Housing for 30% AMI Households in Arlington (March 2021)

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.