34 Years of Brighter Futures

Transcription

1 207 Impact Report Years of Brighter Futures Washington State Housing Finance Commission

2 We welcome the opportunity to tell you more about our programs and how they work to make your community stronger. Please contact us at , or visit our website at wshfc.org pg 2

3 wshfc 207 impact report 34 Years of Statewide Impact Our state s people and communities are as diverse as its landscape. From urban to rural, homeless to homebuyer, we face an incredible variety of needs and economic situations. Our financing tools help local families buy homes, local developers build apartments, and local nonprofits open senior centers and playgrounds all while creating local jobs. Programs and services offered by the Commission support: Affordable housing Community facilities Farms and ranches Energy projects Job creation State economy And thousands of families Single-family homes financed Multifamily living units financed Multiplied by just 2. people per household Total number of people who have safe, affordable housing tonight, thanks to the Commission. 67,32 6, ,63 pg 3

4 The People We Serve The Commission s financing mechanisms for affordable housing are shallow subsidies in comparison to other public resources serving those with low to moderate incomes. The majority of people we serve earn less than the area median incomes, which ranged in 207 from $44,600 in Ferry County to $96,000 in King County. Percent of Area Median Income No Income 50% 00% 50% 200% Washington Housing Trust Fund Local Government & Housing Authorities Housing Finance Commission Private Sector SUBSIDIES (SECTION 8) Federal Programs and Subsidies INSURANCE/ MORTGAGE TAX DEDUCTIONS Federal, State, and Local Funds pg 4

5

6 Multifamily Bonds and Housing Credits by County Amount Financed Units Financed Amount Financed Units Financed County Housing Credits Bonds Credits & Bonds Bonds Only Non Profit Bonds County Housing Credits Bonds Credits & Bonds Bonds Only Non Profit Bonds Adams $ 8,688, Asotin $ 4,867,62 80 Benton $ 80,75,4 $ 57,000,000 2, Chelan $ 4,467,669 $ 7,390, Clallam $ 55,577,656 $ 7,876, Clark $ 8,665,222 $ 69,045,58 4,478,65 Columbia $,947,25 25 Cowlitz $ 33,292,229 $ 4,88, Douglas $ 2,998, Ferry $ 2,928, Franklin $ 25,723,697 $ 9,250, Garfield Grant $ 79,74,072 $ 9,600,000, Grays Harbor $ 3,786, Island $ 3,6,848 $ 8,603, Jefferson $ 8,57,508 $ 2,280, King $ 2,092,842,932 $,406,097,32 36,6 5,463 7,009 Kitsap $ 95,42,388 $ 59,673,274 2, Kittitas $ 6,68, Klickitat $ 2,969,56 48 Lewis $ 5,478,594 $,45, Lincoln $ 43,4 5 Mason $ 2,856,4 $,266, Okanogan $ 28,693, Pacific $,068, Pend Oreille $ 283,295 3 Pierce $ 350,924,359 $ 202,277,000 6,904 2,50,255 San Juan $ 3,269, Skagit $ 7,854,595 $ 60,24,40, Skamania $ 2,526, Snohomish $ 540,758,947 $ 84,402,696,980, Spokane $ 299,873,96 $ 73,965,000 5,522,57,539 Stevens $,237, Thurston $ 06,607,696 $ 23,478,923 2,70,059,225 Wahkiakum Walla Walla $ 47,334, Whatcom $ 54,495,462 $ 7,635,000 2, Whitman $ 2,048,366 $ 2,770, Yakima $ 87,865,808 $ 2,336,25 2, Through the allocation of federal housing credits and the issuance of bonds, we help finance a spectrum of affordable multifamily housing statewide, with projects in nearly every county. Cumulative Totals By County from 7//983 2/3/207 Housing Credits $4,628,449,448 Bonds Credits & Bonds Bonds Only Non Profit Bonds $3,252,24,530 86,940 5,936 3,437 pg 6

7 Multifamily Housing Units by County wshfc 207 impact report Clallam 996 Jefferson 422 Grays Harbor 30 Mason 82 San Juan 204 Island 603 Thurston 4,994 Kitsap 3,39 Pierce 0,660 Whatcom 2,997 Skagit,796 Snohomish 4,65 King 48,588 Chelan 585 Kittitas 464 Okanogan 389 Douglas 207 Grant, Ferry 33 Lincoln 5 Adams 242 Stevens 55 Pend Oreille 3 Spokane 8,28 Whitman 494 6,33 Total Housing Units $ 9.04b Total Amount Invested Senior Housing Units (Included in Total Unit Count) 5,306 Assisted-living Units Pacific 79 Wahkiakum Lewis 746 Cowlitz 89 Skamania 95 Yakima 2,6 Benton 2,520 Franklin 687 Walla Walla,59 Columbia 25 Garfield Asotin 80 22,799 3,86 Independent-living Units Nursing Beds Clark 5,643 Klickitat 48 3,29 Total Number Impact Measurement Less More pg 7

8 Multifamily Housing: Total Investments Since 983, our financing has created or rehabilitated more than 08,000 rental homes, of which over 3,000 serve the elderly. The Commission s two most important financing tools for multifamily development are issuing bonds and allocating housing tax credits. Both are purchased by investors on the private market; the proceeds of bond sales are loaned to the developer through a bank, while tax credits are converted into equity in the project. Different financing tools are used for different populations and geographic areas throughout the state. Multifamily bond financing, for example, is most feasible in urban areas, where projects are large enough and rents are high enough to enable developers to repay their bond debt. Projects financed with housing credits alone serve people with lower incomes and greater needs, in rural and urban communities alike. The Commission monitors and inspects multifamily properties to ensure they remain in compliance with program requirements and thus remain eligible for the tax benefits that helped to finance them. Housing Credit Programs Provide Financing Options Housing Credits ( ) $4.6 billion allocated,40 properties, 86,940 total units 9% Housing Credit Program Housing credits in the 9% program (in which the credit provides up to 70% of the project s equity) are allocated through an annual competitive process in which projects are evaluated and scored according to the Commission s established criteria. 4% Housing Credit Plus Bonds Program The 4% housing credit program (in which the credit provides up to 30% of the project s equity) combines tax-credit equity with tax-exempt bonds, which become loans (debt). This program is often used by private developers for affordable multifamily housing. The Low Income Housing Tax Credit allows developers to build and renovate affordable apartments, which must remain safe, decent, and affordable for at least 40 years. pg 8

9 Housing Credit Programs, continued Credits Only (9%) (equity) Credits Plus Bonds (4%) (equity + debt) Pays up to of project costs Pays up to 70 % 30 % of project costs Serves lower incomes and special needs Serves working families 32,356 units 54,584 units 722 properties 48 properties, Total Properties Statewide Rehabilitation New construction People Served by Housing Credit Almost 37% of current units are set aside for a specific population. 9,62 Seniors 9,282 Disabled 3,375 Homeless,424 Farmworkers 53,697 Other Low Income Total 86,940 Housing Units

10 pg 0

11 Multifamily Housing , continued Nonprofit Housing Bonds 43 projects 3,437 units Tax-exempt 50(c)(3) bonds help nonprofit providers of housing (and housing with services) to finance or refinance independent-living apartments, group homes, assisted-living facilities, nursing homes, retirement communities, and student dormitories. $.96 billion in tax-exempt bonds helped finance 3,437 units of rental housing. Tax-exempt nonprofit bonds were refinanced for 44 projects. $53 million in taxable bonds were issued to finance associated project costs. Bonds Only 5,936 units In this rarely used program, tax-exempt multifamily bonds are used by nonprofit or for-profit housing developers to create affordable apartments, often as part of housing for independent seniors. Land Acquisition Program 26 projects, $5 million A revolving loan program to assist eligible organizations to purchase land suited for the eventual development of affordable housing for homeowners and rental apartments.

12 Homeownership: Single-Family Loans by County County First Mortgage Loans Amount Number Downpayment Loans Amount Number County First Mortgage Loans Amount Number Downpayment Loans Amount Number Adams $ 5,60,637 4 $ 509, Asotin $ 3,284,24 80 $ 305,922 5 Benton $ 227,339,34,794 $ 6,502, Chelan $ 65,035, $,083, Clallam $ 27,56, $,093, Clark $ 532,444,934 3,804 $ 3,993,203,778 Columbia $ 2,393,65 4 $ 07,279 0 Cowlitz $ 4,072,346,226 $ 4,073,73 79 Douglas $ 40,32, $ 736, Ferry $,889, $ 35,759 7 Franklin $ 25,830,53 90 $ 3,500, Garfield $ 62,660 7 $ 6,603 3 Grant $ 48,293, $,327, Grays Harbor $ 4,000, $,2,35 98 Island $ 80,27, $,575,6 96 Jefferson $ 2,583,63 77 $ 406,97 52 King $ 2,203,703,43 6,905 $ 63,4,877 5,023 Kitsap $ 26,73,42 2,083 $ 5,899, Kittitas $ 24,59,29 68 $ 736, Klickitat $ 4,78,062 3 $ 06,25 5 Lewis $ 5,35, $,896,85 29 Lincoln $ 4,22,65 50 $ 93, Mason $ 57,907, $,776, Okanogan $ 6,35,683 7 $ 5, Pacific $ 4,693,06 43 $ 203,09 3 Pend Oreille $ 8,96, $ 92,96 32 Pierce $,46,734,968 9,50 $ 42,822,242 5,250 San Juan $ 4,976,44 29 $ 83,548 8 Skagit $ 42,88, $ 3,756,04 54 Skamania $ 4,70, $ 59,586 9 Snohomish $,236,635,845 7,246 $ 29,884,065 3,306 Spokane $,06,00,793,238 $ 25,463,985 4,772 Stevens $ 7,67,24 6 $ 640, Thurston $ 297,36,788 2,365 $ 6,753, Wahkiakum $ 2,29,775 7 $ 58,847 0 Walla Walla $ 55,350, $,040, Whatcom $ 266,746,469,624 $ 5,703, Whitman $ 5,40, $ 475,48 64 Yakima $ 233,85,733 2,384 $ 6,25,0,07 pg 2 Cumulative Totals 6//983 6/30/207 First Mortgage Loans Amount Number Downpayment Loans Amount Number $8,72,653,503 67,32 $233,846,349 28,625

13 wshfc 207 impact report Home Loans by County Clallam 236 San Juan 29 Island 563 Whatcom,624 Skagit 920 Snohomish 7,246 Okanogan 7 Ferry 23 Stevens 6 Pend Oreille 89 67,32 28,625 First Mortgage Loans Downpayment Assistance Jefferson 77 Grays Harbor 408 Mason 456 Thurston 2,365 Kitsap 2,083 Pierce 9,50 King 6,905 Chelan 706 Kittitas 68 Douglas 386 Grant 472 Lincoln 50 Adams 4 Spokane,238 Whitman 52 95,946 Total Homebuyer Loans Households may receive both first mortgage loans and downpayment assistance loans. Pacific 43 Wahkiakum 7 Cowlitz,226 Lewis 420 Skamania 25 Yakima 2,384 Benton,794 Franklin 90 Walla Walla 729 Garfield 7 Columbia 4 Asotin 80 $8.7b Total Amount Invested Clark 3,804 Klickitat 3 Impact Measurement Less More pg 3

14 Homeownership: 34 Years of Impact by Program Washington state residents in every county have achieved the dream of homeownership thanks to the Commission s home loans and downpayment assistance. First Mortgage Programs* HOME ADVANTAGE (203-present) $4.33 billion $4.38 billion 8,966 in loans in loans 2,090 In 202, Home Advantage replaced House Key as the Commission s primary first-mortgage program. It is funded by the proceeds from loans bought and sold on the open market. Key differences are simplified eligibility, no restriction to first-time homebuyers, no limit to funding (as with bonds), and universal eligibility for downpayment assistance. HOUSE KEY STATE BOND (983 -present) 46,229 households served These numbers include the following programs: Open Door Second Mortgage Provided 74 loans in downpayment and closing-cost assistance for first-time homebuyers in the City of Tacoma or King County. Community Reinvestment Act (CRA) Single-Family Home Ownership Provided 49 first-mortgage loans for families in rural areas. Cash Window, Voyager, and Express Programs Provided 68 House Key loans that were sold directly to Fannie Mae and Ginnie Mae. MORTGAGE CREDIT CERTIFICATE (2008-present ) households served A tax-credit program used to offset a portion of personal federal tax liability so that buyers can more easily afford their mortgage payments. pg 4 households served * Borrowers may combine some programs, but not others Homeowner/Homebuyer Counseling (998 - present) $34.5 million allocated to nonprofit organizations 6k * Ongoing Programs / ** Administered by NeighborWorks households assisted The Commission oversees one of the state s largest housing counseling programs, including help for homeowners facing foreclosure. In addition to funding 20 nonprofit partners and housing counselors statewide, these funds also support the state s foreclosure counseling hotline. Amount Grant Source Nonprofit Organizations Providing Counseling $807,788 Washington State Office of the Attorney General (McGraw Hill/Standard & Poor s Settlement) (205 present) $3.2 million* Washington State Office of the Attorney General (National Settlement) ( ) 3 $93 million* State of Washington 20 Foreclosure Fairness Act (20 205) 8 $385,250* Housing and Urban Development Emergency Homeowners Loan Program (20 205) 8 $2.66 million** National Foreclosure Mitigation ( ) $4.76 million* Housing and Urban Development ( ) 50 $550,000 Washington State Office of the Attorney General (Wells Fargo Settlement) (20 202) 6 $595,000 Washington State Office of the Attorney General (Countrywide Settlement) (200 20) $500,000 State of Washington 200 Legislative Appropriation (200 20) 5 $250,000 Housing and Urban Development Neighborhood Initiative ( ) 22 $990,000 State of Washington 2008 Legislative Appropriation ( ) 25 $57,355 Rural Housing and Economic Development ( , ) 6

15 wshfc 207 impact report Homebuyer Education (99 present) 207,92 potential homebuyers Classes include the process of homebuying, real estate and finance terminology, and home maintenance and repair. 8,646 free homebuyer seminars coordinated statewide. 6,692 online seminars completed since ,500 instructors trained to teach free homebuyer seminars, including lenders, real-estate professionals, and nonprofit partners. Downpayment Assistance Programs $233.8 million households 28,625 served in secondmortgage loans The Commission offers second mortgages to assist homebuyers with the downpayment and closing costs. Maximum loan amounts and interest rates vary by program. Many programs are sustained through the Commission s Program Investment Fund. Downpayment assistance is only available to borrowers who use a Commission first mortgage and complete a homebuyer-education class. Downpayment Assistance Programs Program ONGOING PROGRAMS Home Advantage DPA Eligible Households Borrowers Served Total Loaned for Downpayment & Closing-Cost Assistance Those who qualify for a Home Advantage first mortgage 7,679 $ 42,363,754 HomeChoice Individuals with disabilities,360 $ 7,238,67 Tacoma DPA First-time homebuyers within the City of Tacoma (New in 205) earning 80% or less of area median income 45 $ 834,583 House Key Plus Seattle (a partnership with the First-time homebuyers within the City of Seattle City of Seattle since 2004) earning 80% or less of area median income 408 $ 20,847,65 House Key Schools Employees of community/technical colleges, K-2 public schools, and some private schools 95 $,477,698 House Key Plus CLT Buying a home using community land trust (CLT) model 24 $,550,72 House Key Plus ARCH Buying a home in east King County within an ARCH (A Regional Coalition for Housing) member city or surrounding unincorporated area 72 $ 2,075,96 House Key Veterans Military veterans buying their first home 60 $ 406,78 PREVIOUS PROGRAMS Home Advantage Built New (formerly New Home for You, ended 204) Purchasing newly constructed, never-occupied homes 45 $,073,08 Home Advantage Rebound (funded by the state Consumer Remedy Fund, ended 204) Buying a home that has been foreclosed 359 $ 3,62,673 House Key Plus (ended Jan. 203, re-opened 206) Low- and moderate-income first-time homebuyers 6,985 $ 32,220,229 House Key Real Estate Owned (ended 202) Buying a home that has been foreclosed 893 $ 6,448,429 House Key Bremerton (ended 202) Buying a home in the City of Bremerton 5 $ 36,96 House Key Rural Rural borrowers who earn up to 80% of (ended 20) area median income 93 $,760,7 House Key King County Buying a home in King County (outside the Seattle (ended 200) city limits and outside the ARCH King County area) 38 $,24,256 House Key Federal Way Buying a foreclosed, bank-owned, (ended 200) or abandoned home in Federal Way $ 34,23 House Key Extra Rural residents with disabilities or who have (ended 2005) a dependent family member with a disability 27 $ 65,075 Total 28,625 $233,846,348

16 Enhancing Communities: Projects Support Growth, Efficiency Nonprofit Facilities Program 70 $99 million 27 2,222 $6.2 million 20 $23.6 million facilities The Commission issues tax-exempt 50(c)(3) bonds to finance capital facilities and equipment owned by nonprofit organizations. Beginning Farmer/ Rancher Program The Commission, in partnership with Northwest Farm Credit Services, issues bonds to enable beginning farmers and ranchers to purchase land and equipment. The Commission also offers a second loan to help borrowers for whom lack of a cash downpayment is an obstacle. Sustainable Energy Program in bonds farms acres in bonds projects invested County Facilities Benton 5 Clark Franklin 2 Grays Harbor King 9 Kitsap 3 Pierce 3 Skagit 2 Snohomish 6 Spokane Thurston 3 Walla Walla Whatcom 6 Whitman Yakima 4 Total 70 pg 6 County Acres Bond Amt Adams 60 $ 65,000 Benton 20.8 $ 87,000 Chelan $ 400,000 Clark 83.7 $ 295,000 Ferry 226 $ 200,000 Franklin 92 $ 250,000 Grant 6 $ 274,603 King 59.5 $ 672,500 Kittitas 20 $ 225,000 Lewis 06 $ 45,000 Lincoln 270 $ 242,000 Pierce 74 $ 42,500 Spokane 40 $ 72,000 Walla Walla 0. $ 84,800 Whatcom 48 $ 58,000 Whitman 740 $ 670,000 Yakima $,244,500 Total 2,222 $6,77,903 In 2009, the state legislature gave the Commission the authority to develop financing programs for energy-efficiency and renewable-energy projects. Since 202, the Commission has financed 20 projects by both private companies and nonprofits. They include: Energy-efficiency upgrades at Seattle-area and Bellingham YMCAs, nonprofits in Everett and Seattle, and a Bainbridge Island grocery store Community wind turbines that power local homes near Ellensburg Affordable and highly energy-efficient single-family homes in Seattle and Spokane County Amount King $ 0,907,779 Kitsap $,200,000 Kittitas $ 9,000,000 Pierce $ 800,000 Snohomish $ 500,000 Spokane $,000,000 Whatcom $ 00,000 Statewide initiatives $ 00,000 Total $23,607,779

17 Projects by County Clallam Jefferson Grays Harbor Mason Pacific Wahkiakum San Juan Island Kitsap Thurston 3 Cowlitz 2 Lewis 2 Clark 3 Pierce Snohomish King Skamania Whatcom 6 2 Skagit Kittitas Yakima Klickitat Chelan Okanogan Douglas Grant Benton 5 Franklin Ferry Lincoln Adams Walla Walla Stevens Columbia Pend Oreille Spokane Whitman 2 Garfield Asotin wshfc 207 impact report 34 Years 27 Projects 20 Energy Projects 27 Farms 70 Nonprofit Facilities $.02b 2 Scientific Research 3 Economic Development 3 Animal Welfare 5 Cultural Facilities 7 Job Training 56 Education 74 Social Services & Athletic Facilities Total Amount Invested Impact Measurement Less More pg 7

18 Keeping Housing Safe and Affordable ,000 +, units monitored statewide properties monitored each year properties physically inspected each year Asset Management, Compliance and Finance Once the construction or remodeling of multifamily affordable housing is finished, the work of the Asset Management and Compliance team begins. This division helps property owners and managers comply with the state statutes, the federal tax code, and the contractual commitments that come with bond and tax-credit financing. Our commitment to monitoring and technical assistance lasts for the term of the bonds and/or tax credits up to 40 years. Education and Training 20+ compliance workshops annually for more than 600 owners, property managers, public agencies, and other stakeholders. Classes for users of the web-based annual reporting system, WBARS. Specialized training sessions in conjunction with the Affordable Housing Management Association and the Council for Affordable and Rural Housing. pg 8 Partnerships By working with other entities who fund housing, the Commission helps to maximize agency resources and minimize inspections and reporting requirements. Cities of Seattle, Spokane, Tacoma, and Bellingham King and Snohomish counties Wash. State Department of Commerce Wash. State USDA Rural Development U.S. Dept. of Housing and Urban Development Web-Based Reporting System The Washington State Web-Based Annual Reporting System, or WBARS, is a comprehensive and innovative system created by the Commission and the State Department of Commerce, and shared by several different public funders in Washington state. It manages detailed property and resident information on thousands of properties, allowing all our property managers and owners to easily meet reporting requirements, while giving funders a powerful oversight tool. WBARS is the only housingfinance-agency reporting system in the nation used by multiple public funder agencies. Technical Assistance Daily guidance provided by phone and . Periodic compliance workshops tailored to industry beginners as well as seasoned professionals. Award-winning website that provides: Program manuals, report forms, FAQs, web training videos, and online workshop registration. A calendar of regional housing and economic development activities. Links to funding and compliance resources. Monthly updates to over,700 subscribers with timely information on compliance and asset management topics.

19 wshfc 207 impact report Financial Oversight The Commission s Finance Division: Ensures the Commission s ongoing fiscal integrity. Monitors, records, and reports all financial transactions. Manages the Commission s outstanding debt, ensuring compliance with legal requirements of bonds. Oversees internal controls and safeguards assets. Asset Management Monitored performance of trustees, servicers, and other outside contractors. Recorded transactions and created quarterly financial statements on outstanding bond issues. Supplied voluntary disclosure reports to bond investors. General Operations Prepared monthly financial statements. Performed investment management oversight. Coordinated the annual budget and work-planning process. Coordinated annual audits by independent auditors and the state auditor. Administered and monitored the Program Investment Fund. Provided financial management and accounting services for affiliate agencies. Affiliate Agencies Tobacco Settlement Authority The Finance Division manages the assets of the Tobacco Settlement Authority, a governorappointed board established to oversee the issuance of bonds against state tobaccosettlement revenues in In 203, bonds were refunded to save Washington taxpayers approximately $90 million in interest over the next decade. bond issue $ 209 million of outstanding debt Washington Higher Education Facilities Authority The Finance Division manages the assets of the Washington Higher Education Facilities Authority, a governor-appointed board. WHEFA financing enables the state s nonprofit, private colleges and universities to build, equip, expand, and improve their facilities through tax-exempt bonds. 89 bond issues $ 2. billion issued

20 The Washington State Housing Finance Commission is a publicy accountable, self-supporting team dedicated to increasing housing access and affordability and to expanding the availability of quality community services for the people of Washington. We work to increase housing people can afford statewide, and we issue below-market-rate, tax-exempt bonds, and federal housing credits to fund housing and nonprofit facilities across Washington. The bonds of the Washington State Housing Finance Commission are not obligations of Washington state and are not repaid with tax dollars. The Commission is financially self-sufficient. All operating expenses are paid from program revenues. No taxpayer dollars were used to produce this document. For more information about the Commission and its work, visit or call or HOME (4663) in Washington state. pg 20 Photo credits: Ingrid Barrentine, Tom Turley and Steve Towell