020 Bedroom Mix 24 One-bedroom; 6 Two-bedroom Completion/Placed-in-service (PIS) December 2016 LIHTC Type and Amount Allocated 9 Percent LIHTC: $539,165 Tax Credit Investor Richman Group Affordable Housing Corporation Architect Coburn Architecture Construction Lender Bank of the West Permanent Lender Colorado Housing and Finance Authority (CHFA) General Contractor Coburn Development Inc. Total Development Costs $7,740,337 Economic Impact $12,016,267 *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 3 Mind Springs, Inc. Grand Junction, Colorado Mind Springs, Inc., is the only inpatient mental health facility between Denver and Salt Lake City. Located in Grand Junction, Mind Springs treats patients with a wide variety of mental health conditions and concerns. The facility currently offers 32 beds for the entire Western Slope with patients ranging from children to seniors. The suicide rate on Colorado s Western Slope is nearly three times the national average, an impact of the shortage of mental health services in the area. With the support of CHFA s Nonprofit Bond Program, the Mind Springs expansion project will include a new 63,000 square-foot, 48-bed, psychiatric hospital facility designed to offer an additional 64 beds in the future. Mind Springs currently has a total of 132 employees at the Grand Junction location and anticipates adding an additional 30 employees as part of this expansion. Owner Mind Springs Business Type Nonprofit Number of Employees 580 Year Established 1970 Bank Partner Bank of the San Juans Purpose of Bond Issuance Substantial expansion to the organization s current mental health facility Product 501c3 Bonds Bond Issuance Amount $25,000,000 Economic Impact $43,115,064

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