economic profile district 7 Representative Ed Perlmutter

Transcription

1 2019 economic profile district 7 Representative Ed Perlmutter

2 chfa s 2019 legislative priorities Tax Policy Preserve and strengthen tax-exempt Private Activity Bonds (PAB) and their ability to support affordable homeownership finance, rental housing finance, and manufacturing real estate and equipment finance. Urge the Colorado Delegation to sign the Dear Colleague letter circulated by Housing Municipal Finance Caucus co-chairs Representative C.A. Dutch Ruppersberger (D-MD) and Steve Stivers (R-OH) in support of tax-exempt municipal bonds, including Housing Bonds. Support legislation that would: Increase the tax-exempt Private Activity Bond per capita cap Lower the 50 percent test for 4 percent Low Income Housing Tax Credit projects Extend multifamily Housing Bond recycling authority Exempt all refunding Housing Bonds from the Alternative Minimum Tax (AMT) Repeal the MRB Ten-Year Rule Preserve and strengthen the 4 percent and 9 percent Low Income Housing Tax Credit (LIHTC) programs. Support and urge co-sponsorship of the Housing Credit Improvement Act S. 548 and H.R when re-introduced in the 116th Congress. Increase the 9 percent per capita cap by 50 percent, phased in over five years Permanently fix the 4 percent credit floor. Allow bond-financed projects to be eligible for a 30 percent basis boost Appropriations Preserve U.S. Department of Housing and Urban Development (HUD) funding for: HOME and CDBG; Section 8 Housing Vouchers and project-based contract renewals; and Housing counseling funds Banking and Financial Services Preserve HFA s 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 (FFB) Support the continuation of GSEs contributions to support the Capital Magnet Fund and National Housing Trust Fund 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 application for New Markets Tax Credits in Support the re-introduction of the Small Business Access to Capital Act of 2018 S in the 116th Congress Reauthorizes the State Small Business Credit Initiative (SSBCI) Allocates $500M to eligible participating states

3 historic investment in district to 2018 homeownership households served 17,442 dollars invested mortgage credit certificates (chfa mcc sm ) issued $2.5 billion $304.5 million statewide homebuyer education households served 148,000 statewide homebuyer education investment $5.8 million affordable rental housing developments in portfolio 101 affordable units in portfolio 11,229 dollars invested $492.3 million federal lihtc units supported 11,067 federal lihtc awarded $62.5 million business businesses served 386 dollars invested $81.1 million jobs directly supported 5,703 economic impact total investment jobs indirectly supported fiscal impact homeownership $13.9 billion 92,041 $19.3 billion affordable rental housing $2.4 billion 21,258 $3.7 billion business $1.3 billion 8,950 $1.8 billion

4 homeownership in district 7 Kimberly Lakewood Kimberly is a CHFA homeownership customer in Lakewood. She participated CHFA s past contest, Home is Where My Story Starts sm by submitting an essay detailing how homeownership has improved her life. The following is an excerpt from Kimberly s essay. The day I was able to close on my new home was one of the best days of my life. I was ecstatic when I was finally able to move into my home. I realized that my history of renting an apartment, financial struggles with rent increases, moving, and the pain of losing almost everything I owned in that fire were behind me. I knew my life would only get better, and it has. This home is my family s sanctuary and the most comfortable place on earth. I have really been blessed because of this wonderful program offered by Habitat for Humanity and CHFA. CHFA Participating Lender Habitat for Humanity of Metro Denver Homebuyer Education Provider Habitat for Humanity of Metro Denver top chfa participating lenders 1 Fairway Independent Mortgage Corporation 2 American Financing Corporation 3 Guild Mortgage Company 4 Universal Lending Corporation 5 Citywide Home Loans, LLC homeownership at-a-glance customer median loan amount customer median annual income $293,584 $70,782 median home price in district annual income to afford median home $390,000 $96,840

5 rental housing in district 7 Vistas at Panorama Pointe Westminster A grand opening celebration was held in February 2019 to celebrate Vistas at Panorama Pointe. The property offers 69 units of affordable rental housing for seniors. It is the final phase of a senior campus in Westminster that includes for-sale homes, assisted living, affordable and market-rate rental homes. The development is attached to the Westminster Senior Center and will offer a variety of services and amenities, including health and wellness classes, ice cream socials and potlucks, community gardens, and walking paths. The campus has received strong support from the City of Westminster and Adams County. CHFA was proud to support the development by awarding federal and state affordable housing tax credits in Developer M.E.M. Westminster Property Project Type New Construction, Senior Number of Units 69 AMIs Served* 30 Percent: $21,600; 40 Percent: $28,800; 50 Percent: $36,000; 60 Percent: $43,200 Bedroom Mix 45 One-bedroom; 24 Two-bedroom Estimated Completion/Placed-in-service (PIS) July 2018 Tax Credit and Amount Allocated 4 Percent LIHTC: $401,909 State Credit: $480,000 Tax Credit Investor PNC Architect LAI Design Group Construction Lender Walker & Dunlop Permanent Lender Chase Bank General Contractor Shaw Construction Total Development Costs $15.6 million Economic Impact $26.5 million *Reflects maximum income for a two-person household in the county served based on 2018 maximum rent and income limits

6 business finance in district 7 WANCO, Inc. Arvada Arvada-based WANCO was founded in 1984 by Michael Wanasz. WANCO manufacturers highway safety and traffic control products including message boards, arrow boards, radar speed signs, portable surveillance equipment, and mounted mobile floodlights. In 2005, CHFA issued tax exempt Industrial Development Bonds to assist WANCO with their financing plans and business growth. WANCO used the funds to add an additional 60,000 square feet to its Arvada facility. The addition enabled the business to increase its staff by 25 employees. CHFA issued additional Industrial Development Bonds privately to further support WANCO in The size of WANCO s current facility was no longer able to support the staffing and production lines required to accommodate its continued growth. The addition of the 95,000 square foot facility adjacent to the company s current plant allowed WANCO to grow and benefit from efficiencies associated with streamlining its operations. Owner Michael Wanasz Business Type Manufacturer of Highway Safety Systems Loan Amount $10,000,000 Economic Impact $17.1 million Number of Employees 262 Full-time; 14 Part-time Years In Business 35 years Purpose of Bond Issuance Construction of Expanded Facility Product Industrial Development Bonds

7 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: Alyssa, Joshua and their son, CHFA homeownership customers, Johnstown Resident of Mariposa District, a CHFA rental housing customer, Denver Residents of The Highlands, a CHFA rental housing customer, Grand Junction Soaring Eagles Center for Autism, CHFA business finance customer, Pueblo

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, , TDD/TTY , CHFA, 1981 Blake Street, Denver, Colorado , available weekdays 8:00am to 5:00pm. Cover pictured top to bottom: David, Joana and their daughter, CHFA homeownership customers, Greeley Residents of Ash Street Apartments, CHFA multifamily customer, Denver Hays and Strode, P.C., CHFA business finance customer, Rifle denver 1981 Blake Street Denver, Colorado chfa (2432) chfa (2432) western slope 348 Main Street Grand Junction, Colorado /19.v1