The URL can be used to link to this page

Council Provided Information - 3/19/2024Annual HOUSING FUNDING strategy Fy 2024-25 HOUSING DEVELOPMENT FUND WESTSIDE COMMUNITY INITIATIVE FUND SECONDARY HOUSING FUND ADOPTED Q1 2021 YEARLY BOD APPROVAL PRIMARY HOUSING FUND HOUSING ALLOCATION FUNDS POLICY HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY This policy established guidelines for allocating/directing resources for housing by funding source. Also requires "Annual Housing Funding Strategy" (right) be brought in front of Board every year. Bringing estimated amounts to Board for review next month For your feedback today For your feedback today PRIMARY HOUSING FUND WESTSIDE COMMUNITY INITIATIVE FUND HOUSING DEVELOPMENT FUND SECONDARY HOUSING FUND housing fund allocations $$$$ HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY FY24 Housing ActivitY RECAP 2024 HOUSING PRIORITIES Wealth Building Opportunity Affordable Family Housing Deeply Affordable Housing Missing Middle Housing FY 2023-24 Housing Development Loan Program $13.7 released ($4.2 in RDA Funds, $9.5 in HUD funds) - In process and to be reviewed by RDA Board in March ADU Partnership Request for Information, NOFA for ADU program to follow Prep Work on Acquisitions/Dispositions West Montrose Deseret Industries/Fire Station Site - Sugar House 400 South/900 West Equity Building Model RDA Board allocated $10 million in ARPA funds the Perpetual Housing Fund of Utah to carry out a tenant wealth building program Data - current and future slc deed-restricted affordable housing developments map Data - city supported Affordable housing constructed since 2015 and future developments Data - city supported Affordable housing units constructed since 2015 and future developments Housing Units by Unit Size Data - Salt Lake City Housing Snapshot MEDIAN HOUSEHOLD INCOME $72,3571 MEDIAN HOME VALUE2 LOW-INCOME HOUSEHOLDS3 COST-BURDENED HOUSEHOLDS4 AFFORDABLE UNIT GAP5 MEDIAN RENT $458,600 $1,254 -17,366 39,320 (earning < 80% AMI) 24,285 (spending 30% or more income on housing costs) MEDIAN HOUSEHOLD INCOME $66,6581 MEDIAN HOME VALUE2 LOW-INCOME HOUSEHOLDS3 COST-BURDENED HOUSEHOLDS4 AFFORDABLE UNIT GAP5 MEDIAN RENT $459,800 $1,037 (1 Bed) -15,877 39,475 (earning < 80% AMI) 23,597 (spending 30% or more income on housing costs) FY 2023-2024 FY 2022-2023 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates (1,2) Dept. of Housing and Urban Development’s Comprehensive Housing Affordability Strategy 2016-2020 (3,4) 1 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates HOMEOWNERSHIP RATE IS GROWING AT A SLOWER PACE THAN RENTAL RATE Data - other metrics 2 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates AT LEAST 8,341 RENTING HOUSEHOLDS FALL IN THE "EXTREMELY LOW INCOME” LIMIT SET BY HUD FOR FY23. Data - other metrics 3 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates PERCENTAGE OF FAMILY HOUSEHOLDS HAVE BEEN DECREASING SINCE 2018 Data - other metrics 4 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates HIGHER INCOME HOUSEHOLDS MAKING $75K OR MORE HAVE INCREASED WITHIN SALT LAKE CITY THROUGH THE YEARS, LOWER INCOME HOUSEHOLD MAKING LESS THAN $50K HAVE DECREASED. Data - other metrics 5 Salt Lake County Assessor (5) NUMBER OF COMMERCIAL PARCELS HAVE DECREASED WITHIN SALT LAKE CITY Data - other metrics 6 CoStar Group (6) COMMERCIAL GROWTH RATE IS SLOWING, WHILE OCCUPANCY AND LEASE RATES HAVE INCREASED Data - other metrics 2 3 4 5 6 Source: Census Bureau's 2017-2022 ACS 5-Year Estimates (1,2, 3, 4) Salt Lake County Assessor (5) CoStar Group (6) HIGHER INCOME HOUSEHOLDS MAKING $75K OR MORE HAVE INCREASED WITHIN SALT LAKE CITY THROUGH THE YEARS, LOWER INCOME HOUSEHOLD MAKING LESS THAN $50K HAVE DECREASED. NUMBER OF COMMERCIAL PARCELS HAVE DECREASED WITHIN SALT LAKE CITY COMMERCIAL GROWTH RATE IS SLOWING, WHILE OCCUPANCY AND LEASE RATES HAVE INCREASED PERCENTAGE OF FAMILY HOUSEHOLDS HAVE BEEN DECREASING SINCE 2018 AT LEAST 8,431 RENTING HOUSEHOLDS FALL IN THE "EXTREMELY LOW INCOME” LIMIT SET BY HUD FOR FY23. 1 HOMEOWNERSHIP RATE IS GROWING AT A SLOWER PACE THAN RENTAL RATE Data - other metrics salt lake City Housing Goals HOUSING SLCMAYOR'S 2024 GOALS RDA LIVABILITY BENCHMARKS Begin implementation on Thriving in Place’s two-year action plan (anti-displacement) Create and submit to the RDA Board a program to support the creation of more Accessory Dwelling Units (ADUs) Explore funding resources and program ideas to preserve naturally occurring affordable housing with the goal of keeping people in their homes and stabilizing neighborhoods Support projects that allow tenants to build wealth and/or gain equity Continue to release housing funds through RDA for development or acquisition of moderate income housing Promote the development of affordable family- sized units with 3+ bedrooms Provide funding for programs and/or initiatives that build wealth and/or provide equity sharing opportunities for residents Utilize Inland Port Housing Funds to expand affordable housing options Ownership - Create opportunities for residents/business owners to building wealth and/or establish permanent roots Housing for Everyone - Promote housing for families, underserved populations and extremely low income Affordable Commercial Spaces - Support mixed- use projects with space for commercial uses that serve the community WEALTH BUILDING OPPORTUNITY recommended annual housing priorities Four priorities to focus on this FY; Seeking Board feedback today NEIGHBORHOOD COMMERCIAL AND SERVICES AFFORDABLE FAMILY HOUSING w/ AMENITIES for CHILDREN DEEPLY AFFORDABLE HOUSING HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY LAND ACQUISITION/ DISPOSITION HOUSING DEVELOPMENT LOAN PROGRAM EQUITY BUILDING NOFA recommended housing ACTIVItIES Tools/programs by which to achieve Priorities; Seeking Board feedback today HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY housing ACTIVItIES Housing Development Loan Program Competitive NOFA Require affordable family housing and/or deeply affordable housing as threshold Utilize interest rate reduction benchmarks for competitive NOFA (Alignment with RDA's Guiding Framework); annual priorities will have greater ranking weight HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY FY25 Housing Activity IMPACT HOUSING PRIORITIES Wealth Building Opportunity Affordable Family Housing w/ Amenities for Children Deeply Affordable Housing Neighborhood Commercial & Services Equity Building NOFA Land Acquisition/ Disposition Housing Development Loan Program HOUSING ACTIVITIES HOUSING DEVELOPMENT FUND SECONDARYPRIMARY WESTSIDE COMMUNITY INITIATIVE FUND housing fund allocations FY25 ANNUAL HOUSING FUNDING STRATEGY ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES NEIGHBORHOOD COMMERCIAL AND SERVICES DEEPLY AFFORDABLE HOUSING WEALTH BUILDING OPPORTUNITY AFFORDABLE FAMILY HOUSING HOUSING DEV. LOAN PROGRAM LAND ACQUISITION/ DISPOSITION EQUITY BUILDING NOFA Redevelopment Advisory Committee Establish standard benchmarks/measures of success to review as a part of funding strategy process Allow more time to understand if measures are met Units for families don’t necessarily need 3 bedrooms Ground floor walk-ups are conducive to families Requiring commercial space as part of the HDLP may be difficult - encourage instead Financial incentives for affordable housing should be coupled with zoning incentives RAC next steps The RDA Board may wish to discuss and provide feedback regarding the proposal The RDA Board will consider approval of the FY25 housing priorities at their April meeting Proposed funding allocations to housing activities will be brought to the RDA Board with the budget presentation in May Housing activities are approved as a part of the RDA budget approval HOUSING FUND ALLOCATIONS ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES ANNUAL HOUSING FUNDING STRATEGY HOUSING DEVELOPMENT FUND SECONDARYPRIMARY WESTSIDE COMMUNITY INITIATIVE FUND housing fund allocations FY25 ANNUAL HOUSING FUNDING STRATEGY ANNUAL HOUSING PRIORITIES HOUSING ACTIVITIES NEIGHBORHOOD COMMERCIAL AND SERVICES DEEPLY AFFORDABLE HOUSING WEALTH BUILDING OPPORTUNITY AFFORDABLE FAMILY HOUSING HOUSING DEV. LOAN PROGRAM LAND ACQUISITION/ DISPOSITION EQUITY BUILDING NOFA