Housing for 30% AMI Households in Arlington Arlington Community Foundation Shared Prosperity Initiative March 2021
AHS is a 501(c)(3) nonprofit organization working to increase the supply of affordable housing in Arlington County and Northern Virginia through public education, policy development, advocacy and innovation.
Arlington Community Foundation Shared Prosperity Initiative
Who is Shared Prosperity serving? • Households making under 30% AMI, or $38,700 for a family of four. (2021 AMI is $129,000) • 10,000 households, 8,000 of whom are renters • 12% of Arlington’s population • Essential workers--childcare workers, hospital aides, office cleaners, construction and food service employees. Plus seniors and others on fixed incomes.
Arlington Community Foundation Shared Prosperity Initiative
How many renter households earn <30% AMI, and how has this changed over time? Number of Renter Households by AMI Category 30,000 25,000 20,000 15,000 10,000
9,067
21,696
8,077 6,034 6,075
5,494 5,210
5,000 0
24,615
Decline from 2012 to 2018 of 990 households at <30% contrasts with large gain in highest income groups
2,575
<30% AMI
30-49% AMI
2010-12 17,136
5,440
5,9716,340
3,332
50-59% AMI
60-79% AMI
2010-2012 Total
All renters 0-60% AMI
6,740
2016-18 16,619
80-99% AMI
100-119% AMI
120%+ AMI
2016-2018 Total
Source: GMU Stephen Fuller Institute, Arlington County 2020 Updated Housing Needs Analysis
Arlington Community Foundation Shared Prosperity Initiative
What do we know about 30% AMI renter households? Household Size for Renters at 30% AMI and Below 5,000 4,500
4,748
4,472
Decline from 2012 to 2018 was driven by loss of family-sized households (4+) and slight decline in 1-person households
4,000 3,500 3,000 2,500
1,946
2,000
1,968 1626
1,500 1,000
747
737
900
500 0
1 person
2 person Year 2012
3 person Year 2018
Source: GMU Stephen Fuller Institute, Arlington County 2020 Updated Housing Needs Analysis
4+ people
Arlington Community Foundation Shared Prosperity Initiative
Rental units overall are more likely to be affordable to 60-120% AMI Rental Units
Renter Households
24,615
16,475 13,655
12,592
< 60% AMI
<30% AMI
8,988
8,077 5,210 1,585
2,197
<30% AMI
30-49% AMI
6,075
5,440
60-79% AMI
80-99% AMI
6,340
3,597 3,332
50-59% AMI
Source: GMU Stephen Fuller Institute, Arlington County 2020 Updated Housing Needs Analysis
100-119% AMI
120%+ AMI
Arlington Community Foundation Shared Prosperity Initiative
Supply-Demand Mismatch Rental Units vs. Renters by AMI Arlington County
70000 60000
120%+ AMI
50000
100-119% AMI
40000
80-99% AMI 60-79% AMI
30000 20000 10000 0
80% AMI
80% AMI
50-59% AMI
60% AMI
30-49% AMI <30% AMI
60% AMI
Rental Units
Renter Households
Source: GMU Stephen Fuller Institute, Arlington County 2020 Updated Housing Needs Analysis
Arlington Community Foundation Shared Prosperity Initiative
How Does Arlington Meet Lowest Income Housing Needs? • Context: Arlington does not have a Public Housing Authority and limited number of Section 8 projects • Public Housing and Section 8 (Housing Choice Vouchers) are the two main federal programs that house extremely low-income households because they offer “deep subsidy”
• Current federal housing subsidy programs focus on the higher end of ‘low-income’ households • Project-based LIHTC = fixed rents typically at 50-60% AMI • S8 tenant-based vouchers = deepest subsidy for lowest incomes
• Arlington’s local programs have followed suit: • Project-based = Affordable Housing Investment Fund supplements LIHTC • Tenant-based vouchers Housing Grants supplement S8
Two Types of Housing Subsidies
Deep Subsidy: Tenants pay only 30% of their income Works well for lowest-income households
Shallow Subsidy: Tenants pay a set rent level often at 50-60% AMI Often needs supplemental tenantbased assistance
Arlington Community Foundation Shared Prosperity Initiative
Arlington has 8,077 renter households at or below 30% AMI. How are their housing needs being met? Non-Senior Units 3%
Senior Units 8%
Perm Supportive Housing 5%
Rent Burdened 48% Vouchers and Grants 36%
Source: Arlington County Housing Indicators 2020 and ACF/AHS analysis. Non-senior and senior units refer to units with County subsidy agreements (CAF) and federal project-based Section 8. Housing Grants and Section 8 assistance are not limited to households at 30% of AMI but these are the predominant households served by those programs.
Arlington Community Foundation Shared Prosperity Initiative
ACF Shared Prosperity Initiative HOUSING GOAL: Over the next 5 years, an additional 1,500 households with incomes at or below 30% AMI have found housing in Arlington that is affordable to them. County funding, private sector investments, and policy change are needed to achieve this goal. Strategy Spring 2019
Target
Target progress
A. Bricks and Mortar Buy-Down in New Construction
200 units for 30+ years $24M
28 units for 30% AMI $2.7M to date plus researching creative financing tools
B. Create a New Rental Subsidy Fund
550 households for 5 years $20M
2 year subsidy for 28 households $.55M
C. Create a More Robust “Emergency Housing Stabilization Fund”
$.5M annually
$.5M achieved pre-COVID $7.7M since July 2019
D. POLICY - Update Arlington’s Affordable Housing Ordinance
2020 General Assembly Action
Analysis and report on ordinance options with 8 County-only strategies identified; GA action on hold
Arlington Community Foundation Shared Prosperity Initiative
Policy Opportunities Federal
State
Local
• Major increases in Rental Assistance (see next page) – will they be permanent?
• General Assembly voted to increase Housing Trust Fund to $ • New Affordable Housing Tax Credit
• Affordable Housing Master Plan Review
Arlington Community Foundation Shared Prosperity Initiative
Major Housing Provisions of The American Rescue Plan • $21.55 billion in additional funding for Treasury’s Emergency Rental Assistance Program • $5 billion for emergency housing vouchers • $5 billion for the HOME program to aid homelessness assistance and supportive services as well as the production of affordable housing and the acquisition of non-congregate shelter spacing.